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Study Resources (Business Management)

  True / False Questions  1.The choice of which markets to enter should be driven by an assessment of relative long-run growth and profit potential.      2.The attractiveness of a country as a potential market for an international business depends on balancing the benefits, costs, and risks associated with doing business in that country.      3.The.
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  86.Discuss Bartlett and Ghoshal's perspective on how firms from developing countries should approach international expansion.            87.Why should a firm choose exporting as a means of foreign market expansion? Discuss the advantages and disadvantages of exporting.            88.Explain the idea of a turnkey project. Why should a firm use this arrangement to expand internationally?.
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  Essay Questions  83.What are first-mover advantages? Discuss the advantages associated with them.            84.Explain the relationship between first-mover disadvantages and pioneering costs.            85.Discuss the trade-offs associated with large-scale entry versus small-scale entry.                .
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  89.Define licensing agreements. What are the advantages of this mode of international expansion?            90.Why should a firm be cautious about entering a licensing agreement?            91.What is intangible property? How can intangible property be protected in a licensing agreement?                .
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  True / False Questions  1.Organizational structure refers to the totality of a firm's organization.      2.A firm's organizational culture refers to the formal organizational structure of the company, the control systems and incentives in place, and the human resources component.      3.A manager receives a bonus because the national operating subsidiary, that she is in.
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    51.In ____, the contractor agrees to handle every detail of the project for a foreign client, including the training of operating personnel.    A. exporting   B. licensing   C. franchising   D. turnkey projects     52.Turnkey projects are most common in which of the following industries?    A. fresh fruit, grain, and meat products   B. chemical, pharmaceutical, and metal refining   C. consumer durables, computer peripherals, and automotive parts   D. apparel, shoes, and.
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    21.The bill of lading is a product guarantee issued by the exporter to the importer.      22.A bill of lading serves as a receipt, a contract, and a document of title.      23.The bill of lading does not serve as a document of title as such.      24.The bill of lading can function as collateral against.
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    31.The Foreign Credit Insurance Association does not provide coverage against political risks faced by exporters.      32.Countertrade is an alternative means of structuring an international sale when conventional means of payment are difficult, costly, or nonexistent.      33.Countertrade denotes a whole range of agreements that involve financial exchanges.      34.In the modern era, the concept of.
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    11.Small-scale entry allows a firm to learn about a foreign market while limiting the firm's exposure to that market.      12.Exporting is advantageous because it avoids the cost of establishing manufacturing operations in the host country and because it may help a firm achieve experience curve and location economies.      13.Exporting is most appropriate.
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    71.In a typical international trade transaction, the ____.    A. exporter should obtain a letter of credit to initiate transactions   B. importer and exporter maintain an account with the same bank   C. importer's bank sends a letter of credit to the exporter's bank   D. importer's bank sends the draft and bill of lading to the exporter's bank     72.The Export-Import Bank.
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    21.The need for coordination is high in firms trying to profit from location and experience curve economies.      22.Direct contact between subunit managers is the simplest integrating mechanism.      23.In a matrix structure all roles are viewed as integrating roles.      24.A knowledge network is a network for transmitting information within an organization that is based.
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    61.Which of the following statements is true about a product divisional structure?    A. In a product divisional structure, the responsibility for the financial control of the firm is typically decentralized.   B. A product divisional structure tends to be organized on geography.   C. In a product divisional structure, each product division is set up as a self-contained,.
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    71.The need for coordination between subunits is lowest in firms pursuing a(n):    A. localization strategy.   B. international strategy.   C. global strategy.   D. transnational strategy.     72.The need for coordination between subunits is highest in firms pursuing a(n):    A. localization strategy.   B. international strategy.   C. global strategy.   D. transnational strategy.     73._____ refers to giving a person in each subunit responsibility for coordinating with another subunit on a regular basis.    A. Global learning   B. Liaison.
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  88.Describe the information sources that are available to American companies to learn about export opportunities?            89.What is an export management company? What are its advantages and disadvantages?            90.Explain 3M's main export principles that have made the company's exporting business so successful.                .
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  92.What type of firms favor the worldwide area structure and why? What are the disadvantages of this type of structure?            93.Discuss the type of firm that uses the worldwide product division structure.            94.What are the main strengths and weaknesses of the worldwide product division structure?            95.Discuss the global matrix structure.                .
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  True / False Questions  1.Proactive firms do not consider exporting until their domestic market is saturated.      2.Poor understanding of competitive conditions in the foreign market is a common problem facing exporters.      3.Exporters often face voluminous paperwork and complex formalities.      4.Japan's great trading houses are called Samurai houses.      5.The U.S. Department of Commerce organizes trade events.
