MGMT 475 Ch. 8 quiz

Which pair of industries would NOT be considered as "related and supporting" under Porter's diamond model?

Highway systems and the supply of debt capital

Which of the following is NOT a typical disadvantage of licensing?

Incompatibility of the licensing partners

Which of the following is NOT a disadvantage associated with exporting? - Tariffs imposed by local governments - Potential loss of proprietary technologies - High transportation costs - Loss of control over distribution activities

Potential loss of proprietary technologies

Which of the following is an advantage associated with greenfield ventures?

The level of control over the firm's operations

Which of the following is NOT an incentive for firms to become multinational? - To gain easier access to raw materials - To gain access to consumers in emerging markets - Opportunities to integrate operations on a global scale - To avoid high domestic taxation on corporate income

To avoid high domestic taxation on corporate income

A licensing agreement:

allows a foreign firm to purchase the right to manufacture and sell a firm's products within a host country.

A global corporate-level strategy differs from a multidomestic corporate-level strategy in that in a global strategy:

competitive strategy is dictated by the home office.

Arkadelphia Polymers, Inc., earns 60 percent of its revenue from exports to Europe and Asia. The CEO of the company would be:

concerned if the value of the dollar strengthened.

When a firm initially becomes internationally diversified, its returns:

decrease

An international diversification strategy is one in which a firm:

expands into a potentially large number of geographic locations or markets.

A fundamental reason for a country's development of advanced and specialized factors of production is often its:

lack of basic resources.

Most firms enter international markets sequentially, introducing their __________ first.

largest and strongest lines of business

The choices that a firm has for entering the international market include all of the following EXCEPT: - exporting. - licensing. - acquisition. - leasing.

leasing

Disney suffered lawsuits in France, at Disneyland Paris, because of the lack of fit between its transferred personnel policies and the French employees charged to enact them. This is an example of the:

liability of foreignness.

A multidomestic corporate-level strategy has __________ need for global integration and __________ need for local market responsiveness.

low; high

Associations such as the European Union, Organization of American States, and the North American Free Trade Agreement encourage:

regional strategies

A multidomestic corporate-level strategy is one in which:

the firm customizes the product for each country in which it competes.

One of the primary reasons for failure of cross-border strategic alliances is:

the incompatibility of the partners.

In China, Starbucks is standardizing its operations while simultaneously decentralizing some decision-making responsibility to local levels to meet customers' tastes. Starbucks is following the __________ international corporate-level strategy.

transnational

Effectively implementing the __________ international corporate-level strategy often produces higher performance than does implementing either the __________ or __________ strategies.

transnational; multidomestic; global