COB 487 Final Exam Questions with Correct Answers

COB 487 Final Exam Questions with Correct Answers Greeks reacted negatively to Coca-Cola advertising using Coke bottles as pillars for the Parthenon. This is a form of ________ risk. - Answer-Management Rivalry is intense in nations with conditions of ________ consumer demand, ________ supplier bases, and ________ new entrant potential from related industries. - Answer-strong, strong, high Renault paid 1 billion USD to acquire a 25 percent ownership stake in the Russian automaker AvtoVAZ in 2008. Just one year later, Russian Prime Minister Vladimir Putin threatened to dilute the Renault ownership stake unless it contributed more money to prop up AvtoVAZ, which was then experiencing a significant slide in sales. This is an example of ________ risk. - Answer-poltical When firms expand into global markets, they are faced with the choice of reducing costs and/or adapting to the local market. When high pressures exist to adapt locally, companies should choose a(n) ________ strategy or ________ strategy in order to compete in the global marketplace. - Answer-transnational, multidomestic The most expensive and risky entry mode is - Answer-Wholly owned subsidaries Which of the following is not a motivation for a company to pursue international expansion? - Answer-It wishes to increase foreign market penetration by developing products for the home market. Regionalization is most important because it permits companies to organize their activities based upon - Answer-the true distance between the home country office and the foreign country. Similarity of culture, laws, rules, and norms encourages - Answer-regionalization Which one of the following explains why so few firms are global? - Answer-Geographic distance is multiplied by distance in culture, language, religion, and legal and political systems. Which would be the appropriate strategy for companies to use to compete in the global marketplace if both the pressures to lower costs and adapt locally are low? - Answer-international strategy According to studies by Rugman and Verbeke, most of the 500 largest companies in the world are global. Group starts - Answer-False According to the textbook, ________ economic integration has progressed at a faster pace than ________ economic integration. - Answer-Regional, global