When similar industries are generating very high earnings in a particular country, an MNC may decide to sell is own products in those markets. this is mean: O a Diversity Intermationally Ob. Attract new sources of demand O c. Enter profitable markets Od. Exploit monopolistic advantages
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- Bulldogs Inc. wants to enter the global market. Which one may not be the reason in such decision? Production efficiency in other countries may result to economies and synergies that are favorable to the company To seek technologies not yet present in the home country To broaden market and increase shareholder value Essential materials and labor rates may be more expensive in other countriesThe competitive advantage opportunities that a global competitor can gain by dispersing performance of its activities across many nations include all of the following, EXCEPT Question 21 options: being able to shift production from one country to another to take advantage of exchange rate fluctuations, differing wage rates, differing energy costs, or differing trade restrictions being in better position to choose where and how to challenge rivals. shortening delivery times to customers by having geographically scattered distribution facilities. centralizing value chain activities to foster just-in-time inventory activities.Due to their rapid expansion to foreign markets the process is sometimes referred to as the “McDonaldization” of new markets. Which market entry strategy is McDonald’s Corporation using in those countries where local governments do not allow 100% foreign funded enterprises? a.Franchising b.Partnerships with local (domestic) companies c.Mergers & acquisitions d.Local holdings e.Direct export
- Which of the following is NOT a reason why companies move into international operations? a. To better serve their primary customers. b. To take advantage of lower production costs in regions where labor costs are relatively low. c. To increase their inventory levels. d. Because important raw materials are located abroad. e. To develop new markets for the firm's products.Which one of the following is likely discouraging foreign direct investmen (FDI) in one country? A. The foreign firm would produce a good which is currently not available in the host country. B. The foreign firm intends to partner with the local firms of the host country. C. The foreign firm's products are similar with the local firms of the host country. D. The foreign firm is able to compete in the market of the host country. Clear my choiceThe globalization of markets, even for services, has increased the number of competitors and often lowered their cost of sales. The high rate of technological change in many industries has created new sources of value for customers, but not necessarily led to increases in profit for the producers. Still, those companies that have the capability to create and implement strategies that take account of these changes are well rewarded for their efforts. True or False?
- The complexity posed by differences in the cultural, political, legal, and economic environments creates a so-called “liability of foreignness.” This idea holds that foreign companies, because of their poorer familiarity with local conditions, incur additional costs. In theory, the liability of foreignness makes IB activity too expensive. In practice, companies offset this liability by capitalizing on their unique advantages as well as selecting the mode of international business that best reflects their resource profile and risk tolerance--Always in the effort toward minimizing the intrinsic higher costs of international operations. The higher costs of international operations, executives point out, are driven by things as varied as the cost of legally establishing businesses, real estate costs, customs duties, and translation costs. Managing these costs is complicated by the report that _53_______%___ of global CEOs are concerned about the impact of __bribery and…Which of the following identifies specialization as a reason for international business? A. Agency theory B. Theory of comparative advantage C. Efficient market hypothesis D. Imperfect markets theory. What is globalization? What modes of international business are used by firms that want to globalize? Briefly describe each method. 1. What is the difference between a monochronic and a polychronic culture? How do such cultural differences affect business practices for international firms? 2. What is gross national income? How is it calculated? Illustrate your answer with a specific example. 1. What are the disadvantages of import restrictions in regard to creating domestic employment opportunities? 2. What is value chain configuration? Briefly list and discuss the factors that influence value chain configuration. 1. What is the relationship between a company's international market and its production location decisions? How do firms benefit from the use of scanning techniques when making location decisions? 2. Explain how franchising agreements differ from licensing agreements. 1. Compare push and pull promotional strategies in the context of international business.…
- The rise of globalization is due to the many companies that have become multinational corporations for various reasons—for example, to access better technology, to enter new markets, to obtain more raw materials, to find funding resources, to minimize production costs, or to diversify business risk. This multimarket presence exposes companies to different kinds of risk as well—for example, political risk and exchange rate risk. The relationship between interest rates and exchange rates can be represented through the concept of interest rate parity. Consider the following: Suppose you observe the following spot and forward exchange rates between the U.S. dollar ($) and the Canadian dollar (C$): Spot Exchange Rate One-Year Forward Exchange Rate Canadian dollar (U.S. dollar/Canadian dollar) 0.8932 0.9133 The current one-year interest rate on U.S. Treasury securities is 8.03%. If interest rate parity holds, what is the expected yield on one-year Canadian…The rise of globalization is due to the many companies that have become multinational corporations for various reasons—for example, to access better technology, to enter new markets, to obtain more raw materials, to find funding resources, to minimize production costs, or to diversify business risk. This multimarket presence exposes companies to different kinds of risk as well—for example, political risk and exchange rate risk. The relationship between interest rates and exchange rates can be represented through the concept of interest rate parity. Consider the following: Suppose you observe the following spot and forward exchange rates between the U.S. dollar ($) and the Canadian dollar (C$): Spot Exchange Rate One-Year Forward Exchange Rate Canadian dollar (U.S. dollar/Canadian dollar) 0.8798 0.8935 The current one-year interest rate on U.S. Treasury securities is 8.03%. If interest rate parity holds, what is the expected yield on one-year Canadian…GohwaT has a client who has inquired about the valuation method best suited for comparison of companies in an industry that has the following characteristics:• Principal competitors within the industry are located in the United States, France, Japan, and Brazil.• The industry is currently operating at a cyclical low, with many firms reporting losses.• The industry is subjected to rapid technological change.His advisor recommends that the client consider the following valuation ratios:1. Price to earnings2. Price to book value3. Price to salesDetermine which one of the three valuation ratios is most appropriate for comparing companies in this industry. Support your answer with two reasons that make that ratio superior to either of the other two ratios.