Source: geocities.com/duehing

 Question 1    Multiple Choice  1 of 1 point(s)    
  
McDonalds is a good example of a firm that has grown by using:  
 Your Answer:  franchising  
Correct Answer:  franchising  
Feedback: Difficulty: MediumPage: 492 
 


  Question 2    True/False  1 of 1 point(s)    
  
The contractor agrees to handle every detail of the project for a foreign client, including the training of operating personnel in a turnkey project.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: MediumPage: 488 
 


  Question 3    Multiple Choice  0 of 1 point(s)    
  
Consider the following scenario: Ballard Manufacturing wants to sell its products overseas, but only if it can act on its own and manufacturer its product in a central location. Based on these objectives, the appropriate foreign entry mode for Tucker is:  
 Your Answer:  wholly owned subsidiary.  
Correct Answer:  exporting.  
Feedback: Difficulty: MediumPage: 487 
 


  Question 4    Multiple Choice  0 of 1 point(s)    
  
The failure rate for strategic alliances is:  
 Your Answer:  moderately high  
Correct Answer:  quite high  
Feedback: Difficulty: MediumPage: 502 
 


  Question 5    Multiple Choice  1 of 1 point(s)    
  
Suppose British Petroleum, a British company, was contracted by a Saudi Arabian company to build an oil refinery in Saudi Arabia, and the contract specified that British Petroleum would handle every aspect of the construction of the refinery, including the training of the operating personnel. This type of project is referred to as a(n):  
 Your Answer:  turnkey project  
Correct Answer:  turnkey project  
Feedback: Difficulty: MediumPage: 488 
 


  Question 6    Multiple Choice  1 of 1 point(s)    
  
The choice of what foreign market to enter , according to the textbook, should be driven by an assessment of:  
 Your Answer:  relative long-run growth and profit potential.  
Correct Answer:  relative long-run growth and profit potential.  
Feedback: Difficulty: MediumPage: 480 
 


  Question 7    True/False  1 of 1 point(s)    
  
Franchising is employed primarily by service firms, whereas licensing is pursued primarily by manufacturing firms.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: MediumPage: 492 
 


  Question 8    Multiple Choice  1 of 1 point(s)    
  
Which of the following is a disadvantage of joint ventures?  
 Your Answer:  The shared ownership arrangement can lead to conflicts and battles for control between the investing firms if their goals and objectives change or if they take different views as to what the strategy should be.  
Correct Answer:  The shared ownership arrangement can lead to conflicts and battles for control between the investing firms if their goals and objectives change or if they take different views as to what the strategy should be.  
Feedback: Difficulty: MediumPage: 493 
 


  Question 9    Multiple Choice  0 of 1 point(s)    
  
High transportation costs, trade barriers, and problems with local marketing agents are all disadvantages of:  
 Your Answer:  licensing  
Correct Answer:  exporting  
Feedback: Difficulty: MediumPage: 487 
 


  Question 10    Multiple Choice  0 of 1 point(s)    
  
Suppose Apple Computer granted a France company the rights to manufacture keyboards in France in exchange for a royalty fee. This type of arrangement is referred to as a:  
 Your Answer:  franchising agreement.  
Correct Answer:  licensing agreement.  
Feedback: Difficulty: MediumPage: 488-489 
 

Question 1    True/False  0 of 1 point(s)    
  
Generally, the most inexpensive method of serving a foreign market is establishing a wholly owned subsidiary.  
 Your Answer:  true 
Correct Answer:  false 
Feedback: Difficulty: MediumPage: 494 
 


  Question 2    True/False  1 of 1 point(s)    
  
The contractor agrees to handle every detail of the project for a foreign client, including the training of operating personnel in a turnkey project.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: MediumPage: 488 
 


  Question 3    True/False  1 of 1 point(s)    
  
The ability to earn returns from process technology skills in countries where FDI is restricted is a distinct advantage of turnkey projects.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: MediumPage: 495 
 


  Question 4    True/False  1 of 1 point(s)    
  
By licensing its technology to competitors, the firm may deter them from developing their own, possibly superior technology.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: MediumPage: 496 
 


