International Business Final
____ is a way to reach overseas customers by exporting through domestic-based export intermediaries.
Indirect exports
Which of the following types of societies would most likely foster more entrepreneurship?
Individualistic and low uncertainty-avoidance
Which of the following is one of the four major characteristics associated with a growing entrepreneurial firm?
Internationalization
Which of the following stakeholders has the most concern over short-term revenue falling during mergers and acquisitions?
Investors
Which of the following is a disadvantage of the home replication strategy?
It lacks local responsiveness.
Which of the following is a disadvantage of licensing and franchising?
Little control over marketing
Which of the following strategies has the lowest interdependence on knowledge management?
Localization strategy
_____ refers to a philosophy or way of thinking that places the highest priority on the creation of superior customer value in the marketplace.
Market orientation
____ is the informal interpersonal relationships among managers of different units that may greatly facilitate intersubsidiary cooperation among various units.
Micro-macro link
____ innovation is the use of purposive inflows and outflows of knowledge to accelerate internal innovation and expand the markets for external use of innovation.
Open
In a non-equity-based alliance, which of the following should be high for possible upgrading to equity-based relationships?
Potential as real option
Which of the following is a benefit of large-scale entries?
They demonstrate strategic commitment to certain markets.
According to the economic theory of supply and demand, a drop in price generates stronger demand.
True
An advantage of joint ventures is the shared costs, risks, and profits.
True
As a key element in achieving alignment, trust stems from perceived fairness and justice from all supply chain members.
True
Cartels are often labeled as anticompetitive and outlawed by antitrust laws.
True
Competitive dynamics are the actions and responses undertaken by competing firms.
True
Cultural distance is the difference between two cultures along some identifiable dimensions.
True
Cultural values and norms are examples of informal institutions.
True
Family background and educational attainment correlate with entrepreneurship.
True
Firms are allowed to organize strategic alliances with rivals for cost reduction.
True
Firms that are first to introduce new goods or services are likely to earn "monopoly profits" until competitors emerge.
True
Firms with fewer than 500 employees in the United States are considered small- and medium-sized enterprises.
True
In a broad sense, every supply chain is a strategic alliance involving a variety of players, each of which is a profit-maximizing, stand-alone firm.
True
In the context of alliance formation, shared capabilities is one of the driving forces in deciding whether to take a contract or an equity approach.
True
Individuals who discover, evaluate, and exploit previously unexplored opportunities are referred to as entrepreneurs.
True
International entrepreneurship is defined as "a combination of innovative, proactive, and risk-seeking behavior that crosses national borders and is intended to create wealth in organizations."
True
Localization is appealing, but expensive.
True
MNEs that engage in a transnational strategy promote global learning.
True
Managers involved in alliances require collaborative relationship skills.
True
Market-seeking firms go to countries that have a strong demand for their products and services.
True
Microfinance emerged in response to the lack of financing for entrepreneurial opportunities in many developing countries.
True
One of the late-mover disadvantages is the establishment of entry barriers by the first-mover.
True
Price elasticity refers to the changes in demand when price changes.
True
Prisoners' dilemma is a type of game in which the outcome depends on two parties deciding whether to cooperate or to defect.
True
Strategic investments in an equity-based alliance involve one partner investing in another.
True
The antitrust policies in the United States make it difficult for incumbents to raise entry barriers for new entrants.
True
The global standardization strategy lacks local responsiveness.
True
The integration-responsiveness framework allows managers to deal with the pressures for both global integration and local responsiveness.
True
The international division structure is an organizational structure typically set up when a firm first engages in a home replication strategy.
True
The more tacit the capabilities of a firm in an alliance, the greater the preference for equity involvement.
True
The relationship between strategy and structure is reciprocal.
True
The scale of entry refers to the amount of resources committed to entering a foreign market.
True
The term "supply chain" is almost synonymous with "value chain," encompassing both inbound and outbound logistics.
True
Which of the following is an equity mode of entry?
Wholly owned subsidiaries
A(n) ____ is the transfer of the control of operations and management from one firm to another with the former becoming a unit of the latter.
acquisition
____ focuses on flexibility that can overcome short-term fluctuation in the supply chain.
Agility
____ perform an important "middleman" function by linking sellers and buyers overseas.
Export intermediaries
_____ strategy centers on leveraging home-grown competencies abroad.
Extender
A letter of credit increases transaction costs by increasing transaction risks.
False
A supply chain can't be changed after it is established.
False
An industry without a price leader makes it easier for firms in that industry to form collusions.
False
Antitrust authorities provide easy approvals for both alliances and acquisitions with less intervention.
False
Collusive price setting refers to price setting by monopolists or collusion parties at a level lower than the competitive level.
False
Contractual alliances involve sharing of ownership.
False
Cost pressures often push MNEs to adapt locally.
False
Cross-border mergers are more common than acquisitions.
False
Enhancing agility often entails making a series of make-or-buy decisions.
False
Equity-based alliances include co-marketing, research and development, contracts, turnkey products, strategic suppliers, and strategic distributors.
False
Ethnocentrism should be encouraged in international marketing.
False
Firms dealing with global agnostics can leverage global brands and their relatively more standardized products and services.
