Business Strategies Exam 2
Which of the following accurately describes a common difference between a merger and an acquisition? a. A merger tends to be friendly; an acquisition can be friendly or unfriendly. b. A merger tends to include mostly small firms; an acquisition can often involve large firms. c. A merger involves the combination of three or more firms; an acquisition involves firms of the same size. d. A merger involves firms of different size; an acquisition involved firms of the same size. e. A merger involves the combination of three or more firms; an acquisition involved the combination of two firms.
a. A merger tends to be friendly; an acquisition can be friendly or unfriendly.
Consider the following two statements and choose the appropriate alternative: Statement A: A cost leader can achieve competitive advantage as long as its economic value crated is greater than that of its competitors. Statement B: Dis-economies of scale refer to increases in cost per unit when output increases. a. Both statements are true. b. Neither statement is true. c. Only statement 1 is true. d. Only statement 2 is true.
a. Both statements are true.
Tom's Fresh Produce grows a variety of fruits and vegetables and sells their products wholesale to restaurants and retail grocers. Recently, the management team at Tom's has decided to open their own chain of retail outlets in which to sell their produce. This is an example of: a. Forward vertical integration. b. Taper integration. c. Strategic outsourcing. d. Backward vertical integration.
a. Forward vertical integration.
Lemonade Co., world's largest soft drinks company, operates one hundred breweries throughout the North America. As such, they enjoy tremendous economies of scale that reduce per unit costs. Which of the following is not a way to reduce per-unit costs? a. Lease capital equipment instead of buying it. b. Employ specialized systems and equipment. c. Spread fixed costs over a larger output. d. Take advantage of certain physical properties like the Cube Square rule.
a. Lease capital equipment instead of buying it.
If two similar size firms agree to integrate on a relatively equal basis, this is called a(n) _________, while if a larger firm purchases a smaller firm, this is usually referred to as a(n) __________. Finally, a(n) _________ is often used to refer to an unfriendly acquisition where one of the firms involved does not want to be acquired. a. Merger, acquisition, hostile takeover b. Acquisition, merger, hostile takeover c. Merger, hostile takeover, acquisition d. None of the above options are correct
a. Merger, acquisition, hostile takeover
Which of the below is not considered a possible disadvantage of markets over organizing economic activity within firms? a. The principal-agent problem. b. Incomplete contracting. c. Opportunism. d. Search costs. e. Enforcement of contracts.
a. The principal-agent problem.
Silca Electronics Inc. is a consumer-electronics company based in the country of Pelo. It has approximately 300 stores across the country and is already active in three foreign countries. It attempts to establish itself successfully in the country of Zevar, and uses its low-cost strategy to do so. However, due to the additional costs associated with training, coordinating across geographic distances, and other costs associated with doing business in an unfamiliar cultural and economic environment, Silca Electronics Inc. incurs huge financial losses in Zevar. In this scenario, Silca Electronics Inc.'s failure to establish itself successfully in Zevar occurs most likely because: a. it underestimates its liability of foreignness when entering the Zevar market. b. it underestimates its liability of newness when entering the Zevar market. c. it overestimates its need to protect its intellectual property. d. it overestimates the geographic and cultural distance between Pelo and Zevar. e. it underestimates its dwindling reputation before it enters the Zevar market.
a. it underestimates its liability of foreignness when entering the Zevar market.
Walmart Stores Inc. said it plans to open what would be one of the country's biggest dairy plants in Indiana by next year. Walmart's new dairy plant will supply milk to more than 600 stores that are now supplied by Dean Foods Co. Dean will still continue to supply Walmart stores, but the new Walmart plant will cost Dean roughly 100 million gallons of annual milk sales. The decision of Walmart Stores Inc. could be best described as _________________. a. taper integration b. forward integration c. horizontal integration d. product diversification e. value chain integration
a. taper integration
The A9 chip for Apple's iPhone 6s and 6s plus were jointly manufactured by the Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung. Apple decided to drop Samsung as a supplier of its next generation A10 chips used in the iPhone 7. The iPhone 8 (or X), which is planned to be introduced in 2018, is a highly-anticipated product and TSMC's supply may fall short of Apple's demand. If Apple decides to manufacture part of its next generation chips in house for the next iPhone while maintaining its supply contract with TMSC, this will be an example of: a. taper integration. b. forward integration. c. horizontal integration. d. product diversification. e. value chain disintegration.
a. taper integration.
