Question 1

Pressures for ___________ imply that it may not be possible for a firm to realise the full benefits from experience curve and location economies.
A)government approval
B)consumer guidance
C)national recognition
D)reducing costs

Accepted Answer

The pressure for reducing costs implies that firms need to constantly look for ways to reduce their costs, including through experience curve and location economies. However, even with these strategies in place, there may be other external factors such as government regulations or consumer preferences that limit the benefits that can be realized.

Question 2

Firms that specialise in the design,construction and start-up of a project and then later hand over the ownership of plant when it is fully operational is called:
A)an alliance partnership.
B)a turnkey project.
C)a licence agreement.
D)a takeover.

Accepted Answer

A turnkey project refers to an arrangement in which a company designs, builds, and starts up a project, and then transfers ownership to the client when it is fully operational. This is an ideal solution for clients who do not have the expertise or resources to execute a project themselves. A license agreement involves the use of intellectual property, while an alliance partnership and takeover are different types of business arrangements altogether.

Question 3

The term _________ refers to a cooperative agreement between potential or actual competitors.
A)tactical union
B)joint venture
C)political affiliation
D)economic association

Accepted Answer

A joint venture is an agreement between competitors to work together on a specific project or business venture. This type of partnership allows companies to pool their resources and knowledge to achieve a common goal, such as entering a new market or developing a new product. It differs from a tactical union, which is a short-term collaboration, and a political affiliation or economic association, which are typically formed between countries or regions.

Question 4

All of the following are characteristics of good allies or partners,except:
A)a good partner helps the firm achieve its strategic goals.
B)a good partner shares the firm's vision for the purpose of the alliance.
C)a good partner divulges all secrets of his organisation to you.
D)a good partner is unlikely to try to opportunistically exploit the alliance for his or her own ends.

Accepted Answer

Good partners do not divulge all their secrets to their allies or partners. This would compromise their competitive advantage and make them vulnerable to exploitation by the other party. A good partner should be trustworthy and reliable, but should also maintain a degree of confidentiality and protect their own interests.

Question 5

Which of the following is NOT an attribute of a good joint venture partner?
A)is unlikely to opportunistically exploit the venture for his or her own ends
B)shares the firm's vision for the purpose of the venture
C)must have capabilities identical to his or her partner
D)helps the firm achieve its strategic goals

Accepted Answer

Having identical capabilities as the partner may not always be necessary for a successful joint venture. In fact, diversity in capabilities and expertise can often lead to a stronger overall venture. The other attributes listed are important for a good joint venture partner.

Question 6

All of the following are characteristics of good allies or partners,except:
A)a good partner helps the firm achieve its strategic goals.
B)a good partner shares the firm's vision for the purpose of the alliance.
C)a good partner divulges all secrets of his organisation to you.
D)a good partner is unlikely to try to opportunistically exploit the alliance for his or her own ends.

Accepted Answer

A good partner would not divulge all secrets of their organisation to their ally or partner as it would undermine their competitiveness and strategic advantage in the market. It is important to maintain confidentiality and share only relevant information necessary for the success of the alliance.

Question 7

Implicit in the discussion of leveraging core competencies is the idea that skills are developed first _________ and then transferred _________.
A)internationally;home
B)at home;to foreign operations
C)by managers;to employees
D)by employees;to managers

Accepted Answer

The concept of leveraging core competencies implies that skills are developed at home, within the organization's domestic operations, and then transferred to foreign operations or other areas of the company. This allows the organization to build on its existing strengths and competitive advantages, rather than starting from scratch in each new market or area of business. Thus, option B "at home;to foreign operations" is the best choice.

Question 8

__________ agreements are one way to achieve the goal of swapping skills and technologies that each company in a strategic alliance covets,and ensuring a chance for equitable gain.
A)Joint venture
B)Sharing
C)Cross-licensing
D)Learning

Accepted Answer

Cross-licensing agreements allow each company to use the other's technologies and patents, incentivizing knowledge sharing and generating mutual benefits. Joint ventures involve creating a new entity with shared ownership and resources, while sharing and learning do not necessarily involve a formal agreement.

Question 9

Joint venture agreements have three major advantages.These are (1)where they may facilitate trade into a foreign market, (2)allow firms to share the fixed costs and developing new products or processes,and (3):
A)a way to bring together the complementary skills and assets of the participants
B)gives competitors a low-cost route to new technology
C)a firm never gives away more than it gains by participating in an alliance
D)give competitors a low-cost route to new markets

Accepted Answer

Joint venture agreements allow firms to bring together their complementary skills and assets. This means that each firm can contribute their strengths to the partnership, allowing for a more successful venture. This collaboration can lead to better innovation and market expansion for both companies.

Question 10

Acquisitions fail for all but one of the following reasons:
A)the acquiring firm often overpays for the assets of the acquired firm.
B)many acquisitions fail because there is a clash between the cultures of the acquiring and the acquired firms.
C)as they are quick to execute by buying an established firm,one party can be left 'holding the baby' if the venture sours
D)many acquisitions fail because attempts to realise synergies by integrating the operations of the acquired and acquiring entities often run into roadblocks and take much longer than forecast.

Accepted Answer

Acquisitions are not typically considered quick to execute; they involve complex processes and due diligence, making option C not a common reason for failure.

Quiz 11: Entering Foreign Markets

Pressures for ___________ imply that it may not be possible for a firm to realise the full benefits from experience curve and location economies.

Firms that specialise in the design,construction and start-up of a project and then later hand over the ownership of plant when it is fully operational is called:

The term _________ refers to a cooperative agreement between potential or actual competitors.

All of the following are characteristics of good allies or partners,except:

Which of the following is NOT an attribute of a good joint venture partner?

All of the following are characteristics of good allies or partners,except:

Implicit in the discussion of leveraging core competencies is the idea that skills are developed first _ and then transferred _.

__________ agreements are one way to achieve the goal of swapping skills and technologies that each company in a strategic alliance covets,and ensuring a chance for equitable gain.

Joint venture agreements have three major advantages.These are (1) where they may facilitate trade into a foreign market, (2) allow firms to share the fixed costs and developing new products or processes,and (3) :

Acquisitions fail for all but one of the following reasons: