MGT 405 Ch.7

6) A(n) ________ refers to a JV among companies in different countries. A) international joint venture B) equity joint venture C) global joint venture D) transnational joint venture

A) international joint venture

19) Joint ventures are often the chosen form of multinational firm alliances because they ________. A) provide greater control of proprietary technology B) increase the level of competition between partner firms C) enhance the specific skills of the personnel D) enhance the rewards of the firm

A) provide greater control of proprietary technology

34) Which of the following terms suggests that global sourcing can produce gains in efficiency, productivity, quality, and profitability by fully leveraging talent around the world? A) transformational outsourcing B) business process reengineering C) inverted sourcing D) lean integration

Answer: A

44) International joint ventures are less likely to break up when ________. A) issues are settled before the merger B) new policies are created after the merger C) one partner has all the decision-making autonomy and the other has none D) each firm explicitly states its actions and requirements after the merger

Answer: A

32) Which of the following most likely provides a strategic advantage during the implementation of a global alliance? A) non-collaboration in competitively sensitive areas B) unified technology infrastructure C) centralized decision making by one partner D) high levels of competition between the partners

Answer: B

35) Barton & Green is an MNC based in the U.S. that provides a wide range of software development products. Executives at the firm are considering the idea of outsourcing the company's IT infrastructure. Which of the following best supports the argument that Barton & Green should outsource its IT infrastructure to TMC Enterprises, one of the best IT infrastructure maintenance firms in India? A) The main competitor of Barton & Green outsources all IT functions. B) Outsourcing will enhance Barton & Green's competitiveness. C) Barton & Green's employees frequently need IT support, so it is best to outsource the IT infrastructure. D) Barton & Green has proprietary technology and processes.

Answer: B

60) Which of the following variables is frequently overlooked when deciding on entry strategies and alliances, particularly when the target country is perceived to be similar to the home country? A) political stability B) culture C) currency stability D) competition

Answer: B

36) Barton & Green is an MNC based in the U.S. that makes a wide range of software development products. Executives at the firm are considering the idea of outsourcing the company's IT infrastructure. Which of the following questions is the most relevant to Barton & Green's decision to outsource its IT infrastructure to TMC Enterprises, a firm in India? A) Which type of operating system is primarily used by TMC Enterprises? B) What is the attitude of U.S. consumers about TMC Enterprises? C) What is the financial health of TMC Enterprises? D) Which other firms have outsourced their processes to TMC Enterprises?

Answer: C

1) ________ are partnerships between two or more firms that decide they can better pursue their mutual goals by combining their resources as well as their existing distinctive competitive advantages. A) Greenfield investments B) Strategic alliances C) Foreign subsidiaries D) Turnkey operations

B) Strategic alliances

17) Which of the following is a pitfall of cross-border alliances? A) increase in the number of existing competitors B) disputes over management C) convincing expatriates D) finding local skilled employees

B) disputes over management

4) A ________ is a new independent entity that is collectively created and owned by two or more parent companies. A) subsidiary B) joint venture C) greenfield investment D) turnkey operation

B) joint venture

15) Which of the following motivates a company to form cross-border alliances? A) to regulate and favor domestic companies B) to gain rapid entry into a new and consolidating market C) to remove exporting barriers for domestic companies D) to allow local companies to gain access to international products and services

B) to gain rapid entry into a new and consolidating market

24) Which of the following is a competitive aspect of strategic alliances? A) sharing resources to limit investment risk when entering new markets or uncertain technological fields B) lowering exit barriers in mature industries, therefore, assisting short-term corporate restructurings C) accelerating diffusion of industry standards and new technologies to create barriers to entry D) creating a critical mass to develop new technologies to protect domestic, strategic industries

C) accelerating diffusion of industry standards and new technologies to create barriers to entry

22) The dual role of strategic alliance refers to the ________. A) constant requirement of resources and markets B) process of finding skilled personnel and training them to work efficiently C) conflict between cooperation and competition D) differences between home and host governments

C) conflict between cooperation and competition

11) Alliances that are carried out through contract rather than ownership sharing are called ________. A) cultural strategic alliances B) equity strategic alliances C) non-equity strategic alliances D) transmodal strategic alliances

C) non-equity strategic alliances

20) According to David Lei, the single greatest impediment managers face when seeking to learn or renew sources of competitive advantage is that ________. A) good venture partners are hard to find B) technologies change very rapidly C) partners can become competitors D) governments can be fickle

C) partners can become competitors

7) Which of the following is the most beneficial aspect of an international joint venture? A) the international partner receives the entire profit B) the responsibility of risks is solely taken by the international partner C) the partner's local contacts and markets will be utilized D) the entire cost of production will be borne by the local partner

C) the partner's local contacts and markets will be utilized

13) Which of the following types of alliances can be formed between a company and a foreign government? A) international joint venture B) equity strategic alliance C) non-equity strategic alliance D) global strategic alliance

D) global strategic alliance

5) SoftCorp and TechGig, upcoming software companies in San Diego, have decided to create a new and independent telecommunications company, ST-source. Each parent firm has agreed to have 50 percent equity in the new company. This is an example of a(n) ________. A) e-business B) subsidiary C) franchise D) joint venture

D) joint venture

23) All of the following are cooperative aspects of strategic alliances EXCEPT ________. A) creating economies of scale in tangible assets B) forming upstream-downstream divisions of labor C) limiting investment risks through shared resources D) learning new intangible skills from alliance partners

D) learning new intangible skills from alliance partners Answer: D

14) Which of the following is NOT a typical reason for forming cross-border alliances? A) to avoid import barriers B) to share R&D costs and risks C) to gain access to specific markets D) to test marketing campaigns overseas

D) to test marketing campaigns overseas