Quiz

Test yourself by working through the chapter quiz.

1. According to Dunning’s OLI Framework a firm’s foreign investment decisions are driven by:

  1. Ownership, Internationalization and Legal factors
  2. Overseas, Internalization and Location factors
  3. Ownership, Location and Internalization factors
  4. Ownership, Language and Internalization factors

Answer:

c. Ownership, Location and Internalization factors

2. At what stage in the country selection process does the firm consider its own resources, capabilities and sources of competitive advantage?

  1. Secondary screening
  2. Final country selection
  3. Micro segmentation
  4. Macro segmentation

Answer:

a. Secondary screening

3. Which of the following is considered a proactive motivation to go international?

  1. Entry of a foreign competitor into the firm’s home market
  2. Saturated domestic markets
  3. Key products entering the maturity phase of the product life cycle
  4. Aggressive management intent on building a global operation

Answer:

d. Aggressive management intent on building a global operation

4. The term ________________ describes institutional arrangements used by firms to enter foreign markets.

  1. Mode of transportation
  2. First mover advantage
  3. Mode of entry
  4. Firm specific advantage

Answer:

c. Mode of entry

5. According to the Uppsala model a firm’s __________________ is the major driver of its pattern of internationalization.

  1. Specific advantage
  2. Resource commitment
  3. Technological capability
  4. Experiential knowledge

Answer:

d. Experiential knowledge