Question 1

The more a company engages in collaborative agreements,the more it loses control over decisions and their implementation.

Accepted Answer

A) True 
 B)False

Question 2

The sums needed to develop and market many new products are out of reach for most companies acting alone.

Accepted Answer

A) True 
 B)False

Question 3

An agreement for the use of a trademark and assistance with business operations is known as a cross-licensing agreement.

Accepted Answer

A) True 
 B)False

Question 4

Billions 'of investment dollars are needed to develop many new products.This trend toward higher development costs is likely to have which of the following effects on future modes of operations?

Accepted Answer

A)  Collaborative arrangements are likely to decrease because a company making a breakthrough will be leery of partners' appropriation of knowledge. 
B)  Collaborative arrangements are likely to increase because of the huge investments needed for development. 
C)  Exporting will become more important relative to other operating modes because of the large scale production facilities necessary for economic efficiency. 
D)  Cross-licensing will gain in importance because companies will be forced to specialize more in different technologies. 
A)  Collaborative arrangements are likely to decrease because a company making a breakthrough will be leery of partners' appropriation of knowledge. 
B)  Collaborative arrangements are likely to increase because of the huge investments needed for development. 
C)  Exporting will become more important relative to other operating modes because of the large scale production facilities necessary for economic efficiency. 
D)  Cross-licensing will gain in importance because companies will be forced to specialize more in different technologies.

Question 5

Appropriability theory refers to ________.

Accepted Answer

A)  denying rivals access to competitive resources such as management know-how 
B)  categorizing the appropriateness of a firm's foreign investments in terms of host country objectives 
C)  explaining an investing firm's choice of partner in a joint venture 
D)  predicting the general pattern of direct investment locations 
A)  denying rivals access to competitive resources such as management know-how 
B)  categorizing the appropriateness of a firm's foreign investments in terms of host country objectives 
C)  explaining an investing firm's choice of partner in a joint venture 
D)  predicting the general pattern of direct investment locations

Question 6

Why can a company more easily pursue a global strategy when it owns 100 percent of foreign operations?

Accepted Answer

A)  The company is not likely to face overcapacity issues. 
B)  The company limits foreign-exchange rate fluctuations. 
C)  The company avoids communication misunderstandings. 
D)  The company can sub-optimize results in one country in order to optimize results globally. 
A)  The company is not likely to face overcapacity issues. 
B)  The company limits foreign-exchange rate fluctuations. 
C)  The company avoids communication misunderstandings. 
D)  The company can sub-optimize results in one country in order to optimize results globally.

Question 7

The use of management contracts has been significant in hotel operations.

Accepted Answer

A) True 
 B)False

Question 8

Explain how franchising agreements differ from licensing agreements.

Accepted Answer

Franchising is a specialized form of lic

Question 9

The more a company engages in international collaborative arrangements as opposed to wholly owned foreign operations,the more it is likely to ________.

Accepted Answer

A)  decrease its exposure to political risk 
B)  increase its control over foreign operations 
C)  learn rapidly about foreign environments 
D)  protect its core assets 
A)  decrease its exposure to political risk 
B)  increase its control over foreign operations 
C)  learn rapidly about foreign environments 
D)  protect its core assets

Question 10

Which of the following would most likely trigger internal tensions as a firm's modes of foreign operations change?

Accepted Answer

A)  losing or gaining responsibilities 
B)  reluctance to learn about a culture 
C)  traveling for business purposes 
D)  geographic diversity 
A)  losing or gaining responsibilities 
B)  reluctance to learn about a culture 
C)  traveling for business purposes 
D)  geographic diversity

Question 11

Governments sometimes prohibit foreign acquisitions because they fear market dominance by foreign enterprises.

Accepted Answer

A) True 
 B)False

Question 12

What is a management contract? What are the potential advantages to both parties in the contract?

Accepted Answer

One of the most important assets a compa

Question 13

When no single company has control over a collaborative arrangement,________.

Accepted Answer

A)  the operation may lack direction 
B)  none of the partners is responsible for legal violations 
C)  differences in corporate culture are likely to grow 
D)  one partner's interests are likely to be put ahead of the other partner's interests 
A)  the operation may lack direction 
B)  none of the partners is responsible for legal violations 
C)  differences in corporate culture are likely to grow 
D)  one partner's interests are likely to be put ahead of the other partner's interests

Question 14

All of the following would be examples of international joint ventures EXCEPT ________.

Accepted Answer

A)  two Japanese companies sharing ownership of a company in Canada 
B)  a Danish company sharing ownership with a South African company in South Africa 
C)  a government-owned company from China sharing ownership with an Australian company in Panama 
D)  two Venezuelan companies sharing ownership of a company in Venezuela 
A)  two Japanese companies sharing ownership of a company in Canada 
B)  a Danish company sharing ownership with a South African company in South Africa 
C)  a government-owned company from China sharing ownership with an Australian company in Panama 
D)  two Venezuelan companies sharing ownership of a company in Venezuela

Question 15

When entering foreign countries,many franchisors encounter difficulty in transferring the domestic success factors of product and service standardization.

