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Question
Which of the following is a disadvantage of small-scale entry for an international firm considering foreign expansion?A.The possibility of escalating commitment leading to major financial losses
B.The limited availability of resources for use in other markets
C.The lack of flexibility associated with strategic commitments
D.The increase in economic exposure due to minimal time spent in evaluating a foreign market
E.The difficulty of building market share and capturing first-mover advantages
Answer
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To express the PPP theory in symbols, let P$ be the U.S. dollar price of a basket of particular goods and P be the price of the same basket of goods in Japanese yen. What does the purchasing power parity (PPP) theory predict to be the equivalent of the dollar/yen exchange rate, E$/?
A.E$/ = (1 + P)/P$
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Q:
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What is meant by translation exposure?
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Which of the following observations is true of technical analysis, an approach to exchange rate forecasting?
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If a firm favors a push strategy, using direct selling to educate potential consumers about the features of its products, what kind of products would it most likely sell?
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Which of the following is true of the barriers to international communication?
A.Noise tends to increase the probability of effective communication.
B.Source effects can be beneficial for an international business when potential consumers in a target country have a bias against foreign firms.
C.Many international businesses try to promote positive source effects by deemphasizing their foreign origins.
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According to research, when do consumers usually use the country of origin as a cue when evaluating a product?
A.When a firm tries to deemphasize its foreign origins
B.When consumers lack detailed knowledge of a product
C.When an advertising campaign stresses the positive performance attributes of a product
D.When a limited number of messages compete with each other for consumers' attention
E.When a firm resorts to personal selling instead of mass media advertising