Question 11 Which is not true of joint ventures? Points
A.They are jointly owned by two or more parent companies. B.They share risks with local partners. C.They gain access o the local partner’s knowledge about the host country. D.They are politically less acceptable than wholly owned subsidiaries. E.The goals of partners may diverge.
Question 12 Points Selling the rights to intellectual property for a royalty fee is involved in:
A.Licensing/franchis ing. B.Turnkey projects. C.R&D contracts. D.Comarketing. E.All of the above. Reset Selection
Question 13 Points All of the follow are true of direct exports except:
A.Most basic mode of entry B.Capitalizes on economies of scale in production concentrated in home country C.Affords better control over distribution D.The agendas and objectives of the intermediary and exporters are the same
Question 14 Non-equity modes of entry typically involve: Points
A.Exports and contractual agreements. B.Larger, harder-to-reverse commitments. C.Establishing independent organizations overseas. D.Joint ventures (JVs). E.Wholly owned subsidiaries.
Question 15 Late mover advantages do not include: Points
A.Taking a free ride on first movers’ investments. B.Joining the game with massive firepower when some of the uncertainties are removed. C.Preempting scarce assets. D.Taking advantage of first movers’ inflexibility by leapfrogging over them. E.Choice of Strategy.
Question 16 Institutional Distance involves all of the following except that which is:
A.Regulatory. Points B.Normative. C.Cognitive. D.Cultural. E.B and C above.
Question 17 The strategic goal of __________ involves going after countries that offer the highest price.
A.Natural resourcesseeking B.Market-seeking C.Efficiency-seeking D.Innovation-seeking E.Profit-seeking
Question 18 Which of the following is not a location specific advantage?
A.Agglomeration. B.Knowledge spillovers. C.A skilled labor force. D.A pool of specialized suppliers and buyers. E.All of the above are location advantages.
Question 19 Which of the following exemplify trade barriers?
A.Tariffs. B.Local content requirements. C.Restrictions on certain entry modes. D.A and C above. E.All of the above.
Question 20 Which of the following are not regulatory risks?
A.An obsolescing bargain. B.Deals that have been struck by MNEs and host governments. C.Nationalization. D.Recent trends among host governments regarding their relationships with MNEs. E.B and C above.