Exam 15: Entry Strategy and Strategic Alliances

In a turnkey project,the contractor agrees to handle every detail of the project for a foreign client.

If a firm's core competency is based on control over proprietary technological know-how,_____ and _____ arrangements should be avoided if possible to minimize the risk of losing control over that technology.

Acquisitions rarely produce disappointing results.

Relational capital refers to the building of interpersonal relationships between the firms' managers in a strategic alliance.

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

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

Costs that an early entrant has to bear that a later entrant can avoid are known as first-mover costs.

A wholly owned subsidiary is appropriate when:

Which of the following is an advantage of establishing a joint venture?

If a firm can realize location economies by moving production elsewhere,it should avoid:

Which of the following is true of acquisitions?

The value an international business creates in a foreign market depends on the suitability of its product offering to that market and the nature of indigenous competition.

The costs and risks associated with doing business in a foreign country are typically high in an economically advanced and politically stable democratic nation.

When an exporting firm finds that its local agent is also carrying competitors' products,the firm may switch to a _____ to handle local marketing,sales,and service.

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

A large-scale entrant is more likely than a small-scale entrant to be able to capture first-mover advantages associated with _____.

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

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

Which of the following statements is true of strategic alliances?

By its very nature,licensing increases a firm's ability to utilize a coordinated strategy.