PepsiCo leads Coca-Cola in the Indian market. Why?
A. PepsiCo entered the market before Coca-Cola.
B. PepsiCo formed a joint venture with...
_________ are most appropriate when a firm already has the appropriate knowledge and capabilities that it can leverage rather easily through multiple locations in many countries.
_________ are most appropriate when a firm already has the appropriate knowledge and capabilities that it can leverage rather easily through multiple...
A __________ is a business in which a multinational company owns 100 percent of the stock.
A __________ is a business in which a multinational company owns 100 percent of the stock.
A. joint venture
B. strategic alliance
C. wholly...
________ entail the creation of a third-party legal entity, whereas __________ do not.
________ entail the creation of a third-party legal entity, whereas __________ do not.
A. Licensing agreements; joint ventures
B. Joint ventures;...
The difference between a franchise contract and a licensing contract is that ___________.
The difference between a franchise contract and a licensing contract is that ___________.
A. a franchise contract is more specific and usually...
Fees that a multinational receives from a foreign licensee in return for its use of intellectual property (trademark, patent, trade secret, technology) are usually called _____________.
Fees that a multinational receives from a foreign licensee in return for its use of intellectual property (trademark, patent, trade secret, technology)...
The form of entry strategy into international operations that offers the lowest level of control for the domestic corporation would be _________.
The form of entry strategy into international operations that offers the lowest level of control for the domestic corporation would be _________.
A....
A domestic corporation considering international expansion for the first time typically will follow which of these paths?
A domestic corporation considering international expansion for the first time typically will follow which of these paths?
A. It will start...
Which of the following describes the most typical order of entry into foreign markets?
Which of the following describes the most typical order of entry into foreign markets?
A. franchising, licensing, exporting, joint venture,...
Which one of the following explains why so few firms are global?
Which one of the following explains why so few firms are global?
A. Culture, language, and religion are similar between countries.
B. Legal...
Which of the following is a reason for the rise in regional expansion?
Which of the following is a reason for the rise in regional expansion?
A. increase in the number of trading blocs and free trade zones
B....
In order to realize the strongest competitive advantage, firms engaged in worldwide competition must ___________.
In order to realize the strongest competitive advantage, firms engaged in worldwide competition must ___________.
A. require that all of their...
Which of the following is a disadvantage of a transnational strategy?
Which of the following is a disadvantage of a transnational strategy?
A. less ability to realize cost savings through scale economies
B. limited...
Units coordinate their activities with headquarters and with one another. Units adapt to special circumstances only they face. The entire organization draws upon relevant corporate resources. These are all attributes of which type of strategy?
Units coordinate their activities with headquarters and with one another. Units adapt to special circumstances only they face. The entire organization...
High pressure for local adaptation combined with high pressure for lower costs would suggest what type of international strategy?
High pressure for local adaptation combined with high pressure for lower costs would suggest what type of international strategy?
A. global...
Which of the following is not a limitation of a multidomestic strategy?
Which of the following is not a limitation of a multidomestic strategy?
A. less ability to realize cost savings through scale economies
B....
Elements of a multidomestic strategy may facilitate the competitive advantage of cost leadership by __________.
Elements of a multidomestic strategy may facilitate the competitive advantage of cost leadership by __________.
A. flexibility in adjusting...
Which one of the following is not a limitation of a global strategy?
Which one of the following is not a limitation of a global strategy?
A. limited ability to adapt to local markets
B. the ability to locate...
Which of the following is not a risk associated with a global strategy?
Which of the following is not a risk associated with a global strategy?
A. A firm with only one manufacturing location must export its product,...
As in the case of Siebel Systems (now part of Oracle), elements of a global strategy may facilitate the competitive advantage of differentiation by _______.
As in the case of Siebel Systems (now part of Oracle), elements of a global strategy may facilitate the competitive advantage of differentiation by...
Firms following a global strategy strive to offer __________ products and services as well as locate manufacturing, Research and Development, and marketing activities in a limited number of locations.
Firms following a global strategy strive to offer __________ products and services as well as locate manufacturing, Research and Development, and marketing...
Recent trends that might lead managers of multinational corporations (MNCs) to adopt a more decentralized strategy for their operations would include all of the following EXCEPT ______.
Recent trends that might lead managers of multinational corporations (MNCs) to adopt a more decentralized strategy for their operations would include...
Which of the following types of international firms are most likely to benefit from a global strategy as opposed to a multidomestic strategy?
Which of the following types of international firms are most likely to benefit from a global strategy as opposed to a multidomestic strategy?
A....
Industries in which proportionally more value is added in __________ activities are more likely to benefit from a global strategy.
Industries in which proportionally more value is added in __________ activities are more likely to benefit from a global strategy.
A. downstream
B....
Software Tech, Inc., a company in the computer software industry, invests heavily in Research and Development, and product design. Thus, most of its value is added ________.
Software Tech, Inc., a company in the computer software industry, invests heavily in Research and Development, and product design. Thus, most of its...
High pressure for local adaptation combined with low pressure for lower costs would suggest what type of international strategy?
High pressure for local adaptation combined with low pressure for lower costs would suggest what type of international strategy?
A. global...
Which would be the appropriate strategy for companies to use to compete in the global marketplace if the marketplace pressure is for lower costs with little pressure for local adaptation?
Which would be the appropriate strategy for companies to use to compete in the global marketplace if the marketplace pressure is for lower costs with...
When firms expand into global markets, they are faced with the choice of reducing costs and/or adapting to the local market. When high pressures exist to adapt locally, companies should choose a __________ or __________ in order to compete in the global marketplace.
When firms expand into global markets, they are faced with the choice of reducing costs and/or adapting to the local market. When high pressures exist...
