Question :
41.Which of the following countries presents a favorable benefit-cost-risk trade-off scenario : 1299436
41.Which of the following countries presents a favorable benefit-cost-risk trade-off scenario for foreign expansion?
A. A country ridden by private-sector debt
B. A country with a free market system
C. A country experiencing a dramatic upsurge in inflation rates
D. A country that is heavily populated
E. A country that is less developed and politically unstable
42.Which of the following is true of the value that an international business can create in a foreign market?
A. If the international business offers the same type of product that indigenous competitors are offering, then the value of that product is likely to be greater.
B. If the international business can offer a product that satisfies an unmet need, the value of that product to consumers is likely to be lower.
C. Greater value of an international business translates into an inability to charge higher prices and/or to build sales volume more rapidly.
D. The value that an international business can create in a foreign market depends on the suitability of its product offering to that market and the nature of indigenous competition.
E. An international firm should not rank countries in terms of their attractiveness and long-run profit potential because these factors are always changing.
43.Which of the following factors determine the value that an international business can create in a foreign market?
A. Population density in the foreign market
B. Political stability of the foreign market
C. Nature of indigenous competition
D. Per capita income in the foreign market
E. Type of political system in the foreign market
44.In international business, a product that is not widely available in a foreign market and satisfies an unmet need:
A. is likely to have greater value.
B. will have to be priced relatively low.
C. will see a decrease in sales volume.
D. is not suited to that particular market.
E. will fail to make a profit.
45.Which of the following is true of basic entry decisions for an international firm into a foreign market?
A. Greater value of a product in a foreign market translates into an ability to charge higher prices and/or to build sales volume more rapidly.
B. An international firm should not rank countries in terms of their attractiveness because the parameter can change frequently.
C. If an international business can offer a product that has not been widely available in a foreign market and that satisfies an unmet need, the value of that product to consumers is likely to be much lesser.
D. The costs and risks associated with doing business in a foreign country are typically lower in less developed nations.
E. Other things being equal, the benefit–cost–risk trade-off is likely to be unfavorable in politically stable nations that have free market systems.
46.In which of the following situations can an international business command higher prices for a particular product in a foreign market?
A. When the product is widely available in the foreign market
B. When sales volumes is relatively low in the foreign market
C. When the product offers greater value to customers in the foreign market
D. When the product is more suitable to other foreign markets
E. When domestic competitors are selling alternatives at reduced prices
47.In international business, the benefits frequently associated with entering a foreign market early are known as _____.
A. pioneering costs
B. first-mover advantages
C. absolute advantages
D. bandwagon effects
E. factor endowments
48.Which of the following is an example of a first-mover advantage?
A. The ability to create switching costs that tie customers into one’s products or services
B. The avoidance of pioneering costs that a later entrant into the foreign market has to bear
C. The increased probability of surviving in a foreign market
D. The opportunity to observe and learn from the mistakes of other entrants
E. The ability to let later entrants ride ahead on the experience curve
49.First-mover disadvantages refer to:
A. disadvantages associated with entering a foreign market before other international businesses.
B. costs that a late entrant to a foreign market has to bear.
C. a direct restriction on the quantity of a good that can be imported into a country.
D. imperfections in the operation of the market mechanism.
E. disadvantages experienced by being a late entrant in a foreign market.
50._____ refer to costs that an early entrant in a foreign market has to bear that a later entrant can avoid.
A. Sunk costs
B. Standard costs
C. Variable costs
D. Pioneering costs
E. Opportunity costs
