Question 1

Management contracts can enable the global partner to control many aspects of a joint venture even when holding only a minority position.

Accepted Answer

A) True 
 B)False

Question 2

Strategic alliances take many forms,including licensing,mergers,joint ventures,and joint research and development partnerships.

Accepted Answer

A) True 
 B)False

Question 3

________ alliances are driven by similarity and integration.

Accepted Answer

A)  strategic
B)  trading
C)  pooling
D)  equity-based
E)  arbitration

Question 4

Strategic alliances are

Accepted Answer

A)  partnerships between competitors,customers,or suppliers that may take various forms.
B)  another name for a growth triangle.
C)  arbitration.
D)  is another name for management contracts.
E)  wholly owned subsidiaries.

Question 5

One benefit of exporting is that it can enable a company to serve markets where the company has no or limited production facilities.

Accepted Answer

A) True 
 B)False

Question 6

Some evidence suggests that pioneers gain and maintain a competitive advantage in new markets.

Accepted Answer

A) True 
 B)False

Question 7

Direct exporting is an excellent means of getting a feel for international business without committing a great amount of human or financial resources.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following are reasons that many firms engage in exporting?

Accepted Answer

A)  Exports can allow the firm to serve markets where it has no or limited production facilities.
B)  Exports can offset cyclical sales in the firm's domestic market.
C)  Exports eliminate the risk of losing the firm's technology to potential competitors.
D)  Exports always ensure that the licensee receives expertise from their own in-house experts.
E)  Exports can allow the firm to serve markets where it has no or limited production facilities and can offset cyclical sales in the firm's domestic market.

Question 9

Sales companies will import in their own name from the parent and will invoice in the currency of the parent company.

Accepted Answer

A) True 
 B)False

Question 10

In a joint venture,a management contract is often used as a control mechanism by firms,even if they hold only a minority position in the venture.

Accepted Answer

A) True 
 B)False

Question 11

In many cases,a firm entering international markets becomes a follower because:

Accepted Answer

A)  barriers are high for new entrants.
B)  strong patent protection exists.
C)  quicker competition beat it.
D)  barriers are low for new entrants.
E)  there is high potential for imitation.

Question 12

When a licensing agreement is made,

Accepted Answer

A)  the licensee receives expertise from another company.
B)  the licensee obtains permission from the government to do business in a foreign country.
C)  the licensor is a foreign government which grants the license.
D)  the licensor pays to receive assistance from the licensee.
E)  the licensee receives expertise from its own company's in-house experts.

Question 13

__________ permits a firm to set up an export program with a minimum of cash outlay and little special expertise.

Accepted Answer

A)  joint venture
B)  direct exporting
C)  franchising
D)  indirect exporting
E)  licensing

Question 14

A joint venture may be:

Accepted Answer

A)  a corporate entity formed between an international firm and local owners.
B)  a corporate entity formed between two or more international firms.
C)  a corporate undertaking between two or more firms of a limited-duration project.
D)  a non-profit entity formed between an international firm and local owners.
E)  corporate entity formed between an international firm and local owners,formed between two or more international firms,or may be an undertaking between two or more firms of a limited-duration project.

Question 15

Turnkey projects export technology,management expertise,and capital equipment.

Accepted Answer

A) True 
 B)False

Question 16

Most of the foreign direct investment in the United States has been spent establishing new companies.

Accepted Answer

A) True 
 B)False

Question 17

One way in which contract manufacturing is used is to subcontract assembly work or the production of parts to subsidiaries overseas.

Accepted Answer

A) True 
 B)False

Question 18

What are the disadvantages of joint ventures?

Accepted Answer

Answers may vary,but might include facto...

Question 19

Most firms begin their involvement in overseas business by:

Accepted Answer

A)  exporting.
B)  licensing.
C)  joint ventures.
D)  wholly owned subsidiaries.
E)  contract ventures

Question 20

Which of the following is true about alliances?

Accepted Answer

A)  Many alliance partners are also competitors.
B)  Alliances are often difficult to manage.
C)  The use of alliances is likely to decline as markets internationalize.
D)  Usually leads to a greenfield investment.
E)  Many alliance partners are also competitors and alliances are also often difficult to manage.

Exam 13: Entry Modes

Which of the following are reasons that many firms engage in exporting?

Correct AnswerverifiedShow Answer

__________ permits a firm to set up an export program with a minimum of cash outlay and little special expertise.

Correct AnswerverifiedShow Answer

Some evidence suggests that pioneers gain and maintain a competitive advantage in new markets.

Correct AnswerverifiedShow Answer

In a joint venture,a management contract is often used as a control mechanism by firms,even if they hold only a minority position in the venture.

Correct AnswerverifiedShow Answer

One way in which contract manufacturing is used is to subcontract assembly work or the production of parts to subsidiaries overseas.

Correct AnswerverifiedShow Answer

Most of the foreign direct investment in the United States has been spent establishing new companies.

Correct AnswerverifiedShow Answer

What are the disadvantages of joint ventures?

Correct AnswerverifiedAnswers may vary,but might include facto...View AnswerShow Answer

Turnkey projects export technology,management expertise,and capital equipment.

Correct AnswerverifiedShow Answer

Strategic alliances take many forms,including licensing,mergers,joint ventures,and joint research and development partnerships.

Correct AnswerverifiedShow Answer

Sales companies will import in their own name from the parent and will invoice in the currency of the parent company.

Correct AnswerverifiedShow Answer

Strategic alliances are

Correct AnswerverifiedShow Answer

Most firms begin their involvement in overseas business by:

Correct AnswerverifiedShow Answer

Management contracts can enable the global partner to control many aspects of a joint venture even when holding only a minority position.

Correct AnswerverifiedShow Answer

In many cases,a firm entering international markets becomes a follower because:

Correct AnswerverifiedShow Answer

When a licensing agreement is made,

Correct AnswerverifiedShow Answer

One benefit of exporting is that it can enable a company to serve markets where the company has no or limited production facilities.

Correct AnswerverifiedShow Answer

Direct exporting is an excellent means of getting a feel for international business without committing a great amount of human or financial resources.

Correct AnswerverifiedShow Answer

A joint venture may be:

Correct AnswerverifiedShow Answer

Which of the following is true about alliances?

Correct AnswerverifiedShow Answer

________ alliances are driven by similarity and integration.

Correct AnswerverifiedShow Answer

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Answers may vary,but might include facto...
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