Question 1

Which of the following grants the rights to a firm in the host country to either produce or sell a product,or both?

Accepted Answer

A)  international licensing agreement 
B)  voluntary export restraint 
C)  memorandum of association 
D)  letter of credit 
A)  international licensing agreement 
B)  voluntary export restraint 
C)  memorandum of association 
D)  letter of credit A

Question 2

Which of the following is the most critical aspect of a franchising strategy?

Accepted Answer

A)  customer base 
B)  distribution 
C)  quality control 
D)  local marketing 
A)  customer base 
B)  distribution 
C)  quality control 
D)  local marketing C

Question 3

Which of the following entry strategies requires little investment and enables quick and easy market withdrawal?

Accepted Answer

A)  franchising 
B)  joint ventures 
C)  turnkey projects 
D)  exporting 
A)  franchising 
B)  joint ventures 
C)  turnkey projects 
D)  exporting D

Question 4

Production,one of the five global corporate objectives,deals with development of new products with global patents.

Accepted Answer

A) True 
 B)False

Question 5

Goals for market volume and profitability are usually set higher for international than domestic operations due to the ________.

Accepted Answer

A)  involvement of greater risks 
B)  presence of stable market conditions 
C)  enforcement of government controls 
D)  presence of stable exchange rates 
A)  involvement of greater risks 
B)  presence of stable market conditions 
C)  enforcement of government controls 
D)  presence of stable exchange rates

Question 6

The second part of the strategic management process involves the ________.

Accepted Answer

A)  implementation phase 
B)  assessment stage 
C)  planning phase 
D)  analysis stage 
A)  implementation phase 
B)  assessment stage 
C)  planning phase 
D)  analysis stage

Question 7

The term globalization refers to the establishment of worldwide operations and the development of standardized products and marketing.

Accepted Answer

A) True 
 B)False

Question 8

Futura-Core Technologies,an electronics manufacturing firm,has advantages in financial capability and sustainability,but a disadvantage in speed of innovation.It is also at a disadvantage relative to Core-Dynamix Technologies,another electronics manufacturing firm,in important factors such as manufacturing capability and adaptability to market conditions.Which of the following terms best describes Futura-Core's abilities in comparison to Core-Dynamix?

Accepted Answer

A)  comparative advantage 
B)  collective bargaining 
C)  competitive advantage 
D)  absolute advantage 
A)  comparative advantage 
B)  collective bargaining 
C)  competitive advantage 
D)  absolute advantage

Question 9

A country seeks new infusions of capital,technology,and know-how.It announces that it shall exempt taxes and grant concessions for foreign investors.Which of the following measures is the country employing?

Accepted Answer

A)  providing incentives 
B)  imposing regulations 
C)  establishing trade barriers 
D)  ensuring economies of scale 
A)  providing incentives 
B)  imposing regulations 
C)  establishing trade barriers 
D)  ensuring economies of scale

Question 10

Antidumping laws enable formal institutions to affect international competition.

Accepted Answer

A) True 
 B)False

Question 11

The process by which a firm's managers evaluate the future prospects of the firm and decide on appropriate strategies to achieve long-term objectives is called strategic planning.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following would most likely be categorized as a global financial objective of an international firm?

Accepted Answer

A)  foreign-exchange management 
B)  long-term profit growth 
C)  quality and cost control 
D)  company market share 
A)  foreign-exchange management 
B)  long-term profit growth 
C)  quality and cost control 
D)  company market share

Question 13

What is environmental scanning? What areas are most commonly focused in environmental scanning?

Accepted Answer

Environmental scanning is the process of

Question 14

Operations in foreign countries frequently start as a response to customer demands.

Accepted Answer

A) True 
 B)False

Question 15

The strategic management process consists of independent and discontinuous steps.

Accepted Answer

A) True 
 B)False

Question 16

Offshoring is when a company moves one or all of its factories from the host country to the home country.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is a venture-specific factor that affects the choice of international entry mode for a company?

Accepted Answer

A)  competition in local market 
B)  level of global competition 
C)  ability to protect proprietary technology 
D)  corporate culture and structure 
A)  competition in local market 
B)  level of global competition 
C)  ability to protect proprietary technology 
D)  corporate culture and structure

Question 18

Describe the strategies of globalization and regionalization.When can each strategy be used most effectively?

Accepted Answer

A globalization strategy is based on the

Question 19

Which of the following is a reactive reason that prompts a firm to expand overseas?