In the auto industry, Mercedes Benz is an upscale auto manufacturer that focuses on superior customer experience. The firm charges premium prices for its products and services. Kia Inc., in contrast, charges the lowest price in the industry with its no-frills approach. In between these two segments is BMW Inc., which offers a customer experience comparable to that of Mercedes Benz at a price almost as lowas that of Kia Motors. What strategy is BMW Inc. trying to pursue in this scenario? a. Red ocean strategy. b. Blue ocean strategy. c. Market penetration strategy. d. Low-cost strategy. e. Product differentiation strategy.
b. Blue ocean strategy.
Car clean Inc. is a chain of car washing service centers competing in the southeast U.S. It offers a package to its customer-members that includes unlimited use of the car washing services for 12 months at a rate of $29.99/month. Car clean Inc. offers personal car service consulting with members of its staff - and these staff members often reach out to members by phone or text to members to provide encouragement and motivation to come and wash their cars on weekly basis to keep their cars nice and clean. There are always numerous staff members on-site to assist members with their questions about the best way to keep member's vehicles clean and neat.While the Car clean Inc. facilities are not as "state of the art" as some other car washing services they compete with, Car clean Inc. remains the fastest-growing regional car washing service chain. The Car clean Inc. example illustrates the importance of ________________in driving value creation. a. Learning-curve effects. b. Customer Service. c. Product Features. d. Economies of scale. e. Complements.
b. Customer Service.
Mike and Adam are about to start a firm. Mike argues that due to the advent of globalization, the location of their potential firm is irrelevant for competitive advantage because firms are now able to source their inputs globally, whereas Adam argues otherwise. Adam specifically suggests despite advances in globalization,location matters for competitive advantage. Mike suggestion about the irrelevance of location, closely resembles which of the below concepts: a. National competitive disadvantage b. Death-of-distance hypothesis c. Porter's Diamond framework d. Location responsiveness e. Economic distance irrelevance
b. Death-of-distance hypothesis
W. L. Gore & Associates is organized in such a way that it has no formal job titles,job descriptions, or chains of command. This implies that it has a. Dynamic design b. Decentralized structure c. Organizational inertia d. Top-down management style e. Post holacracy management
b. Decentralized structure
On the day, GE announced spin-off of GE Capital from General Electric, GE's stock price jumped by 11 percent, adding some $28 billion to GE's market capitalization. Through this restructuring of the corporate portfolio, GE is now better positioned to focus more fully on its core competencies in industrial engineering and management processes. This has shown that Jeffrey Immelt was right when he said the presence of ____________________ depressed GE's stock price and by selling off GE Capital he was able to elevate the stock price. a. Diversification premium b. Diversification discount c. Diversification scale d. Diversification failure e. Diversification risks
b. Diversification discount
Zone's office and house cleaning service offers high-quality service from Cleaning University, cleaners who can provide highly customized cleaning of your house,exceptionally fast service and award-winning service members that can respond toy our multiple house cleaning needs. They focus on the high quality of their offerings with a slightly higher price and carry a wide range of cleaning services. They are,however, present in only a few states in the country and target affluent population with income level above 100K. Their business-level strategy could best be described as: a. Differentiation. b. Focused Differentiation. c. Blue Ocean. d. Focused Cost Leadership.
b. Focused Differentiation.
"Because of Nestlé's inherent confidence in its own processes and data, it couldn't imagine that it might have a problem on its hand. That attitude of detached if polite superiority would irritate (government) officials and exacerbate Nestlé's problems..." The above passage would characterize Nestlé's: a. Corporate indifference b. Hubris c. Long-term strategic initiative d. Business strategy e. Core values
b. Hubris
Joel Greens Co. is a manufacturer of highly valued tractors to farmers. Tractors of Joel Greens Co.'s is able to deliver more miles with no repair, allow faster and more reliable of engine cooling and offer highly comfortable seats that do not hurt user's back even after long hours of non-stop work. Recently, Beta Gamma Supplies SA, a supplier of engines to Joel Greens Co., announced increase in price for its engines.However, Joel Greens Co. feels less threatened by this move because: a. It is able to shift the focus of competition to price, and equivalent substitutes to Beta Gamma SA are readily available. b. It is able to pass on increases in engine cost increase to the customer because unique perceived value of Joel Greens Co. tractors creates high customer loyalty.It is able to commoditize their products, and the costs of providing uniqueness do not rise above the customer's willingness to pay. c. It is able to offer more discounts to the customer, without reducing their profit margin. d. It is able to differentiate its supplier base, as such Joel Greens Co. is unlikely to switch from Beta Gamma SA, as a preferred supplier.
b. It is able to pass on increases in engine cost increase to the customer because unique perceived value of Joel Greens Co. tractors creates high customer loyalty.It is able to commoditize their products, and the costs of providing uniqueness do not rise above the customer's willingness to pay.
