5. Which of the following is NOT an opportunity of international business? a. In
ID: 349403 • Letter: 5
Question
5. Which of the following is NOT an opportunity of international business? a. International arbitrage b. Diversification c. Liability of foreignness d. International outsourcing e. Tax havens 6. Which of the following is NOT likely to help an acquisition succeed? a. Due diligence b. Complementary nature of resources of acquiring and acquired firms c. Financial slack d. Hostile acquisitiorn 7. Which of the following strategies should a multinational company use to deal with its lack of detailed or experiential knowledge of the foreign markets the company wants to enter? a. Ask its employees to take MNGT 393 b. Enter into culturally dissimilar countries first c. Start with low commitment transactions (e.g. export-import) first d. Start with high commitment transactions (.g. foreign direct investment) first 8. Which of the following structure is best suited for low localization of high standardization in a foreign country? a. Global b. Transnational c. Multidomestic 9. Why is it useful to compare the performance of a company with the performance of the overall market (S&P; 500, Dow Jones, NASDAQ)?Explanation / Answer
5. c. Liability of foreignness
6. c. Financial Slack
7. c. Start with low commitment transcations (e.g. export-import) first
8. c. Multidomestic
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