Question 1

The valuable asset of firms, whose competitive advantage is based on management know-how, is their ____.

Accepted Answer

A)  top management staff 
B)  USP 
C)  advertisements 
D)  brand name 
A)  top management staff 
B)  USP 
C)  advertisements 
D)  brand name

Question 2

An advantage of joint ventures with a local partner is the knowledge of the local environment that the local partner contributes to the venture.

Accepted Answer

A) True 
 B)False

Question 3

Discuss the trade-offs associated with large-scale entry versus small-scale entry.

Accepted Answer

It is important for a firm to think thro

Question 4

Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign partner, but in addition to a royalty payment, the firm might also request that the foreign partner license some of its valuable know-how to the firm.

Accepted Answer

A)  integrated licensing 
B)  chartering 
C)  franchising 
D)  cross-licensing 
A)  integrated licensing 
B)  chartering 
C)  franchising 
D)  cross-licensing

Question 5

Which of the following is a distinct advantage of exporting?

Accepted Answer

A)  It avoids the threat of tariff barriers by the host-country government. 
B)  Firms benefit from a local partner's knowledge of the host country's competitive conditions. 
C)  It avoids the often substantial costs of establishing manufacturing operations in the host country. 
D)  It is appropriate if lower cost locations for manufacturing the product can be found abroad. 
A)  It avoids the threat of tariff barriers by the host-country government. 
B)  Firms benefit from a local partner's knowledge of the host country's competitive conditions. 
C)  It avoids the often substantial costs of establishing manufacturing operations in the host country. 
D)  It is appropriate if lower cost locations for manufacturing the product can be found abroad.

Question 6

A small-scale entrant is more likely than a large-scale entrant to capture first-mover advantages associated with demand preemption, scale economies, and switching costs.

Accepted Answer

A) True 
 B)False

Question 7

Consider why a firm should enter a market via a wholly owned subsidiary. What are the advantages and disadvantages of this type of strategy?

Accepted Answer

In a wholly owned subsidiary, the firm o

Question 8

The choice of which markets to enter should be driven by an assessment of relative long-run growth and profit potential.

Accepted Answer

A) True 
 B)False

Question 9

Licensing limits the firm's ability to realize experience curve and location economies by producing its product in a centralized location.

Accepted Answer

A) True 
 B)False

Question 10

Why do acquisitions fail?

Accepted Answer

Acquisitions fail for several reasons. F

Question 11

Explain the term relational capital and the importance this concept plays in managing an effective business alliance.

Accepted Answer

Once a partner has been selected and an

Question 12

Turnkey projects are most common in which of the following industries?

Accepted Answer

A)  fresh fruit, grain, and meat products 
B)  chemical, pharmaceutical, and metal refining 
C)  consumer durables, computer peripherals, and automotive parts 
D)  apparel, shoes, and leather products 
A)  fresh fruit, grain, and meat products 
B)  chemical, pharmaceutical, and metal refining 
C)  consumer durables, computer peripherals, and automotive parts 
D)  apparel, shoes, and leather products

Question 13

Other things being equal, the benefit-cost-risk trade-off is likely to be most favorable in:

Accepted Answer

A)  politically unstable developing nations that operate with a mixed or command economy. 
B)  nations where there is a dramatic upsurge in either inflation rates or private-sector debt. 
C)  politically stable developed and developing nations that have free market systems. 
D)  developing nations where speculative financial bubbles have led to excess borrowing. 
A)  politically unstable developing nations that operate with a mixed or command economy. 
B)  nations where there is a dramatic upsurge in either inflation rates or private-sector debt. 
C)  politically stable developed and developing nations that have free market systems. 
D)  developing nations where speculative financial bubbles have led to excess borrowing.

Question 14

A joint venture is often politically more acceptable than a wholly owned subsidiary and brings a degree of local knowledge to the subsidiary.

Accepted Answer

A) True 
 B)False

Question 15

Discuss some of the disadvantages of establishing greenfield venture in a foreign country.

Accepted Answer

Some of the disadvantages of establishin

Question 16

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 17

Cross-licensing agreements can be used to formalize arrangements to swap skills and technology in a strategic alliance.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is true of acquisitions?