The reasons that make it appropriate to go for an acquisition include all of the following except: a. Increased market power b. Large or extraordinary debt c. Overcoming barriers to entry d. Cost of new product development and increased speed to market e. Learning and developing new capabilities
b. Large or extraordinary debt
Consider the following two statements and choose the appropriate alternative: Statement 1: Focused strategies are almost never successful. Statement 2: Differentiators are usually more successful than cost leaders. a. Both statements are true. b. Neither statement is true. c. Only statement 1 is true. d. Only statement 2 is true
b. Neither statement is true.
In 2012, Cargill invested 500 million in an equity alliance to purchase a controlling interest (greater than 50 percent) in the biotech startup Meatbio. In 2014, after witnessing the success of Meatbio's artificial beef and chicken as well as other development projects in subsequent years, Cargill spent 470 million to purchase the remaining minority interest in Meattech, making it a wholly owned subsidiary. By these actions, Cargil ________________________. a. Pursued an opportunity to overcome competitive disadvantage. b. Pursued real-options perspective. c. Pursued an unrelated diversification strategy. d. Pursued a foothold in the markets where it is not present. e. Pursued strategic alliance with a rival.
b. Pursued real-options perspective.
Toyota's President, Akio Toyoda, announced 2 billion deal with TESLA motors to establish manufacturing facility in Reno, Nevada. According to Akio Toyoda,Toyota's management hopes that a transfer of tacit knowledge will take place through this proposed joint venture from Tesla Motors. He is referring to__________________. a. The product information documented in Tesla's database. b. The entrepreneurial spirit in Tesla. c. Employees that work for TESLA will choose to work for Toyota in the future. d. The safety measures followed in Tesla, recorded in its user manuals. e. Intellectual trade secrets recorded in TESLA engineering record.
b. The entrepreneurial spirit in Tesla.
All of the following are reasons a firm might enter into a strategic alliance except: a. To hedge against uncertainty b. To preempt rivals c. To enter new markets d. To learn new capabilities e. To access critical complementary assets
b. To preempt rivals
The _____ states that geographic location alone should not lead to firm level competitive advantage because firms are now, more than ever, able to source inputs globally. a. local-responsiveness hypothesis. b. death-of-distance hypothesis. c. dynamic fit framework. d. dynamic capabilities framework. e. real options framework.
b. death-of-distance hypothesis.
In 2008, Tata Motors, an Indian auto manufacturer, acquired Jaguar and Land Rover from Ford Motors. This allowed Tata Motors to combine its core competencies with those of Jaguar and Land Rover in automobile manufacturing and marketing to capture a larger market share than what these entities could have individually achieved. Tata Motors acquisition of Jaguar and Land Rover is an example of: a. forward integration. b. horizontal integration. c. vertical integration. d. backward integration. e. none of the above.
b. horizontal integration.
The risk of employee opportunism on behalf of agents in a public stock company is exacerbated by a. agent's hubris b. information asymmetry c. corporate governance d. groupthink e. principal bounded rationality
b. information asymmetry
Toyota's global success in the 1990s and early 2000s was based to a large extent on a network of world-class suppliers in Japan. This tightly knit network allowed for fast two-way knowledge sharing—this in turn improved Toyota's quality and lowered its cost, which it leveraged into a successful blue ocean strategy at the business level. This example shows the effectiveness of: a. factor conditions. b. related and supporting industries/complementors. c. Porter's five forces. d. demand conditions. e. competitive intensity in a focal industry.
b. related and supporting industries/complementors.
Amy recently got promoted as a buyer of cereal and breakfast bars at Walmart. She was invited to Kellogg's office to come try their new Pop tart flavors. At the end of the meeting, she was offered to take free samples of pop-tarts for her kids and other family members. She really liked the new-flavor Pop-tarts but wasn't sure if it will be ethical to take free samples for her family. Which of the following questions would help her decide if accepting the samples is ethical? a. Whether the intended course of action falls within the acceptable norms of Walmart's code of conduct? b. Would she feel comfortable explaining and defending the decision in public? c. Both a. and b. d. She should take the samples offered by Kellogg's as long she doesn't steal it
c. Both a. and b.
