Ch 9 & 10 MGMT Test 3
Equity alliances allow for the sharing of ______ that cannot be codified. A. Tacit knowledge B. Explicit knowledge C. Implicit knowledge D. Corporate venture capital
A.
A ________ is a group of interconnected companies and institutions in a specific industry, located near each other and otherwise linked by common characteristics. A. National institution B. National culture C. Regional cluster D. National competitive advantage
C.
A ______ describes an acquisition in which the target company does not wish to be acquired. A. Horizontal integration B. Merger C. Joint venture D. Hostile takeover
D.
Foreign direct investment (FDI) is a firm's investment in _________ abroad. A. Political funds B. Outsourcing C. Emerging economies D. Value chain activities
D.
The most frequent forms of non-equity alliance include the following EXCEPT _______. A. Supply agreements B. Distribution agreements C. Licensing agreements D. Partnership agreements
D.
The stage model of an international entry vehicle does NOT apply to ___________. A. Manufacturers B. Distribution/logistics firms C. R&D facilities D. Internet companies
D.
To maximize profitability, the best global strategy to use is _____________. A. The localization strategy of the firm B. The transnational strategy for the country C. The global standardization strategy for the SBU D. Dependent on products offered and strategic intent
D.
Which one of the following does NOT contribute to the rapid development of globalization? A. Falling trade barriers B. Advanced communication technology C. Reductions in transportation costs D. Increasing local tariffs
D.
T/F: A governance mechanism that falls under the category of non-equity alliances is Corporate Venture Capital (CVC) investments.
False
T/F: A merger describes the purchase or takeover of one company by another.
False
T/F: Regional clusters promote regional economic growth because it is easier to promote tighter interfirm collaboration with reduced proximity.
True
T/F: Strategic alliance partners often exchange personnel to make the acquisition of tacit knowledge possible, because tacit knowledge can ONLY be acquired through actively participating in the process.
True
T/F: Strategic alliances are volunteer arrangements between firms that involve the sharing of knowledge, resources, and capabilities with the intent of developing processes, products, or services.
True
Harley Davidson offers similar products in many different global markets by using a(n) ____________. A. International strategy B. Localization strategy C. Global-standardization strategy D. Transnational strategy
A.
Hulu, owned by NBC, Fox, and ABC is an example of a(n) _______. A. Joint venture B. Acquisition C. Equity alliance D. Non-equity alliance
A.
In highly masculine cultures, general values are more toward each of the following EXCEPT: A. Competitiveness B. Assertiveness C. The exercise of power D. Cooperation
D.
High competitive intensity in the focal industry is advantageous for many MNEs because _________________. A. It forces MNEs to be more prepared for intense global competition B. It helps MNEs lower operation costs C. It encourages mergers and acquisitions D. It encourages organizational reengineering
A.
Global strategy is a firm's strategy to gain ________ when competing against foreign companies around the world. A. Competitive advantage B. A home-based market C. High-quality labor D. Shareholder value
A.
Globalization 1.0 in Strategy Highlight 10.1 is similar to which one of the following strategies? A. International strategy B. Global standardization strategy C. Transnational strategy D. Localization strategy
A.
A large domestic market can provide the country's industries with a chance at dominating the world market because _____________. A. They have been able to develop economies of scale at home B. They have access to abundant resources C. The related and supporting industries will have been developed D. They have cultural compatibility
A.
A reason for a country's development of advanced and specialized factors of production is often its ___________. A. Lack of a critical resource B. Small workforce C. Protective tariffs D. Monetary wealth
A.
According to the integration-responsiveness framework, if a firm is facing low pressure for local responsiveness and low pressure for cost reductions, the firm is likely to adopt a(n) _________. A. International strategy B. Localization strategy C. Global-standardization strategy D. Transnational strategy
A.
Adidas acquired Reebok because _____. A. Adidas and Reebok wanted to overcome its competitive disadvantage B. Adidas embarked on an acquisitions-led growth strategy C. There were principal-agent problems D. Adidas and Reebok wanted to pursue unrelated diversification
A.
Firms with core competencies that can be exploited across international markets are able to ______________________________. A. Achieve synergies and produce high quality goods at lower costs B. Enter new markets more quickly C. Enhance their market image and brand loyalty among local consumers D. Meet local government requirements more quickly than their international competitors
A.
If a firm is highly visible and prominent in the cluster and has access to many channels of information, it has a high _____. A. Degree of centrality B. Degree of freedom C. Degree of linearity D. Degree of separation
A.
In a non-equity alliance, firms tend to share _____________ that can be codified. A. Explicit knowledge B. Implicit knowledge C. Tacit knowledge D. Corporate venture capital
A.
In high-power distance cultures, people tend to: A. Translate inequalities in power, status, and wealth. B. Create equal distribution among people. C. Adapt to new environments quicker. D. Embrace change and seek new opportunities.
A.
International strategy focuses on: A. The scale of operations through both product and geographic diversification. B. Competition within each country. C. Economies of scale and scope for the firm. D. The sophistication of monitoring and controlling systems.
A.
Japan, due to a lack of undeveloped land, would be an unusual choice of location for a U.S. cattle company to set up local grazing operations. This limiting factor would be identified in what part of Porter's determinants of national advantage? A. Factor condition B. Demand condition C. Supporting industry D. Firm strategy and structure
A.
Large firms frequently have dedicated ______ units, such as Johnson & Johnson Development Corporation. A. Corporate venture capital B. Merger C. Alliance management D. Acquisition
A.
Looking through the lens of the structure-conduct-performance (SCP) model, _____ changes in the underlying industry structure favor the surviving firms. A. Horizontal integration B. Vertical integration C. Alliance D. Joint venture
A.
NUMMI, formed between GM and Toyota, was the first ______ in the U.S. automobile industry. A. Joint venture B. Non-equity alliance C. Acquisition D. Equity alliance
A.
National culture refers to: A. The collective mental and emotional programming of the mind that differentiates human groups. B. Universal customs and habits within the country. C. Changes of political regimes for each country. D. None of these.
A.
One disadvantage noted in the text of an international strategy is _______________. A. The expropriation of intellectual property by foreign competitors B. The high distribution cost for firms operating internationally C. The low market presence, since there is low response to local markets D. Diminishing returns on any increasing marginal sales
A.
Pharmaceutical company Eli Lilly is a knowledge leader in alliance management, and the alliances are managed by a three-person team. Which of the following is NOT included in the team? A. An alliance planning supervisor B. An alliance manager C. An alliance leader D. An alliance champion
A.
The major benefit of having established national institutions is ___________. A. Reduced uncertainty and cost B. Higher entry barriers C. Cultural compatibility D. Less competitive dynamics
A.
The major disadvantages of expanding internationally is ________________. A. Liability of foreignness B. Cultural compatibility C. Technology availability D. Knowledge complementarity
A.
The most common type of alliance is a(n) ______, which is based on contracts between firms. A. Non-equity alliance B. Equity alliance C. Joint venture D. Merger
A.
Transnational strategy promotes innovation because of: A. Effective global learning. B. The standardization of the operation process. C. Economies of scale and scope. D. Easier access to natural resources.
A.
What is the main reason that Globalization 2.0 practices have faded over time? A. Substantial FDI for the duplication of home-based business functions induced a waste of resources. B. Decoupled strategic business units induced a higher cost of coordination. C. Distrusting relationships with suppliers induced an increased cost of procurements. D. A lack of understanding of local cultures caused a higher cost in distribution and sales.
A.
When a firm faces high pressure for local responsiveness and high pressure for cost reduction, it is likely to adopt a(n) _____________. A. Transnational strategy B. Localization strategy C. Global-standardization strategy D. International strategy
A.
When the degree of power distance in a particular culture is ______, people tend to allow more inequalities and transform to their own benefits. A. high B. low C. equal D. usual
A.
Which alliance type is the Renault-Nissan alliance, where Nissan owns 15 percent of Renault? A. Equity alliance B. Integration C. Consortium D. Joint venture
A.
Which of the following is NOT included in the phase of post-formation alliance management? A. Identify partner compatibility B. Relation-specific investments C. Interfirm trust D. Knowledge-sharing routines
A.
Which of the following is NOT one of the cons in equity alliance? A. Lack of trust and commitment. B. It's less flexible. C. It's slower. D. It can entail significant investments.
A.
Which of the following is NOT one of the pros in equity alliance? A. It's easy to initiate and terminate. B. It's a strong tie. C. Trust and commitment can emerge. D. It's a window into new technologies.
A.
Which of the following is NOT related to horizontal integration? A. It concerns the number of activities a firm participates in up and down the industry value chain. B. A type of strategy that improves a firm's strategic position in a single industry. C. The process of acquiring and merging with competitors. D. HP acquiring Compaq in 2002 is an example.
A.
Which one of the following can be considered a characteristic of a cluster? A. Location economies B. Low-cost labor C. High living standards D. Well-established telecommunication
A.
Which type of alliance is most commonly used? A. A non-equity alliance B. An equity alliance C. A joint venture alliance D. A merger
A.
_____ and ______ are frequently stepping stones toward full integration of the partner firms either through a merger or acquisition. A. Equity alliances; joint ventures B. Non-equity alliances; joint ventures C. Equity alliances; non-equity alliances D. Equity alliances; acquisition
A.
_______ are contractual alliances in which the participants regularly exchange codified knowledge. A. Licensing agreements B. Distribution agreements C. Joint venture agreements D. Equity alliances
A.
_______ describes equity investments by established firms in entrepreneurial ventures. A. Corporate venture capital B. A joint venture C. A strategic alliance D. A non-equity alliance
A.
________, in which one partner takes partial ownership in the other partner, are less common than contractual, non-equity alliances because they often require larger investments. A. Equity alliances B. Consortia C. Mergers D. Joint ventures
A.
ccording to Strategy Highlight 10.1, when all important business functions are located in the home country and only sales and distribution take place overseas, what stage of globalization is this? A. Globalization 1.0 B. Globalization 2.0 C. Globalization 3.0 D. Globalization 4.0
A.
A U.S. manufacturer of adaptive devices for persons with disabilities is considering expanding internationally. It is a fairly small company, but it is looking for growth opportunities. This company should primarily consider the option of: A. Licensing. B. Exporting. C. A strategic alliance. D. A greenfield strategy.
B.
A _____ allows a firm to find novel solutions to thorny problems because she often has access to diverse knowledge, and can link that information to implement solutions in the form of new products or processes. A. Boundary broker B. Knowledge broker C. Knowledge agent D. Legal affairs medium
B.
A global standardization strategy emphasizes _____________. A. Differentiated products B. Economy of scale C. Decentralizing control D. Adapting to new cultures
B.
A non-equity alliance has a major drawback which is that it has _____. A. A slower pace of execution B. A lack of trust and commitment C. Strong ties between the firms D. Only a long-term solution
B.
A small-world phenomenon is a situation in which a network exhibits _____ clusters, each with a high degree of centrality. A. Nonlocal B. Local C. Inter-organization D. Cross
B.
A(n) _________ describes the joining of two independent companies to form a combined entity. A. Acquisition B. Merger C. Joint venture D. Equity alliance
B.
According to _____, critical resources and capabilities frequently are embedded in strategic alliances that span firm boundaries. A. Interorganizational competitive advantage B. The relational view of competitive advantage C. Comparative advantage D. Absolute advantage
B.
Alliances can be governed by all of the following mechanisms EXCEPT _______. A. Contractual agreements for non-equity alliances B. Acquisitions C. Equity alliances D. Joint ventures
B.
Based on Strategy Highlight 9.1, Kraft's hostile takeover of Cadbury was mainly motivated by Kraft's desire for _____. A. Increased differentiation B. Access to new markets and distribution channels C. Reduction in competitive intensity D. Lower costs
B.
Globalization 1.0 from Strategy Highlight 10.1 is similar to which of the following international entry modes? A. Licensing B. Export C. Strategic alliance D. Greenfield investment
B.
Hewlett-Packard is known as having made _____ to create long-term partnerships with several smaller technology firms co-located in Silicon Valley. A. Knowledge-sharing routines B. Relation-specific investments C. Inter-firm trust D. Identify partner compatibility
B.
In the first phase of alliance management, _____ captures aspects of cultural fit between different firms. A. Cultural capacity B. Partner compatibility C. Cultural tolerance D. Partner capability
B.
Moving into international markets is a particularly attractive strategy to firms whose domestic markets: A. Demand a differentiation strategy for success. B. Have entered the mature stage on the industry life cycle. C. Have fewer competitors. D. Have high import tariffs and regulations.
B.
Not all networks are successful. In the case of the global network Unisource, which grew to 25 telecom companies, what was the main cause of the demise of the network? A. The global telecom recession of 2001. B. AT&T came to dominate the network and smaller firms exited. C. Vital large knowledge broker firms left the network. D. The network gained a high degree of closure and collapsed on itself.
B.
Partner commitment concerns the willingness to make available necessary resources and to accept _____ sacrifices to ensure _____ rewards. A. Short-term; short-term B. Short-term; long-term C. Long-term; long-term D. Long-term; short-term
B.
The Middle East has been a popular choice for oil companies because of sufficient ___________. A. Demand conditions B. Factor conditions C. Supporting industries D. Competitive intensity
B.
The Swiss-based Nestlé offers a wide variety of different products to foreign markets because of: A. International strategy. B. Localization strategy. C. Global-standardization strategy. D. Transnational strategy.
B.
The movie Slumdog Millionaire's budget was $14 million dollars, which is low compared to other Hollywood blockbusters. What was the movie's international focus? A. Local responsiveness B. Low cost factors C. Reduced proximity D. Crowdsourcing
B.
The reasons firms enter into alliances include all of the following EXCEPT _____. A. To enter new markets B. To increase competitive intensity C. To hedge against uncertainty D. To learn new capabilities
B.
To accomplish effective alliance management, it is suggested that firms create a(n) _____, endowed with its own resources and support staff. A. Partner compatibility B. Dedicated alliance function C. Structure-conduct-performance (SCP) model D. Alliance network
B.
Which of the following is NOT one of the pros of a non-equity alliance? A. It's fast. B. Trust and commitment. C. It's flexible. D. It's easy to initiate and terminate.
B.
Which of the following is a key characteristic of weak ties? A. A trusting relationship buildup through interaction. B. The transfer of explicit knowledge only. C. It may contain an equity-sharing element. D. Rapid decision making.
B.
Why might going global be necessary to achieve growth in smaller economies like South Korea? A. High intensity of local competition B. Limited domestic market C. Abundant local suppliers D. Plentiful natural resources
B.
Joint venture alliances are where ___________ knowledge is exchanged. A. Explicit B. Tacit C. Implicit D. Tacit and explicit
D.
_____ serves as an alliance process resource and business integrator between the two alliance partners. A. An alliance partner B. An alliance manager C. An alliance leader D.An alliance champion
B.
______ has the technical expertise and knowledge needed for the specific technical area. A. An alliance champion B. An alliance leader C. An alliance manager D. An alliance technician
B.
_______ focuses on the relationship between genders and its relation to an individual's role at work and society. A. Uncertainty avoidance B. Masculinity-femininity C. Individualism D. Power distance
B.
___________ deal(s) with inequality among people in terms of physical and intellectual capabilities. A. National institutions B. Power distance C. Individualism D. Core competence
B.
Location economies are promoted by _____________ from foreign direct investments. A. High-quality labor B. A well-established infrastructure C. A complete supporting industry D. A community of learning
D.
A distinctive characteristic of equity alliances is _____. A. A focus on short-term contracts B. Creation of new entity by two or more parent firms C. Partners taking an ownership position D. A focus on long-term contracts
C.
A phenomena of having an optimal geography for a specific activity is called _______. A. Crowdsourcing B. Knowledge sharing C. Location economies D. Outsourcing
C.
A(n) _____ is a social structure composed of multiple organizations and the links among the nodes. A. Alliance network B. Joint venture network C. Strategic network D. Social network
C.
According to the integration-responsiveness framework, if a firm is facing high pressure for local responsiveness and low pressure for cost reductions, the firm is likely to adopt a(n) _____________. A. Transnational strategy B. Global-standardization strategy C. Localization strategy D. International strategy
C.
AstraZeneca, a Swiss pharmaceutical firm, relocated its research facility to the Boston biotech cluster. This is because they want to ___________. A. Gain access to low-cost input factors B. Gain access to foreign markets C. Develop new competencies D. Enjoy low tariffs
C.
China is a popular target for MNEs, but it is NOT because of ___________. A. Low-cost input factors B. High market potential C. Their information censorship policy D. The high-quality labor pool there
C.
Corporate venture capital (CVC) investments are _____ investments by established firms in entrepreneurial ventures. A. Merger and acquisition B. Joint venture C. Equity D. Non-equity
C.
Despite M&A generally destroying rather than creating shareholder value, reasons for mergers include the following EXCEPT _____. A. The desire to overcome competitive disadvantage B. Superior acquisition and integration capability C. To lower exit barriers D. Principal-agent problems
C.
Globalization 2.0 requires significant ________ when initiating business operations overseas. A. Strategic alliances B. Joint ventures C. Foreign direct investment D. Core competencies
C.
Horizontal integration can affect several of Porter's five forces for the surviving firms. Which of the following would this include? A. Increasing the threat of entry B. Increasing rivalry among existing firms C. Strengthening bargaining power vis-à-vis supplier and buyers D. Increasing the threat of substitute products
C.
In a joint venture, all the following is true EXCEPT _____. A. It can entail long negotiations and significant investments B. It is a long-term solution C. It is mostly weak ties D. Managers have double reporting lines
C.
In high uncertainty-avoidance cultures, the values will lean more toward ______. A. Tolerance of ambiguity B. Less emotional resistance to change C. Structured career patterns D. A greater willingness to take risks
C.
Individualism focuses on _______________________. A. Caring for others B. Creating equality in society C. Personal achievement and fame D. Sharing and the collective good
C.
International strategy refers to: A. An action plan pursued by American companies to compete against foreign companies operating in the United States. B. A political and economic action plan developed by businesses and governments to cope with global competition. C. Leveraging home-based core competencies by selling the same products or services in both domestic and foreign markets. D. The high entry barriers of the home market.
C.
Nike is headquartered in the U.S., outsources its manufacturing to Asia, has an extensive distribution network that covers the entire world, and has extremely high brand name and product exposure around the globe. What stage of globalization is Nike using in this example? A. Globalization 1.0 B. Globalization 2.0 C. Globalization 3.0 D. Globalization 4.0
C.
Star Alliance includes such carriers as Air Canada, Air China, Continental Airlines, Singapore Airlines, and others. Star Alliance is an example of _____. A. A merger B. A joint venture C. Strategic networks D. Consortia
C.
The degree of CORE COMPETENCIES increased in a firm when adopting Globalization 2.0 is ________. A. High, because firms can acquire knowledge from all over the world. B. High, because firms can acquire high quality labor from all over the world. C. Low, because firms still have limited knowledge flow back to headquarters. D. Low, because firms do not need to increase their core competencies.
C.
The following characteristics are all related to acquisitions EXCEPT _____. A. It can be friendly or unfriendly B. Sometimes, it can be hostile C. The combining of firms only of comparable size D. Large firms buying up startup companies
C.
The four aspects of Porter's model of national competitive advantage include all of the following EXCEPT the: A. Factor condition. B. Demand condition. C. Economic institutions. D. Supporting industry.
C.
The main value of Oracle's acquisition of PeopleSoft is _____. A. Tapping into new distribution channels in international markets B. Reducing their sales forces and lowering the overall cost of distribution C. Optimizing their entire vertical and horizontal value chains D. Lowering competitive intensity in the industry overall
C.
The risks of choosing an international strategy includes all of the following EXCEPT: A. Limited local responsiveness. B. It is highly affected by exchange rate fluctuations. C. Leveraging core competence. D. Legal barriers for expansion.
C.
The third phase in a firm's alliance management capability concerns _____. A. The choice of an appropriate governance mechanism B. Alliance design C. The ongoing management of the alliance D. Partner selection
C.
When a firm chooses to build new plants and facilities from scratch in foreign markets, this is called __________. A. Exporting B. A joint venture C. A greenfield strategy D. Franchising
C.
When a firm faces low pressure for local responsiveness and high pressure for cost reduction, it is likely to adopt a(n) __________. A. International strategy B. Localization strategy C. Global-standardization strategy D. Transnational strategy
C.
When large, incumbent firms buy up startup companies, the transaction is generally described as a(n) _____. A. Non-equity alliance B. Equity alliance C. Acquisition D. Merger
C.
Which of the following is NOT considered as the benefit of horizontal integration? A. reduction competitive intensity B. increased differentiation C. improvement of supply chain coordination D. access to new markets and distribution channels
C.
Which of the following is NOT one of the pros in a Joint Venture? A. It's the strongest tie. B. Trust and commitment is likely to emerge. C. It's flexible. D. It may be required by an institutional setting.
C.
Which of the following is NOT related to strategic networks? A. It can provide advantages but also constrain individual members. B. It is a social structure composed of multiple organizations and the links among the nodes. C. It has the ability to effectively manage three alliance-related tasks. D. It has powerful vehicles to execute business and corporate-level strategy.
C.
Which of the following is one of the benefits of an equity alliance? A. It's flexible. B. It's fast. C. Trust and commitment. D. It may be acquired by an institutional setting.
C.
Which of the following modes of entering a foreign market has the highest level of investment and control? A. Franchising B. Licensing C. Acquisition D. Exporting
C.
_____ is a senior, corporate-level executive responsible for high-level support and oversight. A. An alliance manager B. An alliance leader C. An alliance champion D. An alliance planning supervisor
C.
_____ is a space where two organizations are connected to the same organization, but are not connected to one another. A. An organizational disconnection B. A structural disconnection C. A structural hole D. A structural separation
C.
_____ is a voluntary arrangement between firms that involves the sharing of knowledge, resources, and capabilities with the intent of developing processes, products, or services to lead to a competitive advantage. A. A merger B. An acquisition C. A strategic alliance D. A consortium
C.
_________ occurs when a network exhibits local clusters, each with a high degree centrality. A. A market-domain phenomenon B. A market-domain network C. A small-world phenomenon D. A small-world network
C.
A(n) ______________ is the purchase or takeover of one company by another. A. Joint venture B. Equity alliance C. Consortium D. Acquisition
D.
According to Porter, the enduring competitive advantages in a global economy lie increasingly in local things, such as _________. A. Labor, resource, and location B. Investment, politics, and entry barriers C. Strategy, leadership, and dominant design D. Knowledge, relationship, and motivation
D.
According to the globalization hypothesis, there seems to be some convergence of consumer preferences across the globe. However, national differences remain. This is due to ________________. A. Core competencies B. Location economies C. Regional clusters D. Distinct institutions and cultures
D.
Apple orchestrated a web of strategic alliances with publishing houses to challenge Amazon's early lead in the delivery of e-content. This was due to which of the following reasons listed? A. To hedge against uncertainty B. To access critical complementary assets C. To learn new capabilities D. To strengthen competitive advantage
D.
Disney's purchase of Pixar is an example of _____, in which both teams believed that joining the two companies was a good idea. A. A friendly joint venture B. A hostile takeover C. A friendly merger D. A friendly acquisition
D.
Economic development has two consequences for MNEs. They are ______________. A. Rising wages and trustworthy relationships with suppliers B. High living standards and low crime rates C. Higher production rates and the development of green technology D. Rising wages and high living standards
D.
Firms use _____ to lower costs through economies of scale, and thus enhance their economic value creation and, in turn, their performance. A. Joint ventures B. Mergers C. Vertical integration D. Horizontal integration
D.
Firms within emerging economies may want to form strategic alliances with firms from developed countries because __________. A. Assets from the investing foreign company can be nationalized later B. Disruption to the host-country's economy will be minimal C. There will be less cultural conflict than in licensing arrangements D. It gains access to the foreign firm's sophisticated technology
D.
Firms would use strategic alliances to _____ in countries such as Saudi Arabia or China. A. Hedge against uncertainty B. Strengthen competitive position C. Learn new capabilities D. Enter new markets
D.
From Porter's National Competitive Advantage framework, ____________ describe(s) a country's endowments in terms of natural, human, and other resources. A. Demand conditions B. Competitive intensity C. Supporting industries D. Factor conditions
D.
GM has been producing a small, boxy type of sedan in China, because of: A. Cultural differences B. The lower purchasing power of the Chinese market. C. Different customer demands. D. All of these.
D.
Google has benefited from being located in San Jose, California, which is considered a high-technology hub. This is because Google enjoyed _________. A. Low-cost labor B. Low-cost input factors C. Low tariffs D. Location economies
D.
Hofstede's national culture consists of all the following EXCEPT: A. Power distance. B. Individualism. C. Uncertainty-avoidance. D. Knowledge spillover.
D.
Hollywood filmmakers used diversified inputs to gain international market access for their products by using: A. Foreign screenplays. B. Foreign locations. C. Foreign actors/actresses. D. All of the above.
D.
Terrorist attacks and the war in Iraq have: A. Encouraged MNEs to take advantage of reduced entry barriers in the Iraqi market. B. Reduced the "cost of doing business" by MNEs. C. Increased foreign direct investments in overseas markets. D. Increased the liability of foreignness for firms thinking of expanding.
D.
The Microsoft-IBM (non-exclusive) licensing agreement for MS-DOS is an example of a(n) ______. A. Joint venture B. Acquisition C. Equity alliance D. Non-equity alliance
D.
The combining of two firms of comparable size is often described as a(n) _____. A. Acquisition B. Joint venture C. Equity alliance D. Merger
D.
The location advantages associated with locating facilities in other countries can include all of the following EXCEPT: A. Lower-cost inputs. B. Access to supplies. C. Access to markets. D. The evasion of host country regulations.
D.
The mergers between Delta and Northwest Airlines, United Airlines and Continental, and Southwest and AirTran _____ in the industry overall. A. Increased system capacity B. Increased differentiation C. Helped them gain access to new markets and distribution channels D. Decreased competitive intensity
D.
Toyota is using a(n) ________ with Tesla Motors, a designer and developer of electric cars, to learn new knowledge and gain a window into new technology. A. Non-equity alliance B. Merger C. Joint venture D. Equity alliance
D.
Transnational strategy is quite appealing, but it is difficult to implement due to _______. A. The high cost of input factors B. The diversified national culture C. The lack of national institutions D. Organizational complexities
D.
Which of the following companies adopted an international strategy? A. Lenovo B. Nestlé C. Bridgestone D. Rolex
D.
Which of the following is NOT a factor pressuring companies for local responsiveness? A. Differences in employment laws B. Customization due to cultural differences C. Government pressure for firms to use local sources for procurement D. Availability of low labor costs
D.
Which of the following is NOT related to strong ties? A. A trusting relationship buildup through interaction. B. Rapid decision making. C. It may contain an equity-sharing element. D. The transfer of explicit knowledge only.
D.
Which one of the following is NOT a reason firms expand abroad? A. To gain access to a larger market B. To gain access to low-cost input factors C. To develop new competencies D. To dominate domestic markets
D.
_____ is NOT one of the drawbacks in horizontal integration. A. Integration failure B. Reduced flexibility C. The increased potential for legal repercussions D. Higher costs
D.
_____ is a form of self-delusion in which managers convince themselves of their superior skills in the face of clear evidence to the contrary. A. Managerial pride B. Managerial ego C. Managerial arrogance D. Managerial hubris
D.
_____ is the process of acquiring and merging with competitors, leading to industry consolidation. A. Vertical integration B. Hostile takeover C. Joint venture D. Horizontal integration
D.
_______ refers to the political and legal factors of a foreign market. A. National culture B. Core competence C. Competitiveness D. National institutions
D.
_________ alliances tend to produce stronger ties and greater trust between partners than ________ alliances do. A. Non-equity; joint venture B. Equity; joint venture C. Joint venture; equity D. Equity; non-equity
D.
____________ refer(s) to the additional costs of doing business in an unfamiliar cultural and economic environment. A. International strategy B. National institutions C. National cultures D. Liabilities of foreignness
D.
T/F: An acquisition describes the joining of two independent companies to form a combined entity.
False
T/F: Biotech firm Genentech licensed its newly developed drug Humulin to the pharmaceutical firm Eli Lilly for manufacturing and distribution. This is an example of a horizontal strategic alliance.
False
T/F: Foreign direct investment is a primary investment process used by small and medium-sized firms to expand internationally.
False
T/F: GM's entry into China was gained by using an export strategy.
False
T/F: Globalization has led to significant increases in corporate earnings.
False
T/F: Higher intensity in a focal industry is preferred by MNEs because it promotes a lower cost structure.
False
T/F: In an equity alliance, firms tend to share mostly explicit knowledge.
False
T/F: Low-degree centrality improves firm performance.
False
T/F: MNEs that pursue a transnational strategy usually end up with an optimal supply chain structure.
False
T/F: Regional clusters cause higher unemployment rates because of high labor mobility.
False
T/F: The alliance manager has the technical expertise and knowledge needed for the specific technical area and is responsible for the day-to-day management of alliance.
False
T/F: Walmart's failure in Germany was caused by higher labor costs than the competition.
False
T/F: Weak ties usually allow for the transfer of tacit knowledge ONLY.
False
T/F:According to ChapterCase 10, Hollywood filmmakers have paid little attention to international markets.
False
T/F: A firm must choose an appropriate international entry strategy to go global.
True
T/F: A firm must find the balance between local responsiveness and cost factors.
True
T/F: A low-cost labor pool is considered an important factor in international expansion for many MNEs.
True
T/F: Acquisitions, alliances, and networks help firms pursue common interests, enhance competitiveness, and increase revenues.
True
T/F: Apple formed strategic alliances to challenge Amazon because it wanted to access critical complementary assets.
True
T/F: Horizontal integration can help firms enhance differentiation.
True
T/F: Learning races describe situations in which both partners are motivated to form an alliance for learning, but the firm that learns faster and thus accomplishes its goal more quickly has an incentive to exit the alliance or reduce its knowledge sharing.
True
T/F: MNEs attempt to maximize economies of scale by having access to lowest-cost input factors.
True
T/F: Managerial hubris is a form of self-delusion, in which managers convince themselves of their superior skills in the face of clear evidence to the contrary.
True
T/F: One of the benefits gained by a firm entering the international market is competitive advantage through location.
True
T/F: One of the dimensions of corporate strategy is how to compete effectively in the global marketplace.
True