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  92.What is a core competence? Why is it essential to the success of the firm?            93.Explain the concept of location economies.            94.Discuss the creation of a global web of value creation activities.            95.What is an experience curve?            96.What are learning effects? When are learning effects most significant?                .
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  104.Discuss the advantage of establishing a greenfield venture in a foreign country.            105.Discuss some of the disadvantages of establishing greenfield venture in a foreign country.            106.Discuss strategic alliances. How successful are they? Why do firms form strategic alliances?                .
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  97.How can a firm protect its proprietary information in a joint venture arrangement?            98.What are the two methods of entering foreign marketing using a wholly owned subsidiary?            99.Consider why a firm should enter a market via a wholly owned subsidiary. What are the advantages and disadvantages of this type of strategy?                .
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  91.Explain the problem of trust that persists in international business.            92.Describe the process involved in financing imports and exports using a letter of credit. Why has this system developed? What is the advantage of using this system?            93.Compare and contrast time drafts and sight drafts.                .
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    11.Beyond the initial functional division of the organization, further horizontal differentiation may be required if the firm significantly diversifies its product offering, which takes the firm into different business areas.      12.Regardless of a firm's domestic structure, its international division tends to be organized on economy.      13.The worldwide area structure tends to be.
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    61._____ is pursued primarily by manufacturing firms and _____ is employed primarily by service firms.    A. Licensing; franchising   B. Franchising; licensing   C. Franchising; exporting   D. Exporting; licensing     62.If a service firm wants to build a global presence quickly and at a relatively low cost and risk, it must employ ____.    A. chartering   B. exporting   C. a turnkey strategy   D. franchising     63.Which of the following statements about franchising is.
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    31.The main advantage of greenfield investment is that it gives the firm a much greater ability to build the kind of subsidiary company that it wants.      32.Greenfield ventures are less risky than acquisitions in the sense that there is less potential for unpleasant surprises.      33.If a firm is trying to enter a.
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  88.Discuss efficiency frontier. How does strategic positioning relate to the efficiency frontier?            89.Consider the firm in terms of a value chain. What is the difference between primary activities and support activities? Provide examples of each.            90.How can the marketing and sales functions of a firm create value?            91.Describe the benefits of global expansion.
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    41.A buyback occurs when a direct exchange of goods or services occur between two parties without a cash transaction.      42.Countertrade's main attraction is that it can give a firm a way to finance an export deal when there are no other means available.      43.Countertrade is least attractive to large, diverse multinational enterprises.        Multiple.
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    41.Other things being equal, the benefit-cost-risk trade-off is likely to be most favorable in:    A. politically unstable developing nations that operate with a mixed or command economy.   B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt.   C. politically stable developed and developing nations that have free market systems.   D. developing nations where.
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    71.If a firm's core competency is based on control over proprietary technological know-how, _____ and _____ arrangements should be avoided if possible to minimize the risk of losing control over that technology.    A. licensing; joint-venture   B. wholly owned subsidiary; exporting   C. turnkey contracts; exporting   D. exporting; joint-venture     72.If a high-tech firm sets up operations in a foreign country to.
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  89.Explain the five reasons why a firm should decentralize its decision-making.            90.Discuss the location of decision-making in a firm that is following a transnational strategy.            91.Describe the situation where an international division makes sense. How common is this structure? What are the disadvantages of the structure?                .
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  100.What is performance ambiguity? Discuss the relationships between strategy, interdependence, and performance ambiguity.            101.Discuss the characteristics of a firm that is pursuing an international strategy.            102.Discuss the sources of inertia in organizations. Is it easy to make organizational changes?                .
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    51.Integration mechanisms are:    A. the formal division of the organization into subunits.   B. the mechanisms that enable each subunit to operate independently.   C. the mechanisms for coordinating subunits.   D. the location of decision making responsibilities within a structure.     52.Which of the following is an argument favoring centralization?    A. It permits greater flexibility.   B. Motivational research favors it.   C. It can avoid the duplication of activities.   D. It.
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    61.In an international transaction involving bank as a third party, the exporter ships the product after ____.    A. the bank receives materials from the importer   B. receiving cleared payment through bank   C. the importer has paid the bank   D. the bank promises to pay on the importer's behalf     62.Which of the following is a major advantage of using a.
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  Essay Questions  84.What is strategy? How does strategy relate to a firm's profitability?            85.What is the difference between profitability and profit growth?            86.How can a firm increase its profitability?            87.Discuss Michael Porter's interpretation of value creation and competitive advantage.                .
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  107.Discuss the three primary characteristics of a good ally.            108.How can a firm increase the probability of selecting a good partner?            109.Explain the term relational capital and the importance this concept plays in managing an effective business alliance.                  .
