Exam 8: Competing Across Borders

The transnational strategy is usually implemented through the ____ structure.

Mitigation Masters is a company that specializes in the rescue and repair of paper documents and books damaged by water. They are known all over the United States for salvaging governmental records, academic and private libraries, and museum collections. Mitigation Masters has spent years in painstaking research and practical experimentation to develop methods of drying the documents, preventing mold growth, and minimizing the fragility of damaged documents. Mitigation Masters intends to move into the international market. The best entry mode for it would be

The simplest and most common mode of entering the international marketplace is licensing.

A company specializing in all natural health products would be likely to form an alliance with a company in Brazil that manufactures creams, lotions, and body oils from tropical plants using little-known indigenous techniques in order to

ZigZag, Inc., operates in four international locations: North America, Latin America, Western Europe, and Eastern Europe. For each of these locations, it has profit centers with separate functions such as accounting, marketing, finance, and information systems. ZigZag uses the ____ structure.

One of the main reasons that companies use contract manufacturing as a mode of entry into the international market is the cost advantage over U.S. manufacturing.

The Internet has eased international transactions in all of the following ways except

In the ____ structure a specific division focuses on a single product or product group.

If a firm's success depends on intangible resources and the success of its entry into the international market depends on transferring core competencies, an appropriate mode of entry into the international market would be through an acquisition.

All of the following are examples of foreign direct investment except

An advantage of an international acquisition is that the acquiring firm takes on only a limited portion of the target firm's liabilities. The remainder are forgiven by the local government.

Goodie, Goodie, Gumdrops (GGGs) is a retail business appealing to pre-teen girls. It carries specialty clothing, accessories, and even food items all manufactured specifically for its stores. GGGs has been very successful in the U.S. and it plans to expand into selected international markets. The ____ entry mode would probably be most appropriate for GGGs.

For a fee, McDonald's provides trademarks, the operating system, and its well-known products as well as support services such as advertising, specialized training, and quality assurance programs to partners across the world. This type of market entry is called

One of the major problems with the global matrix structure is that reporting relationships are often very complex and vague.

Exporting and licensing are forms of foreign direct investment.

Tariffs are most likely to be a problem for firms following the ____ international entry mode.

Because of environmental and technological changes taking place in the twenty-first century

A firm using the multidomestic strategy is unlikely to customize its products for the local market.

The quickest way to enter a foreign market using foreign direct investment is

Why would a currently-successful firm wish to expand its operations internationally?