Question

If the U.S. dollar appreciates relative to foreign currency, what is likely to be the result for the U.S. company that has company branches abroad?

Select one:

a. Profits will increase, when measured in U.S. dollars.

b. Profits will decrease, when measured in U.S. dollars.

c. Foreign exports to the United States will decrease.

d. Foreign demand for U.S. goods and services will decrease.

If a company is considering optimizing the physical location for every activity in the value chain, which of the following is not a possible strategic advantage for that decision?

Select one:

a. Performance enhancement

b. Cost reduction

c. Political risk reduction

d. Life-cycle enhancement

Which of the following is not a motivation for a company to pursue international expansion?

Select one:

a. It wishes to increase the size of the potential markets for its products and services.

b. It wishes to take advantage of arbitrage opportunities in order to increase profit.

c. It wishes to optimize value-chain activities to enhance performance, reduce costs, and reduce risk.

d. It wishes to increase foreign market penetration by developing products for the home market.

The sale of Boeing commercial aircraft and Microsoft operating systems in many countries enables these companies to benefit from ____________.

Select one:

a. higher prices in their domestic markets

b. reducing their exposure to currency risks

c. economies of scale

d. optimizing the location for many activities in their value chain

Answer 1

Question:- If the U.S. dollar appreciates relative to foreign currency, what is likely to be the result for the U.S. company that has company branches abroad?

Answer:- b. Profits will decrease when measured in U.S. dollars.

Reason:- When the U.S. dollar appreciates against other currencies, U.S. goods can be more expensive to consumers in foreign countries. Appreciation of the U.S. dollar can have negative implications for American companies that have branch operations overseas. The reason for this is that profits from abroad must be exchanged for dollars at a more expensive rate of exchange, reducing the amount of profit when measured in dollars

Question:- If a company is considering optimizing the physical location for every activity in the value chain, which
of the following is not a possible strategic advantage for that decision?

Answer:- life-cycle enhancement

Question:- Which of the following is not a motivation for a company to pursue international expansion?

Answer:- it wishes to increase foreign market penetration by developing products for the home market

Question:- the sale of Boeing commercial aircraft and Microsoft operating systems in many countries enables these
companies to benefit from ____________.

Answer:- economies of scale