A __________ is a business in which a multinational company owns 100 percent of the stock.
A. joint venture
B. strategic alliance
C. wholly owned subsidiary
D. franchising operation
Answer: C
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MGMT 449 Chapter 7
- PepsiCo leads Coca-Cola in the Indian market. Why?
- _________ 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.
- ________ entail the creation of a third-party legal entity, whereas __________ do not.
- The difference between a franchise contract and a licensing contract is that ___________.
- 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 _____________.
- The form of entry strategy into international operations that offers the lowest level of control for the domestic corporation would be _________.
- A domestic corporation considering international expansion for the first time typically will follow which of these paths?
- Which of the following describes the most typical order of entry into foreign markets?
- Which one of the following explains why so few firms are global?
- Which of the following is a reason for the rise in regional expansion?
- In order to realize the strongest competitive advantage, firms engaged in worldwide competition must ___________.
- Which of the following is a disadvantage of a transnational strategy?
- 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?
- High pressure for local adaptation combined with high pressure for lower costs would suggest what type of international strategy?
- Which of the following is not a limitation of a multidomestic strategy?
- Elements of a multidomestic strategy may facilitate the competitive advantage of cost leadership by __________.
- Which one of the following is not a limitation of a global strategy?
- Which of the following is not a risk associated with a global strategy?
- 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.
- 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 ______.
- Which of the following types of international firms are most likely to benefit from a global strategy as opposed to a multidomestic strategy?
- Industries in which proportionally more value is added in __________ activities are more likely to benefit from a global strategy.
- 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 ________.