Accepted Answer

A)  It is a time-consuming process and takes a lot of time to execute. 
B)  They are less risky than greenfield ventures in the sense that there is less potential for unpleasant surprises. 
C)  They give the firm a much greater ability to build the kind of subsidiary company that it wants. 
D)  In many cases, firms make acquisitions to preempt their competitors. 
A)  It is a time-consuming process and takes a lot of time to execute. 
B)  They are less risky than greenfield ventures in the sense that there is less potential for unpleasant surprises. 
C)  They give the firm a much greater ability to build the kind of subsidiary company that it wants. 
D)  In many cases, firms make acquisitions to preempt their competitors.

Question 19

Which of the following statements is true of strategic alliances?

Accepted Answer

A)  The fixed costs and associated risks of developing new products or processes are borne by the alliance partner. 
B)  They are a way to bring together complementary skills and assets that both companies develop. 
C)  They limit the entry of firms into foreign markets. 
D)  Firm risks giving away technological know-how and market access to its alliance partner. 
A)  The fixed costs and associated risks of developing new products or processes are borne by the alliance partner. 
B)  They are a way to bring together complementary skills and assets that both companies develop. 
C)  They limit the entry of firms into foreign markets. 
D)  Firm risks giving away technological know-how and market access to its alliance partner.

Question 20

What is a joint venture? What type of joint venture is most common? Provide an example of a joint venture.

Accepted Answer

A joint venture involves establishing a

The valuable asset of firms, whose competitive advantage is based on management know-how, is their ____.

An advantage of joint ventures with a local partner is the knowledge of the local environment that the local partner contributes to the venture.

Discuss the trade-offs associated with large-scale entry versus small-scale entry.

Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign partner, but in addition to a royalty payment, the firm might also request that the foreign partner license some of its valuable know-how to the firm.

Which of the following is a distinct advantage of exporting?

A small-scale entrant is more likely than a large-scale entrant to capture first-mover advantages associated with demand preemption, scale economies, and switching costs.

Consider why a firm should enter a market via a wholly owned subsidiary. What are the advantages and disadvantages of this type of strategy?

The choice of which markets to enter should be driven by an assessment of relative long-run growth and profit potential.

Licensing limits the firm's ability to realize experience curve and location economies by producing its product in a centralized location.

Why do acquisitions fail?

Explain the term relational capital and the importance this concept plays in managing an effective business alliance.

Turnkey projects are most common in which of the following industries?

Other things being equal, the benefit-cost-risk trade-off is likely to be most favorable in:

A joint venture is often politically more acceptable than a wholly owned subsidiary and brings a degree of local knowledge to the subsidiary.

Discuss some of the disadvantages of establishing greenfield venture in a foreign country.

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.

Cross-licensing agreements can be used to formalize arrangements to swap skills and technology in a strategic alliance.

Which of the following is true of acquisitions?

Which of the following statements is true of strategic alliances?

What is a joint venture? What type of joint venture is most common? Provide an example of a joint venture.

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

The valuable asset of firms, whose competitive advantage is based on management know-how, is their ____.

An advantage of joint ventures with a local partner is the knowledge of the local environment that the local partner contributes to the venture.

Discuss the trade-offs associated with large-scale entry versus small-scale entry.

Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign partner, but in addition to a royalty payment, the firm might also request that the foreign partner license some of its valuable know-how to the firm.

Which of the following is a distinct advantage of exporting?

A small-scale entrant is more likely than a large-scale entrant to capture first-mover advantages associated with demand preemption, scale economies, and switching costs.

Consider why a firm should enter a market via a wholly owned subsidiary. What are the advantages and disadvantages of this type of strategy?

The choice of which markets to enter should be driven by an assessment of relative long-run growth and profit potential.

Licensing limits the firm's ability to realize experience curve and location economies by producing its product in a centralized location.

Why do acquisitions fail?

Explain the term relational capital and the importance this concept plays in managing an effective business alliance.

Turnkey projects are most common in which of the following industries?

Other things being equal, the benefit-cost-risk trade-off is likely to be most favorable in:

A joint venture is often politically more acceptable than a wholly owned subsidiary and brings a degree of local knowledge to the subsidiary.

Discuss some of the disadvantages of establishing greenfield venture in a foreign country.

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.

Cross-licensing agreements can be used to formalize arrangements to swap skills and technology in a strategic alliance.

Which of the following is true of acquisitions?

Which of the following statements is true of strategic alliances?

What is a joint venture? What type of joint venture is most common? Provide an example of a joint venture.

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