Accepted Answer

A)  customer demands 
B)  seeking economies of scale 
C)  growth opportunities 
D)  seeking incentives 
A)  customer demands 
B)  seeking economies of scale 
C)  growth opportunities 
D)  seeking incentives

Question 20

Regional strategies are more appropriate than global strategies for firms that operate in ________.

Accepted Answer

A)  multidomestic industries 
B)  high-tech industries 
C)  newly emerging industries 
D)  mature industries 
A)  multidomestic industries 
B)  high-tech industries 
C)  newly emerging industries 
D)  mature industries

Which of the following grants the rights to a firm in the host country to either produce or sell a product,or both?

Which of the following is the most critical aspect of a franchising strategy?

Which of the following entry strategies requires little investment and enables quick and easy market withdrawal?

Production,one of the five global corporate objectives,deals with development of new products with global patents.

Goals for market volume and profitability are usually set higher for international than domestic operations due to the ________.

The second part of the strategic management process involves the ________.

The term globalization refers to the establishment of worldwide operations and the development of standardized products and marketing.

A country seeks new infusions of capital,technology,and know-how.It announces that it shall exempt taxes and grant concessions for foreign investors.Which of the following measures is the country employing?

Antidumping laws enable formal institutions to affect international competition.

The process by which a firm's managers evaluate the future prospects of the firm and decide on appropriate strategies to achieve long-term objectives is called strategic planning.

Which of the following would most likely be categorized as a global financial objective of an international firm?

What is environmental scanning? What areas are most commonly focused in environmental scanning?

Operations in foreign countries frequently start as a response to customer demands.

The strategic management process consists of independent and discontinuous steps.

Offshoring is when a company moves one or all of its factories from the host country to the home country.

Which of the following is a venture-specific factor that affects the choice of international entry mode for a company?

Describe the strategies of globalization and regionalization.When can each strategy be used most effectively?

Which of the following is a reactive reason that prompts a firm to expand overseas?

Regional strategies are more appropriate than global strategies for firms that operate in ________.

Assessing the Environment: Political, Economic, Legal, Technological

Managing Interdependence, Social Responsibility, and Ethics

Understanding the Role of Culture

Communicating Across Cultures

Cross-Cultural Negotiation and Decision Making

Global Alliances and Strategy Implementation

Organization Structure and Control Systems

Staffing,Training,and Compensation for Global Operations

Developing a Global Management Cadre

Motivating and Leading

Filters

Exam 6: Formulating Strategy

Which of the following grants the rights to a firm in the host country to either produce or sell a product,or both?

Which of the following is the most critical aspect of a franchising strategy?

Which of the following entry strategies requires little investment and enables quick and easy market withdrawal?

Production,one of the five global corporate objectives,deals with development of new products with global patents.

Goals for market volume and profitability are usually set higher for international than domestic operations due to the ________.

The second part of the strategic management process involves the ________.

The term globalization refers to the establishment of worldwide operations and the development of standardized products and marketing.

A country seeks new infusions of capital,technology,and know-how.It announces that it shall exempt taxes and grant concessions for foreign investors.Which of the following measures is the country employing?

Antidumping laws enable formal institutions to affect international competition.

The process by which a firm's managers evaluate the future prospects of the firm and decide on appropriate strategies to achieve long-term objectives is called strategic planning.

Which of the following would most likely be categorized as a global financial objective of an international firm?

What is environmental scanning? What areas are most commonly focused in environmental scanning?

Operations in foreign countries frequently start as a response to customer demands.

The strategic management process consists of independent and discontinuous steps.

Offshoring is when a company moves one or all of its factories from the host country to the home country.

Which of the following is a venture-specific factor that affects the choice of international entry mode for a company?

Describe the strategies of globalization and regionalization.When can each strategy be used most effectively?

Which of the following is a reactive reason that prompts a firm to expand overseas?

Regional strategies are more appropriate than global strategies for firms that operate in ________.

Assessing the Environment: Political, Economic, Legal, Technological

Managing Interdependence, Social Responsibility, and Ethics

Understanding the Role of Culture

Communicating Across Cultures

Cross-Cultural Negotiation and Decision Making

Global Alliances and Strategy Implementation

Organization Structure and Control Systems

Staffing,Training,and Compensation for Global Operations

Developing a Global Management Cadre

Motivating and Leading

Filters