25 MCQ Alliances that are carried out through contract rather than ownership sharing are called

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1. Alliances that are carried out through contract rather than ownership sharing are called ________.

A) cultural strategic alliances

B) equity strategic alliances

C) non-equity strategic alliances

D) transmodal strategic alliances

2. AT&T’s alliance strategy is characterized by ________.

A) market access

B) new technology acquisition

C) new product development

D) all of the above

3. In a study of 153 corporate alliances, researchers found that the choice of “means of governance” depended on concern regarding ________.

A) control over type of structure used

B) control over distribution strategies

C) control over markets

D) control over information flows pertaining to technology

4. Which of the following are examples of the cooperative aspect of strategic alliances?

A) economies of scale in tangible assets

B) upstream-downstream division of labor

C) limited investment risk via shared resources

D) all of the above

5. The primary reason for international joint venture failure in the Russian Federation is ________.

A) a poor match between partners

B) failure to find the right home country general manager

C) choosing the wrong location

D) lack of control in the joint venture

6. An international joint venture’s best chance of success is to be ________ to retain control of supplies and access to customers.

A) horizontally integrated

B) vertically integrated

C) virtually integrated

D) cross integrated

7. All of the following are examples of strategic implementation by the McDonald’s corporation except ________.

A) use of a market skimming strategy to gain acceptance by innovators

B) knowing a country’s culture before entering the market

C) hiring locals whenever possible

D) maximizing autonomy

8. An overarching factor affecting all other variables necessary for successful implementation is that of ________.

A) leadership

B) structure

C) system

D) performance

9. The extent of control exercised over the IJV by the parent companies seems to be primarily determined by ________.

A) the financial sophistication of the parent company

B) the decision-making autonomy delegated by the parent company to the international joint venture management

C) the experience of subsidiary managers

D) the experience of parent company managers

10. Which of the following are knowledge management processes?

A) transfer of existing knowledge

B) transformation and creation of knowledge

C) harvest of knowledge from IJV to parents

D) all of the above

11. ________ is one variable that is often overlooked when deciding on entry strategies and alliances, particularly when the target country is perceived to be similar to the home country.

A) Political stability

B) Culture

C) Currency stability

D) Competition

12. Korea’s Samsung Electronics is emerging as a global enterprise through ________ with leading overseas companies.

A) joint R&D projects

B) technology transfer arrangements

C) joint investments

D) all of the above

13. The global ________ structure is designed on the basis of discrete skill areas.

A) product

B) area

C) divisional

D) functional

14. The advantages of the ________ structure are market concentration, innovation, and responsiveness to new opportunities in a particular environment.

A) global functional

B) global product

C) global geographic

D) global cultural

15. A specific strategy that treats the world as one market by using a standardized approach to products and markets is called ________.

A) globalization

B) transnationalization

C) differentiation

D) integration

16. The network of alliances of the ethnic Chinese is based on ________; personal connections among families, business friends and political associations.

A) guanxi

B) keiretsu

C) legal contracts

D) written agreements

17. Which of the following is not one of the common factors frequently mentioned in research as a major cause of expatriate failure?

A) insufficient compensation and financial support

B) lack of support or alienation from headquarters

C) selection based on assignment needs in host country

D) inability to adapt to local culture

18. The direct cost alone of a failed expatriate assignment is estimated to be ________.

A) $10,000-$20,000

B) $20,000-$40,000

C) $50,000-$70,000

D) $50,000-$150,000

19. Expatriates from which nation seem to have the highest probability of success in their overseas assignments?

A) Sweden

B) Great Britain

C) Italy

D) Japan

20. Which of the following, according to Tung, are reasons for success of Japanese expatriates?

A) Japanese executives are generally posted for a longer time, thus allowing them to adjust better.

B) Japanese companies provide better training and support from headquarters.

C) Japanese executives are not usually accompanied by their families.

D) all of the above.

21. Some MNCs are beginning to recognize that there is no substitute for ________ training in early stages of the careers of managers they hope to develop into

senior level global managers.

A) on-the-job training

B) role playing

C) language

D) cultural assimilation

22. Starbucks in China has found that they can motivate their managers in Beijing by ________.

A) giving them an opportunity to learn

B) giving them a good working environment

C) giving them an opportunity to exercise initiative and authority

D) all of the above

23. To ensure that expatriates do not lose out through their overseas assignment, the ________ approach is often used to equalize the standard of living between the host country and the home country and to add some compensation for

inconvenience or qualitative loss.

A) income statement

B) balance sheet

C) cafeteria

D) revenue generation

24. Which of the following are components of the expatriates total compensation package?

A) salary

B) tax equalization

C) allowances and benefits

D) all of the above

25. According to Puffer and Shekshnia, Western firms are trending towards compensating Russian nationals with a package that typically consists

of ________.

A) a base salary

B) incentive pay

C) a variety of non monetary benefits

D) all of the above

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