ch7 - ch7 Student: _ Why Companies Expand into Foreign...

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ch7 Student: ___________________________________________________________________________ Why Companies Expand into Foreign Markets 1. The reasons why a company opts to expand outside its home market include A. Gaining access to new customers for the company's products/services B. Spreading its business risk across a wider market base C. Achieving lower costs and enhancing the company's competitiveness D. A desire to capitalize on its core competencies and capabilities E. All of these 2. Which of the following is not a typical reason for companies to expand into the markets of foreign countries? A. To gain access to new customers B. To strengthen its capability to employ offensive strategies, especially those that involve preemptive strikes C. To achieve lower costs and enhance the firm's competitiveness D. To capitalize on company competencies and capabilities E. To spread business risk across a wider geographic market base 3. Which one of the following is not a reason why a company decides to enter foreign markets? A. To spread business risk across a wider geographic market base B. To capitalize on company competencies and capabilities C. To achieve lower costs and enhance the firm's competitiveness D. To build the profit sanctuaries necessary to wage guerilla offensives against global challengers endeavoring to invade its home market E. To gain access to more buyers for the company's products/services 4. A company is said to be an international competitor when A. It competes in a majority of the world's different country markets B. It has operations on all of the world's major continents C. It competes in a select few foreign markets (and perhaps has only modest ambitions to enter additional country markets) D. It employs an international strategy and competes in 50 or fewer country markets E. It has 2 or more profit sanctuaries 5. A company is said to be a global competitor when A. It competes in a majority of the world's different country markets B. It employs a global strategy C. It has long range strategic intentions to compete in as many as 50 country markets D. It competes in 15 or more country markets E. It sells its products in 50 to 100 or more countries and is expanding its operations into additional country markets annually 1
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6. The difference between a company that competes "internationally" and a company that competes "globally" is that A. A global competitor operates in "many" country markets and an international competitor operates in just a "few" country markets B. An international competitor competes in a select few foreign markets (and perhaps has only modest ambitions to enter additional country markets) while a global competitor has or is pursuing a market presence on most continents and is expanding its operations into additional country markets annually C. An international competitor has a market presence in countries on one continent and a global competitor has a market presence in countries on most all of the world's continents
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ch7 - ch7 Student: _ Why Companies Expand into Foreign...

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