Market Strategic Alliance Trivia Questions

200 Questions | Total Attempts: 418

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Market Quizzes & Trivia

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Questions and Answers
  • 1. 
    Strong pressures for local responsiveness emerge when customer tastes and preferences
    • A. 

      Differ significantly between countries.

    • B. 

      Differ slightly between countries.

    • C. 

      Are universally alike.

    • D. 

      Are cyclical in nature.

    • E. 

      None of the above.

  • 2. 
    Which of the following entry modes allow(s) a company to engage in global strategic coordination?
    • A. 

      Exporting

    • B. 

      Licensing

    • C. 

      Joint ventures

    • D. 

      Wholly owned subsidiaries

    • E. 

      Joint ventures and wholly owned subsidiaries

  • 3. 
    A key to making a strategic alliance work is
    • A. 

      Having one partner handle daily operations.

    • B. 

      Selecting the right partner.

    • C. 

      Sharing all knowledge.

    • D. 

      Enforcing one culture for both partners.

    • E. 

      Reducing investment in the alliance to a minimum.

  • 4. 
    Which of the following is not a risk of exporting?
    • A. 

      Tariff barriers

    • B. 

      Transportation costs

    • C. 

      Location diseconomies

    • D. 

      Prime interest rates

    • E. 

      Delegation of marketing activities to a local agent

  • 5. 
    In which of the following circumstances does a localization strategy make the most sense?
    • A. 

      Global market standardization is not possible, and there are no significant economies of scale to be realized from centralizing global manufacturing.

    • B. 

      Global market standardization is possible, but there are no significant economies of scale to be realized from centralizing global manufacturing.

    • C. 

      Global market standardization is not possible, but there are significant economies of scale to be realized from centralizing global manufacturing.

    • D. 

      Global market standardization is possible, and there are significant economies of scale to be realized from centralizing global manufacturing.

    • E. 

      Consumer tastes and preferences differ among national markets, and economies of scale are substantial.

  • 6. 
    Global economies of scale can be realized by
    • A. 

      Expansion of overseas sales.

    • B. 

      Better utilization of production facilities.

    • C. 

      Boosting bargaining power with suppliers.

    • D. 

      Increasing cost savings through learning effects.

    • E. 

      All of the above.

  • 7. 
    Which of the following companies increased company growth rates by developing products at home and then expanding sales of these products in international markets?
    • A. 

      Procter & Gamble

    • B. 

      Ford

    • C. 

      Toyota

    • D. 

      All of the above

    • E. 

      None of the above

  • 8. 
    Firms should choose likely countries for an international expansion effort based on all of the followingexcept the
    • A. 

      Size of the market.

    • B. 

      Existing wealth of consumers in that market.

    • C. 

      Likely future wealth of consumers in that market.

    • D. 

      Political stability of that market.

    • E. 

      Age of the country.

  • 9. 
    Global expansion
    • A. 

      Is feasible only for large companies.

    • B. 

      Can enable companies to increase their profitability and grow their profits more rapidly.

    • C. 

      Allows domestic companies in the mature stage of the industry life cycle to maintain profits but not to increase them.

    • D. 

      Requires locating facilities in foreign countries.

    • E. 

      Makes sense for manufacturing firms but not for service firms.

  • 10. 
    Foreign subsidiaries play a major role in shaping the future direction of a company pursuing a(n)
    • A. 

      Transnational strategy.

    • B. 

      International strategy.

    • C. 

      Localization strategy.

    • D. 

      Joint venture.

    • E. 

      Global standardization strategy.

  • 11. 
    A company that enters a foreign market by entering into a licensing agreement with a local company
    • A. 

      Can realize location economies.

    • B. 

      Can engage in global strategic coordination.

    • C. 

      Can realize experience-curve effects.

    • D. 

      Can realize experience-curve effects. risks losing control over its technology to the venture partner. risks losing control over its technology to the venture partner.

    • E. 

      Can engage in global strategic coordination and realize experience-curve effects.

  • 12. 
    What are the risks associated with licensing as a means of entering overseas markets?
    • A. 

      Licensing limits a company's ability to coordinate strategic moves across countries.

    • B. 

      A company may lose control of its technology.

    • C. 

      A company may lose control over its manufacturing, marketing, and strategic functions.

    • D. 

      All of the above.

    • E. 

      None of the above.

