Exam 11: Foreign Direct Investment and Collaborative Ventures

Cross-licensing agreements are a type of project-based venture in which each partner agrees to distribute the products and services of the other firm for a specific percentage of profits.

International collaborative ventures are best characterized by which of the following?

In a short essay, discuss three reasons that firms often seek new market opportunities.

Which of the following is one of the first questions managers should consider before entering a collaborative venture?

In a short essay, explain why one of the primary motives for a firm's international expansion-to compete with key rivals in their own markets-may also be one of the biggest challenges for retailers pursuing new international markets.

Governments encourage inward FDI through incentives for all of the following reasons except ________.

Which of the following leading MNEs has the most foreign subsidiaries and affiliates?

In a short essay, discuss strategies that managers can employ in order to increase the chances of a successful collaborative venture.

Which of the following best exemplifies corporate social responsibility?

Joint ventures are a primary entry strategy that focal firms use to enter a foreign market with participating firms.

When a company erects green buildings to house its new call center in Chennai, it is practicing ________.

When Home Depot entered the Mexican market by purchasing Home Mart, a domestic store chain, the firm was making a Greenfield investment.

Ciao Manufacturing Location The Italian car company, Ciao, has made plans to expand its operations by building a manufacturing facility in a foreign market. Ciao has been very successful selling its small, economical, and stylish cars in the Italy and Spain, and firm managers believe that the Ciao cars will be equally profitable in other markets. Ciao managers are trying to determine whether Canada or Russia would be the best location for a new automobile manufacturing facility. -Which of the following questions is most important for Ciao managers to evaluate in their decision regarding the location of the new manufacturing facility?

ABC Appliance The ABC Appliance Corporation is a Florida-based manufacturer of refrigerators, dishwashers, and other large household appliances. ABC takes advantage of NAFTA, and as a result, the firm has loyal customers across North America. ABC managers would like to expand into the Asian market, but are unsure of the best way to do so. ABC managers are meeting to discuss various possibilities for entering the Asian market. -Which of the following most likely supports a decision to enter the Asian market by building a factory near Tokyo?

The level of taxes in a country represents which of the following types of factors to be considered when selecting an FDI location?

In a short essay, explain the difference between vertical FDI and horizontal FDI. To illustrate your explanation, provide examples of firms that successfully utilize each type of FDI.

Mergers occur more often between companies of different sizes because a large company can rapidly absorb the costs of a smaller company, which lacks economies of scale.

All of the following are typical reasons firms enter equity joint ventures except ________.

Which of the following is often a motive of firms in the mining industry to enter new foreign markets?

In a short essay, discuss the four key differences between project-based collaborations and equity joint ventures.