True / False Questions Flashcards
True or False?
The liability of foreignness refers to the additional regulations that firms have to abide by when they enter the foreign market
False
True or False?
A company enters a foreign market to better serve key customers that have relocated abroad. It is said to be market seeking
True
True or False?
Administrative Distance within Ghemawat’s CAGE framework is more likely to affect strategic industries such as telecommunications than consumer goods
True
True or False?
The world competitive report by IMD and the World Economic Global Competitiveness report shows the relative success of countries in promoting trade.
False
True or False?
The theory of Absolute Advantage by Adam Smith is a firm level theory that explain why and how firms internationalise
False
True or False?
The article Denmark demonstrates that companies are solely dependant on their natural factor endowment & comparative advantage, and it is not possible for them to create new comparative advantage
False
True or False?
Expropriation is an act of government intervention whereby the government seizes the assets of a company without compensation.
False
True or False?
Political insurance provides coverage against expropriation, political violent and other such risk as well as non-payment insurance covering contract frustration and default by government
True
True or False?
Timing of entry is a relative decision involving a comparison of when one firm enters a market versus the overall stage of development in a country
False
