Japanese Supercenter (Scenario) the Tag-Mart Chain of Discount Superstores Is Nearing Completion of Nearing

question 54

Multiple Choice

Japanese Supercenter (Scenario)
The Tag-Mart chain of discount superstores is nearing completion of its new supercenter in Tokyo. The Tokyo store is the first foreign store for the large U.S.-based company. Tag-Mart offers a large variety of products at virtually unbeatable prices. A group of Tag-Mart representatives has traveled to Tokyo to inspect the new store and hire a store manager. The top two contenders for the position are Hisako Aoki and Takematsu Sato. Aoki has 25 years of experience managing a local department store renowned for its customer service. Sato, born and raised in Japan, earned a college degree in the U.S. before working six years as a manager at a Texas Tag-Mart.
-Which of the following is a cultural barrier inherent to service firms that internationalize via FDI?

• A) Service firms are unable to infiltrate international markets due to language issues.
• B) The source of a firm's funding determines the location of its international subsidiaries.
• C) A firm's corporate culture is overly influenced by its national culture.
• D) Firms that internationalize via FDI usually make large spending cuts on advertising campaigns.

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Definitions:

Unamortized Acquisitional Fair Value Adjustments

The portion of the adjustments to the fair values of acquired assets and liabilities through an acquisition that has yet to be amortized over their useful life.

Unrealized Profit

Profit that has been generated on paper from investments but not yet realized through a sale or transaction.

Upstream Sales

Transactions involving the sale of goods or services from a subsidiary to a parent company, often seen in vertical integration scenarios.

Equity Method

An accounting technique used to record investments in which the investor has significant influence over the investee but does not control it, usually between 20% and 50% ownership.