Chapter 3 Entry Strategy and Strategic Alliances

1. Which of the following entry modes allow(s) a company to engage in global strategic coordination?

• Exporting

• Licensing

• Wholly owned subsidiaries

• Joint ventures

2. A key to making a strategic alliance work is

• Reducing investment in the alliance to a minimum

• Sharing all knowledge

• Enforcing one culture for both partners

• Having one partner handle daily operations

3. There are the benefits of participating in parallel with international business activities, except:

• Businesses can achieve the economic efficiency of scale

• Businesses can learn from foreign competitors

• Private culture is protected by the law

• The price will lower

4. One of the following is NOT a main external factor affecting the choice for market entry mode:

• Demand uncertainty

• Market size

• Intensity of experience

• Intensity of competition

5. Choosing Acquisition when have these factors:

• Embedded skills, routines, culture; No competitors

• Embedded skills, routines, culture; Competitors interested in entry

• Well-established, incumbent firms; Competitors interested in entry

• Well-established, incumbent firms; No competitors

6. Which is the global strategic alliances means?

• Legally Independent Company

• Working partnerships between companies – across national boundaries or may be between foreign government

• Own different % of the company

• A contractual-relationship

7. Which is the joint venture means?

• Legally Independent Company

• Working partnerships between companies – across national boundaries or may be between foreign government

• Own different % of the company

• A contractual-relationship

8. Which is NOT the entry mode?

• Exporting

• Licensing

• Franchising

• Direct

9. Firms should choose likely countries for an international expansion effort based on all of the following except the:

• Existing wealth of consumers in that market

• Likely future wealth of consumers in that market

• Political stability of that market

• Age of the country

10. A nation's companies gain competitive advantage if their domestic customers are

• Non-demanding purchasers

• Willing to spend money on novelties

• Sophisticated and demanding

• Able to obtain products or services in other countries