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  96.What are the formal integrating mechanisms used to integrate subunits?            97.What is a knowledge network? What is the advantage of such a system?            98.Consider the use of personal controls in international firms. In which type of firm is this control most common?            99.What are output controls?                .
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  92.Compare and contrast licensing agreements and franchising agreements.            93.Briefly explain the advantages and disadvantages of franchising agreements.            94.What is a joint venture? What type of joint venture is most common? Provide an example of a joint venture.            95.Discuss the advantages of using a joint venture to enter foreign markets.            96.Imagine that you are meeting.
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    21.The most typical joint venture is a 25/75 venture.      22.An advantage of joint ventures with a local partner is the knowledge of the local environment that the local partner contributes to the venture.      23.A wholly owned subsidiary limits a firm's control over operations in different countries.      24.Firms entering a market via a wholly.
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    11.Firms commonly employ a reputable bank as third party in international transactions.      12.A letter of credit states that an exporter has availed credit from the bank to manufacture goods.      13.Exporters usually issue a letter of credit to importers in international transactions.      14.The bank promises to pay on behalf of the importer when a.
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    51.The efficiency frontier has a convex shape because of:    A. consumer surplus.   B. diminishing returns.   C. profitability.   D. differentiation strategy.     52._____ imply that when a firm already has significant value built into its product offering, increasing value by a relatively small amount requires significant additional costs.    A. Efficiency matrixes   B. Diminishing returns   C. Cost plus curves   D. Strategy convex curves     53.The basic strategy paradigm suggests that to maximize.
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    71.Responding to pressure for _____ requires that a firm differentiate its product offering and marketing strategy from country to country.    A. cost reductions   B. experience effects   C. lowering the costs of value creation   D. being locally responsive     72._____ exists when the tastes and preferences of consumers in different nations are similar if not identical.    A. Universal needs   B. Homogenous needs   C. Basic needs   D. Bundled needs     73.Which of.
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  Essay Questions  85.Explain organizational structure.            86.Discuss the relationship between a firm's control systems and a firm's incentive system. Why is this relationship important?            87.What are the three dimensions of organizational structure?            88.Why should a firm centralize its decision-making?                .
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    61.Lenovo's ThinkPad laptop computers is designed in the United States, the case, keyboard, and hard drive are made in Thailand; the display screen and memory in South Korea; the built-in wireless card in Malaysia; and the microprocessor in the United States. In each case, these components are manufactured and sourced.
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  Essay Questions  85.Why do so many firms take a reactive approach to exporting rather than a proactive approach?            86.What are the typical problems that novice exporters face when trying to export?            87.Compare and contrast the export assistance provided to German and Japanese companies with that given to American companies. Discuss the implications of.
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    41.Incremental change rarely happens in an organization because of those whose power may be threatened by such a change.      42.To unfreeze the established culture of an organization the company must take bold steps such as shaking up the management structure in order to implement change.      43.Refreezing an organization should happen quickly.        Multiple Choice.
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  100.Draw a distinction between firms based on their core competency.            101.For a company whose core competency is management know-how, explain which entry mode would be optimal.            102.Discuss the three advantages of acquiring an enterprise in a target market.            103.Why do acquisitions fail?                .
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  103.What are the basic principles for successful organizational change?            104.Discuss the issues involved in unfreezing an organization.            105.Discuss the issues involved in refreezing an organization.                  .
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  97.How can firms successfully leverage the skills developed at the subsidiary level?            98.What are the two types of competitive pressures that firms competing in the global marketplace face? How do firms respond to these pressures?            99.Explain the concept of universal needs and in which type of industry it is most likely to.
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    31.Firms pursuing a global standardization strategy must cope with a higher level of performance ambiguity, and this raises their costs of control.      32.New processes that might lead to a competitive advantage can be developed anywhere within the organization's global network of operations.      33.Norms are abstract ideas about what a group believes to.
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    51.Which of the following is a nationwide group of international trade attorneys who provide free initial consultations to miniature businesses on export-related matters?    A. ELAN   B. EMC   C. MITI   D. SCORE     52.Through its _____ program, the SBA oversees about 850 volunteers with international trade experience to provide one-on-one counseling to active and new-to-export businesses.    A. matchmaker   B. SCORE   C. ELAN   D. trade fair     53.Which of the following statements.
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  101.Discuss how a firm's marketing strategies may have to address differences in distribution channels in other countries.            102.What are the four basic strategies that firms use to compete in international markets?            103.Describe localization strategy.            104.Consider a transnational strategy. Why would a firm choose this strategic alternative? What are the disadvantages of this strategy?            105.Discuss.
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