  Question 5    Multiple Choice  0 of 1 point(s)    
  
A decision that has a long-term impact and is difficult to reverse a(n):  
 Your Answer:  tactical covenant.  
Correct Answer:  strategic commitment.  
Feedback: Difficulty: EasyPage: 483 
 


  Question 6    Multiple Choice  0 of 1 point(s)    
  
When a firm makes an acquisition in a foreign market, it acquires all of the following except:  
 Your Answer:  a local brand name.  
Correct Answer:  customers.  
Feedback: Difficulty: EasyPage: 497-498 
 


  Question 7    Multiple Choice  0 of 1 point(s)    
  
__________ run the range from joint ventures, in which two or more firms have equity stakes, to short-term contractual agreements, in which two companies agree to cooperate on a particular task.  
 Your Answer:  Cooperative synergies  
Correct Answer:  Strategic alliances  
Feedback: Difficulty: EasyPage: 500 
 


  Question 8    Multiple Choice  1 of 1 point(s)    
  
All of the following are disadvantages of licensing except:  
 Your Answer:  high costs and risks.  
Correct Answer:  high costs and risks.  
Feedback: Difficulty: MediumPage: 489 
 


  Question 9    Multiple Choice  0 of 1 point(s)    
  
Which of the following is a disadvantage of joint ventures?  
 Your Answer:  It gives a firm the tight control over subsidiaries that it might not need to realize experience curve or location economies.  
Correct Answer:  The shared ownership arrangement can lead to conflicts and battles for control between the investing firms if their goals and objectives change or if they take different views as to what the strategy should be.  
Feedback: Difficulty: MediumPage: 493 
 


  Question 10    True/False  0 of 1 point(s)    
  
Quality control is one of the most significant disadvantages of franchising.  
 Your Answer:  false 
Correct Answer:  true 
Feedback: Difficulty: MediumPage: 492 
 

Question 1    Multiple Choice  0 of 1 point(s)    
  
Some _____ percent of the world's FDI flows is now in the form of mergers and acquisitions.  
 Your Answer:  47  
Correct Answer:  78  
Feedback: Difficulty: HardPage: 497 
 


  Question 2    Multiple Choice  0 of 1 point(s)    
  
High transportation costs, trade barriers, and problems with local marketing agents are all disadvantages of:  
 Your Answer:  licensing  
Correct Answer:  exporting  
Feedback: Difficulty: MediumPage: 487 
 


  Question 3    True/False  1 of 1 point(s)    
  
Franchising is employed primarily by service firms, whereas licensing is pursued primarily by manufacturing firms.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: MediumPage: 492 
 


  Question 4    True/False  1 of 1 point(s)    
  
Pioneering costs are costs that an early entrant has to bear that a later entrant can avoid.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: MediumPage: 482 
 


  Question 5    Multiple Choice  1 of 1 point(s)    
  
The need for preemption is particularly great in markets that are  
 Your Answer:  rapidly globalizing.  
Correct Answer:  rapidly globalizing.  
Feedback: Difficulty: EasyPage: 497 
 


  Question 6    Multiple Choice  0 of 1 point(s)    
  
What type of entry allows a firm to learn about a foreign market while limiting the firm's exposure to that market?  
 Your Answer:  Minimal-commitment  
Correct Answer:  Small-scale  
Feedback: Difficulty: MediumPage: 483 
 


  Question 7    Multiple Choice  0 of 1 point(s)    
  
Which of the following industries are turnkey projects the most common in?  
 Your Answer:  Fresh fruit, grain, and meat products  
Correct Answer:  Chemical, pharmaceutical, and metal refining  
Feedback: Difficulty: MediumPage: 488 
 


  Question 8    Multiple Choice  0 of 1 point(s)    
  
Which of the following is not a mode to enter foreign markets?  
 Your Answer:  Turnkey markets  
Correct Answer:  Establish joint ventures with another home country firm  
Feedback: Difficulty: MediumPage: 486 
 


  Question 9    True/False  0 of 1 point(s)    
  
