Question 1

If a company seeks a strategic alliance with another firm,it is a

Accepted Answer

A)  Low cost strategy. 
B)  Franchising agreement. 
C)  Competitive agreement. 
D)  Cooperative agreement. 
A)  Low cost strategy. 
B)  Franchising agreement. 
C)  Competitive agreement. 
D)  Cooperative agreement. D

Question 2

Under what conditions would a regional strategy be best for a multinational? Explain.

Accepted Answer

Answers will vary but should demonstrate students' understanding that this strategy is particularly good for firms located in countries that are members of trading blocs,such as NAFTA or the EU.This strategy allows some cost savings similar to those of the transnational and international strategists while also giving the firm flexibility for regional responsiveness.

Question 3

What are globalization drivers?

Accepted Answer

Answers should reflect students' understanding that globalization drivers are conditions in an industry that favor the more globally oriented transnational or international strategies over the locally oriented multidomestic or regional strategies.

Question 4

If a company believes that it needs to control foreign sales,customer credit,and sale of product to the customer,it is more likely to choose

Accepted Answer

A)  Indirect exporting. 
B)  Rely on foreign intermediaries for export purposes. 
C)  Direct exporting. 
D)  None of the above 
A)  Indirect exporting. 
B)  Rely on foreign intermediaries for export purposes. 
C)  Direct exporting. 
D)  None of the above

Question 5

Common customer needs,global sources of raw material,and favorable trade policies all lead to

Accepted Answer

A)  An increased focus on local markets. 
B)  More use of the multidomestic strategy. 
C)  More use of the local solution to the global-local dilemma. 
D)  A greater likelihood that companies select global strategies. 
A)  An increased focus on local markets. 
B)  More use of the multidomestic strategy. 
C)  More use of the local solution to the global-local dilemma. 
D)  A greater likelihood that companies select global strategies.

Question 6

Which of the following refers to the negative impact of political decisions or events on a multinational's profitability?

Accepted Answer

A)  Economic risk 
B)  Local government risk 
C)  Political risk 
D)  Control risk 
A)  Economic risk 
B)  Local government risk 
C)  Political risk 
D)  Control risk

Question 7

Entry-mode strategies

Accepted Answer

A)  Include multidomestic and transnational strategies. 
B)  Are options multinationals have to enter foreign markets and countries. 
C)  Are only processes by which firms fill overseas orders like domestic orders. 
D)  None of the above 
A)  Include multidomestic and transnational strategies. 
B)  Are options multinationals have to enter foreign markets and countries. 
C)  Are only processes by which firms fill overseas orders like domestic orders. 
D)  None of the above

Question 8

What dictates the choice of a multinational entry-mode strategy?

Accepted Answer

A)  Strategic competition 
B)  Strategic reason to be in the market 
C)  Companies want to share risks and costs of developing technology 
D)  Companies want to achieve economies of scale 
A)  Strategic competition 
B)  Strategic reason to be in the market 
C)  Companies want to share risks and costs of developing technology 
D)  Companies want to achieve economies of scale

Question 9

A multidomestic company gives strategic priority to

Accepted Answer

A)  Providing a low cost product to local customers. 
B)  Adapting a product or service to local needs. 
C)  Having multiple locations for sources its raw materials. 
D)  Controlling the strategic options of local companies. 
A)  Providing a low cost product to local customers. 
B)  Adapting a product or service to local needs. 
C)  Having multiple locations for sources its raw materials. 
D)  Controlling the strategic options of local companies.

Question 10

As entry-mode strategies,direct and indirect exporting have

Accepted Answer

A)  High levels of control and low levels of risk. 
B)  Similar levels of risk and control as FDI. 
C)  Low levels of risk and control. 
D)  Are among the most risky. 
A)  High levels of control and low levels of risk. 
B)  Similar levels of risk and control as FDI. 
C)  Low levels of risk and control. 
D)  Are among the most risky.

Question 11

Using intermediaries or go-between firms to provide the knowledge and contacts necessary to sell overseas is usually associated with

Accepted Answer

A)  Direct exporting. 
B)  Franchising. 
C)  Indirect exporting. 
D)  Licensing. 
A)  Direct exporting. 
B)  Franchising. 
C)  Indirect exporting. 
D)  Licensing.

Question 12

Describe the global-local dilemma.When is each solution most appropriate?

Accepted Answer

Answers will vary but should demonstrate

Question 13

Asking diagnostic questions such as are there economies of scale,are there cheaper sources of raw materials,are there global sources of low-cost raw materials provide information regarding which globalization driver?

Accepted Answer

A)  Global markets 
B)  Costs 
C)  Competition 
D)  Governments 
A)  Global markets 
B)  Costs 
C)  Competition 
D)  Governments

Question 14

When a firm from another country has an equity (or ownership)position in a separate company,it is engaging in

Accepted Answer

A)  An international cooperative alliance. 
B)  A turnkey operation. 
C)  A contract manufacturer. 
D)  FDI. 
A)  An international cooperative alliance. 
B)  A turnkey operation. 
C)  A contract manufacturer. 
D)  FDI.

Question 15

Global companies usually seek to

Accepted Answer

A)  Provide unique products for all countries of the world. 
B)  Take advantage of different factor costs among countries. 
C)  Manufacture their products in every country. 
D)  Focus only on downstream activities in the value chain. 
A)  Provide unique products for all countries of the world. 
B)  Take advantage of different factor costs among countries. 
C)  Manufacture their products in every country. 
D)  Focus only on downstream activities in the value chain.

