Exam 15: Direct Investment and Collaborative Strategies

Collaborative agreements allow companies to specialize more in those activities that best fit their competencies.

Which of the following is the LEAST likely reason that consumers would prefer domestically made products over imports?

Lesser-known franchisors sometimes enter foreign countries with company-owned outlets.A reason for doing this is to ________.

Which of the following is LEAST likely to trigger the breakup of a joint venture?

An advantage of collaborative agreements is the ability to spread faster geographically.

There are two ways companies can invest in a foreign country.They can either acquire an interest in an existing operation or construct new facilities.In a short essay,describe the advantages and disadvantages of each alternative.

An international joint venture is an agreement between two or more companies for the use of a trademark.

Franchisees sometimes wish to change the product or service offered by the franchisor to better fit local market needs abroad.Why are these changes a problem for franchisors?

Which of the following is an argument for using a collaborative agreement?

Foreign acquisitions are more advantageous than start-ups when the industry has little excess capacity than when it has a lot of excess capacity.

In which of the following situations would Company X most likely seek a collaborative arrangement with Company Z in which Company Z would handle work for Company X?

What is an international joint venture?

In which of the following situations is a firm most likely to be able to choose the foreign operating form it would most like to use?

When a large company and a small company enter a joint venture,the large company is expected to contribute more to the arrangement.

When a company's primary motive for entering a collaborative arrangement is to learn from its partner,it is likely to ________.

Collaborative arrangements prevent the possibility of information being passed to potential competitors.

All of the following are important when establishing and managing a collaborative agreement EXCEPT ________.

Executives at a U.S.firm are debating whether to start a new operation in Russia or acquire an existing one.Which of the following factors best supports a decision to start up a new operation in Russia?

Chrysler granted South East Motor (a company in China)rights to produce its Grand Voyager minivan for sale in China in exchange for a fee.This is an example of a(n)________.

Small economies are sometimes less successful than large countries in attracting FDI by raising import restrictions.What is the most likely reason for this?