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BMGT 30 > CHAPTER 6 T OR F > Flashcards

CHAPTER 6 T OR F Flashcards

1
Q
  • International business consists of business transactions between parties from one Country
A

FALSE (MORE THAN ONE COUNTRY)

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2
Q
  • Buying materials in one country and shipping them to another for assembly or processing
A

TRUE

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3
Q
  • Building a plant in foreign country to capitalize on lower labor cost
A

TRUE

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4
Q

companies decide to enter foreign markets to gain access to new and old customers

A

FALSE (NEW CUSTOMERS)

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5
Q

companies decide to enter foreign markets to spread business risk across a wider market base

A

TRUE

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6
Q

companies decide to enter local markets to gain access to resources and capabilities located in local markets

A

FALSE (companies decide to enter FOREIGN markets to gain access to resources and capabilities located in FOREIGN markets

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7
Q

companies decide to enter foreign markets to further exploit core competencies

A

TRUE

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8
Q

companies decide to enter foreign markets to achieve lower costs through economies of scale, experience and increased purchasing power

A

TRUE

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9
Q

one of the reasons for strategically locating value chain activities is lower wage rate

A

TRUE

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10
Q

one of the reasons for strategically locating value chain activities is lower worker productivity

A

FALSE (HIGHER)

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11
Q

one of the reasons for strategically locating value chain activities is Lower energy costs

A

TRUE

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12
Q

one of the reasons for strategically locating value chain activities is more environmental regulations

A

FALSE (FEWER environmental regulations)

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13
Q

one of the reasons for strategically locating value chain activities is lower tax rates

A

TRUE

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14
Q

one of the reasons for strategically locating value chain activities is minimize inflation rates

A

FALSE ( LOWER inflation rates)

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15
Q

one of the reasons for strategically locating value chain activities is proximity to retailers and technologically related industries

A

FALSE (proximity to SUPPLIERS and technologically related industries)

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16
Q

one of the reasons for strategically locating value chain activities is proximity to customers

A

TRUE

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17
Q

one of the reasons for strategically locating value chain activities is lower distribution costs

A

TRUE

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18
Q

one of the reasons for strategically locating value chain activities is available natural resources

A

TRUE

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19
Q

Strategic Option for Entering and Competing in International Markets is maintain a national (two-country) production base and export goods to foreign markets

A

FALSE (ONE-COUNTRY)

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20
Q

license foreign firms to produce and distribute the firm’s product abroad is Strategic Option for Entering and Competing in International Markets

A

TRUE

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21
Q

Strategic Option for Entering and Competing in International Markets is employ an overseas business strategy

A

FALSE (FRANCHISING STRATEGY)

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22
Q

Strategic Option for Entering and Competing in International Markets is establish a wholly- owned subsidiary by a ”greenfield” venture.

A

TRUE

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23
Q

rely on strategic alliances or joint venture with foreign companies is Strategic Option for Entering and Competing in International Markets

A

TRUE

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24
Q

Greenfield strategy involves starting a new operation from scratch. The firm buy or lease land, constructs new facilities, hires and transfers in managers and employees, and then launches the new operations.

A

TRUE

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25
Q

Firm can select best site which meets it
needs and construct modern and up-to-date facilities is one of the advantage of greenfield strategy

A

TRUE

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26
Q
  • Local communities often offer economic development incentives to attract such facilities is one of the advantage of greenfield strategy
A

TRUE

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27
Q
  • Managers don’t need to deal with existing debts and out moded equipment is one of the disadvantage of greenfield strategy
A

FALSE ( ADVANTAGE)

28
Q
  • Start from scratch always takes time and patience is one of the advantage of greenfield strategy
A

FALSE (DISADVANTAGE)

29
Q
  • Land in the desired location may be expensive is one of the advantage of greenfield strategy is one of the disadvantage of greenfield strategy
A

TRUE

30
Q
  • To building factory or manufacturing house, firm has to deal with local regulations is one of the disadvantage of greenfield strategy
A

TRUE

31
Q
  • Firm has to recruit local managers and workforce and train them is one of the advantage of greenfield strategy
A

FALSE (DISADVANTAGE)

32
Q

Joint Venture is a union or association formed for mutual benefit, especially between countries or organizations

A

FALSE (ALLIANCE)

33
Q

Joint Venture is a commercial enterprise undertaken jointly by two or more parties which otherwise retain their distinct identities.

