Question 1

An advantage of collaborative agreements is the ability to spread faster geographically.

Accepted Answer

A) True 
 B)False

Question 2

A company that makes a foreign investment largely to acquire knowledge is most likely to use ________ as a means of expansion.

Accepted Answer

A)  a greenfield investment 
B)  internalization 
C)  an acquisition 
D)  a licensing agreement 
A)  a greenfield investment 
B)  internalization 
C)  an acquisition 
D)  a licensing agreement

Question 3

A greenfield investment is another name for a company's decision to ________.

Accepted Answer

A)  acquire an interest in an existing foreign operation 
B)  implement sustainable marketing practices 
C)  construct a new facility in a foreign market 
D)  build a facility for a local company 
A)  acquire an interest in an existing foreign operation 
B)  implement sustainable marketing practices 
C)  construct a new facility in a foreign market 
D)  build a facility for a local company

Question 4

A turnkey operation is a contract for the construction of an operating facility for a fee.

Accepted Answer

A) True 
 B)False

Question 5

All of the following are differences that need to be overcome for international collaborative arrangements to be effective EXCEPT ________.

Accepted Answer

A)  national disparities in governmental policies 
B)  company variances in strategic directions and objectives 
C)  governmental differences in export restrictions 
D)  company diversity in management styles and structures 
A)  national disparities in governmental policies 
B)  company variances in strategic directions and objectives 
C)  governmental differences in export restrictions 
D)  company diversity in management styles and structures

Question 6

In which of the following situations would Company X most likely seek a collaborative arrangement with Company Z in which Company Z would handle work for Company X?

Accepted Answer

A)  Company X has excess capacity. 
B)  Fixed costs for the work are high, and Company X has large volumes of work. 
C)  Company X is inexperienced in outsourcing work. 
D)  Fixed costs for the work are high, and Company X has small volumes of work. 
A)  Company X has excess capacity. 
B)  Fixed costs for the work are high, and Company X has large volumes of work. 
C)  Company X is inexperienced in outsourcing work. 
D)  Fixed costs for the work are high, and Company X has small volumes of work.

Question 7

When a large company and a small company enter a joint venture,the large company is expected to contribute more to the arrangement.

Accepted Answer

A) True 
 B)False

Question 8

The use of management contracts has been significant in hotel operations.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is an argument for using a collaborative agreement?

Accepted Answer

A)  to prevent problems caused by minority shareholders 
B)  to preserve a concentration strategy 
C)  to secure vertical and horizontal links 
D)  to maintain better control 
A)  to prevent problems caused by minority shareholders 
B)  to preserve a concentration strategy 
C)  to secure vertical and horizontal links 
D)  to maintain better control

Question 10

Although a company may have a good track record with collaborative arrangements,this is of little help when negotiating new collaborative arrangements with different companies.

Accepted Answer

A) True 
 B)False

Question 11

Why can a company more easily pursue a global strategy when it owns 100 percent of foreign operations?

Accepted Answer

A)  The company is not likely to face overcapacity issues. 
B)  The company limits foreign exchange rates fluctuations. 
C)  The company avoids communication misunderstandings. 
D)  The company can sub-optimize results in one country in order to optimize results globally. 
A)  The company is not likely to face overcapacity issues. 
B)  The company limits foreign exchange rates fluctuations. 
C)  The company avoids communication misunderstandings. 
D)  The company can sub-optimize results in one country in order to optimize results globally.

Question 12

What is an international consortium?

Accepted Answer

A)  the ownership of a company by a government and a foreign company 
B)  an agreement signed by most governments to protect intellectual property rights 
C)  an international joint venture owned by at least three organizations 
D)  an agreement between two or more governments to provide for reciprocal foreign investment protection 
A)  the ownership of a company by a government and a foreign company 
B)  an agreement signed by most governments to protect intellectual property rights 
C)  an international joint venture owned by at least three organizations 
D)  an agreement between two or more governments to provide for reciprocal foreign investment protection

Question 13

Patents,copyrights,and trademarks are all examples of property rights that may be licensed to one company from another.

Accepted Answer

A) True 
 B)False

Question 14

What is a turnkey operation?

Accepted Answer

A)  a contract for the complete construction of an operating facility for a fee 
B)  a contract with a government to service one of its key industries 
C)  the buying of another company 
D)  the repatriation of equity 
A)  a contract for the complete construction of an operating facility for a fee 
B)  a contract with a government to service one of its key industries 
C)  the buying of another company 
D)  the repatriation of equity

Question 15

Which of the following is LEAST likely to trigger the breakup of a joint venture?

Accepted Answer

A)  The partners place a different degree of importance on the joint venture. 
B)  The partners develop different capabilities to contribute to the joint venture. 
C)  The partners come from different industries. 
D)  Objectives evolve differently over time. 
A)  The partners place a different degree of importance on the joint venture. 
B)  The partners develop different capabilities to contribute to the joint venture. 
C)  The partners come from different industries. 
D)  Objectives evolve differently over time.

Question 16

Which of the following is NOT a factor affecting the payment amount of international licensing contracts?

Accepted Answer

A)  geographic scope of the sales territory 
B)  tax treaties between the parties' home countries 
C)  length of time the asset will have market value 
D)  market experience of using the asset elsewhere 
A)  geographic scope of the sales territory 
B)  tax treaties between the parties' home countries 
C)  length of time the asset will have market value 
D)  market experience of using the asset elsewhere

Question 17

All of the following would be examples of international joint ventures EXCEPT ________.

