Question 1

Companies typically use various international operating forms simultaneously for all the following reasons EXCEPT which one?

Accepted Answer

A)  They may be at different stages of commitment for different products. 
B)  They may be at different stages of commitment for different countries. 
C)  They may need to balance foreign revenues among their operating divisions. 
D)  Differences in countries' characteristics may necessitate diverse operational forms. 
A)  They may be at different stages of commitment for different products. 
B)  They may be at different stages of commitment for different countries. 
C)  They may need to balance foreign revenues among their operating divisions. 
D)  Differences in countries' characteristics may necessitate diverse operational forms. C

Question 2

The more partners in a joint venture,the more complex the management of the arrangement will be.

Accepted Answer

A) True 
 B)False  True

Question 3

When a company wants to be compensated in a foreign subsidiary beyond its contribution in capital and managerial resources,it often ________.

Accepted Answer

A)  licenses intangible property to its subsidiary 
B)  negotiates a special agreement with the host government 
C)  establishes a management contract 
D)  sets up an equity alliance 
A)  licenses intangible property to its subsidiary 
B)  negotiates a special agreement with the host government 
C)  establishes a management contract 
D)  sets up an equity alliance A

Question 4

All of the following are differences that need to be overcome for international collaborative arrangements to be effective EXCEPT ________.

Accepted Answer

A)  national disparities in governmental policies 
B)  company variances in strategic directions and objectives 
C)  governmental differences in export restrictions 
D)  company diversity in management styles and structures 
A)  national disparities in governmental policies 
B)  company variances in strategic directions and objectives 
C)  governmental differences in export restrictions 
D)  company diversity in management styles and structures

Question 5

What is a turnkey operation? What features generally make turnkey operations different from other collaborative arrangements?

Accepted Answer

Turnkey operations are a type of collabo

Question 6

According to the appropriability theory and the internalization theory,why would companies want to control their foreign operations?

Accepted Answer

Control is important to foreign companie

Question 7

Metro Hotels,a U.S.hotel chain,has transferred several of its employees to Myanmar where they will work for three or four years before returning to the U.S.The employees will be working with a Myanmar hotel to provide it with their extensive knowledge regarding how to run a hotel.Metro is most likely involved in a ________.

Accepted Answer

A)  franchise 
B)  turnkey operation 
C)  joint venture 
D)  management contract 
A)  franchise 
B)  turnkey operation 
C)  joint venture 
D)  management contract

Question 8

A U.S.firm plans to shift from exporting to production in China to serve the Chinese market.Which of the following statements would best explain this decision?

Accepted Answer

A)  China's currency is appreciating relative to the U.S. dollar. 
B)  The firm is nearing capacity utilization in its U.S. plant. 
C)  The company need not alter its products for the Chinese market. 
D)  Transportation costs have become low relative to production costs. 
A)  China's currency is appreciating relative to the U.S. dollar. 
B)  The firm is nearing capacity utilization in its U.S. plant. 
C)  The company need not alter its products for the Chinese market. 
D)  Transportation costs have become low relative to production costs.

Question 9

What is an equity alliance? What motives would a firm have for forming an equity alliance?

Accepted Answer

An equity alliance is a collaborative ar

Question 10

The "Dependencia" theory holds that the terms for a foreign investor's operations depend on how much the investor and the host country need each other's assets.

Accepted Answer

A) True 
 B)False

Question 11

What is a key industry?

Accepted Answer

A)  an industry that is locked up competitively by domestic producers 
B)  a turnkey operator specializing in the construction of infrastructure components 
C)  an industry that receives government subsidies 
D)  an industry that significantly affects the economy by virtue of its size or influence on other sectors 
A)  an industry that is locked up competitively by domestic producers 
B)  a turnkey operator specializing in the construction of infrastructure components 
C)  an industry that receives government subsidies 
D)  an industry that significantly affects the economy by virtue of its size or influence on other sectors

Question 12

A U.S.firm is acquiring an existing company in Germany rather than starting up a new foreign operation.Which of the following statements best supports this decision?

