Question 1

Which of the following is a global risk with regard to strategic entry scanning?

Accepted Answer

A) economic and fiscal policies 
B) corruption 
C) economic and financial risk 
D) trade restrictions 
A) economic and fiscal policies 
B) corruption 
C) economic and financial risk 
D) trade restrictions

Question 2

Which of the following terms refers to operating in concentrations of related, interdependent companies within an industry that uses the same suppliers, specialized labor, and distribution channels?

Accepted Answer

A) outsourcing 
B) dumping 
C) franchising 
D) clustering 
A) outsourcing 
B) dumping 
C) franchising 
D) clustering

Question 3

Which of the following is the proactive reason that prompts firms to expand overseas?

Accepted Answer

A) avoiding restrictive trade barriers 
B) solving logistics-related problems 
C) responding to foreign competition 
D) seeking economies of scale 
A) avoiding restrictive trade barriers 
B) solving logistics-related problems 
C) responding to foreign competition 
D) seeking economies of scale

Question 4

Which of the following is the most common reactive reason for a firm to extend its operations overseas?

Accepted Answer

A) tax incentives 
B) economies of scale 
C) globalization of competitors 
D) resource access and cost savings 
A) tax incentives 
B) economies of scale 
C) globalization of competitors 
D) resource access and cost savings

Question 5

Which of the following is a venture-specific factor that affects the choice of international entry mode for a company?

Accepted Answer

A) competition in local market 
B) level of global competition 
C) ability to protect proprietary technology 
D) corporate culture and structure 
A) competition in local market 
B) level of global competition 
C) ability to protect proprietary technology 
D) corporate culture and structure

Question 6

What is environmental scanning? What areas are most commonly focused in environmental scanning?

Accepted Answer

Environmental scanning is the process of

Question 7

________ reveal an inefficient use of assets that restricts profitability.

Accepted Answer

A) Sales-force analyses 
B) Concentration ratios 
C) Financial ratios 
D) Competitive analyses 
A) Sales-force analyses 
B) Concentration ratios 
C) Financial ratios 
D) Competitive analyses

Question 8

Which of the following is the primary advantage of using e-business as a local-level entry strategy?

Accepted Answer

A) shared costs and risks 
B) access to highly skilled workers 
C) rapid entry and exit from markets 
D) avoidance of tariffs and regulations 
A) shared costs and risks 
B) access to highly skilled workers 
C) rapid entry and exit from markets 
D) avoidance of tariffs and regulations

Question 9

The availability of raw materials and other resources offers both greater control over inputs and lower transportation costs.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following would most likely be categorized as a global financial objective of an international firm?

Accepted Answer

A) foreign-exchange management 
B) long-term profit growth 
C) quality and cost control 
D) company market share 
A) foreign-exchange management 
B) long-term profit growth 
C) quality and cost control 
D) company market share

Question 11

Offshoring provides the company with access to foreign markets while avoiding ________.

Accepted Answer

A) relocation of the company to other countries 
B) competition between companies in the global market 
C) trade risks 
D) trade barriers 
A) relocation of the company to other countries 
B) competition between companies in the global market 
C) trade risks 
D) trade barriers

Question 12

When Disney decided to build a park in Paris, the French government gave Disney prime farmland just outside the city limits.This is most likely an example of a firm expanding overseas due to ________.

Accepted Answer

A) globalization of competitors 
B) restrictive trade barriers 
C) home country regulations 
D) provision of incentives 
A) globalization of competitors 
B) restrictive trade barriers 
C) home country regulations 
D) provision of incentives

Question 13

Meryl Software Inc., an American MNC wishing total control of its operations, wants to acquire an existing firm, Graphiti Animations, in Canada.If acquired, Graphiti Animations would be a ________.

Accepted Answer

A) fully-owned subsidiary 
B) holding company 
C) greenfield investment 
D) shell corporation 
A) fully-owned subsidiary 
B) holding company 
C) greenfield investment 
D) shell corporation

Question 14

The strategic management process invariably follows a linear format.

Accepted Answer

A) True 
 B)False

Question 15

Licensing is especially suitable for ________.

Accepted Answer

A) firms with a single product line and a constant technological environment 
B) large firms with huge financial and managerial resources for direct investment abroad 
C) the mature phase of a product's life cycle when production is relatively standardized 
D) firms that want to control all of the licensee's activities and performances 
A) firms with a single product line and a constant technological environment 
B) large firms with huge financial and managerial resources for direct investment abroad 
C) the mature phase of a product's life cycle when production is relatively standardized 
D) firms that want to control all of the licensee's activities and performances

Question 16

Which of the following is the first step in developing a successful export strategy?

Accepted Answer

A) identification of a potential market 
B) match market needs to the company's abilities 
C) initiation of meetings 
D) commitment of resources 
A) identification of a potential market 
B) match market needs to the company's abilities 
C) initiation of meetings 
D) commitment of resources

Question 17

Which of the following strategies would most likely be used by a non-European company wanting to gain quick entry inside the European community?

