Question 1

To deal with political risk,various private and government agencies offer

Accepted Answer

A)  Insurance. 
B)  Assurance. 
C)  Investment. 
D)  All of the above are true.

Question 2

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.

Question 3

Foreign direct investment

Accepted Answer

A)  Is an entry-mode strategy. 
B)  Means that a multinational owns,in part or in whole,an operation in another country. 
C)  Symbolizes the highest rate of internationalization. 
D)  All of the above

Question 4

Comparative advantage is

Accepted Answer

A)  Similar to competitive advantage. 
B)  A local responsiveness solution. 
C)  Where the company can produce the cheapest. 
D)  Advantages of nations over other nations.

Question 5

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

Question 6

Contrast the transnational and international strategies in their approach to location advantages.

Accepted Answer

The answer of Contrast the transnational and international strategies in...

Question 7

A company that treats and fills overseas orders like domestic orders is an example of a

Accepted Answer

A)  Indirect exporter. 
B)  Export management company. 
C)  Aggressive exporter. 
D)  Passive exporter.

Question 8

International franchising

Accepted Answer

A)  Is a comprehensive licensing agreement where the franchisor grants to the franchisee the use of a whole business operation. 
B)  When multinationals make a project fully operational and train local managers and workers before the owner takes control. 
C)  The use of intermediaries or go-between firms to provide the knowledge and contacts necessary to sell overseas is. 
D)  None of the above

Question 9

Which of the following is NOT a factor considered when assessing political risk?

Accepted Answer

A)  The durability of the political system 
B)  The role of the government,unions and the media in political stability 
C)  The profitability 
D)  The reliability of the rule of law

Question 10

Having one set of products for North American countries and another set of products for Europe illustrates which strategy?

Accepted Answer

A)  Multidomestic 
B)  Regional 
C)  Transnational 
D)  Global

Question 11

Foreign direct investment

Accepted Answer

A)  Exists when two or more firms have an ownership position in a separate company. 
B)  Requires at least three separate companies to combine resources. 
C)  Exists when two or more companies agree to cooperate in any value-chain activity. 
D)  The above statements are all true for equity international joint ventures.

Question 12

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

The answer of You work for a small company that...

Question 13

A regional strategy refers to

Accepted Answer

A)  Managing raw-material sourcing,production,marketing,and support activities within a particular region. 
B)  Selling global products and using similar marketing techniques worldwide. 
C)  Dispersing value-chain activities anywhere in the world where the company can do them best or cheapest. 
D)  None of the above

Question 14

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.

Question 15

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.

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

Question 17

When deciding on an entry-mode strategy,cultural distance is

Accepted Answer

A)  The physical distance between two countries. 
B)  Not the distance between an organization's culture and the local national culture. 
C)  Similar to the geographic distance. 
D)  None of the above

Question 18

When multinationals make a project fully operational and train local managers and workers before the owner takes control,they are using which entry-mode strategy?

Accepted Answer

A)  Licensing 
B)  Franchising 
C)  Turnkey 
D)  Direct export

Question 19

If management believes that it must control foreign sales,customer credit,and the eventual sale of the product,then the company should choose which of the following entry-mode strategies?

Accepted Answer

A)  Indirect exporting 
B)  Licensing 
C)  Direct exporting 
D)  Franchising

Question 20

Which of the following strategies gives top priority to seeking location advantages and to gaining operation efficiencies from worldwide operation?

Accepted Answer

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

Exam 6: Multinational and Entry-Mode Strategies: Content and Formulation

To deal with political risk,various private and government agencies offer

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

Foreign direct investment

Comparative advantage is

The global solution to the global-local dilemma refers to

Contrast the transnational and international strategies in their approach to location advantages.

A company that treats and fills overseas orders like domestic orders is an example of a

International franchising

Which of the following is NOT a factor considered when assessing political risk?

Having one set of products for North American countries and another set of products for Europe illustrates which strategy?

Foreign direct investment

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?

A regional strategy refers to

Which of the following statements regarding exporting is FALSE?

A company pursuing a regional strategy

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

When deciding on an entry-mode strategy,cultural distance is

When multinationals make a project fully operational and train local managers and workers before the owner takes control,they are using which entry-mode strategy?

If management believes that it must control foreign sales,customer credit,and the eventual sale of the product,then the company should choose which of the following entry-mode strategies?

Which of the following strategies gives top priority to seeking location advantages and to gaining operation efficiencies from worldwide operation?