True or False 1. An investor purchases the right to receive a specified fixed st

Question

True or False

1. An investor purchases the right to receive a specified fixed stream of income from the corporation when he purchases a share of stock.

True

False

The minimum efficient scale of production is high when fixed costs are low.

True

False

2. An organizational culture can be strong but bad.

True

False

3. Firms pursuing a localization strategy have a high need for coordination between subunits.

True

False

4. The choice of which markets to enter should be driven by an assessment of relative long-run growth and profit potential.

True

False   

5.

The value an international business creates in a foreign market depends on the suitability of its product offering to that market and the nature of indigenous competition.

True

False

First-mover advantages are the advantages associated with entering a market early.

True

False

Costs that an early entrant has to bear that a later entrant can avoid are known as first-mover costs.

True

False

A buyback occurs when a direct exchange of goods or services occur between two parties without a cash transaction.

True

False

U.S. organizations can get financing aid from the Export-Import Bank.

True

False

Proactive firms do not consider exporting until their domestic market is saturated.

True

False

Poor understanding of competitive conditions in the foreign market is a common problem facing exporters.

True

False

The set of choices the firm offers to its targeted markets is known as the marketing mix.

True

False

To design the product so that it can be manufactured in a cost-effective manner, the firm needs to build close links between R&D, marketing, and manufacturing.

True

False

The rate of new-product development seems to be lesser in countries where more money is spent on basic and applied research and development.

True

False

New-product development has a high failure rate.

True

False

Political risk tends to be greater in countries experiencing social unrest or disorder.

True

False

Studies have shown that a country's relative inflation rates and changes in exchange rates are not related to each other.

True

False

The governments of some countries require or prefer foreign multinationals to finance projects in their country by local debt financing or local sales of equity.

True

False

Money management decisions attempt to manage the firm's working capital most efficiently.

True

False

Firms cannot use transfer prices to move funds from a subsidiary to the parent company when financial transfers in the form of dividends are blocked by host-country government policies.

True

False

Proactive firms do not consider exporting until their domestic market is saturated.

Explanation / Answer

1.True

False that The minimum efficient scale of production is high when fixed costs are low.

2.True

3.False

4.True

5.True

6.True

7. False, it is known as pioneering costs and not first-movers costs.

8.False

9.True

10.False

11.True

12.True

13.True

14.False

15. True, as that can happen during a new product development.

16. True, as in such countries there are uncertainty and hence the political risk tends to be greater.

17.False

18.True

19.True

20.False

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