98. _____ are primarily the advantages that accrue to early entrants into a market.
99. In economic terms, the long-run monetary benefits of doing business in a country are
most likely to be a function of the:
100. Capricorn Creative Inc., a U.S. based advertising firm, was the first in the advertising
industry to identify the growth potential of Brazil and to make huge investments in it’s economy.
As a result, the firm was able to build brand loyalty and gain experience in that country’s
business practices. In the language of business strategy, Capricorn Creative has
typically benefited from:
101. Which of the following best exemplifies a first-mover advantage?
102. Handicaps experienced by an organization because of entering into a market after several
other companies who have already established their brands in the market, are referred to as
_____.
103. Which of the following is most likely to be an advantage that first–movers tend to have
relative to last-movers?
104. When Galaxy Ventures, a real estate company, entered the low cost housing business,
the market was already saturated with other players. Thus, the company was forced to exit the
market due to lack of customer loyalty and substantial dividends. Which of the following is a term
used to described the situation faced by the company?
105. Both China and India have achieved high growth rates despite relatively weak property
rights regimes and high levels of corruption, because of:
106. Which of the following statements is most likely to be true about the economic prospects
of a country?
107. The cost of doing business is most likely to be the lowest in:
108. Star Volans Inc. is planning on expanding its business globally. In terms of the costs
involved in conducting business in a country, it will be most economical for the company if
it chooses a country:
109. In the context of cost, which of the following can be considered as the most attractive
market or investment site?
110. A company has business interests in a country where the President-elect wants the
country to adopt socialism and protectionism. Consequently, the company will be concerned
about the _____ risks of continuing to do business in that country.
111. When social unrest and disorder in a country causes drastic changes in its business
environment that adversely affect the profit and other goals of a business enterprise, the
business enterprise is said to be facing a(n) _____ risk.
112. Which of the following factors in a country is most likely to cause a political risk for an
international business?
113. Lamboria Republic is facing a high rate of inflation, and the government debt in the
country is also high. As a result, the country’s business environment is beginning to deteriorate,
and the profits of the business enterprises are hurt. According to this information, Lamboria
Republic is facing a(n) _____ risk.
114. Which of the following statements is most likely to be true about the risks of doing
business in a country?
115. The government of Ugania had been extending huge amounts of loans to the business
enterprises in the country. However, the borrowers failed to generate the profits necessary to
repay their debts. As a result, national banks in Ugania had a lot of nonperforming assets on their
books, and the Uganian currency was devalued. In this context, the business enterprises in
Ugania are most likely to face a(n) _____ risk.
116. A(n) _____ risk can be defined as the likelihood that a trading partner will
opportunistically break a contract or expropriate property rights.
117. If a company from a highly developed nation hesitates to enter into a joint venture with a
company from a developing nation due to inadequate protection of intellectual property rights, it
is trying to avoid a(n) ____ risk.