Firms pursuing global or transnational strategies tend to prefer establishing joint ventures.  
 Your Answer:  true 
Correct Answer:  false 
Feedback: Difficulty: MediumPage: 497 
 


  Question 10    Multiple Choice  0 of 1 point(s)    
  
Which of the following is not an advantage of a wholly owned subsidiary?  
 Your Answer:  Ability to realize location and experience economies  
Correct Answer:  Low development costs and risks  
Feedback: Difficulty: MediumPage: 494 
 

Question 1    Multiple Choice  1 of 1 point(s)    
  
High transportation costs, trade barriers, and problems with local marketing agents are all disadvantages of:  
 Your Answer:  exporting  
Correct Answer:  exporting  
Feedback: Difficulty: MediumPage: 487 
 


  Question 2    Multiple Choice  0 of 1 point(s)    
  
All of the following are disadvantages of licensing except:  
 Your Answer:  lack of control over technology.  
Correct Answer:  high costs and risks.  
Feedback: Difficulty: MediumPage: 489 
 


  Question 3    True/False  0 of 1 point(s)    
  
Firms pursuing global or transnational strategies tend to prefer establishing joint ventures.  
 Your Answer:  true 
Correct Answer:  false 
Feedback: Difficulty: MediumPage: 497 
 


  Question 4    Multiple Choice  0 of 1 point(s)    
  
Suzi's Sleds, Inc. is considering entering Japan, where there are no other incumbent competitors to acquire. Suzi's would do best in Japan with a(n):  
 Your Answer:  franchise.  
Correct Answer:  green-field venture.  
Feedback: Difficulty: MediumPage: 500 
 


  Question 5    Multiple Choice  0 of 1 point(s)    
  
The advantages frequently associated with entering a market early are commonly known as:  
 Your Answer:  inaugural advantages.  
Correct Answer:  first-mover advantages.  
Feedback: Difficulty: EasyPage: 482 
 


  Question 6    Multiple Choice  0 of 1 point(s)    
  
Establishing a wholly owned subsidiary in a foreign country can be done:  
 Your Answer:  through a turnkey operation or through a licensing agreement.  
Correct Answer:  through setting up a new operation in a foreign country or through acquiring an established firm to promote its products.  
Feedback: Difficulty: MediumPage: 494 
 


  Question 7    Multiple Choice  0 of 1 point(s)    
  
Consider the following scenario: Ballard Manufacturing wants to sell its products overseas, but only if it can act on its own and manufacturer its product in a central location. Based on these objectives, the appropriate foreign entry mode for Tucker is:  
 Your Answer:  wholly owned subsidiary.  
Correct Answer:  exporting.  
Feedback: Difficulty: MediumPage: 487 
 


  Question 8    True/False  1 of 1 point(s)    
  
The contractor agrees to handle every detail of the project for a foreign client, including the training of operating personnel in a turnkey project.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: MediumPage: 488 
 


  Question 9    Multiple Choice  0 of 1 point(s)    
  
Which of the following is not an attribute of a good strategic alliance partner?  
 Your Answer:  Helps the firm achieve its strategic goals  
Correct Answer:  Must have capabilities identical to its partner  
Feedback: Difficulty: HardPage: 502 
 


  Question 10    True/False  1 of 1 point(s)    
  
One advantage to exporting is that it avoids the costs of establishing manufacturing operations in the host country.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: MediumPage: 487 
 

Question 1    True/False  1 of 1 point(s)    
  
The failure rate for international strategic alliances is quite high.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: MediumPage: 502 
 


  Question 2    Multiple Choice  1 of 1 point(s)    
  
Which of the following are the two distinct advantages of exporting?  
 Your Answer:  It avoids the often-substantial cost of establishing manufacturing operations in the host country; and it may help a firm achieve experience curve and location economies  
Correct Answer:  It avoids the often-substantial cost of establishing manufacturing operations in the host country; and it may help a firm achieve experience curve and location economies  
Feedback: Difficulty: MediumPage: 487 
 


  Question 3    True/False  1 of 1 point(s)    
  
The contractor agrees to handle every detail of the project for a foreign client, including the training of operating personnel in a turnkey project.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: MediumPage: 488 
 


