Question 1

All of the following are important when establishing and managing a collaborative agreement EXCEPT ________.

Accepted Answer

A) setting up mutual goals and expectations 
B) avoiding interference about how the partner handles its duties in the operation 
C) determining whether the agreement is reaching its goals 
D) assessing periodically whether a different operational form would be preferable 
A) setting up mutual goals and expectations 
B) avoiding interference about how the partner handles its duties in the operation 
C) determining whether the agreement is reaching its goals 
D) assessing periodically whether a different operational form would be preferable

Question 2

Wholly owned operations abroad inhibit a company's ability to pursue a global strategy.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) evidence suggests that collaborative arrangements slow the speed of innovation 
B) large companies can dictate their terms of operations abroad 
C) small companies are disadvantaged in legal settlements 
D) large companies need not adapt to national differences 
A) evidence suggests that collaborative arrangements slow the speed of innovation 
B) large companies can dictate their terms of operations abroad 
C) small companies are disadvantaged in legal settlements 
D) large companies need not adapt to national differences

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

What is the primary reason for technology licensing to take place while a product is still in the developmental stage?

Accepted Answer

A) to enable the licensor to receive some earnings in case the technology never becomes operative 
B) to ensure that a product launches in various countries at about the same time 
C) to gain funds to complete the development 
D) to reduce transaction costs 
A) to enable the licensor to receive some earnings in case the technology never becomes operative 
B) to ensure that a product launches in various countries at about the same time 
C) to gain funds to complete the development 
D) to reduce transaction costs

Question 6

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 7

Lesser-known franchisors sometimes enter foreign countries with company-owned outlets.A reason for doing this is to ________.

Accepted Answer

A) guarantee profits 
B) avoid competition 
C) compete with local stores 
D) attract potential franchisee 
A) guarantee profits 
B) avoid competition 
C) compete with local stores 
D) attract potential franchisee

Question 8

What problem most likely arises when a company wishes to sell techniques/technology that it has either not yet fully developed or used commercially?

Accepted Answer

A) A buyer is reluctant to buy what it has not seen, and a seller risks divulging secretive information. 
B) Most governments want to see contract details, which companies feel are proprietary. 
C) It is difficult to develop a rapport between negotiating parties in this type of situation. 
D) Parties can seldom agree on the desired level of quality control. 
A) A buyer is reluctant to buy what it has not seen, and a seller risks divulging secretive information. 
B) Most governments want to see contract details, which companies feel are proprietary. 
C) It is difficult to develop a rapport between negotiating parties in this type of situation. 
D) Parties can seldom agree on the desired level of quality control.

Question 9

What is a 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 10

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.

All of the following are important when establishing and managing a collaborative agreement EXCEPT ________.

Wholly owned operations abroad inhibit a company's ability to pursue a global strategy.

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

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

What is the primary reason for technology licensing to take place while a product is still in the developmental stage?

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

Lesser-known franchisors sometimes enter foreign countries with company-owned outlets.A reason for doing this is to ________.

What problem most likely arises when a company wishes to sell techniques/technology that it has either not yet fully developed or used commercially?

What is a consortium?

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?

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

Global Capital Markets

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 and Finance Issues

International Human Resource Management

Filters

Exam 15: Direct Investment and Collaborative Strategies

All of the following are important when establishing and managing a collaborative agreement EXCEPT ________.

Wholly owned operations abroad inhibit a company's ability to pursue a global strategy.

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

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

What is the primary reason for technology licensing to take place while a product is still in the developmental stage?

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

Lesser-known franchisors sometimes enter foreign countries with company-owned outlets.A reason for doing this is to ________.

What problem most likely arises when a company wishes to sell techniques/technology that it has either not yet fully developed or used commercially?

What is a consortium?

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?

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

Global Capital Markets

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 and Finance Issues

International Human Resource Management

Filters