Question 1

When justifying her considerations for her China-based wine importation company's foreign market entry, Ming-Chi probably would not choose

Accepted Answer

The answer of When justifying her considerations for her China-based...

Question 2

An UNLIKELY risk of cross-border alliances between domestic and foreign firms is

Accepted Answer

Disengaging from the alliance once its purpose has been served may be an unlikely risk because the firms may have developed strong relationships and mutual benefits that can lead to further collaborations or partnerships in the future.

Question 3

The advantages of using an acquisition strategy to pursue opportunities in foreign markets include

Accepted Answer

Acquisition strategy provides high control and speed, allowing companies to quickly enter foreign markets and overcome trade barriers by acquiring existing businesses.

Question 4

The risks of strategic alliances often include all of the following except

Accepted Answer

The potential for royalty from trustworthy firms is not a risk of strategic alliances; it is a potential benefit or opportunity. Conflicting objectives and strategies, deep differences of opinion about how to proceed operationally and strategically, important differences in corporate values, and misunderstandings about appropriate ethical standards are all potential risks of strategic alliances.

Question 5

The advantages of using a licensing strategy to participate in foreign markets include

Accepted Answer

Licensing allows a company to leverage their technical know-how, brand or patents without committing their resources or capabilities to foreign markets. This allows for cost savings and reduced risk compared to alternative strategies such as direct investment.

Question 6

The advantages of using a franchising strategy to pursue opportunities in foreign markets include

Accepted Answer

Using a franchising strategy in foreign markets allows a company to leverage its resources by having franchisees bear most of the costs and risks of establishing and running foreign locations, while the franchisor focuses on recruiting, training, supporting, and monitoring franchisees. This enables the company to expand quickly and efficiently with fewer financial and operational resources.

Question 7

A major DISADVANTAGE of strategic alliances, joint ventures, and cooperative agreements between domestic and foreign firms is

Accepted Answer

The major disadvantage of strategic alliances, joint ventures, and cooperative agreements is that they create permanent arrangements between domestic and foreign firms. This may limit a firm's flexibility and freedom to pursue new opportunities or adjust to changing market conditions. Firms may also face challenges in managing the relationship with their partner, including differences in culture, management styles, and goals.

Question 8

When a company operates in the markets of two or more different countries, its foremost strategic decision is

Accepted Answer

When a company operates in the markets of two or more different countries, its foremost strategic decision is to determine whether to vary the company's competitive approach to fit specific market conditions and buyer preferences in each host country or whether to employ essentially the same strategy in all countries. This choice involves understanding the unique cultural, economic, legal, and political environments in each country and adapting the competitive approach accordingly. Therefore, option B is the best choice.

Question 9

One of the strategy options for competing in the markets of foreign countries is a ________ strategy.

Accepted Answer

A multidomestic strategy involves tailoring products, marketing, and operations to meet the specific needs of each individual country market, allowing for flexibility and responsiveness to local preferences and conditions. This can be a successful approach in highly diverse and competitive international markets. The other options do not accurately describe a viable strategy for competing in foreign markets.

Question 10

Acquisition of an existing firm rather than via internal development may be the least risky and cost-efficient means of overcoming entry barriers such as

Accepted Answer

Acquiring an existing firm allows a company to immediately tap into established local distribution networks, supplier relationships, and governmental connections, which are significant barriers to entry for new market entrants. This approach can be less risky and more cost-efficient than building these networks from scratch.

Question 11

What is the foremost strategic issue that must be addressed by firms when operating in two or more foreign markets?

Accepted Answer

When operating in multiple foreign markets, firms must address the strategic issue of deciding on the degree to vary its competitive approach to fit the specific market conditions and buyer preferences in each host country. It is important for firms to adapt to local market conditions and tailor their products and marketing strategies accordingly to remain competitive and meet the needs of local customers. Failure to do so can result in loss of market share and profitability.

Question 12

The big issue an acquisition-minded firm must consider is whether

Accepted Answer

Acquiring a firm involves strategic decisions about whether to pay a premium for a successful company or to buy a struggling firm at a discount, considering the potential for turnaround or integration benefits.

Question 13

A cross-border alliance was not created when

Accepted Answer

The statement about Renault-Nissan disclosing that it had sold more than one in ten cars worldwide does not indicate the creation of a cross-border alliance.

Question 14

Sandi is considering conditions that make an internal startup strategy appealing over an acquisition, and has determined that she would ONLY choose an internal startup strategy when an internal startup

Accepted Answer

Sandi would only choose an internal startup strategy when it has the necessary scale and resource strengths to compete with rivals. This suggests that Sandi values the potential for strong competition in the market, and views an internal startup strategy as having the best chance for success when it has the necessary resources and capabilities to take on established rivals.

Question 15

A cross-border alliance was not created when

Accepted Answer

The answer of A cross-border alliance was not created when
...

Question 16

The big problem a franchisor faces is

Accepted Answer

Maintaining quality control is a big challenge for franchisors because franchisees may not always be fully committed to consistency and standardization. Franchisees are independent business owners who may have their own ideas about how to run their business, which can lead to variations in quality and customer experience. It is up to the franchisor to monitor and ensure that all franchisees are adhering to the agreed-upon standards and procedures.

Question 17

Greenfield ventures, like all market entry strategies, can pose serious problems to achieving foreign market entry success. What is not deemed a barrier to success?

Accepted Answer

The statement "such ventures are the fastest entry route to achieve a sizeable market share" is not a barrier to success. However, options A, B, C, and E are all potential barriers to the success of greenfield ventures.

Question 18

A greenfield venture in a foreign market is one

Accepted Answer

A greenfield venture involves setting up a new operation in a foreign market from scratch, creating a subsidiary that is wholly owned by the company entering the market. This option offers complete control over the business and allows the company to tailor its operations to fit the local market, but it can also involve high upfront costs and risks.

Question 19

A localized or multidomestic strategy

Accepted Answer

A multidomestic strategy may hinder the transfer of a company's competencies and resources across country boundaries because the strategies in different host countries can be grounded in varying competencies and capabilities. It may also not promote building a single, unified competitive advantage, especially one based on low cost. Therefore, option B is correct. The other options are either incorrect or incomplete.

Question 20

Which statement is not a reason BP implemented a multidomestic competitive strategy to market its Castrol oil lubricants around the world?

Accepted Answer

The statement "The benefits from global integration and standardization are high" is not a reason why BP implemented a multidomestic competitive strategy. In fact, a multidomestic strategy emphasizes customization and adaptation to local conditions, rather than global integration and standardization. The other statements provide valid reasons for implementing a multidomestic strategy, such as differences in buyer preferences, industry conditions, and competition in different national markets.

Quiz 7: Strategies for Competing in International Markets

When justifying her considerations for her China-based wine importation company's foreign market entry, Ming-Chi probably would not choose

An UNLIKELY risk of cross-border alliances between domestic and foreign firms is

The advantages of using an acquisition strategy to pursue opportunities in foreign markets include

The risks of strategic alliances often include all of the following except

The advantages of using a licensing strategy to participate in foreign markets include

The advantages of using a franchising strategy to pursue opportunities in foreign markets include

A major DISADVANTAGE of strategic alliances, joint ventures, and cooperative agreements between domestic and foreign firms is

When a company operates in the markets of two or more different countries, its foremost strategic decision is

One of the strategy options for competing in the markets of foreign countries is a ________ strategy.

Acquisition of an existing firm rather than via internal development may be the least risky and cost-efficient means of overcoming entry barriers such as

What is the foremost strategic issue that must be addressed by firms when operating in two or more foreign markets?

The big issue an acquisition-minded firm must consider is whether

A cross-border alliance was not created when

Sandi is considering conditions that make an internal startup strategy appealing over an acquisition, and has determined that she would ONLY choose an internal startup strategy when an internal startup

A cross-border alliance was not created when

The big problem a franchisor faces is

Greenfield ventures, like all market entry strategies, can pose serious problems to achieving foreign market entry success. What is not deemed a barrier to success?

A greenfield venture in a foreign market is one

A localized or multidomestic strategy

Which statement is not a reason BP implemented a multidomestic competitive strategy to market its Castrol oil lubricants around the world?