Jason is an inventor of shirts that "do not sweat" in a hot Nebraska summer. He is thinking to establish a factory to manufacture these shirts and is curious where he should establish this factory. He asks his friend, Michael, who is a consultant, in Lincoln Consulting Co., where he should locate his factory. Michael says that"because firms can now, more than ever, source inputs globally, he believes that location is diminishing in importance as an explanation of firm-level competitive advantage." So, it does not matter where he establishes his factory. Through his statement, Michael expressed the idea called: a. Globalization hypothesis. b. Location-matters hypothesis. c. Death-of-distance hypothesis. d. Globalization-standardization hypothesis. e. Local-responsiveness hypothesis.
c. Death-of-distance hypothesis.
Economies scale allows all of the below activities except: a. Spread fixed costs over a larger output. b. Employ specialized systems and equipment. c. Favor learning and technological innovation. d. Take advantage of certain physical properties.
c. Favor learning and technological innovation.
Pinoccio Restaurant is a small restaurant located in Fayetteville. This casual dining restaurant has only one location and are open only for lunch, for which they provide a variety of Central Asian lunch dishes. Pinoccio Restaurant is known for its quality, specialty menu, and cozy dining experience. Based on this information, the business-level strategy pursued by Petra Café could best be described as: a. Blue Ocean. b. Dominant-Business. c. Focused Differentiation. d. Broad Differentiation. e. Focused Cost-Leadership.
c. Focused Differentiation.
KLM Corporation is an Amsterdam based satellite repair and service company. It has a strong presence in Europe but none in China. As part of its expansion strategy into China, KLM is in talks with ABS Corp which is a small satellite repair and service company based out of Shanghai. ABS's shares have been trading at about 35dollars each. KLM informs ABS that it would like to offer each ABS shareholder one KLM share in exchange for ABS share (Equity Swap). KLM's share is trading at 43 dollars. After deliberations, the Board of ABS decides to turn down KLM's offer as not in the best interest of its shareholders. KLM then decides to directly go to the shareholders of ABS and offer to buy their shares directly at 45 dollars per share. KLM is engaging in a: a. A leveraged buyout. b. A golden parachute. c. Hostile Takeover. d. Unrelated diversification. e. Non-equity strategic alliance.
c. Hostile Takeover.
The build-borrow-buy framework can be utilized by executives to determine the nature of cooperative strategy they must follow with respect to another firm. One of the factors involved is closeness. In this case closeness refers to -------------------------. a. How similar the firms are with respect to their size and assets. b. How similar the firms are with respect to their resource endowments c. How close the firms need to be to each other d. How similar the firms are with respect to how they define their industry e. None of the above
c. How close the firms need to be to each other
The Build-Borrow-Buy Framework provides a conceptual model that aids firms in making decisions about whether to pursue internal development, enter into contractual arrangements or strategic alliances, or to acquire resources, capabilities or competencies. All of the following are questions guiding Build-Borrow-Buy decisions except: a. How well can you integrate the target firm? b. What is the strategic resource gap? c. How much will you pay for an acquisition? d. How relevant are internal resources? e. How tradable are targeted resources?
c. How much will you pay for an acquisition?
BioApple Inc. is located in Skaziland near the nation of Swaziland. BioApple Inc. is considering expanding into Swaziland. Both countries have similar consumer incomes and knowledge bases and share a common language. Also, the transportation networks between the countries are strong. However, Swaziland and Skaziland have a long-standing dispute concerning the control of a fish and other natural resources in the river along their common border. Currently, Skaziland exploits this river.Which of the following would most likely prevent BioApple Inc. from expanding into Swaziland? a. Geographic distance b. Economic distance c. Political distance d. Cultural distance e. Cognitive distance
c. Political distance
About two decades ago Sony of Japan and Ericson of Sweden both pooled capital and resources to start a new company called Sony Ericson. Sony Ericson issued its own shares and was recognized as an independent company even though both Sony and Ericson owned equity in the new company. Sony and Ericson had: a. Engaged in a Merger b. Engaged in an acquisition c. Set up a joint venture d. Formed a horizontal alliance e. Formed an equity alliance
c. Set up a joint venture
Tyson controls every step in their value chain, except for raising the chickens.Tyson's corporate strategy is one of ______________. a. Backward horizontal integration b. Forward horizontal integration c. Vertical integration d. Global strategy e. Supply chain strategy
c. Vertical integration
The transnational strategy is similar to a(n) _____ strategy because they both focus on product differentiation and low costs. a. liquidation. b. International. c. blue ocean. d. product diversification. e. niche strategy
c. blue ocean.
