Question 1

What is the primary advantage of licensing?

Accepted Answer

A)  It helps a firm avoid the development costs associated with opening a foreign market. 
B)  It gives a firm the tight control over manufacturing, marketing, and strategy. 
C)  It helps a firm achieve experience curve and location economies. 
D)  It increases a firm's ability to utilize a coordinated strategy. 
A)  It helps a firm avoid the development costs associated with opening a foreign market. 
B)  It gives a firm the tight control over manufacturing, marketing, and strategy. 
C)  It helps a firm achieve experience curve and location economies. 
D)  It increases a firm's ability to utilize a coordinated strategy.

Question 2

If a firm is trying to enter a market where there are already well-established companies, and where global competitors are also interested in establishing a presence, the firm should choose a greenfield investment.

Accepted Answer

A) True 
 B)False

Question 3

The main advantage of greenfield investment is that it gives the firm a much greater ability to build the kind of subsidiary company that it wants.

Accepted Answer

A) True 
 B)False

Question 4

Brand names are generally well-protected by international laws pertaining to trademarks.

Accepted Answer

A) True 
 B)False

Question 5

Exporting is most appropriate when lower-cost locations for manufacturing the product can be found abroad.

Accepted Answer

A) True 
 B)False

Question 6

Acquisitions are quick to execute.

Accepted Answer

A) True 
 B)False

Question 7

Greenfield ventures are less risky than acquisitions in the sense that there is less potential for unpleasant surprises.

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

Acquisitions rarely produce disappointing results.

Accepted Answer

A) True 
 B)False

Question 10

Compare and contrast licensing agreements and franchising agreements.

Accepted Answer

A licensing agreement is an arrangement

Question 11

Which of the following statements about franchising is true?

Accepted Answer

A)  It guarantees consistent product quality. 
B)  It tends to involve more short-term commitments than licensing. 
C)  It is a specialized form of licensing. 
D)  It is employed primarily by manufacturing firms. 
A)  It guarantees consistent product quality. 
B)  It tends to involve more short-term commitments than licensing. 
C)  It is a specialized form of licensing. 
D)  It is employed primarily by manufacturing firms.

Question 12

How can a firm increase the probability of selecting a good partner?

Accepted Answer

To increase the probability of selecting

Question 13

Firms pursuing global standardization or transnational strategies tend to prefer joint-venture arrangements over wholly owned subsidiaries.

Accepted Answer

A) True 
 B)False

Question 14

The attractiveness of a country as a potential market for an international business depends on balancing the benefits, costs, and risks associated with doing business in that country.

Accepted Answer

A) True 
 B)False

Question 15

A good ally will expropriate the firm's technological know-how while giving away little in return.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is a first-mover advantage?

Accepted Answer

A)  lower research and development costs and marketing costs than other firms 
B)  ability to preempt rivals and capture demand by establishing a strong brand name 
C)  ability to capitalize on the work done by other firms 
D)  creation of innovative products at lower costs than other firms 
A)  lower research and development costs and marketing costs than other firms 
B)  ability to preempt rivals and capture demand by establishing a strong brand name 
C)  ability to capitalize on the work done by other firms 
D)  creation of innovative products at lower costs than other firms

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Educating customers is a part of pioneering costs.

Accepted Answer

A) True 
 B)False

Question 19

Explain the idea of a turnkey project. Why should a firm use this arrangement to expand internationally? In what industries are turnkey arrangements most common?

Accepted Answer

In a turnkey project, the contractor agr

Question 20

Most service firms have found that _____ with local partners work best for controlling subsidiaries.

Accepted Answer

A)  joint ventures 
B)  licensing agreements 
C)  greenfield investments 
D)  turnkey projects 
A)  joint ventures 
B)  licensing agreements 
C)  greenfield investments 
D)  turnkey projects

What is the primary advantage of licensing?

If a firm is trying to enter a market where there are already well-established companies, and where global competitors are also interested in establishing a presence, the firm should choose a greenfield investment.

The main advantage of greenfield investment is that it gives the firm a much greater ability to build the kind of subsidiary company that it wants.

Brand names are generally well-protected by international laws pertaining to trademarks.

Exporting is most appropriate when lower-cost locations for manufacturing the product can be found abroad.

Acquisitions are quick to execute.

Greenfield ventures are less risky than acquisitions in the sense that there is less potential for unpleasant surprises.

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

Acquisitions rarely produce disappointing results.

Compare and contrast licensing agreements and franchising agreements.

Which of the following statements about franchising is true?

How can a firm increase the probability of selecting a good partner?

Firms pursuing global standardization or transnational strategies tend to prefer joint-venture arrangements over wholly owned subsidiaries.

The attractiveness of a country as a potential market for an international business depends on balancing the benefits, costs, and risks associated with doing business in that country.

A good ally will expropriate the firm's technological know-how while giving away little in return.

Which of the following is a first-mover advantage?

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

Educating customers is a part of pioneering costs.

Explain the idea of a turnkey project. Why should a firm use this arrangement to expand internationally? In what industries are turnkey arrangements most common?

Most service firms have found that _____ with local partners work best for controlling subsidiaries.

Globalization

National Differences in Political Economy

Political Economy and Economic Development

Differences in Culture

Ethics in International Business

International Trade Theory

The Political Economy of International Trade

Foreign Direct Investment

Regional Economic Integration

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, Outsourcing, and Logistics

Global Marketing and RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters

Exam 15: Entry Strategy and Strategic Alliances

What is the primary advantage of licensing?

If a firm is trying to enter a market where there are already well-established companies, and where global competitors are also interested in establishing a presence, the firm should choose a greenfield investment.

The main advantage of greenfield investment is that it gives the firm a much greater ability to build the kind of subsidiary company that it wants.

Brand names are generally well-protected by international laws pertaining to trademarks.

Exporting is most appropriate when lower-cost locations for manufacturing the product can be found abroad.

Acquisitions are quick to execute.

Greenfield ventures are less risky than acquisitions in the sense that there is less potential for unpleasant surprises.

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

Acquisitions rarely produce disappointing results.

Compare and contrast licensing agreements and franchising agreements.

Which of the following statements about franchising is true?

How can a firm increase the probability of selecting a good partner?

Firms pursuing global standardization or transnational strategies tend to prefer joint-venture arrangements over wholly owned subsidiaries.

The attractiveness of a country as a potential market for an international business depends on balancing the benefits, costs, and risks associated with doing business in that country.

A good ally will expropriate the firm's technological know-how while giving away little in return.

Which of the following is a first-mover advantage?

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

Educating customers is a part of pioneering costs.

Explain the idea of a turnkey project. Why should a firm use this arrangement to expand internationally? In what industries are turnkey arrangements most common?

Most service firms have found that _____ with local partners work best for controlling subsidiaries.

Globalization

National Differences in Political Economy

Political Economy and Economic Development

Differences in Culture

Ethics in International Business

International Trade Theory

The Political Economy of International Trade

Foreign Direct Investment

Regional Economic Integration

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, Outsourcing, and Logistics

Global Marketing and RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters