Case Studies of International Businesses: Learn from Success Stories

Question 1

Which market entry strategy involves acquiring an existing business in the target market?

Accepted Answer

Acquisition

Answer

Greenfield investment

Answer

Joint venture

Answer

Licensing

Question 2

What is the fundamental distinction between a joint venture and a strategic alliance?

Accepted Answer

Joint ventures involve shared ownership, while strategic alliances do not.

Answer

Strategic alliances involve risk-sharing, while joint ventures do not.

Answer

Joint ventures are typically long-term, whereas strategic alliances are short-term.

Answer

There is no meaningful difference between a joint venture and a strategic alliance.

Question 3

IKEA's strategy to address cultural barriers involves:

Accepted Answer

Employing all of the strategies mentioned above

Answer

Modifying product designs to suit local tastes and preferences

Answer

Employing a diverse workforce that reflects the local culture

Answer

Providing cultural sensitivity training for employees

Question 4

In its global expansion, Starbucks faced linguistic and cultural differences. Which strategy did Starbucks use to address these variations?

Accepted Answer

Adapting products and store designs to local preferences

Answer

Hiring only local employees

Answer

Translating products and services directly without adaptation

Question 5

Which of the following is NOT a crucial factor in assessing a company's decision to expand internationally?

Accepted Answer

Cultural similarities with the target country

Answer

Market potential and size

Answer

Financial health and reserves

Answer

Political stability and economic outlook

Question 6

Which market entry strategy involves establishing a wholly-owned subsidiary in the target country?

Accepted Answer

Greenfield investment

Answer

Acquisition

Answer

Licensing

Answer

Joint venture

Question 7

Which of the following is NOT a potential benefit of international expansion for businesses?

Accepted Answer

Reduced operational costs

Answer

Increased market share and revenue

Answer

Diversification of operations and risk

Answer

Access to new technologies and expertise

Question 8

What is the term used to describe the process of tailoring a product or service to suit specific cultural and market preferences in international business?

Accepted Answer

Localization

Answer

Adaptation

Answer

Customization

Answer

Internationalization

Question 9

Which type of legal entity provides the most flexibility and limited liability for international operations?

Accepted Answer

Limited liability company (LLC)

Answer

Sole proprietorship

Answer

Partnership

Answer

Corporation

Question 10

Which of the following is NOT a potential consequence of disregarding cultural differences in international business?

Accepted Answer

Reduced innovation and creativity

Answer

Misunderstandings and conflicts

Answer

Loss of customers and revenue

Answer

Ineffective marketing campaigns

Question 11

What is the primary objective of a global marketing strategy?

Accepted Answer

To adapt marketing campaigns to the cultural and regional nuances of each target market

Answer

To create a standardized marketing approach across all global markets

Answer

To maximize sales and profitability in every country

Answer

To establish a consistent brand identity worldwide

Question 12

What is the primary purpose of case study analysis in international business?

Accepted Answer

To examine real-world experiences and derive practical insights

Answer

To provide theoretical knowledge about business concepts

Answer

To develop hypothetical solutions for business problems

Answer

To evaluate individual capabilities in handling business situations

Question 13

How has technology transformed international business? Explain how businesses can use technology to expand their global reach and improve their operations.

Accepted Answer

Technology has revolutionized international business, enabling companies to reach new markets, optimize operations, and enhance customer experiences.

Answer

Technology is only beneficial for large multinational corporations.

Answer

Technology can replace the need for personal connections in international business.

Answer

Technology has had no significant impact on the conduct of international business.

Question 14

Which of the following strategies is NOT essential for international business expansion?

Accepted Answer

Exploitation of local resources without regard to ethical implications

Answer

Thorough market research and evaluation

Answer

Sensitivity and adaptation to cultural differences

Answer

Efficient and reliable supply chain management

Question 15

The term 'glocalization' describes the process of:

Accepted Answer

Adapting global products and services to meet local market demands and preferences

Answer

Imposing external values and practices on foreign markets without regard to local context

Answer

Exiting international markets due to cultural or economic barriers

Answer

None of the above options accurately describes glocalization

Question 16

To mitigate economic barriers to international trade, businesses can employ strategies such as:

Accepted Answer

All of the above strategies

Answer

Foreign direct investment to establish operations in target markets

Answer

Export subsidies to reduce the cost of exporting goods and services

Answer

Tariff negotiations to lower import and export duties

Question 17

Which ethical consideration is particularly relevant in the context of international business?

Accepted Answer

All of the above considerations

Answer

Ensuring fair labor practices and protecting workers' rights

Answer

Minimizing environmental impact and promoting sustainability

Answer

Demonstrating cultural sensitivity and respecting local customs

Question 18

The case study of Walmart's expansion into Mexico highlights the importance of:

Accepted Answer

All of the above factors

Answer

Conducting thorough research to understand local market dynamics

Answer

Investing in infrastructure to support business operations

Answer

Hiring local managers with cultural knowledge and expertise

Question 19

How do international businesses effectively navigate political and regulatory risks in diverse countries?

Accepted Answer

Establish connections with local governments and immerse themselves in cultural norms.

Answer

Ignore local regulations and focus solely on maximizing profits.

Answer

Avoid countries with strict regulations and political instability.

Answer

Rely solely on legal counsel to resolve all regulatory issues.

Question 20

To minimize currency risks in global markets, which strategy is commonly adopted by multinational corporations?

Accepted Answer

Hedging

Answer

Diversification

Answer

Local Currency Borrowing

Question 21

When entering a foreign market, which of the following factors is **not** crucial to consider?

Accepted Answer

Personal preferences of individual consumers

Answer

Cultural differences

Answer

Economic indicators

Answer

Political stability

Question 22

Starbucks' global success can be attributed to which of the following strategies?

Accepted Answer

Adapting products to suit local tastes and preferences

Answer

Standardizing products and services across all markets

Answer

Implementing aggressive pricing strategies

Answer

Targeting exclusively affluent consumers

Question 23

What is the term for a company moving its production facilities to a country with lower labor costs?

Accepted Answer

Offshoring

Answer

Outsourcing

Answer

Nearshoring

Answer

Insourcing

Question 24

The process of integrating a newly acquired company into the parent company's operations is known as:

Accepted Answer

Integration

Answer

Merger

Answer

Acquisition

Answer

Restructuring

Question 25

Which of the following is NOT a factor to consider when navigating cultural barriers in international business?

Accepted Answer

Economic disparities

Answer

Language differences

Answer

Social customs

Answer

Political ideologies

Question 26

In the context of global expansion, what is considered the most effective approach to effectively address cultural disparities?

Accepted Answer

Adapting goods and services to local customs and traditions

Answer

Enforcing the home country's culture in the new market

Answer

Disregarding cultural variations

Answer

Sole reliance on local managers

Question 27

Which of these factors is deemed irrelevant when analyzing a case study in international business?

Accepted Answer

Unpredictable Historical Occurrences

Answer

Economic Environment

Answer

Political Stability

Answer

Social Norms

Question 28

What is identified as the primary purpose of an international business's market entry strategy?

Accepted Answer

Establishing a long-term presence

Answer

Maximizing profits

Answer

Establishing a strong brand identity

Answer

Minimizing financial risk

Question 29

When assessing a potential international market, which economic indicator is regarded as crucial?

Accepted Answer

GDP per capita

Answer

Inflation rate

Answer

Political stability index

Answer

Literacy rate

Question 30

When evaluating target countries for global expansion, which factor is typically **less** important to multinational corporations?

Accepted Answer

Personal preferences of executives

Answer

Political stability

Answer

Market size

Answer

Cultural compatibility

Question 31

Which of the following is a common challenge faced by international businesses venturing into new markets?

Accepted Answer

Cultural differences and barriers

Answer

Favorable labor costs

Answer

Advanced technological infrastructure

Answer

Government incentives

Question 32

What is a crucial advantage of conducting extensive market research before entering a new international market?

Accepted Answer

Identifying potential risks and opportunities

Answer

Establishing brand reputation

Answer

Securing favorable deals with suppliers

Answer

Conserving time and resources

Question 33

Which of the following is NOT a potential benefit of international business expansion?

Accepted Answer

Increased reliance on a single market

Answer

Diversification of revenue streams

Answer

Access to new customer base

Question 34

The decision to establish a joint venture with a local company when entering a new market can:

Accepted Answer

Mitigate the risk of failure

Answer

Guarantee immediate profitability

Answer

Eliminate the need for market research

Answer

Avoid cultural misunderstandings

Question 35

Which of the following is a common ethical challenge faced by international businesses?

Accepted Answer

Bribery and corruption

Answer

Language barriers

Answer

Political instability

Answer

Currency fluctuations

Question 36

The "born global" approach to international business is characterized by:

Accepted Answer

Entering foreign markets from the start-up phase

Answer

Targeting only emerging markets

Answer

Focusing on domestic market saturation first

Answer

Establishing physical presence in every country entered

Question 37

Which country is recognized for its strong support of entrepreneurship and innovation in international business?

