Question 1

The virtual corporation was renamed the _________ corporation by Goldman, Nagel and Preiss.
A) sizeable
B) predictable
C) profitable
D) continuous
E) agile

Accepted Answer

The name "agile corporation" suggests a company that is able to quickly adapt to changes in the business environment and is flexible in its operations. This aligns with the concept of virtual corporations, which use technology and outsourcing to be more responsive and efficient. The other choices are not as relevant to the virtual corporation model.

Question 2

Which of the following questions would NOT normally be included in screening system for evaluating the potential of foreign markets?
A) Which overseas markets have substantial entry barriers for Australian firms?
B) Which overseas markets should be excluded due to least attractive political or social environments?
C) Which overseas markets have an unpleasant climate?
D) Which overseas markets are least attractive due to their nature and size?
E) Which overseas markets should be avoided because competitors are entrenched?

Accepted Answer

The question about unpleasant climate would not normally be included in a screening system for evaluating the potential of foreign markets as it does not directly relate to the market's economic, political, and social factors that will impact the success of a foreign firm entering the market. The other questions listed are more relevant to the screening process as they pertain to market entry barriers, political/social environments, market size, and competition.

Question 3

Which of the following alliance strategies would NOT normally be considered appropriate for a global follower?
A) low cost structures
B) selective targeting of country markets
C) developing competencies in imitating and improving products, services, delivery processes and customer communications
D) establishing a well- organised intelligence system to provide early information on competition
E) communicaton lines and relationships that enable rapid decision- making

Accepted Answer

Selective targeting of country markets is usually more appropriate for global leaders who have the resources and capabilities to tailor their products and services to meet the specific needs and wants of customers in different markets. Global followers, on the other hand, tend to adopt a more standardized approach to product and service offerings to achieve economies of scale and cost efficiencies. Therefore, selective targeting would not be an appropriate alliance strategy for a global follower.

Question 4

The virtual organisation is BEST defined as:
A) a company that sells products or services exclusively across the internet.
B) an opportunistic network of entities joined to exploit fast- changing technologies and to share people, assets and ideas.
C) a vertically integrated network of organisations, each located in different countries.
D) a three- dimensional social interaction space where users, through an avatar, can mingle socially or play games.
E) none of the above

Accepted Answer

The virtual organisation is generally understood as an opportunistic network of entities that come together to exploit fast-changing technologies and share people, assets, and ideas, as stated in option B. The other options are incorrect as they don't fully capture the meaning of a virtual organisation. Option A only refers to e-commerce, Option C describes a vertically integrated network of organisations, Option D describes a virtual world, and Option E is self-explanatory.

Question 5

The product strategy that is usually the most costly is:
A) product modification.
B) straight extension.
C) product adaptation.
D) product invention.
E) none of the above

Accepted Answer

Product invention is typically the most costly strategy as it involves developing a new product from scratch, which can require substantial investment in research and development, design, testing, and marketing. In comparison, product modification (A), which involves making changes to an existing product, and product adaptation (C), which involves modifying a product to suit the preferences and needs of a specific market or region, are usually less expensive. Straight extension (B), which involves offering the same product in a new market without making any changes, can be either cost-effective or costly depending on factors such as the level of competition, distribution channels, regulatory requirements, and cultural differences.

Question 6

Which of the following alliance strategies would NOT normally be considered appropriate for a global leader?
A) integration of alliance partners into seamless organisation to deliver the offer
B) focussing on mainstream markets
C) leveraging resources for rapid penetration entry
D) market positioning to take the high and middle end of the market
E) alliance configuration of small units

Accepted Answer

Global leaders typically aim for large-scale operations and significant market impact, which is not aligned with an alliance strategy focused on small units.

Question 7

The most common form of manufacturing entry into a foreign market is:
A) direct exporting.
B) strategic alliance.
C) licensing.
D) joint venture.
E) contract manufacturing.

Accepted Answer

The answer of The most common form of manufacturing entry...

Question 8

The main advantage to a firm forming a strategic alliance is that:
A) it is a more effective diversification strategy than the traditional conglomerate approach.
B) it is inexpensive.
C) it is cost- effective.
D) it is perceived as being "with it."
E) it acquires the ability to operate beyond its capabilities.

Accepted Answer

A strategic alliance allows a firm to leverage the strengths of its partner to operate beyond its current capabilities. This can lead to increased competitiveness and market share. While it may not always be cost-effective or inexpensive, the ability to expand capabilities is a key advantage of strategic alliances.

Question 9

A company that is an innovator in technologies, products and markets and has a high global share and wide country market coverage is BEST described as a:
A) global nicher.
B) global follower.
C) global challenger.
D) global leader.
E) none of the above

Accepted Answer

A company that is an innovator in technologies, products and markets and has a high global share and wide country market coverage is typically considered a global leader. They are often at the forefront of their industry and have a strong market position that allows them to influence the market trends and shape the direction of the industry. Examples of global leaders might include companies like Apple, Google, or Amazon, which are known for their innovative technologies, products, and services, as well as their dominant market positions and widespread popularity.

Question 10

Cooperative manufacture is BEST described as:
A) an agreement between two organisations in different countries to share research and development, manufacturing expertise and other skills.
B) an agreement that turns over manufacturing to a local organisation in a different country.
C) an agreement between two or more organisations to produce different component parts of a product.
D) an agreement between two organisations in different countries to work together to achieve joint objectives.
E) none of the above

Accepted Answer

The answer of Cooperative manufacture is BEST described as:
A) an...

Question 11

Hobart Pty Ltd has just completed an agreement under which a foreign- owned firm will be given the right to use Hobart Pty Ltd's manufacturing process in return for the payment of a stipulated annual fee. Hobart Pty Ltd is engaged in:
A) joint ownership.
B) management contracting.
C) contract manufacturing.
D) licensing.
E) joint venturing.

Accepted Answer

Hobart Pty Ltd is engaged in licensing, as they are giving the right to use their manufacturing process in return for payment of a fee, without joint ownership or collaboration in management or manufacturing processes.

Question 12

Which of the following is NOT one of the principal risks associated with joint ventures?
A) communication and management problems, especially when different cultures are involved
B) partial control over manufacturing and marketing
C) conflict between venture partners
D) lack of technological or production expertise
E) all of the above

Accepted Answer

Lack of technological or production expertise is not one of the principal risks associated with joint ventures. However, communication and management problems, partial control over manufacturing and marketing, and conflict between venture partners are all common risks associated with joint ventures.

Question 13

International trade involving the direct or indirect exchange of goods for other goods instead of cash is known as:
A) contra- dealing.
B) bartering.
C) abnormal trade.
D) countertrade.
E) counterpurchase.

Accepted Answer

The answer of International trade involving the direct or indirect...

Question 14

When considering the distribution of products in global markets, companies are wise to adopt a(n)________ view.
A) innovative
B) cost efficient
C) whole- channel
D) conservative
E) customised distribution

Accepted Answer

A whole-channel view considers all aspects of distribution, from production to final delivery, and ensures that all members of the channel work together efficiently. This approach helps companies optimize their distribution activities in global markets. Innovative approaches may not provide a comprehensive view, cost-efficient approaches may not prioritize customer service, conservative approaches may miss out on new opportunities, and customized distribution may not be practical or cost-effective in every market.

Question 15

When a firm decides to build its own manufacturing plant in a new country, this is known as:
A) autonomous market entry.
B) greenfield operation.
C) contract manufacturing.
D) direct market entry.
E) none of the above

Accepted Answer

The answer of When a firm decides to build its...

Question 16

A company that engages in rapid penetration of narrow market segments by selective targeting of country markets by offering specialised products or services and has only a small share of the overall global market is known as a:
A) global leader.
B) global follower.
C) global nicher.
D) global challenger.
E) none of the above

Accepted Answer

The description given in the question is that of a global nicher - a company that focuses on narrow market segments by offering specialised products or services and has a small share of the overall global market.

Question 17

The challenges and obstacles to strategic alliances include:
A) autonomy (of alliance members).
B) forward momentum.
C) focus on the external environment.
D) A, B, and C
E) B and C only

Accepted Answer

Autonomy of alliance members can lead to conflicts, while forward momentum and focus on the external environment are important for the success of the alliance. Therefore, all three options are correct.

Question 18

Low- cost distributors who buy more than they need and resell to distributors in other countries for less than they would have to pay through their "normal" channels are operating a(n):
A) low- cost operation.
B) illegal channel.
C) redistribution channel.
D) black market.
E) grey market.

Accepted Answer

The given scenario describes the operation of a grey market. This is a market where goods are sold by unauthorized sellers outside the manufacturer's intended distribution channels, often at a lower price. Grey market distribution is not illegal but can lead to conflicts between manufacturers and unauthorized sellers.

Question 19

Firms which accept the higher costs associated with creating separate marketing mixes for each foreign market in the hopes of earning higher market shares and profits are using a marketing mix that is:
A) adapted.
B) uniform.
C) premium.
D) standardised.
E) none of the above

Accepted Answer

The firms which accept higher costs associated with creating separate marketing mixes for each foreign market are using an adapted marketing mix strategy. This strategy involves modifying elements of the marketing mix including product, price, promotion, and distribution to meet the specific needs and preferences of each foreign market. This approach allows firms to better appeal to the unique characteristics of each market and potentially earn higher market shares and profits.

Question 20

When a company tailors both its product and promotion to the needs of a foreign market, this is known as:
A) adapted global marketing.
B) dual adaptation.
C) communication adaptation.
D) product adaptation.
E) modified global marketing.

Accepted Answer

Dual adaptation refers to the strategy where a company modifies both its product and its promotional strategies to suit the preferences and requirements of a foreign market. This approach acknowledges the differences in consumer behavior, legal and cultural norms, and competitive environments across countries.

Quiz 18: Tapping Into Markets Across the Globe

The virtual corporation was renamed the _________ corporation by Goldman, Nagel and Preiss.

Which of the following questions would NOT normally be included in screening system for evaluating the potential of foreign markets?

Which of the following alliance strategies would NOT normally be considered appropriate for a global follower?

The virtual organisation is BEST defined as:

The product strategy that is usually the most costly is:

Which of the following alliance strategies would NOT normally be considered appropriate for a global leader?

The most common form of manufacturing entry into a foreign market is:

The main advantage to a firm forming a strategic alliance is that:

A company that is an innovator in technologies, products and markets and has a high global share and wide country market coverage is BEST described as a:

Cooperative manufacture is BEST described as:

Hobart Pty Ltd has just completed an agreement under which a foreign- owned firm will be given the right to use Hobart Pty Ltd's manufacturing process in return for the payment of a stipulated annual fee. Hobart Pty Ltd is engaged in:

Which of the following is NOT one of the principal risks associated with joint ventures?

International trade involving the direct or indirect exchange of goods for other goods instead of cash is known as:

When considering the distribution of products in global markets, companies are wise to adopt a(n) ________ view.

When a firm decides to build its own manufacturing plant in a new country, this is known as:

A company that engages in rapid penetration of narrow market segments by selective targeting of country markets by offering specialised products or services and has only a small share of the overall global market is known as a:

The challenges and obstacles to strategic alliances include:

Low- cost distributors who buy more than they need and resell to distributors in other countries for less than they would have to pay through their "normal" channels are operating a(n) :

Firms which accept the higher costs associated with creating separate marketing mixes for each foreign market in the hopes of earning higher market shares and profits are using a marketing mix that is:

When a company tailors both its product and promotion to the needs of a foreign market, this is known as: