RSM Internationalization 5

Question 1

The 'country-of-origin effect' in international marketing refers to:

Accepted Answer

Consumer perceptions of product quality biased by the product's home country

Answer

Tax incentives offered by home governments to exporting firms

Answer

The legal requirement to label products with their manufacturing origin

Answer

Preferential trade agreements between neighboring countries

Question 2

When a firm enters a foreign market through a joint venture, the most common reason for subsequent failure is:

Accepted Answer

Conflict over strategic direction, control, and profit distribution between partners

Answer

Insufficient capital from both partners

Answer

Host government refusal to register the entity

Answer

Exchange rate appreciation in the host country

Question 3

Under the TRIPS Agreement (WTO), member countries must provide minimum standards for:

Accepted Answer

Intellectual property rights protection including patents, copyrights, and trademarks

Answer

Foreign direct investment screening procedures

Answer

Bilateral tariff reduction schedules

Answer

Transfer pricing regulations for MNEs

Question 4

In international business, 'transfer pricing' refers to:

Accepted Answer

Prices set for transactions between units of the same MNE across borders

Answer

The cost of transferring employees between international postings

Answer

Fees paid to local agents for transferring market knowledge

Answer

Exchange rates used to convert subsidiary profits to parent currency

Question 5

Which concept explains why firms from the same home country tend to cluster in the same foreign markets, following each other's FDI decisions?

Accepted Answer

Herding behavior / follow-the-leader FDI

Answer

Psychic distance paradox

Answer

Liability of outsidership

Answer

Horizontal integration

Question 6

The 'liability of outsidership' concept, introduced by Johanson & Vahlne (2009), refines the Uppsala model by arguing that the key barrier to internationalization is:

Accepted Answer

Exclusion from relevant business networks in the foreign market

Answer

High psychic distance between home and host countries

Answer

Insufficient financial resources for FDI

Answer

Lack of government support for export promotion

Question 7

Which strategy is most appropriate for an MNE operating in an industry with HIGH pressures for local responsiveness and LOW pressures for global integration?

Accepted Answer

Multi-domestic strategy

Answer

Global strategy

Answer

Transnational strategy

Answer

Export-based strategy