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Study Resources (Business Management)

  91) In a short essay, discuss how transportation, trade restrictions, domestic capacity, and country-of-origin affect companies' decisions about modes of operating internationally. 92) According to the appropriability theory and the internalization theory, why would companies want to control their foreign operations?     .
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  41) In a concentration strategy of foreign expansion, a company would go to ________. A) many countries very rapidly, and then build up slowly in each B) a foreign country with one product and not sell other products in that country until a target market share is reached C) a reporting system that.
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  1) Which of the following is NOT one of Coca-Cola's international operating forms? A) sharing ownership in the production of Coke's concentrate B) using franchisers to bottle, sell, and deliver Coke beverages C) licensing Coke's trademark for use on products in which it lacks skills D) forming joint ventures with companies that provide supplies.
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  41) Which of the following firms would most likely be involved in a turnkey operation? A) American Airlines B) Bechtel Construction C) Burger King D) Hilton Hotels 42) Turnkey projects generally differ from other forms of international business in that ________. A) they tend to be smaller B) customers are more likely private companies C) they are more.
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  94) What motives do businesses have for entering into collaborative arrangements? What are some of the problems associated with collaborative arrangements? 95) What is the difference between licensing and cross-licensing? What factors do firms need to consider before entering into licensing agreements?     .
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  1) Which of the following refers to the sale of goods or services produced by a company based in one country to customers that reside in a different country? A) importing B) countertrading C) exporting D) freight forwarding 2) Small and medium-size enterprises, such as SpinCent, account for ________ of all U.S. exporters. A) 38% B) 54% C).
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  41) Which of the following is a difference between export management companies (EMCs) and export trading companies (ETCs)? A) ETCs deal with both exports and imports, while EMCs deal only with exports. B) ETCs are subject to antitrust laws, while EMCs are not. C) ETCs typically carry inventory, while EMCs typically do not. D).
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  61) Current approaches to designing an organization see the task of building knowledge-generating and decision-making relationships as less important than specifying the best structural arrangement. 62) New configurations of value activities create coordination and control challenges that cannot be addressed by the functionality outlined in a formal structure. 63) A firm's vertical.
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  11) A company that makes a foreign investment largely to acquire knowledge is most likely to use ________ as a means of expansion. A) a greenfield investment B) internalization C) an acquisition D) a licensing agreement 12) Executives at Perry Electronics are debating whether to start a new operation in Russia or acquire an existing.
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  81) The foreign freight forwarder is the largest export intermediary in terms of value and weight of products managed. 82) Countertrade refers to any one of several different arrangements that parties negotiate so that they can trade goods and services with limited or no use of currency. 83) Countertrade is an efficient.
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  51) Martin Manufacturing is an MNE that uses centralized authority to implement an extensive set of rules and procedures to govern a broad range of activities. Martin Manufacturing is most likely applying a system of ________. A) market control B) adjustment control C) bureaucratic control D) clan control 52) Grover Enterprises is an MNE that.
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  71) Advocates of exporting e-waste assert that the activity helps entrepreneurs in developing countries create value by recovering and recycling scarce resources such as copper. 72) One advantage of importing is that an importer can diversify its operating risks by developing alternative suppliers. 73) An arbitrageur is an exporter that seeks to.
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  31) A driving factor for the growth in imports is the impact of ________. A) government programs B) labor specialization C) consumer preferences D) social trends 32) A broker or other import consultant can help an importer minimize import duties by ________. A) qualifying for duty charges through drawback provisions B) incurring duties by using bonded warehouses.
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  21) What is a key industry? A) an industry that is locked up competitively by domestic producers B) a turnkey operator specializing in the construction of infrastructure components C) an industry supported through strategic trade policy as part of an export-led development strategy D) an industry that significantly affects the economy by virtue of.
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  61) The opportunity to increase profitability is the primary reason that firms decide to export. 62) A company classified as a small and medium-sized enterprise (SME) has fewer than 500 employees. 63) Ownership advantages refer to a firm's specific assets, international experience, and the ability to develop either low-cost or highly differentiated.
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  51) Assume Company A receives a proposal from Company B to be a joint venture partner abroad. Company A is most likely to make its decision based on ________. A) an opportunity-risk matrix B) a go-no-go basis C) a global matrix comparison D) an oligopolistic reaction 52) Which of the following is a reason that.