Accepted Answer

A)  Because the German firm is performing poorly, there is a good turn-around opportunity. 
B)  The U.S. firm's U.S. facility is working at capacity. 
C)  Stock market prices have been very high in Germany. 
D)  The German firm has skilled personnel that the U.S. firm cannot hire at a good price on its own. 
A)  Because the German firm is performing poorly, there is a good turn-around opportunity. 
B)  The U.S. firm's U.S. facility is working at capacity. 
C)  Stock market prices have been very high in Germany. 
D)  The German firm has skilled personnel that the U.S. firm cannot hire at a good price on its own.

Question 13

Which of the following describes a cross-licensing agreement?

Accepted Answer

A)  allocation of exclusive rights to a licensee to prevent competition 
B)  an agreement between two or more companies not to compete in each other's home countries 
C)  an exchange of explicit knowledge for tacit knowledge 
D)  the exchange of intangible property rights between two or more companies 
A)  allocation of exclusive rights to a licensee to prevent competition 
B)  an agreement between two or more companies not to compete in each other's home countries 
C)  an exchange of explicit knowledge for tacit knowledge 
D)  the exchange of intangible property rights between two or more companies

Question 14

Turnkey projects generally differ from other forms of international business in that ________.

Accepted Answer

A)  they tend to be smaller 
B)  customers are more likely private companies 
C)  they are more often located in remote areas 
D)  they depend almost entirely on acquisitions rather than greenfield operations 
A)  they tend to be smaller 
B)  customers are more likely private companies 
C)  they are more often located in remote areas 
D)  they depend almost entirely on acquisitions rather than greenfield operations

Question 15

Patents,copyrights,and trademarks are all examples of property rights that may be licensed to one company from another.

Accepted Answer

A) True 
 B)False

Question 16

What is a turnkey operation?

Accepted Answer

A)  a contract for the complete construction of an operating facility for a fee 
B)  a contract with a government to service one of its key industries 
C)  the buying of another company 
D)  the repatriation of equity 
A)  a contract for the complete construction of an operating facility for a fee 
B)  a contract with a government to service one of its key industries 
C)  the buying of another company 
D)  the repatriation of equity

Question 17

Hotel chains are large providers of international management services through collaborative operations.All of the following are reasons for this EXCEPT which one?

Accepted Answer

A)  Some governments have restricted foreign ownership in hotels. 
B)  Local hotel owners may be very knowledgeable about real estate, but know little about hotel operations. 
C)  Local companies can forego making a capital investment. 
D)  Hotel chains can offer global brand recognition. 
A)  Some governments have restricted foreign ownership in hotels. 
B)  Local hotel owners may be very knowledgeable about real estate, but know little about hotel operations. 
C)  Local companies can forego making a capital investment. 
D)  Hotel chains can offer global brand recognition.

Question 18

Tom,a manager at an MNE,has been given the task of identifying a pool of companies with which the firm might form collaborative arrangements.Which of the following activities would be LEAST useful for Tom?

Accepted Answer

A)  attending technical conferences 
B)  monitoring industry journals 
C)  attending trade fairs 
D)  constructing turnkey facilities 
A)  attending technical conferences 
B)  monitoring industry journals 
C)  attending trade fairs 
D)  constructing turnkey facilities

Question 19

Internal tension may develop within a company as it changes an international operating mode because some managers gain responsibility and others lose it.

Accepted Answer

A) True 
 B)False

Question 20

Why do turnkey operators often require a feasibility study as part of the contract?

Accepted Answer

A)  By adding to the cost, they earn more money. 
B)  This lessens the risk of contract cancellation when political leadership changes. 
C)  This lowers their risk of foreign-exchange losses. 
D)  This helps to define what constitutes "satisfactory completion" of the project. 
A)  By adding to the cost, they earn more money. 
B)  This lessens the risk of contract cancellation when political leadership changes. 
C)  This lowers their risk of foreign-exchange losses. 
D)  This helps to define what constitutes "satisfactory completion" of the project.

