BA 4060 Final

Which would be more characteristic of conglomerates?

"Putting one's eggs in similar baskets." OR "Putting one's eggs in different baskets."

Which of the following is not a location specific advantage?

Agglomeration. Knowledge spillovers. A skilled labor force. A pool of specialized suppliers and buyers. answer: All of the above are location advantages.

Dumping is defined as:

An exporter selling below cost abroad

Which is true of strategy?

Business strategy has similarities with military strategy. Military principles cannot be completely applied in business. Militaries fight over territories, waters, and air spaces, firms compete in markets. answer: All of the above.

A potential benefit of an initial public offering (IPO):

Can increase firm's financial stability.

In combining product and geographic diversification, which is not one of the four possible combinations?

Classic replicators

Unique to international competition are the pressures for local responsiveness, which are reflected in:

Consumer preferences. Distribution channels. Host country demands.

Which is not an advantage of strategic alliances and networks?

Costs of negotiation and coordination.

Which geographic diversification is most likely to reduce the liability of foreignness?

Culturally adjacent countries.

Which normally provides the most control over technology and brand?

Direct investment.

Which of the following involves the most complexity?

Direct investment.

Four strategic choices for MNEs do not include:

Domestic.

Conglomeration tends to provide all of the following except:

Economies of scale.

The type of knowledge that is codifiable (that is, it can be written down and transferred without losing much of its richness) is called:

Explicit

Non-equity modes of entry typically involve:

Exports and contractual agreements.

In some industries where pressures for globalization are relatively low, local firms may possess some skills and assets that are transferable overseas, thus leading to a/an_____strategy.

Extender

Which of the following best describes Foreign Direct Investment (FDI)?

Firm invests directly in production or service activities in another country.

As firms expand into more countries, they should recognize:

Foreign firms are still often discriminated against. Foreign firms primarily deploy overwhelming resources and capabilities that offset the liability of foreignness. Foreign firms are able to offset the liability of foreignness and still have some competitive advantage. answer: All of the above.

The most appropriate structure for a multidomestic strategy is a:

Geographic area structure.

Multidomestic strategy involves all of the following except:

Global standardization strategy is the same as a multidomestic strategy.

Knowledge management uses "centers of excellence" in which type of MNE?

Global.

Which of the following are least likely to result in collusion?

Heterogeneous products.

One general conclusion that we can reach regarding entrepreneurship is that:

Individualistic and low uncertainty-avoidance societies tend to foster relatively more entrepreneurship.

The structure that is typically set up when firms initially expand abroad is a:

International division structure.

At its core, diversification is essentially driven by all of the following except:

Less complicated information systems.

In a manufacturing setting, the purchase of the right to use another firm's proprietary technology is referred to as:

Licensing

Selling the rights to intellectual property for a royalty fee is involved in:

Licensing/franchising.

Small firms in a large domestic market are referred to as:

Occasional internationalizers.

To achieve success, entrepreneurial resources must be:

Organizationally embedded.

Research regarding the relationship between product diversification and firm performance indicates that:

Performance may increase as firms shift from single business strategies to product-related diversification. Performance may decrease as firms change from product-related to -unrelated. The linkage between diversification and performance is inverted U shaped. "Putting your eggs in similar baskets," has emerged as a balanced way to both reduce risk and leverage synergy. answer: All of the above.

"The extent to which a given competitor possesses strategic endowment comparable, in terms of both type and amount, to those of the focal firm" refers to similarity of:

Resources.

Which of the following is true regarding internationalizing firms?

SMEs do not operate solely in domestic markets.

First mover advantages do not include:

Successful clashes with dominant firms in domestic markets.

Which of the following exemplify trade barriers?

Tariffs Local content requirements. Restrictions on certain entry modes. answer: All of the above

Pressures for cost reductions and local responsiveness include:

The framework of how to simultaneously deal with these two sets of pressures. Host country demands and expectations. Being locally responsive makes local customers and governments happy but increase costs. answer: All of the above.

Which is not true of joint ventures?

They are politically less acceptable than wholly owned subsidiaries.

Which best describes entrepreneurs?

Those who identify and exploit previously unexplored opportunities. Founders and owners of new businesses. Managers of small existing firms (i.e. those with fewer than 500 employees). answer: All of the above.

Strategic alliances involve:

Voluntary agreements between firms. Compromises between short-term transactions and long-term solutions. Contracts. Equity-based arrangements. Answer: all of the above

"Greenfield ventures" are:

Wholly owned subsidiaries that are built from scratch in a foreign country.

Select the best choice: a company that is engaged in oil production, pipelines and tankers, refining, and gasoline stations has engaged in ______________ expansion.

vertical