Reference no: EM13864077
Which of the following factors increasingly encourages MNEs to install a geographic division structure?
A)diversification of products
B)growth of emerging markets
C)rise of social networking
D)global recession
2. Which of the following involves the most complexity?
A)direct investment
B)direct exporting
C)franchising
D)licensing
3. Johnson & Johnson distributes decision-making power among departments and divisions. This policy provides managers with a sense of ownership and control at the company. Johnson & Johnson is best described as a ________ organization.
A)vertical
B)centralized
C)horizontal
D)decentralized
4. IBM puts investments, people, and work anywhere in the world based on the best mix of costs, skills, and environment and uses sophisticated strategies and technologies to support and coordinate activities. IBM most likely uses a ________ structure.
A)classical
B)neoclassical
C)product
D)locational
5. In comparing mergers and acquisitions (M&A's) with alliances and networks, which of the following is NOT correct:
A)M&A's are typically more costly
B)Alliances & networks prevent upgrading to M&A's in future
C)M&A's have offer more control
D)Alliances & networks offer a relatively immediate solution
6. The primary limitation with the product division structure is the ________.
A)cost of duplicated functions and international activities
B)poor response to local market demands for a product
C)inability to transfer core competencies within units
D)difficulty of selling product lines
7. Two firm's combining to become a new legal entity would be a _____________.
A)50/50 joint venture
B)merger
C)acquisition
D)greenfield project
8. Which represents an alliance with suppliers?
A)horizontal alliances
B)upstream vertical
C)downstream vertical
D)all of the above
9. "Greenfield" ventures are:
A)environmentally friendly MNEs
B)joint ventures between government and private firms in emerging markets
C)contracts for use of proprietary technology
D)wholly owned subsidiaries that are built from scratch in a foreign country
10. Exporting only after receiving unsolicited foreign inquiries is best described as:
A)direct exporting
B)indirect exporting
C)passiv or sporadic exporting
D)inactive exporting
11. An example of a first-mover advantage in international operations is ________.
A)gaining economies of scale at a lower output level than competitors
B)increasing sales response functions and customer service
C)using a small country for market tests prior to entering a large country
D)lining up the best suppliers and distributors before competitors enter the market
12. Mutual forbearance occurs when firms reduce the intensity of their rivalry by increasing the number of markets in which they compete.
A)True
B)False
13. The global product division structure works best with:
A)home replications strategy
B)global standardization strategy
C)transnational strategy
D)localization strategy
14. Non-equity modes of entry typically involve:
A)exports and contractual agreements
B)larger, harder-to-reverse commitments
C)joint ventures
D)establishing independent organizations overseas
15. At Tyson Manufacturing, departments and units are organized around discrete business activities, such as finance, production, marketing, and human resources. Tyson most likely has a ________ structure.
A)network
B)functional
C)matrix
D)divisional
16. Which of the following best describes Foreign Direct Investment (FDI)?
A)avoiding the use of financial intermediaries such as brokers
B)firm invests directly in production or service activities in another country
C)traveling to a country to invest instead of using the internet
D)developing relationships with foreign suppliers
17. An occasional internationalizer firm would probably use which mode of entry into foreign markets?
A)joint ventures
B)wholly-owned subsidiaries
C)mergers
D)direct exports
18. Which is NOT an advantage of strategic alliances and networks?
A) costs, risks, and uncertainties
B)gain access to complementary assets and capabilities
C)reduced costs of negotiation and coordination
D)opportunities to learn from partners
19. A joint venture can be described as:
A)a special case of equity-based alliance
B)a new legally independent entity
C)a "corporate child " of two or more parent firms
D)all of the above
20. The balance between centralization and decentralization of authority in a company is known as ________.
A)systemic differentiation
B)schematic differentiation
C)vertical differentiation
D)horizontal differentiation
21. Strategic fit refers to whether the partner firm(s) possesses:
A)technology
B)capital
C)distribution channels
D)all of the above
22. The fundamental limitation of a matrix structure is that it ________.
A)creates a poor organizational culture
B)isolates upper management from operational levels
C)institutes a dual hierarchy that violates the unity-of-command principle
D)introduces more errors in the decision-making process due to the speed of the process