Podcast
Questions and Answers
What factor is NOT considered a driver of international expansion for firms?
What factor is NOT considered a driver of international expansion for firms?
Which of the following is a firm-specific driver for international expansion?
Which of the following is a firm-specific driver for international expansion?
Which internationalization obstacle is related to tariffs and import quotas?
Which internationalization obstacle is related to tariffs and import quotas?
What component does NOT belong in the PESTEL analysis framework?
What component does NOT belong in the PESTEL analysis framework?
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Which PESTEL analysis factor assesses the impact of government policies on a firm's operations?
Which PESTEL analysis factor assesses the impact of government policies on a firm's operations?
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Which budget determination approach focuses on achieving a specific communication goal?
Which budget determination approach focuses on achieving a specific communication goal?
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Which communication step follows 'Awareness' in the sequence of converting a potential customer to a buyer?
Which communication step follows 'Awareness' in the sequence of converting a potential customer to a buyer?
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Which reason for investing in foreign markets focuses on the availability of resources?
Which reason for investing in foreign markets focuses on the availability of resources?
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What aspect of risk does the term country risk refer to in international business?
What aspect of risk does the term country risk refer to in international business?
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What communication tool is primarily aimed at building credibility and strengthening brand perception?
What communication tool is primarily aimed at building credibility and strengthening brand perception?
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Which advertising goal is primarily used to maintain consumer loyalty after initial awareness is established?
Which advertising goal is primarily used to maintain consumer loyalty after initial awareness is established?
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What is the purpose of the 'Action' step in the communication sequence?
What is the purpose of the 'Action' step in the communication sequence?
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What is the primary characteristic of direct exporting?
What is the primary characteristic of direct exporting?
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Which of the following is NOT a disadvantage of exporting?
Which of the following is NOT a disadvantage of exporting?
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What are contractual agreements primarily used for?
What are contractual agreements primarily used for?
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What is a significant reason for the decline stage of a product life cycle?
What is a significant reason for the decline stage of a product life cycle?
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Which entry mode is characterized by a foreign firm producing and selling products using a licensor's intellectual property?
Which entry mode is characterized by a foreign firm producing and selling products using a licensor's intellectual property?
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Which of the following is NOT a consideration for multinationals in product planning during the decline stage?
Which of the following is NOT a consideration for multinationals in product planning during the decline stage?
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What is a significant advantage of using contractual agreements for market entry?
What is a significant advantage of using contractual agreements for market entry?
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Which factor contributes to brand equity?
Which factor contributes to brand equity?
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Which is NOT typically considered a mode of entry into international markets?
Which is NOT typically considered a mode of entry into international markets?
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What aspect of a brand is directly related to its ability to generate income outside its core structure?
What aspect of a brand is directly related to its ability to generate income outside its core structure?
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What is a key disadvantage associated with franchising as a mode of entry?
What is a key disadvantage associated with franchising as a mode of entry?
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What is the primary purpose of brand identity?
What is the primary purpose of brand identity?
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Why is a well-maintained brand considered to have lasting value?
Why is a well-maintained brand considered to have lasting value?
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What does the term 'joint venture' refer to in the context of international market entry?
What does the term 'joint venture' refer to in the context of international market entry?
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Which mode of entry involves necessitating a new facility built from the ground up?
Which mode of entry involves necessitating a new facility built from the ground up?
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Which of the following is NOT a visible factor of a brand?
Which of the following is NOT a visible factor of a brand?
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Which element is considered a part of a brand's core strategic foundation?
Which element is considered a part of a brand's core strategic foundation?
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What can a strong brand effectively do across various markets?
What can a strong brand effectively do across various markets?
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What is a characteristic of a brand that makes it hard to imitate by competitors?
What is a characteristic of a brand that makes it hard to imitate by competitors?
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What is the primary goal of penetration pricing?
What is the primary goal of penetration pricing?
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Which pricing strategy is characterized by consistent low prices aimed at price-sensitive customers?
Which pricing strategy is characterized by consistent low prices aimed at price-sensitive customers?
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What is a key characteristic of promotional pricing?
What is a key characteristic of promotional pricing?
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Which of the following is NOT a reason to use a low pricing strategy?
Which of the following is NOT a reason to use a low pricing strategy?
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Which factor is NOT associated with expanding to a foreign market?
Which factor is NOT associated with expanding to a foreign market?
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What trend in international distribution indicates control by fewer, larger players?
What trend in international distribution indicates control by fewer, larger players?
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What is a significant trend affecting global distribution systems?
What is a significant trend affecting global distribution systems?
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Which of the following is an essential characteristic for a successful brand strategy?
Which of the following is an essential characteristic for a successful brand strategy?
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What management reason supports entering an international market?
What management reason supports entering an international market?
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Loss-leader pricing primarily serves what purpose?
Loss-leader pricing primarily serves what purpose?
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Study Notes
International Business Study Notes
- International business management is more complex, riskier, and presents new challenges compared to domestic business management, especially as the distance from home country increases.
- International firms face issues like psychic distance, meaning a lack of knowledge about foreign markets, and self-reference criterion, which involves unconscious reference to one's own cultural values.
- There are varied levels of internationalization:
- Domestic marketing: focusing on the domestic market.
- Export marketing: limited commitment involving exporting.
- International marketing: substantial commitment to individual countries/regions.
- Global marketing: extensive international commitment focusing on market segments rather than countries/regions (e.g., McDonald's).
- Globalization has expanded economic and social ties between countries, shrinking the world economically.
- Globalization creates opportunities for firms to buy and sell in diverse markets, leveraging labor & capital flexibility.
- Globalization can affect markets at country, sector, and company scales.
- Several factors drive international expansion, including competition, regional economic & political integration, advancements in transportation/logistics, and access to communication networks/internet.
- Several factors drive export/investment in foreign markets such as satisfying host government requirements, remaining price-competitive domestically, testing foreign markets & extending product life-cycle
- Various factors can hinder international expansion. These include government barriers, foreign investment laws, and risk situations like country risks, financial risks, and political risks.
- PESTEL analysis (Political, Economic, Social, Technological, Legal, Environmental) is key for understanding the external environment in which a firm operates. Political factors involve government type, policies, and funding. Economic factors relate to industry trends and economic variables. Social factors involve norms and values. Technological factors involve innovation. Legal factors include laws, regulations, and legal systems (Common law, code law, or theocratic law). Lastly, environmental considerations are notable.
- Several tools are used for risk mitigation in international business. These include engagement with host governments, undertaking risk analyses, utilizing local joint ventures, engaging risk consultants, and employing risk management tools like credit default swaps.
- Different legal systems (common law, code law, theocratic law) shape how laws are interpreted and applied, affecting business operations.
- Intellectual property rights are important, as countries differ in how they address counterfeiting and protect creative works.
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Description
This quiz covers key concepts in international business management, exploring its complexities compared to domestic management. Learn about the various levels of internationalization, the effects of globalization, and the challenges firms face in foreign markets. Test your knowledge on how cultural factors influence international business operations.
