Simulation Test: FDI, Economic Integration & Market Entry Strategies Môn Quản trị kinh doanh | Trường Đại học Công nghiệp Thành phố Hồ Chí Minh

Simulation Test – Chapter 3: Foreign Direct Investment (FDI)
Question 1 (2.0 points) Fill in the blanks
1.1. According to Internalization Theory, FDI occurs when firms seek to protect their knowledge or processes. 1.2.
countries like China and Brazil have become major destinations for FDI due to economic reforms. 1.3. The
Paradigm explains FDI by combining firm-specific advantages with location-specific factors.
1.4. Multinational enterprises often use FDI to overcome such as tariffs or quotas.
Question 2 (3.0 points)
Match each concept with the corresponding description Concept Description
1. Knickerbocker’s Theory A. FDI decisions in oligopolistic industries are influenced by competitors 2. Free-Market View
B. FDI is seen as beneficial for optimizing global resource allocation 3. Radical View
C. FDI is exploitative and undermines host economies
4. Pragmatic Nationalism D. Balances benefits like capital and jobs with concerns like sovereignty
5. Internalization Theory E. Firms invest abroad to retain control over proprietary assets
6. Limitations of Licensing F. Firms may risk losing technology to foreign partners
Question 3 (2.0 points)
Answer the following questions briefly in two key points each
3.1. Why do firms prefer FDI over exporting or licensing, according to Internalization Theory? *
• To protect proprietary knowledge and technologies.
• To maintain control over operations and brand reputation.
3.2. What are two benefits of FDI for host countries? *
• Technology and resource transfer that supports local development.
• Job creation and market efficiency through increased competition.
Answer Key – Chapter 3: FDI Question 1 1.1. proprietary 1.2. developing 1.3. Eclectic 1.4. trade barriers Question 2 Concept Correct Match 1. Knickerbocker’s Theory A 2. Free-Market View B 3. Radical View C 4. Pragmatic Nationalism D 5. Internalization Theory E 6. Limitations of Licensing F Question 3 3.1.
• Firms want to control their core competencies and processes.
• Licensing may lead to knowledge leakage or brand dilution. 3.2.
• Creates employment and enhances local capabilities.
• Brings in foreign capital, modern technology, and global practices.
Simulation Test – Chapter 4: Economic Integration
Question 1 (2.0 points) Fill in the blanks
1.1. When trade barriers are removed, countries experience increased . 1.2. A
Market allows free movement of labor, capital, and services.
1.3. One challenge of regional integration is the loss of national .
1.4. The EU is a prime example of an Union with a common currency.
Question 2 (3.0 points)
Match each level with the correct description Level of Integration Description 1. Free Trade Area
A. Removal of internal tariffs, but separate external policies 2. Custom Union
B. Internal tariff elimination + common external trade policy 3. Common Market
C. Free movement of goods, labor, capital, and services 4. Economic Union
D. Common currency and harmonized fiscal/economic policies
5. Sovereignty Concerns E. Worries over national control and autonomy 6. Trade Creation
F. Increased efficiency and economic cooperation through tariff removal
Question 3 (2.0 points)
Answer the following questions in two key points each
3.1. What are two benefits of economic integration for businesses? *
• Expanded market access across member countries.
• Cost reduction through tariff elimination and economies of scale.
3.2. What are two major challenges of economic integration? *
• Job displacement in less competitive industries.
• Pressure on countries to give up partial control over domestic policies.
Simulation Test – Chapter 6: International Business Strategy
Question 1 (2.0 points) Fill in the blanks
1.1. Centralized structures improve and resource allocation.
1.2. Decentralized decision-making increases
and motivation at local levels. 1.3. A global
strategy emphasizes cost efficiency through standardization.
1.4. Companies can divide horizontally by function, product, or .
Question 2 (3.0 points)
Match each term with the correct description Term Description 1. Centralization
A. Strategic control at the top level, ensures consistency 2. Decentralization
B. Enables quicker response to local markets
3. Global Standardization C. Aims to reduce costs through uniform products 4. Localization Strategy
D. Adapts operations to local cultures and consumer preferences
5. Global Matrix Structure E. Combines product and geographic divisions
6. Transnational Strategy F. Balances integration and local responsiveness
Question 3 (2.0 points)
Answer the following questions in two key points each
3.1. What are two advantages of vertical centralization? *
• Promotes efficiency and goal alignment.
• Facilitates major organizational changes quickly.
3.2. Why might a company adopt a transnational strategy? *
• To standardize core operations globally.
