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.
Feedback: Difficulty: MediumPage: 488-489
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