QUESTION The most typical joint venture is a 50/50 venture, in which there are two parties, each of which holds a 50 percent ownership stake and contributes a team of managers to share operating control. Indicate whether the statement is true or false. ANSWER TRUE A joint venture entails establishing a firm that is […]
Date: September 3rd, 2020
QUESTION When a firm’s competitive advantage is based on technological competence, a joint venture is the preferred mode of entry into a foreign market because it reduces the risk of losing control over that competence. Indicate whether the statement is true or false. ANSWER FALSE When a firm’s competitive advantage is based on technological […]
Date: September 3rd, 2020
QUESTION The need for preempting competitors is particularly great in the telecommunications market Indicate whether the statement is true or false. ANSWER TRUE In many cases firms make acquisitions to preempt their competitors. The need for preemption is particularly great in markets that are rapidly globalizing, such as telecommunications, where a combination of deregulation […]
Date: September 3rd, 2020
QUESTION Shared ownership agreements can lead to conflicts and battles for control between investing firms. Indicate whether the statement is true or false. ANSWER TRUE With joint ventures, the shared ownership arrangement can lead to conflicts and battles for control between the investing firms if their goals and objectives change or if they take […]
Date: September 3rd, 2020
QUESTION An international firm that enters into a turnkey deal has a long-term interest in the foreign country. Indicate whether the statement is true or false. ANSWER FALSE An international firm that enters into a turnkey deal will have no long-term interest in the foreign country. This can be a disadvantage if that country […]
Date: September 3rd, 2020
QUESTION Establishing a wholly owned subsidiary gives an international firm a 100 percent share in the profits generated in a foreign market Indicate whether the statement is true or false. ANSWER TRUE There are several clear advantages of wholly owned subsidiaries. Establishing a wholly owned subsidiary gives the firm a 100 percent share in […]
Date: September 3rd, 2020
QUESTION A drawback of exporting is that tariff barriers can make it uneconomical as a mode of entry into a foreign market. Indicate whether the statement is true or false. ANSWER TRUE A drawback of exporting as a mode of entry into a foreign market is that tariff barriers can make it uneconomical. Similarly, […]
Date: September 3rd, 2020
QUESTION If an international firm’s core competence is based on proprietary technology, entering a joint venture might risk losing control of that technology to the joint-venture partner. Indicate whether the statement is true or false. ANSWER TRUE If an international firm’s core competence is based on proprietary technology, entering a joint venture might risk […]
Date: September 3rd, 2020
QUESTION Exporting, as a mode of entry into foreign markets, does not help a firm achieve experience curve and location economies. Indicate whether the statement is true or false. ANSWER FALSE Exporting may help a firm achieve experience curve and location economies. By manufacturing the product in a centralized location and exporting it to […]
Date: September 3rd, 2020
QUESTION Firms pursuing global standardization or transnational strategies tend to prefer setting up wholly owned marketing subsidiaries. Indicate whether the statement is true or false. ANSWER TRUE Setting up wholly owned marketing subsidiaries is preferable to joint-venture arrangements and to using foreign marketing agents because it gives the firm tight control that might be […]
Date: September 3rd, 2020