When firms expand into global markets, they are faced with the choice of reducing costs and/or adapting to the local market. When high pressures exist to lower costs, companies should choose a __________ or __________ in order to compete in the global marketplace.
When firms expand into global markets, they are faced with the choice of reducing costs and/or adapting to the local market. When high pressures exist...
Which one of the following is one of the Theodore Levitt assumptions supporting a pure global strategy?
Which one of the following is one of the Theodore Levitt assumptions supporting a pure global strategy?
A. Consumers are willing to pay more...
In considering the decision to offshore, which of the following generally is not one of the hidden costs?
In considering the decision to offshore, which of the following generally is not one of the hidden costs?
A. Total wage costs and indirect...
_______ occurs when a firm decides to utilize other firms to perform value-creating activities that were previously performed in-house.
_______ occurs when a firm decides to utilize other firms to perform value-creating activities that were previously performed in-house.
A....
If the U.S. dollar appreciates relative to foreign currency, what is likely to be the result for the U.S. company that has company branches abroad?
If the U.S. dollar appreciates relative to foreign currency, what is likely to be the result for the U.S. company that has company branches abroad?
A....
The sale of Boeing commercial aircraft and Microsoft operating systems in many countries enables these companies to benefit from ____________.
The sale of Boeing commercial aircraft and Microsoft operating systems in many countries enables these companies to benefit from ____________.
A....
If a company is considering optimizing the physical location for every activity in the value chain, which of the following is not a possible strategic advantage for that decision?
If a company is considering optimizing the physical location for every activity in the value chain, which of the following is not a possible strategic...
Which of the following is not a motivation for a company to pursue international expansion?
Which of the following is not a motivation for a company to pursue international expansion?
A. It wishes to increase the size of the potential...
Which of the factors below has not made the software services industry in India extremely competitive on a global scale?
Which of the factors below has not made the software services industry in India extremely competitive on a global scale?
A. large pool of skilled...
According to Michael Porter, firms that have experienced intense domestic competition are ________.
According to Michael Porter, firms that have experienced intense domestic competition are ________.
A. unlikely to have the time or resources...
Rivalry is intense in nations with conditions of __________ consumer demand, __________ supplier bases, and __________ new entrant potential from related industries.
Rivalry is intense in nations with conditions of __________ consumer demand, __________ supplier bases, and __________ new entrant potential from related...
In the Porter Diamond of National Advantage framework which of the following factors does not affect nation competitiveness?
In the Porter Diamond of National Advantage framework which of the following factors does not affect nation competitiveness?
A. The position...
Multinational firms are constantly faced with the dilemma of choosing between _______ and __________.
Multinational firms are constantly faced with the dilemma of choosing between _______ and __________.
A. local adaptation; global integration
B....
Which of the following is not a risk normally associated with Bottom of the Pyramid strategies?
Which of the following is not a risk normally associated with Bottom of the Pyramid strategies?
A. A low-end version of a brand may detract...
Antitakeover tactics include all of the following EXCEPT _________.
Antitakeover tactics include all of the following EXCEPT _________.
A. greenmail
B. poison pills
C. golden parachutes
D. golden handcuffs
Answer:...
The term golden parachute refers to _________.
The term golden parachute refers to _________.
A. a clause requiring that huge dividend payments be made upon takeover
B. pay given to executives...
An antitakeover tactic in which existing shareholders have the option to buy additional shares of stock at a discount to the current market price is called ______.
An antitakeover tactic in which existing shareholders have the option to buy additional shares of stock at a discount to the current market price is...
The antitakeover tactic, _______, is when a firm offers to buy shares of their stock from a company (or individual) planning to acquire their firm at a higher price than the unfriendly company paid for it.
The antitakeover tactic, _______, is when a firm offers to buy shares of their stock from a company (or individual) planning to acquire their firm at...
According to Michael Porter, there is a tremendous allure to _________. It is the big play, the dramatic gesture. With one stroke of the pen you can add billions to size, get a front-page story, and create excitement in markets.
According to Michael Porter, there is a tremendous allure to _________. It is the big play, the dramatic gesture. With one stroke of the pen you can...
Internal development may be time consuming and, therefore, firms may forfeit the benefits of speed that growth through __________ and __________ can provide.
Internal development may be time consuming and, therefore, firms may forfeit the benefits of speed that growth through __________ and __________ can...
Which of the following statements regarding internal development as a means of diversification is FALSE?
Which of the following statements regarding internal development as a means of diversification is FALSE?
A. Many companies use internal development...
Which of the following is not part of a good guideline list for managing strategic alliances?
Which of the following is not part of a good guideline list for managing strategic alliances?
A. establishing a clear understanding between...
Cooperative relationships such as __________ have potential advantages such as entering new markets, reducing manufacturing (or other) costs in the value chain, and developing and diffusing new technologies.
Cooperative relationships such as __________ have potential advantages such as entering new markets, reducing manufacturing (or other) costs in the...
Verizon Wireless and ILS Technology have a _________ whereby Verizon integrates technology developed by ILS to improve its machine-to machine (M2M) data transmission systems. M2M systems allow firms to securely transmit data to and from various devices.
Verizon Wireless and ILS Technology have a _________ whereby Verizon integrates technology developed by ILS to improve its machine-to machine (M2M)...
Divesting of businesses can accomplish many different objectives, except _______.
Divesting of businesses can accomplish many different objectives, except _______.
A. enabling managers to focus their efforts more directly...
The downsides or limitations of mergers and acquisitions include all of the following EXCEPT:
The downsides or limitations of mergers and acquisitions include all of the following EXCEPT:
A. Premiums that are frequently paid to acquire...
The primary means by which a firm can diversify are __________, _________, and ________.
The primary means by which a firm can diversify are __________, _________, and ________.
A. mergers and acquisitions; differentiation; overall...
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