Ch 6 International Management

________ 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. Global civics Global elite Born globals GLOCALS

Born globals

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 franchise management contract contract manufacturing agreement

turnkey operation

Which of the following is a global risk with regard to strategic entry scanning? economic and fiscal policies corruption trade restrictions economic and financial risk

economic and financial risk

Which of the following is generally the least risky entry strategy? exporting licensing franchising offshoring

exporting

Which of the following charts the direction of the company and provides a basis for strategic decision making? environmental assessment organizational mission corporate structure SWOT analysis

organizational mission

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

outsourcing

Which of the following is the proactive reason that prompts firms to expand overseas? seeking economies of scale avoiding restrictive trade barriers responding to foreign competition solving logistics-related problems

seeking economies of scale

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. PERT analysis break-even analysis transactional analysis SWOT analysis

SWOT analysis

Which of the following is a reactive reason that prompts a firm to expand overseas? seeking incentives customer demands growth opportunities seeking economies of scale

customer demands

The first broad scan of all potential world markets should result in the firm being able to ________. identify the strengths and weaknesses of its competitors determine the best sources for raw materials eliminate countries with high cultural risk eliminate markets with unreasonable entry conditions

eliminate markets with unreasonable entry conditions

________ includes environmental scanning and continuous monitoring to keep abreast of variables around the world that are pertinent to the firm. Environmental mitigation Environmental assessment Internal analysis Competitive analysis

environmental assessment

Which of the following is the first step of the planning phase of a strategic management process? establishment of the company's mission analysis of the firm's relative capabilities to deal successfully with the external environment assessment of the external environment that the firm will face in the future seeking alternative strategies using competitive analysis

establishment of the company's mission

As part of the internal analysis, ________ reveal an inefficient use of assets that restricts profitability. Sales-force analyses Financial ratios Competitive analyses Concentration ratios

financial ratios

Which of the following is generally viewed as the most risky entry strategy? international joint ventures fully owned subsidiaries turnkey operation service sector outsourcing

fully owned subsidiaries

Which of the following is NOT an advantage of using licensing as an entry strategy? gives licensors total control over the licensee's activities avoids the tariffs and quotas usually imposed on exports offers fast market access requires little investment which minimizes risk

gives licensors total control over the licensee's activities

________ refers to the establishment of worldwide operations and the development of standardized products and marketing. Nationalization Regionalization Globalization Customization

globalization

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 ________. greenfield investments turnkey operation globally integrated company shell corporation

globally integrated company

Which of the following is the first step in developing a successful export strategy? identification of a potential market initiation of meetings match market needs to the company's abilities commitment of resources

identification of a potential market

The second part of the strategic management process involves the ________. analysis stage assessment stage planning phase implementation phase

implementation phase

A(n) ________ determines which areas of a firm's operations represent strengths or weaknesses (currently or potentially) compared to competitors. structural analysis transactional analysis internal analysis break-even analysis

internal analysis

Which of the following is the most preferred source of environmental information for environmental scanning purposes in a firm? internal sources corporate news clipping service information packages computer database

internal sources

Which of the following is a national risk with regard to strategic entry scanning? regional instability legal protection political turmoil energy availability and prices

legal protection

At which three levels should firms ideally perform global environmental analysis? innovation, production, and local distribution product, domestic market, and consumer operational, tactical, and top management multinational, regional, and local

multinational, regional, and local

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 ________. restrictive trade barriers globalization of competitors provision of incentives home country regulations

provision of incentives

Which of the following is the primary advantage of using e-business as a local-level entry strategy? access to highly skilled workers shared costs and risks avoidance of tariffs and regulations rapid entry and exit from markets

rapid entry and exit from markets

Which of these is the quickest and least expensive way to develop a global strategy? greenfield investments strategic alliances fully-owned subsidiaries acquisitions

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 globalization organizational restructuring retrenchment

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 ________. product planning strategic planning strategic delegation organizational design

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 procedure mission process

strategy

The primary motive in the contract manufacturing strategy generally is ________. utilizing inexpensive overseas labor sharing managerial expertise obtaining rights to patented technology sharing financial resources

utilizing inexpensive overseas labor