Accepted Answer

A)  two Japanese companies sharing ownership of a company in Canada 
B)  a Danish company sharing ownership with a South African company in South Africa 
C)  a government-owned company from China sharing ownership with an Australian company in Panama 
D)  two Venezuelan companies sharing ownership of a company in Venezuela 
A)  two Japanese companies sharing ownership of a company in Canada 
B)  a Danish company sharing ownership with a South African company in South Africa 
C)  a government-owned company from China sharing ownership with an Australian company in Panama 
D)  two Venezuelan companies sharing ownership of a company in Venezuela

Question 18

When entering foreign countries,many franchisors encounter difficulty in transferring the domestic success factors of product and service standardization.

Accepted Answer

A) True 
 B)False

Question 19

When a large company and a small company enter a collaborative arrangement,________.

Accepted Answer

A)  the large company is expected to contribute more to the arrangement 
B)  the large company is likely to be more active in the venture 
C)  the small company is more likely to view the collaboration's expansion as competition to itself 
D)  the small company is likely to be disadvantaged if legal action is necessary to solve a dispute 
A)  the large company is expected to contribute more to the arrangement 
B)  the large company is likely to be more active in the venture 
C)  the small company is more likely to view the collaboration's expansion as competition to itself 
D)  the small company is likely to be disadvantaged if legal action is necessary to solve a dispute

Question 20

Which of the following describes a cross-licensing agreement?

Accepted Answer

A)  allocation of exclusive rights to a licensee to prevent competition 
B)  an agreement between two or more companies not to compete in each other's home countries 
C)  an exchange of explicit knowledge for tacit knowledge 
D)  the exchange of intangible property rights between two or more companies 
A)  allocation of exclusive rights to a licensee to prevent competition 
B)  an agreement between two or more companies not to compete in each other's home countries 
C)  an exchange of explicit knowledge for tacit knowledge 
D)  the exchange of intangible property rights between two or more companies

An advantage of collaborative agreements is the ability to spread faster geographically.

A company that makes a foreign investment largely to acquire knowledge is most likely to use ________ as a means of expansion.

A greenfield investment is another name for a company's decision to ________.

A turnkey operation is a contract for the construction of an operating facility for a fee.

All of the following are differences that need to be overcome for international collaborative arrangements to be effective EXCEPT ________.

In which of the following situations would Company X most likely seek a collaborative arrangement with Company Z in which Company Z would handle work for Company X?

When a large company and a small company enter a joint venture,the large company is expected to contribute more to the arrangement.

The use of management contracts has been significant in hotel operations.

Which of the following is an argument for using a collaborative agreement?

Although a company may have a good track record with collaborative arrangements,this is of little help when negotiating new collaborative arrangements with different companies.

Why can a company more easily pursue a global strategy when it owns 100 percent of foreign operations?

What is an international consortium?

Patents,copyrights,and trademarks are all examples of property rights that may be licensed to one company from another.

What is a turnkey operation?

Which of the following is LEAST likely to trigger the breakup of a joint venture?

Which of the following is NOT a factor affecting the payment amount of international licensing contracts?

All of the following would be examples of international joint ventures EXCEPT ________.

When entering foreign countries,many franchisors encounter difficulty in transferring the domestic success factors of product and service standardization.

When a large company and a small company enter a collaborative arrangement,________.

Which of the following describes a cross-licensing agreement?

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

Globalization and Society

International Trade and Factor Mobility Theory

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

The Strategy of International Business

Country Evaluation and Selection

Export and Import

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply Chain Management

International Accounting Issues

The Multinational Finance Function

International Human Resources

Filters

Exam 14: Direct Investment and Collaborative Strategies

An advantage of collaborative agreements is the ability to spread faster geographically.

A company that makes a foreign investment largely to acquire knowledge is most likely to use ________ as a means of expansion.

A greenfield investment is another name for a company's decision to ________.

A turnkey operation is a contract for the construction of an operating facility for a fee.

All of the following are differences that need to be overcome for international collaborative arrangements to be effective EXCEPT ________.

In which of the following situations would Company X most likely seek a collaborative arrangement with Company Z in which Company Z would handle work for Company X?

When a large company and a small company enter a joint venture,the large company is expected to contribute more to the arrangement.

The use of management contracts has been significant in hotel operations.

Which of the following is an argument for using a collaborative agreement?

Although a company may have a good track record with collaborative arrangements,this is of little help when negotiating new collaborative arrangements with different companies.

Why can a company more easily pursue a global strategy when it owns 100 percent of foreign operations?

What is an international consortium?

Patents,copyrights,and trademarks are all examples of property rights that may be licensed to one company from another.

What is a turnkey operation?

Which of the following is LEAST likely to trigger the breakup of a joint venture?

Which of the following is NOT a factor affecting the payment amount of international licensing contracts?

All of the following would be examples of international joint ventures EXCEPT ________.

When entering foreign countries,many franchisors encounter difficulty in transferring the domestic success factors of product and service standardization.

When a large company and a small company enter a collaborative arrangement,________.

Which of the following describes a cross-licensing agreement?

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

Globalization and Society

International Trade and Factor Mobility Theory

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

The Strategy of International Business

Country Evaluation and Selection

Export and Import

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply Chain Management

International Accounting Issues

The Multinational Finance Function

International Human Resources

Filters