  Question 4    True/False  1 of 1 point(s)    
  
Overpayment for assets of an acquired firm is one-reason acquisitions fail.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: EasyPage: 498 
 


  Question 5    True/False  1 of 1 point(s)    
  
Franchising is employed primarily by service firms, whereas licensing is pursued primarily by manufacturing firms.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: MediumPage: 492 
 


  Question 6    True/False  1 of 1 point(s)    
  
Quality control is one of the most significant disadvantages of franchising.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: MediumPage: 492 
 


  Question 7    Multiple Choice  1 of 1 point(s)    
  
Suppose British Petroleum, a British company, was contracted by a Saudi Arabian company to build an oil refinery in Saudi Arabia, and the contract specified that British Petroleum would handle every aspect of the construction of the refinery, including the training of the operating personnel. This type of project is referred to as a(n):  
 Your Answer:  turnkey project  
Correct Answer:  turnkey project  
Feedback: Difficulty: MediumPage: 488 
 


  Question 8    Multiple Choice  1 of 1 point(s)    
  
Once attractive markets have been identified, it is important to consider the:  
 Your Answer:  timing of entry.  
Correct Answer:  timing of entry.  
Feedback: Difficulty: MediumPage: 482 
 


  Question 9    True/False  0 of 1 point(s)    
  
Strategic alliances are rarely used as an entry strategy into foreign markets.  
 Your Answer:  true 
Correct Answer:  false 
Feedback: Difficulty: MediumPage: 500 
 


  Question 10    Multiple Choice  1 of 1 point(s)    
  
The choice of what foreign market to enter , according to the textbook, should be driven by an assessment of:  
 Your Answer:  relative long-run growth and profit potential.  
Correct Answer:  relative long-run growth and profit potential.  
Feedback: Difficulty: MediumPage: 480 
 

Question 1    True/False  1 of 1 point(s)    
  
The choice of what foreign markets to enter should be driven by an assessment of relative long-run growth and profit potential.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: EasyPage: 480 
 


  Question 2    Multiple Choice  0 of 1 point(s)    
  
Which of the following are costs that an early entrant has to bear that a later entrant can avoid?  
 Your Answer:  Experimental costs  
Correct Answer:  Pioneering costs  
Feedback: Difficulty: MediumPage: 482 
 


  Question 3    Multiple Choice  0 of 1 point(s)    
  
In a ______, the firm owns 100 percent of the stock.  
 Your Answer:  joint venture  
Correct Answer:  wholly owned subsidiary  
Feedback: Difficulty: EasyPage: 494 
 


  Question 4    True/False  0 of 1 point(s)    
  
The ability to realize location and experience curve economies are advantages of franchising as a mode of foreign market entry.  
 Your Answer:  true 
Correct Answer:  false 
Feedback: Difficulty: MediumPage: 495 
 


  Question 5    Multiple Choice  0 of 1 point(s)    
  
Which of the following is not an advantage of a wholly owned subsidiary?  
 Your Answer:  Ability to realize location and experience economies  
Correct Answer:  Low development costs and risks  
Feedback: Difficulty: MediumPage: 494 
 


  Question 6    Multiple Choice  0 of 1 point(s)    
  
The advantages frequently associated with entering a market early are commonly known as:  
 Your Answer:  inaugural advantages.  
Correct Answer:  first-mover advantages.  
Feedback: Difficulty: EasyPage: 482 
 


  Question 7    Multiple Choice  0 of 1 point(s)    
  
________ postulates that top managers are often too optimistic about the value that can be created via an acquisition and are thus willing to overpay for the assets of the acquired firm.  
 Your Answer:  The optimistic hypothesis  
Correct Answer:  The hubris hypothesis  
Feedback: Difficulty: MediumPage: 498 
 


  Question 8    Multiple Choice  0 of 1 point(s)    
  
Suzi's Sleds, Inc. is considering entering Japan, where there are no other incumbent competitors to acquire. Suzi's would do best in Japan with a(n):  
 Your Answer:  franchise.  
Correct Answer:  green-field venture.  
Feedback: Difficulty: MediumPage: 500 
 