Accepted Answer

A) international joint venture 
B) greenfield investment 
C) turnkey operation 
D) offshoring 
A) international joint venture 
B) greenfield investment 
C) turnkey operation 
D) offshoring

Question 18

List the reasons a company would have if it wants to operate internationally.

Accepted Answer

A company can operate internationally fo

Question 19

________ are usually difficult for competitors to imitate and represent a major focus for strategic development at the corporate level.

Accepted Answer

A) Break-even points 
B) Comparative advantages 
C) Absolute advantages 
D) Distinctive competencies 
A) Break-even points 
B) Comparative advantages 
C) Absolute advantages 
D) Distinctive competencies

Question 20

At which three levels should firms ideally perform global environmental analysis?

Accepted Answer

A) product, domestic market, and consumer 
B) multinational, regional, and local 
C) operational, tactical, and top management 
D) innovation, production, and local distribution 
A) product, domestic market, and consumer 
B) multinational, regional, and local 
C) operational, tactical, and top management 
D) innovation, production, and local distribution

Which of the following is a global risk with regard to strategic entry scanning?

Which of the following terms refers to operating in concentrations of related, interdependent companies within an industry that uses the same suppliers, specialized labor, and distribution channels?

Which of the following is the proactive reason that prompts firms to expand overseas?

Which of the following is the most common reactive reason for a firm to extend its operations overseas?

Which of the following is a venture-specific factor that affects the choice of international entry mode for a company?

What is environmental scanning? What areas are most commonly focused in environmental scanning?

________ reveal an inefficient use of assets that restricts profitability.

Which of the following is the primary advantage of using e-business as a local-level entry strategy?

The availability of raw materials and other resources offers both greater control over inputs and lower transportation costs.

Which of the following would most likely be categorized as a global financial objective of an international firm?

Offshoring provides the company with access to foreign markets while avoiding ________.

When Disney decided to build a park in Paris, the French government gave Disney prime farmland just outside the city limits.This is most likely an example of a firm expanding overseas due to ________.

Meryl Software Inc., an American MNC wishing total control of its operations, wants to acquire an existing firm, Graphiti Animations, in Canada.If acquired, Graphiti Animations would be a ________.

The strategic management process invariably follows a linear format.

Licensing is especially suitable for ________.

Which of the following is the first step in developing a successful export strategy?

Which of the following strategies would most likely be used by a non-European company wanting to gain quick entry inside the European community?

List the reasons a company would have if it wants to operate internationally.

________ are usually difficult for competitors to imitate and represent a major focus for strategic development at the corporate level.

At which three levels should firms ideally perform global environmental analysis?

Assessing the Environment: Political, Economic, Legal, Technological

Managing Interdependence, Social Responsibility, and Ethics

Understanding the Role of Culture

Communicating Across Cultures

Cross-Cultural Negotiation and Decision Making

Global Alliances and Strategy Implementation

Developing a Global Management Cadre

Staffing, Training, and Compensation for Global Operations

Developing a Global Management Cadre

Motivating and Leading

Filters

Exam 6: Formulating Strategy

Which of the following is a global risk with regard to strategic entry scanning?

Which of the following terms refers to operating in concentrations of related, interdependent companies within an industry that uses the same suppliers, specialized labor, and distribution channels?

Which of the following is the proactive reason that prompts firms to expand overseas?

Which of the following is the most common reactive reason for a firm to extend its operations overseas?

Which of the following is a venture-specific factor that affects the choice of international entry mode for a company?

What is environmental scanning? What areas are most commonly focused in environmental scanning?

________ reveal an inefficient use of assets that restricts profitability.

Which of the following is the primary advantage of using e-business as a local-level entry strategy?

The availability of raw materials and other resources offers both greater control over inputs and lower transportation costs.

Which of the following would most likely be categorized as a global financial objective of an international firm?

Offshoring provides the company with access to foreign markets while avoiding ________.

When Disney decided to build a park in Paris, the French government gave Disney prime farmland just outside the city limits.This is most likely an example of a firm expanding overseas due to ________.

Meryl Software Inc., an American MNC wishing total control of its operations, wants to acquire an existing firm, Graphiti Animations, in Canada.If acquired, Graphiti Animations would be a ________.

The strategic management process invariably follows a linear format.

Licensing is especially suitable for ________.

Which of the following is the first step in developing a successful export strategy?

Which of the following strategies would most likely be used by a non-European company wanting to gain quick entry inside the European community?

List the reasons a company would have if it wants to operate internationally.

________ are usually difficult for competitors to imitate and represent a major focus for strategic development at the corporate level.

At which three levels should firms ideally perform global environmental analysis?

Assessing the Environment: Political, Economic, Legal, Technological

Managing Interdependence, Social Responsibility, and Ethics

Understanding the Role of Culture

Communicating Across Cultures

Cross-Cultural Negotiation and Decision Making

Global Alliances and Strategy Implementation

Developing a Global Management Cadre

Staffing, Training, and Compensation for Global Operations

Developing a Global Management Cadre

Motivating and Leading

Filters