A

TRUE

34
Q
  • Gaining partner’s knowledge of local market conditions is benefits of alliance and joint ventures
A

TRUE

35
Q
  • Achieving economies of scale through joint operations is benefits of alliance and joint ventures
A

TRUE

36
Q
  • Gaining technical expertise and foreign market knowledge is benefits of alliance and joint ventures
A

FALSE (LOCAL MARKET)

37
Q
  • Sharing distribution facilities and dealer networks, and mutually strengthening each partner’s access to buyers is benefits of alliance and joint ventures
A

TRUE

38
Q
  • Indirecting competitive energies more toward mutual rivals and less toward one another is benefits of alliance and joint ventures
A

FALSE(DIRECTING)

39
Q

Establishing working relationships with key officials in the host-country government is benefits of alliance and joint ventures

A

TRUE

40
Q
  • Outdated knowledge and expertise of local partners is risk of alliance and joint ventures
A

TRUE

41
Q
  • Cultural and language barriers is risk of alliance and joint ventures
A

TRUE

42
Q
  • Costs of establishing the working arrangement is benefits of alliance and joint ventures
A

FALSE (RISK)

43
Q
  • Conflicting objectives and strategies and/or deep differences of opinion about joint control is risk of alliance and joint ventures
A

TRUE

44
Q
  • Differences in corporate values and ethical standards is benefits of alliance and joint ventures
A

FALSE (RISK)

45
Q
  • Loss of legal protection of proprietary technology or competitive advantage is risk of alliance and joint ventures
A

TRUE

46
Q
  • Over dependence on foreign partners for essential expertise and competitive advantage is risk of alliance and joint ventures
A

TRUE

47
Q
  • Multidomestic strategy is multi-domestic corporations vies itself as a collection of relatively independent operating subsidiaries, each of which focuses on a specific domestic market.
A

TRUE

48
Q
  • Transnational strategy as defined in business terms is an organization’s strategic guide to globalization. Such a connected world, allows a business’s revenue to not be confined by borders
A

FALSE (GLOBAL STRATEGY)

49
Q
  • International business strategy refers to plans that guide commercial transactions taking place between entities in different countries.
A

TRUE

50
Q
  • Build Competitive Advantage in Local Markets
A

FALSE (INTERNATIONAL)

51
Q
  • Use international location to lower Cost or differentiate products
A

TRUE

52
Q
  • Gain cross- border coordination benefits
A

TRUE

53
Q
  • Share resources and capabilities
A

TRUE

54
Q
  • To customize offerings in each country market to match the tastes and preferences of international buyers
A

FALSE (LOCAL BUYERS)

55
Q
  • To pursue a strategy of offering a mostly standardized product world wide
A

TRUE

56
Q

Build a Resource-based competitive Advantage by:- Using powerful brand names to extend a differentiation-base competitive advantage beyond the home market

A

TRUE

57
Q

Build a Resource-based competitive Advantage by:- Coordinating activities for sharing and transferring resources and production capabilities across different countries’ domain to develop market dominating depth in key competencies

A

TRUE

58
Q
  • Prepare to compete in the basis of high price
A

FALSE (LOW PRICE)

59
Q
  • Prepare to modify the firm’s business model or strategy to accommodate local circumstances
A

TRUE

60
Q
  • Try to Change the local market to better match the way the firm does business elsewhere
A

TRUE

61
Q
  • Do not avoid developing markets where it is too difficult or costly to accommodate local circumstances
A

FALSE (AVOID)

62
Q
  • Develop a business model that exploits shortcomings in local distribution networks or infrastructure
A

TRUE

63
Q
  • Utilize knowledge of local customer needs and preferences to create customized products & services
A

TRUE

64
Q
  • Take advantage of aspects of the local workforce with which large multinational firms may be unfamiliar
A

TRUE

65
Q
  • Use local acquisition and rapid-growth strategies to defend against expansion-minded international
A

TRUE

66
Q
  • Transfer the firm’s expertise to cross-border markets
A

TRUE

BMGT 30 (4 decks)

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