  Question 9    Multiple Choice  1 of 1 point(s)    
  
______ costs arise when the business system in a foreign country is so different from that in a firm's home market that the enterprise has to devote considerable effort, time, and expense to learning the rules of the game.  
 Your Answer:  Pioneering  
Correct Answer:  Pioneering  
Feedback: Difficulty: MediumPage: 482 
 


  Question 10    True/False  0 of 1 point(s)    
  
There can be disadvantages with entering a foreign market before other international businesses. These are often referred to as later-mover disadvantages.  
 Your Answer:  true 
Correct Answer:  false 
Feedback: Difficulty: EasyPage: 482 
 

Question 1    Multiple Choice  0 of 1 point(s)    
  
Which of the following statements is false?  
 Your Answer:  Green-field ventures are risky.  
Correct Answer:  Green-field ventures are more risky than acquisitions.  
Feedback: Difficulty: MediumPage: 500 
 


  Question 2    Multiple Choice  0 of 1 point(s)    
  
Consider the following scenario: Ballard Manufacturing wants to sell its products overseas, but only if it can act on its own and manufacturer its product in a central location. Based on these objectives, the appropriate foreign entry mode for Tucker is:  
 Your Answer:  wholly owned subsidiary.  
Correct Answer:  exporting.  
Feedback: Difficulty: MediumPage: 487 
 


  Question 3    Multiple Choice  0 of 1 point(s)    
  
Establishing a wholly owned subsidiary in a foreign country can be done:  
 Your Answer:  through a turnkey operation or through a licensing agreement.  
Correct Answer:  through setting up a new operation in a foreign country or through acquiring an established firm to promote its products.  
Feedback: Difficulty: MediumPage: 494 
 


  Question 4    Multiple Choice  0 of 1 point(s)    
  
Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign partner, but in addition to a royalty payment, the firm might also request that the foreign partner license some of its valuable know-how to the firm.  
 Your Answer:  inter-licensing  
Correct Answer:  cross-licensing  
Feedback: Difficulty: MediumPage: 489-490 
 


  Question 5    Multiple Choice  0 of 1 point(s)    
  
_______ is preferred to joint venture arrangements and to using foreign market agents.  
 Your Answer:  Franchising  
Correct Answer:  Wholly owned subsidiaries  
Feedback: Difficulty: MediumPage: 496-497 
 


  Question 6    Multiple Choice  0 of 1 point(s)    
  
Suppose Boeing decided to build an assembly plant in Iceland and, in an effort to maintain maximum control, decided to operate the plant completely on its own. This is an approach to foreign market entry referred to as:  
 Your Answer:  joint venture.  
Correct Answer:  wholly owned subsidiary.  
Feedback: Difficulty: MediumPage: 494 
 


  Question 7    Multiple Choice  0 of 1 point(s)    
  
Suzi's Sleds, Inc. is considering entering Japan, where there are no other incumbent competitors to acquire. Suzi's would do best in Japan with a(n):  
 Your Answer:  franchise.  
Correct Answer:  green-field venture.  
Feedback: Difficulty: MediumPage: 500 
 


  Question 8    Multiple Choice  1 of 1 point(s)    
  
Once attractive markets have been identified, it is important to consider the:  
 Your Answer:  timing of entry.  
Correct Answer:  timing of entry.  
Feedback: Difficulty: MediumPage: 482 
 


  Question 9    True/False  1 of 1 point(s)    
  
By licensing its technology to competitors, the firm may deter them from developing their own, possibly superior technology.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: MediumPage: 496 
 


  Question 10    True/False  0 of 1 point(s)    
  
Firms pursuing global or transnational strategies tend to prefer establishing joint ventures.  
 Your Answer:  true 
Correct Answer:  false 
Feedback: Difficulty: MediumPage: 497 
 

 Question 1    Multiple Choice  1 of 1 point(s)    
  
There are four main safeguards against opportunism in alliance relationships. These are walling off critical technology, establishing contractual safeguards, seeking credible commitments, and:  
 Your Answer:  agreeing to swap valuable skills and technologies  
Correct Answer:  agreeing to swap valuable skills and technologies  
Feedback: Difficulty: MediumPage: 503 
 