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  51) When a company's primary motive for entering a collaborative arrangement is to learn from its partner, it is likely to ________. A) leave control to its partner B) "go it alone" after it has learned what it needs to know C) have disagreements with the partner over quality issues D) prefer the arrangement.
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  61) Exporting is usually more feasible when transportation costs are large rather than small in relation to production costs. 62) Appropriability theory describes a firm's desire to deny rivals access to competitive resources. 63) A company's ability to pursue a global strategy is inhibited when it has wholly owned operations abroad. 64) Foreign.
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  31) When a company wants to be compensated in a foreign subsidiary beyond its contribution in capital and managerial resources, it often ________. A) licenses intangible property to its subsidiary B) negotiates a special agreement with the host government C) establishes a management contract D) sets up an equity alliance 32) Judson Baked Goods, a.
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  31) IBM puts investments, people, and work anywhere in the world based on the best mix of costs, skills, and environment and uses sophisticated strategies and technologies to support and coordinate activities. IBM most likely uses a ________ structure. A) classical B) product C) neoclassical D) locational 32) Neoclassical structures aim to support organizations ________. A).
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  1) At Johnson & Johnson, decision-making power is distributed among departments and divisions, which provides managers with a sense of ownership and control at the company. Johnson & Johnson is best described as a(n) ________ organization. A) vertical B) centralized C) horizontal D) decentralized 2) At Johnson & Johnson, organizational culture is embodied by the.
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  51) Jordan Jewelry is a U.S. firm that designs, manufactures, and sells inexpensive jewelry and accessories. Executives at the firm believe that Jordan Jewelry could significantly increase its profitability by exporting products to foreign markets. Before engaging in international trade, Jordan executives need to develop an export plan. Which of.
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  71) Companies are usually willing to accept a lower rate of return on their investments in countries where they can more easily sell those investments and convert the proceeds at a favorable rate. 72) Losses to companies from natural disasters are much less risky than losses from operating in violent areas. 73).
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  91) What is the relationship between a company's international market and its production location decisions? How do firms benefit from the use of scanning techniques when making location decisions? 92) What is scanning? What opportunities and risks are most relevant to scanning?     .
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  21) The perspective of ________ holds that as a company gains experience, resources, and confidence, it progressively increases its exports. A) serendipity B) export management C) the born-global theory D) incremental internalization 22) Which of the following best describes the concept of serendipity in exporting? A) modifying products to meet cultural preferences B) initiating global sales through.
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  61) Because many regional trading groups prohibit companies from producing in more than one member country, companies need to understand how to evaluate international geographic alternatives. 62) Committing resources to one country usually means forgoing or delaying projects in others. 63) When planning international geographic expansion, decision makers use scanning to reduce.
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  71) The dependencia theory holds that the terms for a foreign investor's operations depend on how much the investor and the host country need each other's assets. 72) A licensing agreement is a contract for the granting of rights on tangible property. 73) Patents, copyrights, trademarks, and systems are all examples of.
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  41) The temporary arrangement of independent companies, suppliers, and free agents for the purpose of completing a task or project is best known as a(n) ________ organization. A) virtual B) independent C) decentralized D) international 42) Some MNEs that have tried contemporary structures have run into problems, most notably ________. A) frequent managerial intervention in decision.
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  11) ________ is the matter of how the company balances centralization versus decentralization of decision making, whereas ________ is the matter of how the company opts to divide itself into specific units to do specific jobs. A) Horizontal differentiation; vertical differentiation B) Vertical differentiation; systemic differentiation C) Schematic differentiation; schematic differentiation D) Vertical differentiation;.
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  21) In which of the following situations would a company most likely benefit from using the international division structure? A) when the company's different foreign markets pose significantly different opportunities and threats B) when the company relies on local managers in foreign operations to make strategic decisions C) when the domestic market is.
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  11) Which of the following is usually NOT a factor that triggers companies to look to exports to boost total sales? A) maturity of the domestic market B) potential to leverage core competencies in foreign markets C) economic development needs in underdeveloped markets D) response to the market entry of a foreign rival 12) The.
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  81) In a concentration strategy for international expansion, a company goes first to one or a few countries and builds up fast there before going to other countries. 82) The more a company needs to alter its products and ways of doing business to be successful abroad, the more it should.
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