Question 1

Subsidiaries that have a leading role within an MNE to develop new products or technology are also known as:

Accepted Answer

A) centres of excellence 
B) centres of excel 
C) centres of hubs 
D) centres of hubris 
A) centres of excellence 
B) centres of excel 
C) centres of hubs 
D) centres of hubris A

Question 2

Global key accounts are:

Accepted Answer

A) cost positions that are aggregated globally 
B) distribution channels that cover multiple countries 
C) customers that are served at multiple sites but with central negotiation of contracts 
D) suppliers that have established production facilities in several countries 
A) cost positions that are aggregated globally 
B) distribution channels that cover multiple countries 
C) customers that are served at multiple sites but with central negotiation of contracts 
D) suppliers that have established production facilities in several countries C

Question 3

An 'acquisition premium' is:

Accepted Answer

A) The increase in the stock price of the acquirer associated with the acquisition. 
B) The pay-off to the directors of the acquired company in return for their cooperation with the acquiring firm. 
C) The difference between stock prices of the acquirer and the acquired company. 
D) The difference between the market price of the acquired firm before the acquisition and the price offered by the acquirer. 
A) The increase in the stock price of the acquirer associated with the acquisition. 
B) The pay-off to the directors of the acquired company in return for their cooperation with the acquiring firm. 
C) The difference between stock prices of the acquirer and the acquired company. 
D) The difference between the market price of the acquired firm before the acquisition and the price offered by the acquirer. D

Question 4

Risk diversification is the reduction of the risk profile of a company by investing only in one country or industry.

Accepted Answer

A) True 
 B)False

Question 5

In the context of mergers and acquisitions, organizational fit refers to the cultural and structural characteristics of the two organizations that affect the ability to integrate the acquired company.

Accepted Answer

A) True 
 B)False

Question 6

The assessment of a target firm by a potential acquirer is known as benchmarking.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not an element of Ghemawat's AAA typology of global strategies?

Accepted Answer

A) acquisition 
B) adaptation 
C) aggregation 
D) arbitrage 
A) acquisition 
B) adaptation 
C) aggregation 
D) arbitrage

Question 8

Strategic alliances do not involve foreign direct investment.

Accepted Answer

A) True 
 B)False

Question 9

Divestment is a form of investment that diverges funds from older projects to new, high risk projects.

Accepted Answer

A) True 
 B)False

Question 10

Synergies don't arise in the form of new values created, or in the form of cost savings.

Accepted Answer

A) True 
 B)False

Question 11

Small private firms that prosper in a market niche while keeping a low profile are also known as:

Accepted Answer

A) SMEs 
B) single line businesses 
C) niche prospectors 
D) hidden champions 
A) SMEs 
B) single line businesses 
C) niche prospectors 
D) hidden champions

Subsidiaries that have a leading role within an MNE to develop new products or technology are also known as:

Global key accounts are:

An 'acquisition premium' is:

Risk diversification is the reduction of the risk profile of a company by investing only in one country or industry.

In the context of mergers and acquisitions, organizational fit refers to the cultural and structural characteristics of the two organizations that affect the ability to integrate the acquired company.

The assessment of a target firm by a potential acquirer is known as benchmarking.

Which of the following is not an element of Ghemawat's AAA typology of global strategies?

Strategic alliances do not involve foreign direct investment.

Divestment is a form of investment that diverges funds from older projects to new, high risk projects.

Synergies don't arise in the form of new values created, or in the form of cost savings.

Small private firms that prosper in a market niche while keeping a low profile are also known as:

Globalizing Business

Formal Institutions: Political, Economic and Legal Systems

Informal Institutions: Culture, Religion and Languages

Firm Resources: Competitiveness and Growth

Trading Internationally

Investing Abroad Directly

Exchange Rates

European Integration

Global Integration and Multilateral Organizations

Socially Responsible Business

Starting International Business

Foreign Entry Strategies

Global Strategies and Acquisitions

Organizing and Innovating in the Mne

People in the Mne

Customers and Suppliers of the Mne

Filters

Exam 13: Competitive Dynamics

Subsidiaries that have a leading role within an MNE to develop new products or technology are also known as:

Global key accounts are:

An 'acquisition premium' is:

Risk diversification is the reduction of the risk profile of a company by investing only in one country or industry.

In the context of mergers and acquisitions, organizational fit refers to the cultural and structural characteristics of the two organizations that affect the ability to integrate the acquired company.

The assessment of a target firm by a potential acquirer is known as benchmarking.

Which of the following is not an element of Ghemawat's AAA typology of global strategies?

Strategic alliances do not involve foreign direct investment.

Divestment is a form of investment that diverges funds from older projects to new, high risk projects.

Synergies don't arise in the form of new values created, or in the form of cost savings.

Small private firms that prosper in a market niche while keeping a low profile are also known as:

Globalizing Business

Formal Institutions: Political, Economic and Legal Systems

Informal Institutions: Culture, Religion and Languages

Firm Resources: Competitiveness and Growth

Trading Internationally

Investing Abroad Directly

Exchange Rates

European Integration

Global Integration and Multilateral Organizations

Socially Responsible Business

Starting International Business

Foreign Entry Strategies

Global Strategies and Acquisitions

Organizing and Innovating in the Mne

People in the Mne

Customers and Suppliers of the Mne

Filters