Question : 61.Which of the following true of significant strategic commitments to : 1299438

61.Which of the following is true of significant strategic commitments to foreign expansion made by an international firm?  

A. Significant strategic commitments of a foreign firm have little or no influence on the nature of competition in a market.

B. The large-scale entry of a foreign firm does not give other foreign institutions considering entry into the market a reason to pause.

C. The large-scale entry of a foreign firm gives customers reasons for believing that the foreign firm will not remain in the market for the long run.

D. Significant strategic commitments are associated with higher strategic flexibility of the international firm.

E. Significant strategic commitments are neither unambiguously good nor bad.

62.Which of the following types of entry into a foreign market allows a firm to learn about the foreign market while limiting the firm’s exposure to that market?  

A. Early entry

B. Small-scale entry

C. Large-scale entry

D. Late entry

E. Rapid entry

63.Which of the following is a disadvantage of small-scale entry for an international firm considering foreign expansion?  

A. The possibility of escalating commitment leading to major financial losses

B. The limited availability of resources for use in other markets

C. The lack of flexibility associated with strategic commitments

D. The increase in economic exposure due to minimal time spent in evaluating a foreign market

E. The difficulty of building market share and capturing first-mover advantages

64.Which of the following is the reason why small-scale entry into a foreign market makes it difficult to build market share?  

A. Small-scale entry necessitates rapid entry into a foreign market.

B. Small-scale entry is associated with a lack of commitment demonstrated by the foreign firm.

C. Small-scale entry leads to escalating strategic commitments.

D. Small-scale entry requires that extra time be spent in analyzing a foreign market.

E. Small-scale entry leads to increased exposure to a foreign market.

65.Which of the following is true of market entry by an international firm considering foreign expansion?  

A. Politically unstable nations, by virtue of their higher potential for growth, are the best foreign markets.

B. The value an international business can create in a foreign market does not depend on the nature of indigenous competition.

C. The avoidance of pioneering costs that a later entrant has to bear is a first-mover advantage.

D. Strategic commitments have minor influence on business decisions.

E. Entering a large developing nation before most other international businesses on a large scale is associated with high levels of risk.

66.Which of the following is the most likely outcome of a foreign firm entering a developed nation on a small scale after other international businesses in the firm’s industry?  

A. Capturing first-mover advantages

B. Higher pioneering costs

C. Rapid increase in market share

D. Limited future growth potential

E. Increase in sales volume

67.Which of the following is a course of action suggested by Christopher Bartlett and Sumantra Ghoshal for companies based in developing nations?  

A. Build up financial resources to match those of the largest global competitors.

B. Enter foreign markets at a similar time and scale as multinational companies.

C. Enter markets rapidly and exit at an equally rapid pace to avoid heavy losses.

D. Benchmark one’s operations and performance against foreign multinationals.

E. Do not focus on market niches that multinational companies ignore.

68.Which of the following is an advantage of exporting as a mode of entry into foreign markets?  

A. A firm can avoid the cost of establishing manufacturing operations in the host country.

B. A firm does not have to bear the development costs and risks associated with opening a foreign market.

C. A firm can earn returns from process technology skills in countries where FDI is restricted.

D. A firm has access to local partner’s knowledge.

E. A firm has the ability to engage in global strategic coordination.

69.Which of the following is an advantage of exporting as a mode of entry into foreign markets?  

A. It helps a firm achieve experience curve and location economies.

B. A firm does not have to bear the development costs and risks associated with opening a foreign market.

C. A firm has the ability to engage in global strategic coordination.

D. It helps the firm earn returns from process technology skills in countries where FDI is restricted.

E. It can provide the firm access to the local partner’s knowledge.

70.Which of the following is a disadvantage of exporting as a mode of entry into foreign markets?  

A. The exporting firm incurs the costs of establishing manufacturing operations in the host country.

B. The firm is unable to realize curve economies through exporting.

C. High transport costs can make exporting uneconomical, particularly for bulk products.

D. The firm cannot use countertrading options when exporting.

E. A firm may not realize substantial scale economies from its global sales volume via exporting.