RSM Internationalization 4

Question 1

Vernon's Product Life Cycle theory of internationalization predicts that production of a mature product will eventually shift to:

Accepted Answer

Developing countries with lower factor costs

Answer

The country with the largest consumer market

Answer

The most innovative country to restart the cycle

Answer

The country with the highest tariff barriers

Question 2

Which type of FDI is motivated by securing raw materials or natural resources rather than serving a local market?

Accepted Answer

Resource-seeking FDI

Answer

Market-seeking FDI

Answer

Efficiency-seeking FDI

Answer

Strategic asset-seeking FDI

Question 3

An MNE that structures its value chain so that each subsidiary specializes in one activity for the global network is pursuing:

Accepted Answer

Integrated network / global factory model

Answer

Multi-domestic strategy

Answer

Simple export strategy

Answer

Turnkey project model

Question 4

Which concept describes the advantage that MNEs derive from operating simultaneously in multiple national markets, allowing arbitrage and risk diversification?

Accepted Answer

Multinationality premium / diversification advantage

Answer

Internalization advantage

Answer

Country-of-origin effect

Answer

First-mover advantage

Question 5

In a franchising arrangement for international expansion, the franchisor's PRIMARY risk is:

Accepted Answer

Loss of control over brand quality and standards by franchisees

Answer

Bearing all capital investment in foreign markets

Answer

Currency translation losses from foreign revenues

Answer

Political expropriation of franchise assets

Question 6

The 'springboard' perspective on emerging-market MNEs (EMNEs) suggests these firms internationalize primarily to:

Accepted Answer

Acquire strategic assets, technology, and brands to overcome home-country disadvantages

Answer

Exploit existing firm-specific advantages in advanced markets

Answer

Avoid domestic regulatory constraints by relocating headquarters

Answer

Follow domestic customers who have expanded abroad

Question 7

Which measure is most commonly used to assess a country's institutional quality relevant to international business decisions?

Accepted Answer

World Bank Worldwide Governance Indicators (WGI)

Answer

GDP per capita at purchasing power parity

Answer

Hofstede's Power Distance Index

Answer

IMF balance of payments statistics