  Question 2    True/False  1 of 1 point(s)    
  
Lack of control over technology, inability to realize location and experience curve economies, and inability to engage in global strategic coordination are disadvantages of licensing.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: MediumPage: 495 
 


  Question 3    Multiple Choice  1 of 1 point(s)    
  
The failure rate for strategic alliances is:  
 Your Answer:  quite high  
Correct Answer:  quite high  
Feedback: Difficulty: MediumPage: 502 
 


  Question 4    True/False  1 of 1 point(s)    
  
The choice of what foreign markets to enter should be driven by an assessment of relative long-run growth and profit potential.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: EasyPage: 480 
 


  Question 5    Multiple Choice  1 of 1 point(s)    
  
In a ______, the firm owns 100 percent of the stock.  
 Your Answer:  wholly owned subsidiary  
Correct Answer:  wholly owned subsidiary  
Feedback: Difficulty: EasyPage: 494 
 


  Question 6    Multiple Choice  1 of 1 point(s)    
  
The choice of what foreign market to enter , according to the textbook, should be driven by an assessment of:  
 Your Answer:  relative long-run growth and profit potential.  
Correct Answer:  relative long-run growth and profit potential.  
Feedback: Difficulty: MediumPage: 480 
 


  Question 7    Multiple Choice  0 of 1 point(s)    
  
Which of the following is not a mode to enter foreign markets?  
 Your Answer:  Franchising  
Correct Answer:  Establish joint ventures with another home country firm  
Feedback: Difficulty: MediumPage: 486 
 


  Question 8    True/False  1 of 1 point(s)    
  
The volume of cross-border acquisitions has been falling at a rapid-rate for two decades.  
 Your Answer:  false 
Correct Answer:  false 
Feedback: Difficulty: HardPage: 497 
 


  Question 9    Multiple Choice  1 of 1 point(s)    
  
Some _____ percent of the world's FDI flows is now in the form of mergers and acquisitions.  
 Your Answer:  78  
Correct Answer:  78  
Feedback: Difficulty: HardPage: 497 
 


  Question 10    Multiple Choice  0 of 1 point(s)    
  
Differences in _______ can slow the integration of operations in acquisitions.  
 Your Answer:  political views  
Correct Answer:  management philosophy and company culture  
Feedback: Difficulty: EasyPage: 498-499 
 

Question 1    Multiple Choice  1 of 1 point(s)    
  
Some _____ percent of the world's FDI flows is now in the form of mergers and acquisitions.  
 Your Answer:  78  
Correct Answer:  78  
Feedback: Difficulty: HardPage: 497 
 


  Question 2    Multiple Choice  1 of 1 point(s)    
  
When a firm makes an acquisition in a foreign market, it acquires all of the following except:  
 Your Answer:  customers.  
Correct Answer:  customers.  
Feedback: Difficulty: EasyPage: 497-498 
 


  Question 3    True/False  1 of 1 point(s)    
  
One advantage to exporting is that it avoids the costs of establishing manufacturing operations in the host country.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: MediumPage: 487 
 


  Question 4    True/False  0 of 1 point(s)    
  
To maximize the learning benefits of an alliance, a firm must try to learn from its partner and then apply the knowledge within its own operation.  
 Your Answer:  false 
Correct Answer:  true 
Feedback: Difficulty: MediumPage: 504 
 


  Question 5    True/False  1 of 1 point(s)    
  
Pioneering costs are costs that an early entrant has to bear that a later entrant can avoid.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: MediumPage: 482 
 


  Question 6    True/False  1 of 1 point(s)    
  
There can be disadvantages with entering a foreign market before other international businesses. These are often referred to as later-mover disadvantages.  
 Your Answer:  false 
Correct Answer:  false 
Feedback: Difficulty: EasyPage: 482 
 


  Question 7    True/False  1 of 1 point(s)    
  
Lack of control over technology, inability to realize location and experience curve economies, and inability to engage in global strategic coordination are disadvantages of licensing.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: MediumPage: 495 
 


