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1. In a diversification strategy for international expansion, a company would move ________. rapidly into a few foreign countries with many of its products and most of its resources into one foreign country and fully expand its product lines in that country before moving to another country move quickly into a regional foreign market but build up its resources in only a few of the countries in the region 2. Which of the following is NOT among the five forces in the Five-Forces Model of Industry Structure? buyers potential new entrants suppliers of raw materials 3. The major use of the matrix as a tool in international location strategy is to ________. pinpoint acceptable and unacceptable characteristics of countries rank countries on the basis of expected investment return show the degree of certainty for different projected returns on investment 4. Which of the following is an external influence on international business managers? production plant locations supply chain linkages product design standards 5. The industry organization (IO) paradigm reports that, on average, the best predictor of firm strategy is the ________. company’s stockpile of assets, skills, and capabilities aggressiveness of a company’s objectives consistency among a company’s structure, systems, and processes 6. A company should use a concentration strategy for international expansion

when there are ________. high needs for product adaptation, low growth and sales stability in each market, and high economies of scale in distribution low economies of scale in distribution, increasing sales response function, and low spillover effects low needs for product and communications adaptation, short competitive lead time, and low program control requirements 7. Market-share increase and turnover ratios are examples of ________. cost and accounting metrics enterprise resource planning (ERP) 8. Most MNEs keep two sets of books, one to comply with ________ and another to comply with ________. host-country principles; supply requirements employee requirements; customer requirements international principles; local principles 9. Increasing globalization is a powerful force of change for competition in an industry because ________. foreign competitors typically have cheaper, higher quality products it makes innovation partners more predictable it requires companies to have low costs in order to compete 10. Which of the following is NOT a means for companies to gradually deepen their international commitments? going first to countries dissimilar to their home countries, but using intermediaries to handle foreign operations entering foreign countries one at a time initially limiting foreign functional responsibility by exporting rather than producing abroad