Question 1

What is a global firm?

Question 1 options:

A)	A firm that operates in more than one country and has a sales and marketing staff in those countries.
B)	A firm that operates in more than one country but restricts the sale of its products to the home country.
C)	A firm that sells its products and services across the world but restricts manufacturing to the home country.
D)	A firm that operates in one country and exports its goods and services to foreign countries.
E)	A firm that operates in more than one country and captures R&D, production, logistical, marketing, and financial advantages not available to purely domestic competitors.

Question 2

Which of the following is a risk that firms must consider prior to expanding abroad?

Question 2 options:

A)	The domestic consumers may prefer low-priced products.
B)	Consumers in the foreign country may be very particular about quality.
C)	Management may not understand the foreign country's business culture.
D)	The foreign country may have very low pollution control standards.
E)	The market in the foreign country may be too similar to the domestic market.

Question 3

Why do many U.S. firms prefer to sell in Canada, England, and Australia, rather than in Germany and France?

Question 3 options:

A)	This gives them a toehold in fast-growing markets.
B)	They feel more comfortable with the languages, laws, and culture.
C)	Germany and France have larger markets.
D)	They prefer markets that are culturally distant.
E)	They are seeking markets with high market risk.

Question 4

Which of the following modes of entry into a foreign market involves the maximum commitment and risk?

Question 4 options

A)	joint ventures
B)	licensing
C)	direct exporting
D)	direct investment
E)	franchising

Question 5

Companies typically start their international foray with ________, which involves working through independent intermediaries who sell their products abroad.

Question 5 options:

A)	direct exporting
B)	indirect exporting
C)	joint ventures
D)	licensing
E)	franchising

Question 6

Which of the following is TRUE about direct investment as a mode of international expansion?

Question 6 options:

A)	It yields the lower returns than joint ventures.
B)	It does not allow the firm to diversify.
C)	It involves the least amount of risk.
D)	It involves the least cost.
E)	It allows a firm to retain full control over its investment.

Question 7

Whirlpool took a 53 percent stake in the Dutch electronics group Phillips' home appliances business. Sharing ownership and control of this business enabled Whirlpool to leapfrog into the European market. This is an example of ________.

Question 7 options:

A)	a licensing agreement
B)	a joint venture
C)	an exporting agreement
D)	a sprinkler approach
E)	a straight extension

Question 8

In an adapted marketing program, the company ________.

Question 8 options:

A)	ensures that uniform practices are adopted across countries
B)	ensures the lowest cost marketing program is adopted
C)	ignores differences in the legal environment
D)	tailors the marketing programs to each target market
E)	focuses more on brand image than consumer preferences

Question 9

Straight extension of the product means introducing ________.

Question 9 options:

A)	a customized product to the foreign market with existing marketing strategy
B)	the product to the foreign market without any changes to the product
C)	the product to the foreign market with minor changes to the product
D)	a customized product to the foreign market with a new marketing strategy
E)	the product to the foreign market with major changes to the product

Question 10

Your firm has decided to enter the international market with your product called "Trema," a combination of a pocket organizer and cell phone. Even though the product has been a huge success in the home country, market research suggests some changes may be required before it can be introduced in Europe. Your CMO is of the opinion that the product requires certain extra features and the product will also have to be advertised differently. Your CMO is advocating ________.

Question 10 options:

A)	forward adaptation
B)	straight extension
C)	product standardization
D)	product invention
E)	dual adaptation