  Question 8    Multiple Choice  1 of 1 point(s)    
  
________ postulates that top managers are often too optimistic about the value that can be created via an acquisition and are thus willing to overpay for the assets of the acquired firm.  
 Your Answer:  The hubris hypothesis  
Correct Answer:  The hubris hypothesis  
Feedback: Difficulty: MediumPage: 498 
 


  Question 9    Multiple Choice  1 of 1 point(s)    
  
Which of the following are the two distinct advantages of exporting?  
 Your Answer:  It avoids the often-substantial cost of establishing manufacturing operations in the host country; and it may help a firm achieve experience curve and location economies  
Correct Answer:  It avoids the often-substantial cost of establishing manufacturing operations in the host country; and it may help a firm achieve experience curve and location economies  
Feedback: Difficulty: MediumPage: 487 
 


  Question 10    Multiple Choice  1 of 1 point(s)    
  
What type of entry allows a firm to learn about a foreign market while limiting the firm's exposure to that market?  
 Your Answer:  Small-scale  
Correct Answer:  Small-scale  
Feedback: Difficulty: MediumPage: 483 
 

Question 1    True/False  1 of 1 point(s)    
  
Franchising is employed primarily by service firms, whereas licensing is pursued primarily by manufacturing firms.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: MediumPage: 492 
 


  Question 2    True/False  1 of 1 point(s)    
  
Quality control is one of the most significant disadvantages of franchising.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: MediumPage: 492 
 


  Question 3    Multiple Choice  1 of 1 point(s)    
  
Establishing a wholly owned subsidiary in a foreign country can be done:  
 Your Answer:  through setting up a new operation in a foreign country or through acquiring an established firm to promote its products.  
Correct Answer:  through setting up a new operation in a foreign country or through acquiring an established firm to promote its products.  
Feedback: Difficulty: MediumPage: 494 
 


  Question 4    True/False  1 of 1 point(s)    
  
Strategic alliances are rarely used as an entry strategy into foreign markets.  
 Your Answer:  false 
Correct Answer:  false 
Feedback: Difficulty: MediumPage: 500 
 


  Question 5    Multiple Choice  1 of 1 point(s)    
  
_______ is preferred to joint venture arrangements and to using foreign market agents.  
 Your Answer:  Wholly owned subsidiaries  
Correct Answer:  Wholly owned subsidiaries  
Feedback: Difficulty: MediumPage: 496-497 
 


  Question 6    True/False  1 of 1 point(s)    
  
Strategic commitments tend to change the competitive playing field.  
 Your Answer:  true 
Correct Answer:  true 
Feedback: Difficulty: EasyPage: 483 
 


  Question 7    Multiple Choice  1 of 1 point(s)    
  
Which of the following is a disadvantage of joint ventures?  
 Your Answer:  The shared ownership arrangement can lead to conflicts and battles for control between the investing firms if their goals and objectives change or if they take different views as to what the strategy should be.  
Correct Answer:  The shared ownership arrangement can lead to conflicts and battles for control between the investing firms if their goals and objectives change or if they take different views as to what the strategy should be.  
Feedback: Difficulty: MediumPage: 493 
 


  Question 8    Multiple Choice  1 of 1 point(s)    
  
Which of the following statements is false?  
 Your Answer:  Green-field ventures are more risky than acquisitions.  
Correct Answer:  Green-field ventures are more risky than acquisitions.  
Feedback: Difficulty: MediumPage: 500 
 


  Question 9    Multiple Choice  1 of 1 point(s)    
  
______ costs arise when the business system in a foreign country is so different from that in a firm's home market that the enterprise has to devote considerable effort, time, and expense to learning the rules of the game.  
 Your Answer:  Pioneering  
Correct Answer:  Pioneering  
Feedback: Difficulty: MediumPage: 482 
 


  Question 10    Multiple Choice  1 of 1 point(s)    
  
Suppose Apple Computer granted a France company the rights to manufacture keyboards in France in exchange for a royalty fee. This type of arrangement is referred to as a:  
 Your Answer:  licensing agreement.  
Correct Answer:  licensing agreement.  
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