MGMT 449 Chapter 7
Showing posts with label MGMT 449 Chapter 7. Show all posts
Showing posts with label MGMT 449 Chapter 7. Show all posts

PepsiCo leads Coca-Cola in the Indian market. Why?

PepsiCo leads Coca-Cola in the Indian market. Why? 




A. PepsiCo entered the market before Coca-Cola.

B. PepsiCo formed a joint venture with two Indian companies to introduce its products under their label.

C. Coca-Cola promoted too many products.

D. Coca-Cola created too much direct employment in the beginning of its operation.




Answer: B

_________ 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 locations in many countries. 




A. Joint ventures

B. Strategic alliances

C. Licensing agreements

D. Wholly owned subsidiaries




Answer: D

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 longer in duration

B. a franchise contract must include a foreign government

C. a licensing contract covers more aspects of operations

D. a franchise contract involves less control and less risk


Answer: A

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) are usually called _____________. 




A. transfer prices

B. dividends

C. royalties

D. intra-corporate inflows


Answer: C

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 off by implementing a wholly owned foreign subsidiary in order to maintain standards identical to those at home.

B. It will license or franchise its operations.

C. It will implement a low risk-low control strategy such as exporting.

D. It will form a joint venture with a reputable foreign producer.



Answer: C

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, and wholly owned subsidiary

B. exporting, licensing, franchising, joint venture, and wholly owned subsidiary

C. licensing, exporting, franchising, joint venture, and wholly owned subsidiary

D. exporting, franchising, licensing, joint venture, and wholly owned subsidiary




Answer: B

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 and political systems are similar between countries.

C. Governments are increasing trade restrictions in general.

D. Geographic distance is multiplied by distance in culture, language, religion, and legal and political systems.





Answer: D

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. decrease in the number of trading blocs and free trade zones

C. increasing national trade restrictions

D. increasing local taxes and tariffs





Answer: A

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 various business units follow the same strategy regardless of location

B. ensure that all business units follow a strategy strictly tailored to their respective locations

C. pursue a strategy that combines the uniformity of a global strategy and the specificity of a multidomestic strategy in order to achieve optimal results

D. attempt to use the strategy that was most successful in their home country




Answer: C

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 ability to adapt to local markets

C. unique managerial challenges in fostering knowledge transfer

D. single locations may lead to higher tariffs and transportation costs



Answer: C

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 draws upon relevant corporate resources. These are all attributes of which type of strategy? 




A. global strategy

B. transnational strategy

C. international strategy

D. multidomestic strategy





Answer: B

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. greater difficulty in transferring knowledge across countries

C. single locations may lead to higher tariffs and transportation costs

D. may lead to overadaptation as conditions change



Answer: C

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 to local laws and customs

B. decreased duplication of inventories which are often involved in having multiple plants producing similar products

C. decreased shipping and transportation costs inherent in local production

D. economies of scale gained through centralized production of standardized products




Answer: C

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 activities in optimal locations

C. the concentration of activities may increase dependence on a single facility

D. single locations may lead to higher tariffs and transportation costs



Answer: B

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, sometimes at great distance from the operation.

B. The geographic concentration of any activity may also tend to isolate that activity from the targeted markets.

C. Concentrating an activity in a single location makes the rest of the firm dependent on that location.

D. The pressures for local adaptation may elevate the cost structure of the firm.



Answer: D

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 _______. 




A. increased freedom of individual business units to adapt to local tastes

B. the creation of a worldwide network to achieve consistent service regardless of location

C. flexibility in applying Research and Development to meet country-specific needs

D. tailoring products to meet country-specific needs



Answer: B
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