Level of Involvement in Trade

The pressure for global integration for company global strategy below are true, except:

• Global strategic coordination

• Universal needs

• Pressure to reduce costs

• Economic demands

The pressure for global integration for company local strategy below are true, except:

• Preferences differ significantly

• Consumer tastes

• Pressure to reduce costs

• Economic and political demands

There are disadvantages of choosing Multinational Model in global strategy, which are:

• Difficult to launch coordinated global attacks against competitors

• Higher manufacturing costs

• Duplication of effort

• All answers are true

There are disadvantages of choosing Transnational Model in global strategy, except:

• Cannot realize scale economies

• Requires elaborate formal mechanisms to achieve appropriate communications

• Requires transfers of managers among subsidiaries

• Headquarters must play a proactive role in coordinating activities

Companies first entry for global expansions are as exporters, which are advantages for exporting?

• Manufacturing costs in home country may exceed those in higher-cost locations

• Consistent with pure global strategy

• Tariff barriers

• Low transportations costs

Below are the obligation of Franchisor, except:

• Following procedures

• Management training

• Financial Help

• Low transportations costs

Below are the obligation of Franchisee, except:

• Maintaining business relationships

• Meeting quality standards

• Wholesale prices on purchase

• Making minimum investment

Joint venture have many advantages, except:

• Shared ownership

• Local partner’s knowledge of local business condition

• Sharing of development costs and risks

• Local laws may make this the only feasible entry mode

Disadvantages for wholly owned subsidiaries are:

• Maintain control

• Retain tight control over foreign operations

• High risk

• All answer are true

Strategic in which two or more organizations collaborate on a project for mutual gain are definition of:

• Joint venture

• Mergers

• Acquisitions

• Strategic Alliances