Question: International strategy refers to a(n):

Answer: strategy through which the firm sells products in markets outside the firm’s domestic market.

Question: Raymond Vernon states that the classic rationale for international diversification is to:

Answer: extend the product’s life cycle.

Question: Which of the following is NOT an incentive for firms to become multinational?

(A) To gain access to consumers in emerging markets(B) To gain easier access to raw materials(C) To avoid high domestic taxation on corporate income

(D) Opportunities to integrate operations on a global scale

Answer: To avoid high domestic taxation on corporate income

Question: The increased pressures for global integration of operations have been driven mostly by:

Answer: increasing demand for similar products.

Question: The benefits of expanding into international markets include each of the following opportunities EXCEPT:

(A) increasing the size of the firm’s potential markets.(B) economies of scale and learning.(C) location advantages.(D) favorable tax concessions and economic incentives by home-country governments.

Answer: favorable tax concessions and economic incentives by home-country governments.

Question: U.S. companies moving into the international market need to be sensitive to the need for local country or regional responsiveness because of:

Answer: consumer needs, political and legal structures, and social norms vary by country.

Question: Which of the following is NOT a factor pressuring companies for local responsiveness?

Answer: Availability of low labor costs

Question: U.S. cola companies entered the global market because of:

Answer: limited growth opportunities in their domestic market.

Question: Moving into international markets is a particularly attractive strategy to firms whose domestic markets:

Answer: are limited in opportunities for growth.

Question: . Working in multiple international markets can provide firms with __________ perhaps even in terms of __________.

Answer: new learning opportunities; research and development activities