Exam 15: Direct Investment and Collaborative Strategies

A U.S.firm is acquiring an existing company in Germany rather than starting up a new foreign operation.Which of the following statements best supports this decision?

Which of the following is an example of an exclusive license agreement?

Which of the following firms would most likely be involved in a turnkey operation?

Which of the following is NOT one of the arguments for permitting foreign control of key industries?

The more partners in a joint venture, the more complex the management of the arrangement will be.

What are the various types of collaborative arrangement options available to international businesses? How can firms most effectively manage international collaborative arrangements?

Why can a company more easily pursue a global strategy when it owns 100 percent of foreign operations?

When a large company and a small company enter a collaborative arrangement, ________.

Which of the following describes a cross-licensing agreement?

Coca-Cola collaborates extensively abroad, but it refuses collaboration that might imperil control of its core competency.As a result, which of the following is NOT one of its international collaborative forms?

A U.S.firm plans to shift from exporting to production in China to serve the Chinese market.Which of the following statements would best explain this decision?

Licenses are often given to companies owned in whole or in part by the licensor.

Chrysler granted South East Motor (a company in China)rights to produce its Grand Voyager minivan for sale in China in exchange for a fee.This is an example of a ________.

Billions of investment dollars are needed to develop many new products.This trend toward higher development costs is likely to have which of the following effects on future modes of operations?

There are two ways companies can invest in a foreign country.They can either acquire an interest in an existing operation or construct new facilities.In a short essay, describe the advantages and disadvantages of each alternative.

Judson Baked Goods, a U.S.firm, grants the use of its trademark to a company in Sweden and provides the Swedish company with operational assistance on a continuing basis.Judson is most likely involved in ________.

The dependencia theory holds that the terms for a foreign investor's operations depend on how much the investor and the host country need each other's assets.

Executives at a U.S.firm are debating whether to start a new operation in Russia or acquire an existing one.Which of the following factors best supports a decision to start up a new operation in Russia?

What is a key industry?

Which of the following is NOT one of the arguments for governments to limit foreign control of key industries?