Accepted Answer

Singapore

Answer

Brazil

Answer

Russia

Answer

India

Question 38

Starbucks' expansion into China involved adapting its menu to local tastes, such as offering green tea lattes. This strategy is best described as:

Accepted Answer

Localization

Answer

Standardization

Answer

Globalization

Answer

Ethnocentrism

Question 39

IKEA's flat-pack furniture design not only reduces shipping costs but also caters to space constraints in many urban areas globally. This exemplifies:

Accepted Answer

Adapting products to global needs

Answer

Vertical integration

Answer

Franchising strategy

Answer

Exploiting economies of scale

Question 40

Which company successfully utilized a 'think global, act local' approach to penetrate the Indian market with its motorcycle brand?

Accepted Answer

Honda

Answer

Harley Davidson

Answer

Triumph

Answer

Ducati

Question 41

Netflix's global expansion strategy heavily relies on:

Accepted Answer

Digital distribution and localized content

Answer

Acquisitions of regional streaming services

Answer

Brick-and-mortar stores and standardized content

Answer

Joint ventures with local production houses

Question 42

The failure of Walmart in Germany was primarily attributed to:

Accepted Answer

Cultural mismatch and failure to adapt to local preferences

Answer

Intense competition from local discount retailers

Answer

Unfavorable economic conditions in Germany

Question 43

Alibaba's Alipay overcame cultural resistance to digital payments in China by:

Accepted Answer

Building trust through secure technology and addressing local needs

Answer

Offering significantly lower transaction fees than competitors

Answer

Leveraging government regulations to promote digital payments

Question 44

A key challenge faced by international businesses during economic downturns like the 2008 financial crisis is:

Accepted Answer

Managing currency fluctuations and political instability

Answer

Reduced competition from local businesses

Answer

Increased demand for products and services globally

Question 45

Which company is known for its ethical sourcing practices in the fashion industry, ensuring fair wages and working conditions in its global supply chain?

Accepted Answer

Patagonia

Answer

Zara

Answer

Forever 21

Answer

H&M

Question 46

The rise of e-commerce platforms like Amazon and Alibaba has led to:

Accepted Answer

Increased competition for local businesses and the need for digital adaptation

Answer

Reduced product variety and higher prices for consumers

Answer

Less emphasis on efficient logistics and supply chain management

Question 47

A company seeking to enter a foreign market with minimal investment and risk might choose which market entry strategy?

Accepted Answer

Exporting

Answer

Foreign direct investment

Answer

Joint ventures

Answer

Mergers and acquisitions

Question 48

Which of the following strategies did IKEA use to successfully enter the Chinese market?

Accepted Answer

Adapting its product offerings to local tastes and preferences

Answer

Primarily targeting high-income consumers in urban areas

Answer

Maintaining its strict European design principles without any modifications

Question 49

What was a key challenge faced by McDonald's in entering the Indian market?

Accepted Answer

Adapting its menu to cater to vegetarian and halal dietary preferences

Answer

Lack of infrastructure and logistics

Answer

Competition from local fast-food chains

Question 50

How did Samsung overcome its initial struggles in the global smartphone market?

Accepted Answer

By focusing on innovation and developing high-quality products at competitive prices

Answer

By relying heavily on advertising and marketing campaigns

Answer

By acquiring existing smartphone companies

Question 51

Which of the following is an example of a successful global expansion strategy employed by Coca-Cola?

Accepted Answer

Developing a consistent brand identity across different markets while adapting its products to local tastes

Answer

Focusing solely on developed economies with high per capita income

Question 52

What was the main reason behind the failure of Walmart's attempt to enter the German market?

Accepted Answer

Inability to adapt its business model to the cultural norms and consumer preferences in Germany

Answer

Competition from established German retailers

Answer

Lack of investment in local marketing and advertising

Question 53

Which of the following international business strategies is characterized by a high level of control and ownership?

Accepted Answer

Foreign direct investment (FDI)

Answer

Licensing

Answer

Exporting

Question 54

How did Zara achieve success in the global fashion industry by adopting a fast-fashion model?

Accepted Answer

By rapidly responding to changing fashion trends and producing new designs quickly

Answer

By relying heavily on advertising and celebrity endorsements

Answer

By outsourcing its production to low-cost countries

Question 55

Which of the following factors is NOT a key driver of globalization in the 21st century?

Accepted Answer

Increased government regulation of international trade

Answer

Advances in technology and communication

Answer

Growth of emerging markets

Question 56

What is the main benefit of using a joint venture strategy for entering a foreign market?

Accepted Answer

Sharing risks and resources with a local partner

Answer

Lower initial investment costs

Answer

Complete control over the business operations

Answer

Faster market entry compared to direct investment

Question 57

Which of the following ethical considerations is particularly important for international businesses operating in developing countries?

Accepted Answer

Ensuring fair labor practices and environmental sustainability

Answer

Maintaining a consistent marketing strategy across all markets

Answer

Prioritizing shareholder profits over social responsibility