Question 1

Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of _____.

Accepted Answer

A)  licensing agreements 
B)  franchising agreements 
C)  intangible property 
D)  tangible property 
A)  licensing agreements 
B)  franchising agreements 
C)  intangible property 
D)  tangible property

Question 2

Acquisitions rarely produce disappointing results.

Accepted Answer

A) True 
 B)False

Question 3

An arrangement whereby a firm grants the right of intangible property to another entity for a specified time period in exchange for royalties is a(n) _____ agreement.

Accepted Answer

A)  turnkey 
B)  licensing 
C)  greenfield 
D)  acquisition 
A)  turnkey 
B)  licensing 
C)  greenfield 
D)  acquisition

Question 4

McDonald's is an example of a firm that uses _____.

Accepted Answer

A)  wholly owned subsidiaries 
B)  a franchising strategy 
C)  turnkey contracts 
D)  a licensing strategy 
A)  wholly owned subsidiaries 
B)  a franchising strategy 
C)  turnkey contracts 
D)  a licensing strategy

Question 5

_____ refer to cooperative agreements between potential or actual competitors.

Accepted Answer

A)  Greenfield investments 
B)  Strategic alliances 
C)  Takeovers 
D)  Licensing agreements 
A)  Greenfield investments 
B)  Strategic alliances 
C)  Takeovers 
D)  Licensing agreements

Question 6

Discuss the three advantages of acquiring an enterprise in a target market.

Accepted Answer

Acquisitions have three major points in

Question 7

Small-scale entry allows a firm to learn about a foreign market while limiting the firm's exposure to that market.

Accepted Answer

A) True 
 B)False

Question 8

According to the _____, top managers typically overestimate their ability to create value from an acquisition.

Accepted Answer

A)  misvaluation theory 
B)  performance extrapolation hypothesis 
C)  market timing theory 
D)  hubris hypothesis 
A)  misvaluation theory 
B)  performance extrapolation hypothesis 
C)  market timing theory 
D)  hubris hypothesis

Question 9

Which of the following is true of strategic alliances?

Accepted Answer

A)  Strategic alliances can make entry into a foreign market difficult. 
B)  Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. 
C)  Strategic alliances allow firms to bring together complementary skills and assets that neither company could easily develop on its own. 
D)  Strategic alliances, while beneficial to firms, make the establishment of technological standards for an industry difficult. 
A)  Strategic alliances can make entry into a foreign market difficult. 
B)  Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. 
C)  Strategic alliances allow firms to bring together complementary skills and assets that neither company could easily develop on its own. 
D)  Strategic alliances, while beneficial to firms, make the establishment of technological standards for an industry difficult.

Question 10

When technological know-how constitutes a firm's core competence, which entry mode is the optimal choice?

Accepted Answer

A)  Foreign franchises controlled by joint ventures 
B)  Licensing agreements 
C)  Wholly owned subsidiaries 
D)  Turnkey contracts 
A)  Foreign franchises controlled by joint ventures 
B)  Licensing agreements 
C)  Wholly owned subsidiaries 
D)  Turnkey contracts

Question 11

Which of the following is true of wholly owned subsidiaries?

Accepted Answer

A)  It is the least expensive method of serving a foreign market from a capital investment standpoint. 
B)  It the most feasible entry mode due to the political considerations. 
C)  It is required if a firm is trying to realize location and experience curve economies. 
D)  It is particularly useful where FDI is limited by host-government regulations. 
A)  It is the least expensive method of serving a foreign market from a capital investment standpoint. 
B)  It the most feasible entry mode due to the political considerations. 
C)  It is required if a firm is trying to realize location and experience curve economies. 
D)  It is particularly useful where FDI is limited by host-government regulations.

Question 12

A wholly owned subsidiary limits a firm's control over operations in different countries.

Accepted Answer

A) True 
 B)False

Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of _____.

Acquisitions rarely produce disappointing results.

An arrangement whereby a firm grants the right of intangible property to another entity for a specified time period in exchange for royalties is a(n) _____ agreement.

McDonald's is an example of a firm that uses _____.

_____ refer to cooperative agreements between potential or actual competitors.

Discuss the three advantages of acquiring an enterprise in a target market.

Small-scale entry allows a firm to learn about a foreign market while limiting the firm's exposure to that market.

According to the _____, top managers typically overestimate their ability to create value from an acquisition.

Which of the following is true of strategic alliances?

When technological know-how constitutes a firm's core competence, which entry mode is the optimal choice?

Which of the following is true of wholly owned subsidiaries?

A wholly owned subsidiary limits a firm's control over operations in different countries.

Globalization

National Differences in Political Economy, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, Corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Foreign Direct Investment

Regional Trade Pacts Give the Mexican Auto Industry an Edge

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Strategy of International Business

The Organization of International Business

Exporting, Importing, and Countertrade

Global Production and Supply Chain Management

Global Marketing and RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters

Exam 15: Entry Strategy and Strategic Alliances

Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of _____.

Acquisitions rarely produce disappointing results.

An arrangement whereby a firm grants the right of intangible property to another entity for a specified time period in exchange for royalties is a(n) _____ agreement.

McDonald's is an example of a firm that uses _____.

_____ refer to cooperative agreements between potential or actual competitors.

Discuss the three advantages of acquiring an enterprise in a target market.

Small-scale entry allows a firm to learn about a foreign market while limiting the firm's exposure to that market.

According to the _____, top managers typically overestimate their ability to create value from an acquisition.

Which of the following is true of strategic alliances?

When technological know-how constitutes a firm's core competence, which entry mode is the optimal choice?

Which of the following is true of wholly owned subsidiaries?

A wholly owned subsidiary limits a firm's control over operations in different countries.

Globalization

National Differences in Political Economy, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, Corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Foreign Direct Investment

Regional Trade Pacts Give the Mexican Auto Industry an Edge

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Strategy of International Business

The Organization of International Business

Exporting, Importing, and Countertrade

Global Production and Supply Chain Management

Global Marketing and RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters