Question 1

Eventually, an affiliate-based strategy gives way to an export-driven strategy.

Accepted Answer

An affiliate-based strategy and an export-driven strategy are two distinct approaches to international market entry and expansion that companies may choose based on their specific goals, resources, and the nature of their products or services. One does not necessarily give way to the other; instead, a company may adopt either strategy or both simultaneously depending on its business model and strategic objectives.

Question 2

According to a 1991 report by McKinsey & Co., problems of alliances between Western and Japanese firms were related to all of the following factors except:

Accepted Answer

The McKinsey report cited objective levels of performance as one of the key factors affecting Western-Japanese alliances. The other factors listed in the question (mutual disillusionment, difference in expectations, balance between partners, frictional loss) were all cited as well.

Question 3

Eaton, the then Chrysler chairman believed that in international market the economies of scale suggests that you can go without a partner.

Accepted Answer

The statement mentions that Eaton believed in going for a partner while entering international markets, which means that he did not believe in going alone without a partner.

Question 4

Critics warn that employees of a company that become reliant on an outside supplier for critical components will:

Accepted Answer

Reliance on an outside supplier for critical components may lead to a loss of expertise and engineering skills within the company, as they become dependent on the supplier for these necessary components. This can be a significant risk for the company's long-term success and competitiveness.

Question 5

Sony entered into a strategic partnership with Samsung in order to produce flat-panel TV screens due to the high product development costs.

Accepted Answer

Sony and Samsung formed a joint venture called S-LCD in 2004 to manufacture LCD panels, sharing the high costs and risks associated with the production of flat-panel TVs.

Question 6

What factors are necessary for a proposed global strategic partnership to be successful?

Accepted Answer

The answer of What factors are necessary for a proposed...

Question 7

The alliance between GE and Snecma got off to a feeble start due to the personal chemistry between the top two executives of the respective companies.

Accepted Answer

The alliance between GE and Snecma, known as CFM International, was highly successful from the start, largely due to the strong collaboration and mutual respect between the companies, rather than being hindered by the personal chemistry of the top executives.

Question 8

Boeing developed the wide-bodied aircraft, the 777, with about ________ of the work subcontracted out to Mitsubishi, Fuji, and Kawasaki.

Accepted Answer

Boeing subcontracted out about 20% of the work on the 777 to Mitsubishi, Fuji, and Kawasaki. This is a common practice in the aircraft manufacturing industry, where components and systems are often outsourced to specialized firms to take advantage of their expertise and to reduce costs.

Question 9

Russia is an excellent location for a strategic business alliance due to all of the following factors, except:

Accepted Answer

While Russia has many strengths as a potential location for a strategic business alliance, one area where it may not be as strong is in its legal system. Some businesses may perceive Russia's legal system as less predictable or more subject to political influence than other countries.

Question 10

The failure of partnership between Great Britain's General Electric Company was blamed in part due to the fact that it was run by engineers.

Accepted Answer

The failure of partnerships or businesses, including those involving Great Britain's General Electric Company (GEC), can be attributed to a variety of factors such as strategic missteps, financial issues, market conditions, or leadership challenges. Blaming the failure solely on the fact that it was run by engineers oversimplifies complex business dynamics and does not accurately reflect the multitude of factors that can influence the success or failure of a company.

Question 11

To succeed in global markets, firms can now rely exclusively on the technological superiority or core competence that brought them past success.

Accepted Answer

While technological superiority or core competence is important, it is no longer sufficient to succeed in global markets. Firms also need to consider factors such as cultural awareness, global alliances, and the ability to adapt to different regulatory environments.

Question 12

A number of factors combine to make Russia an excellent location for an alliance which do not include:

Accepted Answer

The answer of A number of factors combine to make...

Question 13

What are important considerations that will result in a successful global strategic alliance between two countries?

Accepted Answer

The answer of What are important considerations that will result...

Question 14

"Successful GSPs create win-win situations, where participants pursue objectives on the basis of mutual advantage." When applied to global strategic partnerships, this statement indicates the importance of which factor?

Accepted Answer

The answer of "Successful GSPs create win-win situations, where participants...

Question 15

A true global strategic partnership is unique and different. Using the example of Sony's strategic alliance with Samsung, discuss attributes that are needed for a productive working partnership.

Accepted Answer

The answer of A true global strategic partnership is unique...

Question 16

Why are alliances between Western companies and Asian competitors different as well as difficult? What are some of the concerns, and how can those concerns be addressed?

Accepted Answer

The answer of Why are alliances between Western companies and...

Question 17

Despite commanding a 37 percent share of the global cellular handset market, Nokia announced that it would make the source code for handsets manufactured by Siemens AG.

Accepted Answer

The answer of Despite commanding a 37 percent share of...

Question 18

Why would any firm, whether global or otherwise, seek to collaborate with another firm, be it local or foreign?

Accepted Answer

The answer of Why would any firm, whether global or...

Question 19

The success of CFM International (the strategic partnership between GE and Snecma) can be attributed to which of the following?

Accepted Answer

The success of CFM International is attributed to all of the above factors - compatibility of the partners, capability of the partners, commitment of the partners, and personal chemistry between executives. The partnership between GE and Snecma allowed for the pooling of resources, knowledge, and expertise, which resulted in the development of innovative technologies and products. The commitment of both partners to the success of the venture, as well as the personal chemistry between executives, facilitated effective communication, decision-making, and collaboration.

Question 20

Hungary has the most liberal financial and commercial systems in the Central European market.

Accepted Answer

The answer of Hungary has the most liberal financial and...

Quiz 9: Global Market Entry Strategies: Licensing, Investment, and Strategic Alliances