Final Exam- International Management (Chapter 6)

________ are companies that start out with a global reach, typically by using their Internet capabilities and also through hiring people with international experience and contacts around the world.

Born globals

________ includes environmental scanning and continuous monitoring to keep abreast of variables around the world that are pertinent to the firm.

Environmental assessment

As part of the internal analysis, ________ reveal an inefficient use of assets that restricts profitability.

Financial ratios

In a ________, a company designs and constructs a facility abroad, trains local personnel, and then transfers the facility to local management for a fee.

turnkey operation

The primary motive in the contract manufacturing strategy generally is ________.

utilizing inexpensive overseas labor

Which of the following is a global risk with regard to strategic entry scanning?

economic and financial risk

The first broad scan of all potential world markets should result in the firm being able to ________.

eliminate markets with unreasonable entry conditions

Which of the following is generally the least risky entry strategy?

exporting

Which of the following is NOT an advantage of using licensing as an entry strategy ?

gives licensors total control over the licensee's activities

Which of the following is the proactive reason that prompts firms to expand overseas?

seeking economies of scale

________ refers to the establishment of worldwide operations and the development of standardized products and marketing.

Globalization

A ________ is an assessment of a firm's capabilities relative to those of its competitors as pertinent to the opportunities and threats in the environment for those firms.

SWOT analysis

Which of the following is a reactive reason that prompts a firm to expand overseas?

customer demands

Which of the following is the first step of the planning phase of a strategic management process?

establishment of the company's mission

Which of the following is generally viewed as the most risky entry strategy?

fully owned subsidiaries

Dell is an American corporation that deals with computer technology. With its worldwide sourcing and fully merged production and marketing system, Dell is considered to be a ________.

globally integrated company

Which of the following is the first step in developing a successful export strategy?

identification of a potential market

The second part of the strategic management process involves the ________.

implementation phase

A(n) ________ determines which areas of a firm's operations represent strengths or weaknesses (currently or potentially) compared to competitors.

internal analysis

Which of the following is the most preferred source of environmental information for environmental scanning purposes in a firm?

internal sources

Which of the following is a national risk with regard to strategic entry scanning?

legal protection

The use of professional or skilled workers located in countries other than that in which the firm is domiciled is best known as ________.

licensing

At which three levels should firms ideally perform global environmental analysis?

multinational, regional, and local

Which of the following charts the direction of the company and provides a basis for strategic decision making?

organizational mission

When Disney decided to build a park in Paris, the French government gave Disney prime farmland just outside the city limits. This is most likely an example of a firm expanding overseas due to ________.

provision of incentives

Which of the following is the primary advantage of using e-business as a local-level entry strategy?

rapid entry and exit from markets

Which of these is the quickest and least expensive way to develop a global strategy?

strategic alliances

Jamie decides to plan his strategies for starting an electric equipment manufacturing company. His main aim is to ensure that it runs efficiently. He decides to do this in two phases: the planning phase and the implementation phase. In which of the following processes is Jamie engaging?

strategic management

The process by which a firm's managers evaluate the future prospects of the firm and decide on appropriate strategies to achieve long-term objectives is called ________.

strategic planning

A company's choice to operate in a business or businesses and the ways in which it differentiates itself from its competitors is called its ________.

strategy