Accepted Answer

A) True 
 B)False

Question 16

An international management contract is an agreement between a company and a foreign government on the number of foreign personnel it can employ.

Accepted Answer

A) True 
 B)False

Question 17

What are the various types of collaborative arrangement options available to international businesses? How can firms most effectively manage international collaborative arrangements?

Accepted Answer

Licensing,franchising,management contrac

Question 18

Which of the following is NOT a factor affecting the payment amount of international licensing contracts?

Accepted Answer

A)  geographic scope of the sales territory 
B)  tax treaties between the parties' home countries 
C)  length of time the asset will have market value 
D)  market experience of using the asset elsewhere 
A)  geographic scope of the sales territory 
B)  tax treaties between the parties' home countries 
C)  length of time the asset will have market value 
D)  market experience of using the asset elsewhere

Question 19

In a short essay,discuss how transportation,trade restrictions,domestic capacity,and country-of-origin affect companies' decisions about modes of operating internationally.

Accepted Answer

a.Transportation: When companies add the

Question 20

Coca-Cola has collaborative arrangements whereby it produces concentrate that it sells to other companies to bottle its drinks.Which of the following terms best describes this type of arrangement?

Accepted Answer

A)  vertical alliance 
B)  horizontal alliance 
C)  link alliance 
D)  scale alliance 
A)  vertical alliance 
B)  horizontal alliance 
C)  link alliance 
D)  scale alliance

The more a company engages in collaborative agreements,the more it loses control over decisions and their implementation.

The sums needed to develop and market many new products are out of reach for most companies acting alone.

An agreement for the use of a trademark and assistance with business operations is known as a cross-licensing agreement.

Billions 'of investment dollars are needed to develop many new products.This trend toward higher development costs is likely to have which of the following effects on future modes of operations?

Appropriability theory refers to ________.

Why can a company more easily pursue a global strategy when it owns 100 percent of foreign operations?

The use of management contracts has been significant in hotel operations.

Explain how franchising agreements differ from licensing agreements.

The more a company engages in international collaborative arrangements as opposed to wholly owned foreign operations,the more it is likely to ________.

Which of the following would most likely trigger internal tensions as a firm's modes of foreign operations change?

Governments sometimes prohibit foreign acquisitions because they fear market dominance by foreign enterprises.

What is a management contract? What are the potential advantages to both parties in the contract?

When no single company has control over a collaborative arrangement,________.

All of the following would be examples of international joint ventures EXCEPT ________.

When entering foreign countries,many franchisors encounter difficulty in transferring the domestic success factors of product and service standardization.

An international management contract is an agreement between a company and a foreign government on the number of foreign personnel it can employ.

What are the various types of collaborative arrangement options available to international businesses? How can firms most effectively manage international collaborative arrangements?

Which of the following is NOT a factor affecting the payment amount of international licensing contracts?

In a short essay,discuss how transportation,trade restrictions,domestic capacity,and country-of-origin affect companies' decisions about modes of operating internationally.

Coca-Cola has collaborative arrangements whereby it produces concentrate that it sells to other companies to bottle its drinks.Which of the following terms best describes this type of arrangement?

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

The more a company engages in collaborative agreements,the more it loses control over decisions and their implementation.

The sums needed to develop and market many new products are out of reach for most companies acting alone.

An agreement for the use of a trademark and assistance with business operations is known as a cross-licensing agreement.

Billions 'of investment dollars are needed to develop many new products.This trend toward higher development costs is likely to have which of the following effects on future modes of operations?

Appropriability theory refers to ________.

Why can a company more easily pursue a global strategy when it owns 100 percent of foreign operations?

The use of management contracts has been significant in hotel operations.

Explain how franchising agreements differ from licensing agreements.

The more a company engages in international collaborative arrangements as opposed to wholly owned foreign operations,the more it is likely to ________.

Which of the following would most likely trigger internal tensions as a firm's modes of foreign operations change?

Governments sometimes prohibit foreign acquisitions because they fear market dominance by foreign enterprises.

What is a management contract? What are the potential advantages to both parties in the contract?

When no single company has control over a collaborative arrangement,________.

All of the following would be examples of international joint ventures EXCEPT ________.

When entering foreign countries,many franchisors encounter difficulty in transferring the domestic success factors of product and service standardization.

An international management contract is an agreement between a company and a foreign government on the number of foreign personnel it can employ.

What are the various types of collaborative arrangement options available to international businesses? How can firms most effectively manage international collaborative arrangements?

Which of the following is NOT a factor affecting the payment amount of international licensing contracts?

In a short essay,discuss how transportation,trade restrictions,domestic capacity,and country-of-origin affect companies' decisions about modes of operating internationally.

Coca-Cola has collaborative arrangements whereby it produces concentrate that it sells to other companies to bottle its drinks.Which of the following terms best describes this type of arrangement?

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