Exam 15: Direct Investment and Collaborative Strategies

Dependencia theory holds that ________.

The use of management contracts has been significant in hotel operations.

Why do turnkey operators often require a feasibility study as part of the contract?

In collaborative arrangements, when one partner cedes control to another partner, it is no longer responsible for problems.

Metro Hotels, a U.S.hotel chain, has transferred several of its employees to Myanmar where they will work for three or four years before returning to the United States.The employees will be working with a Myanmar hotel to provide it with their extensive knowledge regarding how to run a hotel.Metro is most likely involved in a ________.

Collaborative arrangements prevent the possibility of information being passed to potential competitors.

It is important when setting up a collaborative arrangement to agree on mutual goals and expectations.

The more a company engages in international collaborative arrangements as opposed to wholly owned foreign operations, the more it is likely to ________.

Explain how franchising agreements differ from licensing agreements.

In which of the following situations is a firm most likely to be able to choose the foreign operating form it would most like to use?

Appropriability theory refers to ________.

Without a proven track record in collaborative arrangements, a company will most likely need to ________.

What is a turnkey operation?

An argument for limiting foreign control of key industries is that decisions made abroad can have adverse effects on the local economy.

A company that makes a foreign investment largely to acquire knowledge is most likely to use ________ as a means of expansion.

Although a company may have a good track record with collaborative arrangements, this is of little help when negotiating new collaborative arrangements with different companies.

Governments sometimes prohibit foreign acquisitions because they fear market dominance by foreign enterprises.

Foreign acquisitions are more advantageous than start-ups when the industry has little excess capacity than when it has a lot of excess capacity.

When no single company has control over a collaborative arrangement, ________.

An international management contract is an agreement between a company and a foreign government on the number of foreign personnel it can employ.