Ridemore Autos Inc. has shifted its research and development unit from its home country to Germany. This allows the company to be better informed about the latest developments in the automotive industry by tapping into the highly advanced automotive industry in Germany. In this scenario, Ridemore Autos Inc. is reaping the benefits of: a. resource immobility. b. resource ambiguity c. location economies. d. dislocation mobility. e. economies of scope.
c. location economies.
Top managers at Jet stream Airways Inc. are not happy with their financial performance due to intense competition in airline industry. They have decided to diversify their business by acquiring a consumer electronics company. This acquisition is more likely to increase job security and compensation for top managers at Jet stream and less likely to increase its shareholders' value. In this scenario, this acquisition by Jet stream Airways is most likely a result of: a. managerial capitalism. b. hostile takeover. c. principal-agent problems. d. learning-curve effects. e. experience-curve effects.
c. principal-agent problems.
Which of the below statements is false: a. Learning effects occur over time as output accumulates. b. There are no dis-economies to learning. c. In some production processes, effects from economies of scale may be greater than from learning effects. d. Learning effect involves change in the underlying technology while holding cumulative output constant. e. Process innovation refers to a new method or technology to produce an existing product.
d. Learning effect involves change in the underlying technology while holding cumulative output constant.
NCEMM (New Chinese Electric Motor Manufacturing) was the first joint venturein the China automobile industry, formed between TESLA and Xinhua, a Chinese legacy auto manufacturer founded in 1945. In the NCEMM joint venture, each partner was motivated to learn new capabilities: TESLA entered the equity-based strategic alliance to learn doing business in China in order to gain market dominance in China. Xinhua entered the alliance to learn how to produce high quality and cost-efficient electric cars. NCEMM was a test-run for TESLA before building fully owned factory in Beijing in 2025 and other areas of China later.Shortly after that, Xinhua launched its own set of fully electric cars in eastern Chinese town factory, Shenzhen. As the result of the above, the joint venture between TESLA and Xinhua can be seen as _______________: a. Reduction in competitive intensity. b. Strategic failure. c. Intellectual theft. d. Learning races. e. Joint venture fiasco.
d. Learning races.
A sales representative takes on a new role at work. In this new role the sales representative will be responsible for taking calls from customers, addressing those calls, and forwarding the ones that cannot be handled to management. During the first several weeks, sales representative can handle only 10 calls per hour and 30%of those are escalated to management. One year later the analyst is able to handle 35calls per hour and only 7% of those calls are escalated to management for resolution, although she is handling the same product line as she did when she first started the role. a. Experience-curve effects. b. Knowledge-curve effects. c. Economies of scaled. d. Learning-curve effects. e. Economies of scope.
d. Learning-curve effects.
Which of the choices below does not reflect advantages of going global? a. Gain access to larger market share b. Enjoy location economies c. Develop new competencies d. More effectiveness for focused strategies e. All of the above are advantages of going global
d. More effectiveness for focused strategies
Which of the following does not represent the reason why firms do need to grow according to the textbook? a. Increase profits. b. Reduce risk. c. Increase market power. d. Motivate employees and management. e. Lower costs.
d. Motivate employees and management.
Choose the below statements and choose the best option: Statement 1: Economies of scale occur over time, whereas learning effects are captured at one point in time. Statement 2: There are no dis economies to learning, but there are dis economies to scale. Statement 3: Firms experience economies of scale when output increases, and learning effects when output decreases. a. Statement 1 and 2 is true, but Statement 3 is false. b. Statement 1 is true, Statement 2 is false, Statement 3 is true. c. Statement 1 is true, Statement 2 is true, Statement 2 is false. d. Statement 1 is false, Statement 2 is true, Statement 3 is false. e. All of the statements are true.
d. Statement 1 is false, Statement 2 is true, Statement 3 is false.
Business level strategy answers all of the following questions EXCEPT: a. Which customer needs we will satisfy? b. How we will position our products with respect to the competition? c. What different market segments we will serve? d. What are the different industries we will compete in? e. Whether we will differentiate our products or compete on the basis of low cost?
d. What are the different industries we will compete in?