Question 16

Major drawbacks of licensing include

Accepted Answer

A)  The risk of losing the capital investment. 
B)  The risk of the local government changing international trade policies. 
C)  The loss of control and the possibility of creating a new competitor. 
D)  All of the above 
A)  The risk of losing the capital investment. 
B)  The risk of the local government changing international trade policies. 
C)  The loss of control and the possibility of creating a new competitor. 
D)  All of the above

Question 17

Discuss some key issues to consider when choosing an entry-mode strategy.

Accepted Answer

Answers will vary.Students should state

Question 18

Conducting business similarly throughout the world,and locating company units wherever there is high quality and low cost is

Accepted Answer

A)  The global-local dilemma. 
B)  The global integration solution. 
C)  The local responsiveness solution. 
D)  The multidomestic solution. 
A)  The global-local dilemma. 
B)  The global integration solution. 
C)  The local responsiveness solution. 
D)  The multidomestic solution.

Question 19

You work for a small company that has an innovative low-cost production method for laser disks that allow it to produce at very low cost.A Belgian firm approaches your CEO and offers to export your disks to Belgium for a commission.The CEO asks you to write a report detailing the risks and potential benefits of this deal.What will you include in your report and why

Accepted Answer

Answers will vary bu

Question 20

Globalization drivers

Accepted Answer

A)  Fall into four categories: market,costs,governments,and competition. 
B)  Are conditions in an industry that favor transnational or international strategies over multidomestic or regional strategies. 
C)  Indicate the degree of globalization of an industry. 
D)  All of the above 
A)  Fall into four categories: market,costs,governments,and competition. 
B)  Are conditions in an industry that favor transnational or international strategies over multidomestic or regional strategies. 
C)  Indicate the degree of globalization of an industry. 
D)  All of the above

If a company seeks a strategic alliance with another firm,it is a

Under what conditions would a regional strategy be best for a multinational? Explain.

What are globalization drivers?

If a company believes that it needs to control foreign sales,customer credit,and sale of product to the customer,it is more likely to choose

Common customer needs,global sources of raw material,and favorable trade policies all lead to

Which of the following refers to the negative impact of political decisions or events on a multinational's profitability?

Entry-mode strategies

What dictates the choice of a multinational entry-mode strategy?

A multidomestic company gives strategic priority to

As entry-mode strategies,direct and indirect exporting have

Using intermediaries or go-between firms to provide the knowledge and contacts necessary to sell overseas is usually associated with

Describe the global-local dilemma.When is each solution most appropriate?

Asking diagnostic questions such as are there economies of scale,are there cheaper sources of raw materials,are there global sources of low-cost raw materials provide information regarding which globalization driver?

When a firm from another country has an equity (or ownership)position in a separate company,it is engaging in

Global companies usually seek to

Major drawbacks of licensing include

Discuss some key issues to consider when choosing an entry-mode strategy.

Conducting business similarly throughout the world,and locating company units wherever there is high quality and low cost is

Globalization drivers

Multinational Management in a Changing World

Culture and Multinational Management

The Institutional Context of Multinational Management

Managing Ethical and Social Responsibility Challenges in Multinational Companies

Strategic Management in the Multinational Company: Content and Formulation

Small Businesses and International Entrepreneurship:

Organizational Design for Multinational Companies

International Strategic Alliances: Management and Design

Multinational E-Commerce: Strategies and Structures

International Human Resource Management

Hrm in the Local Context: Knowing When and How to Adapt

International Negotiation and Cross-Cultural Communication

Motivation in Multinational Companies

Leadership and Management Behavior in Multinational Companies

Filters

Exam 6: Multinational and Entry-Mode Strategies: Content and Formulation

If a company seeks a strategic alliance with another firm,it is a

Under what conditions would a regional strategy be best for a multinational? Explain.

What are globalization drivers?

If a company believes that it needs to control foreign sales,customer credit,and sale of product to the customer,it is more likely to choose

Common customer needs,global sources of raw material,and favorable trade policies all lead to

Which of the following refers to the negative impact of political decisions or events on a multinational's profitability?

Entry-mode strategies

What dictates the choice of a multinational entry-mode strategy?

A multidomestic company gives strategic priority to

As entry-mode strategies,direct and indirect exporting have

Using intermediaries or go-between firms to provide the knowledge and contacts necessary to sell overseas is usually associated with

Describe the global-local dilemma.When is each solution most appropriate?

Asking diagnostic questions such as are there economies of scale,are there cheaper sources of raw materials,are there global sources of low-cost raw materials provide information regarding which globalization driver?

When a firm from another country has an equity (or ownership)position in a separate company,it is engaging in

Global companies usually seek to

Major drawbacks of licensing include

Discuss some key issues to consider when choosing an entry-mode strategy.

Conducting business similarly throughout the world,and locating company units wherever there is high quality and low cost is

Globalization drivers

Multinational Management in a Changing World

Culture and Multinational Management

The Institutional Context of Multinational Management

Managing Ethical and Social Responsibility Challenges in Multinational Companies

Strategic Management in the Multinational Company: Content and Formulation

Small Businesses and International Entrepreneurship:

Organizational Design for Multinational Companies

International Strategic Alliances: Management and Design

Multinational E-Commerce: Strategies and Structures

International Human Resource Management

Hrm in the Local Context: Knowing When and How to Adapt

International Negotiation and Cross-Cultural Communication

Motivation in Multinational Companies

Leadership and Management Behavior in Multinational Companies

Filters