Question 1

An advantage of turnkey projects is that the firm that enters into a turnkey deal will have no long-term interest in the foreign country.

Accepted Answer

A) True 
 B)False

Question 2

Acquisitions are quick to execute.

Accepted Answer

A) True 
 B)False

Question 3

If a high-tech firm sets up operations in a foreign country to profit from a core competency in technological know-how,which of the following entry strategy is best?

Accepted Answer

A)  joint ventures 
B)  licensing 
C)  wholly owned subsidiaries 
D)  turnkey contacts 
A)  joint ventures 
B)  licensing 
C)  wholly owned subsidiaries 
D)  turnkey contacts

Question 4

A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the ground up,called the _____.

Accepted Answer

A)  joint venture 
B)  turnkey strategy 
C)  licensing agreement 
D)  greenfield strategy 
A)  joint venture 
B)  turnkey strategy 
C)  licensing agreement 
D)  greenfield strategy

Question 5

Why should a firm be cautious about entering a licensing agreement?

Accepted Answer

In a licensing agreement,the licensor gr

Question 6

Exporting is advantageous because it avoids the cost of establishing manufacturing operations in the host country and because it may help a firm achieve experience curve and location economies.

Accepted Answer

A) True 
 B)False

Question 7

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 8

Tangible property includes patents,designs,copyrights,and trademarks.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

What are first-mover advantages? Discuss the advantages associated with them.

Accepted Answer

First-mover advantages are the advantage

Question 11

Why should a firm choose exporting as a means of foreign market expansion? Discuss the advantages and disadvantages of exporting.

Accepted Answer

Exporting has two distinct advantages.Fi

Question 12

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 13

Which of the following is an advantage of franchising?

Accepted Answer

A)  A firm takes profits out of one country to support competitive attacks in another. 
B)  A firm is relieved of many of the costs and risks of opening a foreign market on its own. 
C)  It guarantees consistent product quality and achieves experience curve and location economies. 
D)  It improves the firm's ability to take profits out of one country to support competitive attacks in another. 
A)  A firm takes profits out of one country to support competitive attacks in another. 
B)  A firm is relieved of many of the costs and risks of opening a foreign market on its own. 
C)  It guarantees consistent product quality and achieves experience curve and location economies. 
D)  It improves the firm's ability to take profits out of one country to support competitive attacks in another.

Question 14

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 15

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 16

Which of the following is a disadvantage of licensing?

Accepted Answer

A)  It does not help firms that lack capital to develop operations overseas. 
B)  It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. 
C)  It cannot be used when a firm possesses some intangible property that might have business applications. 
D)  The firm has to bear the development costs and risks associated with opening a foreign market. 
A)  It does not help firms that lack capital to develop operations overseas. 
B)  It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. 
C)  It cannot be used when a firm possesses some intangible property that might have business applications. 
D)  The firm has to bear the development costs and risks associated with opening a foreign market.

Question 17

Franchising enables a firm to quickly build a global presence.

Accepted Answer

A) True 
 B)False

Question 18

Many American firms that sold oil-refining technology to firms in the Gulf now find themselves competing with these firms in the world oil market.This is an example of:

Accepted Answer

A)  a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor. 
B)  a firm entering into a turnkey deal having no long-term interest in the foreign country. 
C)  a country subsequently proving to be a major market for the output of the process that has been exported. 
D)  a firm selling its process technology through franchisees in different countries. 
A)  a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor. 
B)  a firm entering into a turnkey deal having no long-term interest in the foreign country. 
C)  a country subsequently proving to be a major market for the output of the process that has been exported. 
D)  a firm selling its process technology through franchisees in different countries.

Question 19

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 20

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.

An advantage of turnkey projects is that the firm that enters into a turnkey deal will have no long-term interest in the foreign country.

Acquisitions are quick to execute.

If a high-tech firm sets up operations in a foreign country to profit from a core competency in technological know-how,which of the following entry strategy is best?

A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the ground up,called the _____.

Why should a firm be cautious about entering a licensing agreement?

Exporting is advantageous because it avoids the cost of establishing manufacturing operations in the host country and because it may help a firm achieve experience curve and location economies.

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

Tangible property includes patents,designs,copyrights,and trademarks.

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

What are first-mover advantages? Discuss the advantages associated with them.

Why should a firm choose exporting as a means of foreign market expansion? Discuss the advantages and disadvantages 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.

Which of the following is an advantage of franchising?

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

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

Which of the following is a disadvantage of licensing?

Franchising enables a firm to quickly build a global presence.

Many American firms that sold oil-refining technology to firms in the Gulf now find themselves competing with these firms in the world oil market.This is an example of:

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

Which of the following is a distinct advantage of exporting?

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

An advantage of turnkey projects is that the firm that enters into a turnkey deal will have no long-term interest in the foreign country.

Acquisitions are quick to execute.

If a high-tech firm sets up operations in a foreign country to profit from a core competency in technological know-how,which of the following entry strategy is best?

A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the ground up,called the _____.

Why should a firm be cautious about entering a licensing agreement?

Exporting is advantageous because it avoids the cost of establishing manufacturing operations in the host country and because it may help a firm achieve experience curve and location economies.

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

Tangible property includes patents,designs,copyrights,and trademarks.

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

What are first-mover advantages? Discuss the advantages associated with them.

Why should a firm choose exporting as a means of foreign market expansion? Discuss the advantages and disadvantages 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.

Which of the following is an advantage of franchising?

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

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

Which of the following is a disadvantage of licensing?

Franchising enables a firm to quickly build a global presence.

Many American firms that sold oil-refining technology to firms in the Gulf now find themselves competing with these firms in the world oil market.This is an example of:

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

Which of the following is a distinct advantage of exporting?

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