• While also being flexible to respond to local market demands.
Simulation Test – Chapter 7: Market Entry & Strategic Alliances
Question 1 (2.0 points) Fill in the blanks
1.1. Exporting involves producing in one country and to another. 1.2. A
venture is when a company builds its own facility in a foreign country.
1.3. Licensing allows a foreign firm to use
property in exchange for fees.
1.4. Strategic alliances help firms share
and enter new markets collaboratively.
Question 2 (3.0 points)
Match each concept with the appropriate description Entry Mode / Concept Description 1. Exporting
A. Producing domestically and selling abroad 2. Licensing
B. Low investment, but high risk of intellectual property leakage 3. Franchising
C. Offers brand model & systems in exchange for royalties 4. Joint Venture
D. Shared ownership between local and foreign firms
5. Wholly Owned Subsidiary E. Full control, high cost and risk 6. Strategic Alliance
F. Cooperation between firms without ownership-sharing
Question 3 (2.0 points)
Answer the following questions in two key points each
3.1. What are two reasons why firms choose joint ventures? *
• To access local market knowledge and networks.
• To share risks and capital with local partners.
3.2. What are two risks of strategic alliances? *
• Potential leakage of technology or proprietary knowledge.
• Conflicts due to differing goals or management styles.
Answer Key – Chapter 4: Economic Integration Question 1 1.1. trade 1.2. Common 1.3. sovereignty 1.4. Economic Question 2 Concept Correct Match 1. Free Trade Area A 2. Custom Union B 3. Common Market C 4. Economic Union D 5. Sovereignty Concerns E 6. Trade Creation F Question 3 3.1. • Access to larger markets.
• Lower production/import costs due to tariff removal. 3.2.
• Some industries lose competitiveness → job loss.
• Member states may need to give up policy autonomy.
Answer Key – Chapter 6: International Business Strategy Question 1 1.1. consistency 1.2. flexibility 1.3. standardization 1.4. geography Question 2 Term Correct Match 1. Centralization A 2. Decentralization B 3. Global Standardization C Term Correct Match 4. Localization Strategy D 5. Global Matrix Structure E 6. Transnational Strategy F Question 3 3.1.
• Ensures all units follow the company’s global strategy.
• Enables efficient resource allocation and cost control. 3.2.
• Combines global efficiency with local responsiveness.
• Increases competitiveness in diverse markets.
Answer Key – Chapter 7: Market Entry & Strategic Alliances Question 1 1.1. exporting 1.2. greenfield 1.3. intellectual 1.4. costs Question 2 Concept Correct Match 1. Exporting A 2. Licensing B 3. Franchising C 4. Joint Venture D 5. Wholly Owned Subsidiary E 6. Strategic Alliance F Question 3 3.1.
• Reduces risks and costs through partnerships.
• Gains access to local knowledge and distribution. 3.2.
• Partner may misuse technology or brand.
• Conflicting objectives can cause failure.
Combined Simulation Test – Test 1 Question 1 (2.0 pts) Fill in the blanks 1.1. The
Paradigm explains FDI through firm-specific and location-specific advantages. 1.2. A
Market allows the movement of goods, labor, and capital across borders. 1.3. Companies adopting
strategies adjust their operations to local markets. 1.4. A
venture involves building operations from scratch in a foreign country. Question 2 (3.0 pts)
Match the concept with its definition Concept Description
1. Internalization Theory A. Firms invest abroad to keep control over proprietary knowledge 2. Economic Union
B. Integration of economies with common currency and policies
3. Localization Strategy C. Customizing products/services to meet local market needs 4. Licensing
D. Allowing foreign firms to use IP in exchange for fees 5. Joint Venture
E. Partnership between local and foreign firms 6. Trade Creation
F. Increased efficiency through regional tariff elimination Question 3 (2.0 pts)
Answer briefly in two key points each
3.1. What are two challenges of regional economic integration?
3.2. Why might firms prefer wholly owned subsidiaries?
Combined Simulation Test – Test 2 Question 1 (2.0 pts) Fill in the blanks
1.1. According to Knickerbocker’s theory, firms imitate each other’s FDI in markets.
1.2. In a Free Trade Area, members eliminate on trade with each other. 1.3. The
strategy aims to reduce costs through standardized global operations. 1.4.
is the entry mode with highest control but also highest risk. Question 2 (3.0 pts)
Match the term with its correct description Term Description 1. Decentralization
A. Enables quick response to local needs 2. Franchising
B. Grants local operators rights to use brand & model for a fee 3. Radical View
C. FDI is exploitative and harmful to host countries
4. Comparative Advantage D. Countries benefit by specializing in goods they produce efficiently 5. Custom Union
E. Common external policy + no internal tariffs
6. Global Matrix Structure F. Combines product and geographic divisions Question 3 (2.0 pts)
Answer briefly in two key points each
3.1. What are the benefits of using franchising as a mode of entry?
3.2. How does decentralization support multinational firms?
Combined Simulation Test – Test 3 Question 1 (2.0 pts) Fill in the blanks 1.1.
flows have increased faster than global trade in recent decades.
