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

The global solution to the global-local dilemma refers to

Accepted Answer

A) Conducting business similarly around the world. 
B) Responding to differences in the global markets in which a company operates. 
C) Customization of products to regional but not country differences. 
D) None of the above 
A) Conducting business similarly around the world. 
B) Responding to differences in the global markets in which a company operates. 
C) Customization of products to regional but not country differences. 
D) None of the above A

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

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 5

Which of the following statements regarding exporting is FALSE?

Accepted Answer

A) Exporting is the easiest of entry-mode strategies. 
B) Export can be of the passive form where overseas orders are treated like domestic orders. 
C) Export can be indirect where companies rely on intermediaries to sell overseas. 
D) Because it is the easiest form of going international, exports are not as important to the US economy. 
A) Exporting is the easiest of entry-mode strategies. 
B) Export can be of the passive form where overseas orders are treated like domestic orders. 
C) Export can be indirect where companies rely on intermediaries to sell overseas. 
D) Because it is the easiest form of going international, exports are not as important to the US economy.

Question 6

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 7

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

Accepted Answer

Answers will vary but should demonstrate

Question 8

Companies should license if

Accepted Answer

A) They want to control all aspects of operation. 
B) Their product is older or a soon-to-be replaced technology. 
C) They have the necessary resources to export or invest directly. 
D) There are no tariffs or quotas. 
A) They want to control all aspects of operation. 
B) Their product is older or a soon-to-be replaced technology. 
C) They have the necessary resources to export or invest directly. 
D) There are no tariffs or quotas.

Question 9

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 10

You work for a small company that has an innovative low-cost production method for laser disks.A Japanese firm approaches your CEO to license the technology.The CEO asks you to write a report detailing the risks and potential benefits of this deal.What will you include in the report and why?

Accepted Answer

Answers will vary bu

Question 11

Selling global products and using similar marketing techniques worldwide is an example of a

Accepted Answer

A) Transnational strategy. 
B) International strategy. 
C) Multidomestic strategy. 
D) Regional strategy. 
A) Transnational strategy. 
B) International strategy. 
C) Multidomestic strategy. 
D) Regional strategy.

Question 12

Comparative advantages are

Accepted Answer

A) Cost or quality advantages particular to a nation. 
B) Similar to competitive advantages. 
C) Emphasized through multidomestic strategies. 
D) None of the above 
A) Cost or quality advantages particular to a nation. 
B) Similar to competitive advantages. 
C) Emphasized through multidomestic strategies. 
D) None of the above

Question 13

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 14

Dispersing value-chain activities anywhere in the world where the company can do them best or cheapest refers to seeking

Accepted Answer

A) The global-local dilemma. 
B) Comparative advantage of nations. 
C) Competitive advantage of firms. 
D) Locations advantages. 
A) The global-local dilemma. 
B) Comparative advantage of nations. 
C) Competitive advantage of firms. 
D) Locations advantages.

Question 15

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 16

If strategists in a firm believe that centralizing key activities such as R&D is necessary to reduce coordination costs and to achieve economies of scale,they are more likely to choose

Accepted Answer

A) An international strategy. 
B) A transnational strategy. 
C) A local strategy. 
D) None of the above 
A) An international strategy. 
B) A transnational strategy. 
C) A local strategy. 
D) None of the above

Question 17

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 18

A company pursuing a regional strategy

Accepted Answer

A) Has worldwide products and a worldwide value chain. 
B) Sells the same product using only minor modification in marketing and product offerings. 
C) Is similar to a company pursuing an international strategy. 
D) Attempt to gain location advantages of more global transnational combined with some of the local-adaptation advantages of the multidomestic company. 
A) Has worldwide products and a worldwide value chain. 
B) Sells the same product using only minor modification in marketing and product offerings. 
C) Is similar to a company pursuing an international strategy. 
D) Attempt to gain location advantages of more global transnational combined with some of the local-adaptation advantages of the multidomestic company.

Question 19

According to the text,a fundamental dilemma faced by all multinationals is

Accepted Answer

A) The form of competitive strategy they should use. 
B) How much they emphasize responding to differences in all the markets they operate. 
C) How to fight their rivals. 
D) None of the above 
A) The form of competitive strategy they should use. 
B) How much they emphasize responding to differences in all the markets they operate. 
C) How to fight their rivals. 
D) None of the above

Question 20

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.

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

The global solution to the global-local dilemma refers to

What are globalization drivers?

Major drawbacks of licensing include

Which of the following statements regarding exporting is FALSE?

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

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

Companies should license if

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

You work for a small company that has an innovative low-cost production method for laser disks.A Japanese firm approaches your CEO to license the technology.The CEO asks you to write a report detailing the risks and potential benefits of this deal.What will you include in the report and why?

Selling global products and using similar marketing techniques worldwide is an example of a

Comparative advantages are

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

Dispersing value-chain activities anywhere in the world where the company can do them best or cheapest refers to seeking

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?

If strategists in a firm believe that centralizing key activities such as R&D is necessary to reduce coordination costs and to achieve economies of scale,they are more likely to choose

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

A company pursuing a regional strategy

According to the text,a fundamental dilemma faced by all multinationals is

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

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

The global solution to the global-local dilemma refers to

What are globalization drivers?

Major drawbacks of licensing include

Which of the following statements regarding exporting is FALSE?

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

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

Companies should license if

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

You work for a small company that has an innovative low-cost production method for laser disks.A Japanese firm approaches your CEO to license the technology.The CEO asks you to write a report detailing the risks and potential benefits of this deal.What will you include in the report and why?

Selling global products and using similar marketing techniques worldwide is an example of a

Comparative advantages are

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

Dispersing value-chain activities anywhere in the world where the company can do them best or cheapest refers to seeking

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?

If strategists in a firm believe that centralizing key activities such as R&D is necessary to reduce coordination costs and to achieve economies of scale,they are more likely to choose

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

A company pursuing a regional strategy

According to the text,a fundamental dilemma faced by all multinationals is

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

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