Chapter 6 Multiple-choice questions

. The Uppsala model of internationalization assumes that firms:

Are born global.

Start the process of internationalization by setting up manufacturing plants overseas.

Take a staged approach to internationalization.

Start the process of internationalization by setting up joint ventures overseas.

.

Have multinational sales of at least 25% within the first three years of existence.

Take an international perspective from inception.

Tend to be found in technologically based, knowledge-intensive industries.

All of the above.

. A firm undertaking FDI in an overseas country might do so for which of the following reasons?

To take advantage of more expensive resources.

To access growing markets and/or reduce production costs.

To escape competition.

To protect their domestic market.

. To determine a country's attractiveness to business requires:

A detailed analysis of elements in the macro-environment.

An assessment of the political and financial risks of doing business in that country.

An analysis of the competitive environment.

All of the options given.

. In overseas markets higher returns are usually associated with:

High risk and high attractiveness.

High risk and low attractiveness.

Low risk and high attractiveness.

Low risk and low attractiveness.

. According to the WEF, which of the following is NOT key for efficiency-driven economies?

Higher education and training.

Labour market efficiency.

Market size.

Innovation.

. Critics of competitiveness indices argue that:

They often include a nation's unique characteristics.

They are a good guide to government policy.

They are pointless as it is companies who compete not countries.

All of the above.

. Which of the following is NOT a problem when dealing with international data?

Lack of resources/skills to collect and analyse information.

Definitional problems because of lack of IMF advice on the compilation of statistics.

Economies with large informal economies.

Conversion to a common currency.

. A government wishing to attract business from overseas would NOT introduce:

Investment grants.

Credit guarantees.

Subsidies to home-based producers.

Reduced corporation tax.

. Country risk is usually lowest in:

High growth economies.

Economically advanced democratic nations.

Politically stable developing nations.

Underdeveloped but democratic nations.

Chapter 6 Multiple-choice questions

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