Market Strategic Alliance Trivia Questions

200 Questions | By Jprohoroff | Last updated: Mar 20, 2022 | Total Attempts: 456

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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.