Exam 14: Direct Investment and Collaborative Strategies

Billions of investment dollars are needed to develop many new products. This trend toward higher development costs is likely to have which of the following effects on future modes of operations?

The dependencia theory holds that the terms for a foreign investor's operations depend on how much the investor and the host country need each other's assets.

Which of the following is the LEAST likely reason that consumers would prefer domestically made products over imports?

The more a company engages in collaborative agreements,the more it loses control over decisions and their implementation.

Few turnkey projects to date have been in remote areas of the world.

Foreign acquisitions are more advantageous than start-ups when the industry has little excess capacity than when it has a lot of excess capacity.

Coca-Cola collaborates extensively abroad,but it refuses collaboration that might imperil control of its core competency. As a result,which of the following is NOT one of its international collaborative forms?

Large companies that have resources to go it alone may have advantages in product development over small companies that do not because ________.

A U.S. firm is acquiring an existing company in Germany rather than starting up a new foreign operation. Which of the following statements best supports this decision?

What is an equity alliance?

Chrysler granted South East Motor (a company in China)rights to produce its Grand Voyager minivan for sale in China in exchange for a fee. This is an example of a(n)________.

Why do turnkey operators often require a feasibility study as part of the contract?

A U.S. firm plans to shift from exporting to production in China to serve the Chinese market. Which of the following statements would best explain this decision?

Explain how franchising agreements differ from licensing agreements.

When a company wants to be compensated in a foreign subsidiary beyond its contribution in capital and managerial resources,it often ________.

What is an equity alliance? What motives would a firm have for forming an equity alliance?

Collaborative arrangements prevent the possibility of information being passed to potential competitors.

When a company's primary motive for entering a collaborative arrangement is to learn from its partner,it is likely to ________.

According to the appropriability theory and the internalization theory,why would companies want to control their foreign operations?

When no single company has control over a collaborative arrangement,________.