Research suggest that over _____ of joint ventures are disbanded or fall short of expectations.
A) 10
B) 20
C) 30
D) 40
E) 50
Question 2Successful global companies achieve unified action by:
A) establishing strategies that are independent across countries.
B) developing accounting systems that are country specific.
C) encouraging personal relationships and the transfer of learning among subsidiary managers across locations.
D) all of the answer choices
Question 3The home base for a business is the location where:
A) strategy is set.
B) core product and process technology is created and maintained.
C) a critical mass of sophisticated production and service activities reside.
D) all of the answer choices
E) both strategy is set and a critical mass of sophisticated production and service activities reside.
Question 4An advantages of joint ventures is:
A) they include the only path of entry into many foreign markets.
B) they open up market opportunities that neither partner to the venture could purse alone.
C) they transfer knowledge to the partner.
D) all of the answer choices.
E) both they include the only path of entry into many foreign markets and they open up market opportunities that neither partner to the venture could purse alone.
Question 5Potential partners for a global alliance are evaluated based on:
A) resources.
B) relationships.
C) culture.
D) all of the answer choices.
E) both resources and relationships.
Question 6As an entry strategy, licensing requires:
A) capital investment.
B) marketing strength in foreign markets.
C) a company to have less control over a licensee than over its own exporting or manufacturing abroad.
D) all of the answer choices.
E) both marketing strength in foreign markets and a company to have less control over a licensee than over its own exporting or manufacturing abroad.
Question 7Which of the following modes of international market entry provides for greater potential returns and a greater degree of control over operations?
A) licensing
B) wholly-owned subsidiaries
C) contract manufacturing
D) exporting
E) franchising
Question 8In entering high-risk country-markets, firms can reduce their risk exposure by adopting low-commitment modes of entry such as:
A) licensing.
B) wholly-owned subsidiaries.
C) contract manufacturing.
D) all of the answer choices.
E) both licensing and contract manufacturing.
Question 9The choice of a particular international market entry mode depends on a range of factors including the size of the market and its growth potential. Markets of limited size surrounded by trade barriers may be supplied most cost effectively via:
A) licensing or contract manufacturing.
B) a local production and marketing subsidiary.
C) exporting.
D) selective distribution.
E) none of the answer choices.