Companies typically use various international operating forms simultaneously for all the following reasons EXCEPT which one?

The more partners in a joint venture,the more complex the management of the arrangement will be.

When a company wants to be compensated in a foreign subsidiary beyond its contribution in capital and managerial resources,it often ________.

All of the following are differences that need to be overcome for international collaborative arrangements to be effective EXCEPT ________.

What is a turnkey operation? What features generally make turnkey operations different from other collaborative arrangements?

According to the appropriability theory and the internalization theory,why would companies want to control their foreign operations?

A U.S.firm plans to shift from exporting to production in China to serve the Chinese market.Which of the following statements would best explain this decision?

What is an equity alliance? What motives would a firm have for forming an equity alliance?

The "Dependencia" theory holds that the terms for a foreign investor's operations depend on how much the investor and the host country need each other's assets.

What is a key industry?

A U.S.firm is acquiring an existing company in Germany rather than starting up a new foreign operation.Which of the following statements best supports this decision?

Which of the following describes a cross-licensing agreement?

Turnkey projects generally differ from other forms of international business in that ________.

Patents,copyrights,and trademarks are all examples of property rights that may be licensed to one company from another.

What is a turnkey operation?

Hotel chains are large providers of international management services through collaborative operations.All of the following are reasons for this EXCEPT which one?

Tom,a manager at an MNE,has been given the task of identifying a pool of companies with which the firm might form collaborative arrangements.Which of the following activities would be LEAST useful for Tom?

Internal tension may develop within a company as it changes an international operating mode because some managers gain responsibility and others lose it.

Why do turnkey operators often require a feasibility study as part of the contract?

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

International Trade and Factor-Mobility Theory

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

Global Capital Markets

Globalization and Society

The Strategy of International Business

Country Evaluation and Selection

Export and Import

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply-Chain Management

International Accounting and Finance Issues

International Human Resource Management

Filters

Exam 15: Direct Investment and Collaborative Strategies

Companies typically use various international operating forms simultaneously for all the following reasons EXCEPT which one?

The more partners in a joint venture,the more complex the management of the arrangement will be.

When a company wants to be compensated in a foreign subsidiary beyond its contribution in capital and managerial resources,it often ________.

All of the following are differences that need to be overcome for international collaborative arrangements to be effective EXCEPT ________.

What is a turnkey operation? What features generally make turnkey operations different from other collaborative arrangements?

According to the appropriability theory and the internalization theory,why would companies want to control their foreign operations?

A U.S.firm plans to shift from exporting to production in China to serve the Chinese market.Which of the following statements would best explain this decision?

What is an equity alliance? What motives would a firm have for forming an equity alliance?

The "Dependencia" theory holds that the terms for a foreign investor's operations depend on how much the investor and the host country need each other's assets.

What is a key industry?

A U.S.firm is acquiring an existing company in Germany rather than starting up a new foreign operation.Which of the following statements best supports this decision?

Which of the following describes a cross-licensing agreement?

Turnkey projects generally differ from other forms of international business in that ________.

Patents,copyrights,and trademarks are all examples of property rights that may be licensed to one company from another.

What is a turnkey operation?

Hotel chains are large providers of international management services through collaborative operations.All of the following are reasons for this EXCEPT which one?

Tom,a manager at an MNE,has been given the task of identifying a pool of companies with which the firm might form collaborative arrangements.Which of the following activities would be LEAST useful for Tom?

Internal tension may develop within a company as it changes an international operating mode because some managers gain responsibility and others lose it.

Why do turnkey operators often require a feasibility study as part of the contract?

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

International Trade and Factor-Mobility Theory

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

Global Capital Markets

Globalization and Society

The Strategy of International Business

Country Evaluation and Selection

Export and Import

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply-Chain Management

International Accounting and Finance Issues

International Human Resource Management

Filters