1.2. The EU is a prime example of a(n) Union. 1.3.
strategies combine global efficiency with local responsiveness. 1.4. A
is a cooperative agreement between firms without creating a new entity. Question 2 (3.0 pts)
Match the concept with the correct explanation Concept Description 1. Free-Market View
A. FDI should be welcomed with minimal restrictions 2. Common Market
B. Includes free movement of production factors like labor and capital 3. Greenfield Venture
C. Establishing operations from scratch in a foreign market 4. Strategic Alliance
D. Partnership without ownership-sharing
5. Vertical Centralization E. Ensures decisions align with global strategy 6. IMF Role
F. Provides financial support during crises like in 1997 Asia Question 3 (2.0 pts)
Answer briefly in two key points each
3.1. What are two advantages of strategic alliances?
3.2. What are the characteristics of a common market?
Đáp án – Combined Simulation Test 1 Question 1 1.1. Eclectic 1.2. Common 1.3. Localization 1.4. Greenfield Question 2 Concept Match 1. Internalization Theory A 2. Economic Union B 3. Localization Strategy C 4. Licensing D 5. Joint Venture E 6. Trade Creation F Question 3 3.1. • Sovereignty concerns
• Job losses in uncompetitive sectors 3.2. • Full operational control
• Retains all profits and strategic direction
Đáp án – Combined Simulation Test 2 Question 1 1.1. oligopolistic 1.2. tariffs 1.3. Global standardization 1.4. Wholly owned subsidiary Question 2 Term Match 1. Decentralization A 2. Franchising B 3. Radical View C 4. Comparative Advantage D 5. Custom Union E 6. Global Matrix Structure F Question 3 3.1. • Quick expansion
• Franchisee bears operational risk 3.2.
• Responds quickly to market change
• Empowers local managers with market insight
Đáp án – Combined Simulation Test 3 Question 1 1.1. FDI 1.2. Economic 1.3. Transnational 1.4. Strategic alliance Question 2 Concept Match 1. Free-Market View A 2. Common Market B 3. Greenfield Venture C 4. Strategic Alliance D 5. Vertical Centralization E 6. IMF Role F Question 3 3.1. • Cost sharing • Local market access 3.2. • No tariffs or barriers
• Free movement of labor, capital, services
Simulation Test – Chapter 8: Global Marketing and R&D
(Dựa trên kiến thức chương 8 môn Kinh doanh quốc tế về chiến lược Marketing và Nghiên cứu phát triển toàn cầu)
Question 1 (2.0 points) Fill in the blanks
1.1. Global marketing must balance standardization and to local needs.
1.2. In a push strategy, the firm focuses on personal channels like salespeople. 1.3. Product
refers to adjusting a product’s features for a specific market.
1.4. Price discrimination means charging
prices in different countries for the same product.
Question 2 (3.0 points)
Match each concept with the correct description Concept Description 1. Push Strategy
A. Personal selling to create demand, often used in industrial markets 2. Pull Strategy
B. Advertising to stimulate end-customer demand
3. Product Customization C. Modifying a product for cultural or legal preferences
4. Market Segmentation D. Dividing consumers into groups based on behavior or needs 5. Price Discrimination
E. Different pricing in each country based on market conditions 6. R&D Integration
F. Aligning product development with international marketing goals
Question 3 (2.0 points)
Answer briefly in two key points each
3.1. What are two factors that influence whether a firm should standardize or localize its product?
3.2. What are two challenges of managing international pricing?
Answer Key – Chapter 8: Global Marketing and R&D Question 1 1.1. adaptation 1.2. communication
1.3. localization/customization 1.4. different Question 2 Concept Match 1. Push Strategy A 2. Pull Strategy B 3. Product Customization C 4. Market Segmentation D 5. Price Discrimination E Concept Match 6. R&D Integration F Question 3 3.1. • Cultural preferences
• Legal/regulatory differences 3.2. • Currency fluctuations
• Risk of gray markets or arbitrage