Which of the below is not a reason why a firm needs to grow. a. Increase profits. b. Lower costs. c. Motivate management. d. Reduce risk. e. Avoid principal-agent problem.
e. Avoid principal-agent problem.
Read the following excerpt and answer the following question. "UBER is betting $1billion that ride-hailing services will be crucial to the future of transportation system in China. Similarly, Lyft is investing $ 1.2 billion into Chinese economy. The U.S.'s No. 1 and No. 2 ride-hailing startups invested in Chinese market as part of anew effort to establish foothold in China, which is estimated to be worth $ 10 billion,25% of Chinese transportation market. However, they are facing intense pressure from government owned startup in China, iHuan, which is attempting to imitate services of UBER and Lyft. On June 25 , 2020 American ride-haling startups announced a deal to co-operate against efforts by iHuan to out compete UBER and,the companies said on Monday. The deal marks the first time a major competitors,such as UBER and Lyft, are working together to advance their interests abroad."(Wall Street Journal, 6/29/20) Based on the passage above, UBER has entered into a/an _____________ with Lyft. a. Equity alliance. b. Non-equity alliance. c. Merger. d. Joint venture. e. Co-opetition.
e. Co-opetition.
When the costs of pursuing an activity in-house are more than the costs transacting for that activity in the market (C in house > C market)? a. The firm should try to have a high asset specificity. b. The firm should in source most activities. c. The firm should horizontally integrate. d. The firm should try focus on human capital specificity. e. The firm should not vertically integrate.
e. The firm should not vertically integrate.
Fierce domestic competition in Lobekland makes a tough environment for any motorcycle company. Success requires top-notch engineering of chassis and engines,as well as keeping costs and fuel consumption in check. As a result, Lobekland's motorcycles have a competitive advantage in the global market. According to Porter's diamond framework, this scenario shows the influence of competitive intensity in a. supportive complementors. b. related complementors. c. a peripheral industry. d. unsupported complementors. e. a focal industry.
e. a focal industry.
For the ninth year in a row, Samsung Electronics earned No. 1 global TV market share, achieving 28.3% across all flat-panel TV product lines, including LCD and LED. We further ranked global No. 1 in the ultra-large size market, winning 39.1%market share of TVs 60 inches and larger and a robust 34.3% share of the UHD TV market, a significant increase over the previous year. Despite the depressed TV market and tougher competition, we reinforced our reputation as the world's best TV maker in premium markets, including North America, with trendsetting differentiated products such as Curved TV and UHD TV." a. grumpy cat. b. dog. c. star. d. question mark. e. cash cow.
e. cash cow.
Japanese and European engineering companies entered China to participate in building the world's largest network of high-speed trains worth billions of dollars.Companies such as Kawasaki Heavy Industries (Japan), Siemens (Germany), and Alstom (France) were joint-venture partners with domestic Chinese companies.These firms now allege that the Chinese partners built on the Japanese and European partners' advanced technology to create their own, next-generation high-speed trains. This example best highlights the _____ that firms can experience when expanding overseas. a. loss of reputation. b. liability of foreignness. c. threat of new entrants. d. liability of newness. e. intellectual property exposure.
e. intellectual property exposure.
In 1984, General Motors (GM) and Toyota jointly formed New United Motor Manufacturing, Inc. (NUMMI), a manufacturing facility in Freemont, California. Through this partnership, GM motive was to learn the lean manufacturing system pioneered by Toyota and Toyota wanted to learn how to implement its lean manufacturing program with an American workforce. this transaction can be generally described as a(n): a. non-equity alliance. b. equity alliance. c. merger. d. acquisition. e. joint venture.
e. joint venture.
Allgreva Inc. is located in Movaria near the nation of Clozame. Allgreva is considering expanding into Clozame. Both countries have similar consumer incomes and knowledge bases and share a common language. Also, the transportation networks between the countries are strong. Even so, the two nations have a long-standing dispute concerning the control of an area of land along their common border. Currently, Movaria rules this land. Which of the following would most likely prevent Allgreva from expanding into Clozame? a. economic distance. b. cultural distance. c. geographic distance. d. administrative distance. e. political distance.
e. political distance.
Which of the following entry modes was used extensively in Globalization 1.0 stage? a. joint ventures. b. greenfield operations. c. exports. d. strategic alliances. e. acquisitions.
c. exports.