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

Draw a distinction between firms based on their core competency.

Accepted Answer

The optimal choice of entry mode depends

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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 5

Discuss strategic alliances.How successful are they? Why do firms form strategic alliances?

Accepted Answer

The term strategic alliance refers to co

Question 6

Switching costs:

Accepted Answer

A)  drive early entrants out of the market. 
B)  make it easy for later entrants to win business. 
C)  make it difficult for later entrants to win business. 
D)  give later entrants a cost advantage over early entrants. 
A)  drive early entrants out of the market. 
B)  make it easy for later entrants to win business. 
C)  make it difficult for later entrants to win business. 
D)  give later entrants a cost advantage over early entrants.

Question 7

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 8

Unlike joint ventures,strategic alliances require the firm to bear all the costs and risks of foreign expansion.

Accepted Answer

A) True 
 B)False

Question 9

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 10

Explain the relationship between first-mover disadvantages and pioneering costs.

Accepted Answer

When a firm enters a market prior to oth

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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 13

Compare and contrast licensing agreements and franchising agreements.

Accepted Answer

A licensing agreement is an arrangement

Question 14

To increase the potential for a successful acquisition,a firm should:

Accepted Answer

A)  always bid low to allow for partial failure. 
B)  try to acquire a firm with a very different corporate culture so there is no forced "overlap." 
C)  screen the foreign enterprise to be acquired. 
D)  seek companies only from similar national cultures. 
A)  always bid low to allow for partial failure. 
B)  try to acquire a firm with a very different corporate culture so there is no forced "overlap." 
C)  screen the foreign enterprise to be acquired. 
D)  seek companies only from similar national cultures.

Question 15

Educating customers is a part of pioneering costs.

Accepted Answer

A) True 
 B)False

Question 16

The most typical joint venture is a 25/75 venture.

Accepted Answer

A) True 
 B)False

Question 17

Large strategic commitments increase strategic flexibility.

Accepted Answer

A) True 
 B)False

Question 18

The most typical joint venture is a _____ venture.

Accepted Answer

A)  50/50 
B)  60/40 
C)  75/25 
D)  10/90 
A)  50/50 
B)  60/40 
C)  75/25 
D)  10/90

Question 19

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 ow

Question 20

Which of the following statements about small-scale entry is true?

Accepted Answer

A)  The commitment associated with a small-scale entry makes it possible for the small-scale entrant to capture first-mover advantages. 
B)  Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. 
C)  By giving a firm time to collect information, small-scale entry increases the risks associated with a subsequent large-scale entry. 
D)  Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the firm's exposure to that market. 
A)  The commitment associated with a small-scale entry makes it possible for the small-scale entrant to capture first-mover advantages. 
B)  Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. 
C)  By giving a firm time to collect information, small-scale entry increases the risks associated with a subsequent large-scale entry. 
D)  Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the firm's exposure to that market.

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

Draw a distinction between firms based on their core competency.

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

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.

Discuss strategic alliances.How successful are they? Why do firms form strategic alliances?

Switching costs:

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.

Unlike joint ventures,strategic alliances require the firm to bear all the costs and risks of foreign expansion.

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.

Explain the relationship between first-mover disadvantages and pioneering costs.

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

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

Compare and contrast licensing agreements and franchising agreements.

To increase the potential for a successful acquisition,a firm should:

Educating customers is a part of pioneering costs.

The most typical joint venture is a 25/75 venture.

Large strategic commitments increase strategic flexibility.

The most typical joint venture is a _____ venture.

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

Which of the following statements about small-scale entry is true?

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

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

Draw a distinction between firms based on their core competency.

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

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.

Discuss strategic alliances.How successful are they? Why do firms form strategic alliances?

Switching costs:

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.

Unlike joint ventures,strategic alliances require the firm to bear all the costs and risks of foreign expansion.

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.

Explain the relationship between first-mover disadvantages and pioneering costs.

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

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

Compare and contrast licensing agreements and franchising agreements.

To increase the potential for a successful acquisition,a firm should:

Educating customers is a part of pioneering costs.

The most typical joint venture is a 25/75 venture.

Large strategic commitments increase strategic flexibility.

The most typical joint venture is a _____ venture.

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

Which of the following statements about small-scale entry is true?

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