IAE INT STR S2 The Location Choice Process

What is one of the key impacts of globalization on business expansion?

• Reduction in technological advancements

• Drive for companies to explore international markets

• Focus on domestic market consolidation

Which of the following is NOT a driver of globalization?

• Global integration

• Economic isolation

• Technological advancements

What is a major benefit companies experience in the global marketplace?

• Increased tariffs

• Access to new markets

• Limited technological growth

What is a common challenge companies face in the global marketplace?

• Consistent economic stability

• Regulatory environments and compliance issues

• Abundant and inexpensive resources

Which of the following is a key driver of location choice for companies?

• Availability of luxury facilities

• Political stability

• Domestic regulations

What factor would most likely influence a company’s decision to choose a location with low labor costs?

• Market potential

• Access to technological resources

• Cost efficiency and operational savings

What does the 'C' in the CAGE framework stand for?

• Cultural

• Corporate

• Competitive

The CAGE framework helps companies assess external environments by analyzing:

• Internal company culture

• Market potential only

• Cultural, Administrative, Geographic, and Economic distances

What is one advantage of using the CAGE framework in market analysis?

• It focuses solely on economic conditions

• It provides a comprehensive view of external factors

• It disregards cultural alignment

Which factor is analyzed in the CAGE framework's 'Geographic' component?

• Proximity between markets

• Language differences

• Trade regulations