  • 13. 
    A nation's companies gain competitive advantage if their domestic customers are
    • A. 

      Nondemanding purchasers.

    • B. 

      Able to obtain products or services in other countries.

    • C. 

      Sophisticated and demanding.

    • D. 

      Willing to spend money on novelties.

    • E. 

      Not willing to accept low-priced products.

  • 14. 
    Which of the following has occurred in international trade over the past half-century?
    • A. 

      There has been a dramatic lowering of barriers to international trade.

    • B. 

      Tariff rates on manufactured goods traded by advanced nations have fallen.

    • C. 

      Regulations prohibiting foreign companies from entering domestic markets and establishing production facilities have been removed.

    • D. 

      The volume of world trade has increased dramatically.

    • E. 

      All of the above.

  • 15. 
    Most manufacturing companies begin their global expansion by
    • A. 

      Licensing.

    • B. 

      Franchising.

    • C. 

      Exporting.

    • D. 

      Forming a joint venture.

    • E. 

      Setting up a wholly owned subsidiary in the host country.

  • 16. 
    Which of the following factors increases pressures for cost reductions?
    • A. 

      Differences in distribution channels

    • B. 

      Increasing national wealth

    • C. 

      Great transportation needs

    • D. 

      High switching costs

    • E. 

      Price as the main competitive weapon in a market

  • 17. 
    Attaining a credible commitment from a potential partner
    • A. 

      Is a step in partner selection.

    • B. 

      Requires the ability to share skills with partners.

    • C. 

      Requires the ability to learn from alliance partners.

    • D. 

      Is a way to minimize opportunism.

    • E. 

      Requires the ability to share skills with and learn from alliance partners.

  • 18. 
    Cost reduction pressures can be particularly intense in industries producing
    • A. 

      Commodity-type products.

    • B. 

      Highly differential products.

    • C. 

      Goods that do not compete on the basis of price.

    • D. 

      Goods servicing narrowly defined markets.

    • E. 

      Highly advertised goods.

  • 19. 
    The ability to realize cost economies from global volume is greatest in the case of
    • A. 

      Products that need to be customized to local requirements.

    • B. 

      Commodity-type products that serve universal needs.

    • C. 

      Low-weight, high-value products that can be differentiated by global companies.

    • D. 

      Products that can be economically manufactured in small batches.

    • E. 

      Companies competing in industries where they face a large number of multinational competitors.

  • 20. 
    Factors of production include all but which of the following?
    • A. 

      Land

    • B. 

      Labor

    • C. 

      Raw materials

    • D. 

      Ethnic diversity

    • E. 

      Managerial sophistication

  • 21. 
    When entering an overseas market, which of the following factors should be considered?
    • A. 

      Size of the market

    • B. 

      Purchasing power

    • C. 

      Consumer demand for the company's product

    • D. 

      Economic risks

    • E. 

      All of the above

  • 22. 
    Which entry mode gives a multinational the tightest control over foreign operations?
    • A. 

      Exporting from the home country and letting a foreign agent organize local marketing

    • B. 

      Licensing

    • C. 

      Franchising

    • D. 

      Entering into a joint venture with a foreign company to set up overseas operations

    • E. 

      Setting up a wholly owned subsidiary

  • 23. 
    When a company increases its growth rate by taking goods or services developed at home and selling them internationally, it is
    • A. 

      Leveraging its existing products.

    • B. 

      Taking the path of least resistance.

    • C. 

      Engaging in product positioning.

    • D. 

      Realizing cost economies from global expansion.

    • E. 

      Realizing location economies.

  • 24. 
    Which of the following isnot a necessity for leveraging the skills of global subsidiaries?
    • A. 

      The firm must have incentives for local managers to share knowledge and ideas.

    • B. 

      The firm's managers must be aware that competencies can develop anywhere.

    • C. 

      The firm must be pursuing a strategy of differentiation.

    • D. 

      The firm's managers must help to transfer competencies around the company.

    • E. 

      The firm must offer incentives that encourage employees to take necessary risks.

  • 25. 
    A localization strategy is most appropriate when
    • A. 

      There are relatively few differences from one location to another.

    • B. 

      Consumer tastes and preferences are universally similar.

    • C. 

      Consumer tastes and perferences differ substantially across nations.

    • D. 

      There is no need to customize products.

    • E. 

      Local demand and national demand are equal.