False
Firms with strong patents can challenge rivals for infringements, making mutual forbearance impossible.
False
Foreign direct investment is the only way in which SMEs can enter foreign markets.
False
Franchising is typically used in manufacturing industries.
False
From a resource-based view, explicit knowledge is strategically more important than tacit knowledge.
False
In general, governments in developed economies impose more procedures to start a company than those in poorer countries.
False
In the context of segmentation based on customer categories, global citizens are always skeptical about whether global brands deliver high quality goods.
False
Industrial parks refer to the clustering of economic activities in certain locations.
False
Innovation-seeking firms often single out the most efficient locations featuring a combination of scale of economies and low cost factors.
False
Innovations flow only from the host countries to the home country in a transnational strategy.
False
Liability of foreignness is the inherent disadvantage firms experience in home countries.
False
Market commonality refers to the degree of similarity between two rival's products.
False
Non-equity modes of entry include acquisitions and wholly-owned subsidiaries.
False
SMEs tend to be less entrepreneurial than large firms.
False
Tacit collusions typically lead to a cartel or trust.
False
The "O" in the VRIO framework indicates opportunity.
False
The existence of multiple currencies and the resultant currency risks can be viewed as informal trade and investment barriers.
False
The first phase in an alliance dissolution is mediation by third parties.
False
The global standardization strategy, despite its complexity, is still the best option at being cost effective, locally responsive, and learning-driven.
False
The resource-based view suggests that firms need to take actions deemed legitimate and appropriate by the various formal and informal institutions governing market entries.
False
Which of the following conforms to the notion put forward by the school of thought associated with stage models?
Firms enter culturally distant countries in later stages when they may gain more confidence.
Which of the following alliances is a contractual alliance?
Franchising
Which of the following is a popular way to enter into international service markets?
Franchising
Which is one of the four phases in an alliance dissolution?
Going public
Which of the following strategies is usually the first one adopted when firms venture abroad?
Home replication strategy
The institution-based view driving alliances and acquisitions focuses on _____ concerns.
antitrust
Blue ocean strategy focuses on _____.
developing new markets
Technically, place in the four Ps of marketing is also often referred to as the _____.
distribution channel
Co-marketing refers to _____.
efforts among a number of firms to jointly market their products and services
Dumping is defined as a(n) _____.
exporter selling below cost abroad
With regard to investment in start-ups, investment by _____ is considered as informal investment.
friends
A disadvantage of acquisitions is _____.
high development costs
The _____ strategy focuses on a number of foreign countries/regions, each of which is regarded as a standalone market worthy of significant attention and adaptation.
localization
In the context of acquisitions, the similarity in cultures, systems, and structures between firms is called _____.
organizational fit
A(n) ____ is an investment in real operations as opposed to financial capital.
real option
In supply chain management, _____ is a focus to establish, maintain, and enhance associations with customers.
relationship orientation
Microfinance provides micro loans used to:
start small businesses.
Mutual forbearance is a type of _____.
tacit collusion
The country-of-origin effect refers to _____.
the positive or negative perception of firms and products from a certain country
In theory, a global matrix structure supports the goals of the _____ strategy.
transnational
The _____ strategy endeavors to be simultaneously cost efficient, locally responsive, and learning-driven around the world.
transnational
Which of the following is a defining characteristic of entrepreneurship?
Ability to exploit opportunity
____ is the ability to recognize the value of new information, assimilate it, and apply it.
Absorptive capacity
____ refers to the ability to change supply chain configurations in response to long-term changes in the environment and technology.
Adaptability
_____ is designed to combat monopolies and cartels.
Antitrust policy
Which of the following is a first-mover advantage?
Avoidance of clash with a dominant firm at home
Which of the following must be practiced to avoid blunders in international marketing?
Be susceptible to nationalistic feelings of local consumers, employees, and governments
"People of the same trade seldom meet together, even for merriment and diversion, but their conversation often ends in a conspiracy against the public." This quote from Adam Smith is referring to which of the following business relationship terms?
Collusion
Which are the two primary pressures MNEs confront?
Cost reductions and local responsiveness
_____ refers to the positive or negative perception of firms and products from a certain country.
Country-of-origin effect
____ is an attack on a competitor's other markets if this competitor attacks a firm's original market.
Cross-market retaliation
____ best suits situations where the pressures to globalize are relatively low, and local firms' strengths lie in a deep understanding of local markets.
Defender strategy
_____ is defined as a plan to raise prices after eliminating local rivals.
Dumping
_____ refers to all the communications that marketers insert into the marketplace.
Promotion
Which of the following is an advantage shared by both greenfield operations and acquisitions?
Protection of know-how
_____ is defined as the extent to which a given competitor possesses strategic endowment comparable, in terms of both type and amount, to those of the focal firm.
Resource similarity
____ is the informal benefits individuals and organizations derive from their networks.
Social capital
Which of the following alliances is an equity-based alliance?
Strategic investment
____ is the flow of products, services, finances, and information that passes through a set of entities from a source to the customer.
Supply chain
Which of the following motives for acquisition faces the resource-based issue of access to complementary resources?
Synergistic