GB exam 3 Flashcards
Which of the following is a non-equity mode of entry?
Turnkey projects
Which of the following characterizes an MNE from a non-MNE?
It enjoys OLI advantages.
The difference between two cultures along identifiable dimensions is known as _____.
cultural distance
Which of the following is a benefit of large-scale entries?
They demonstrate strategic commitment to certain markets.
In which of the following strategies do clients pay contractors to design and construct new facilities and train personnel?
Turnkey projects
Which of the following is true of indirect exports?
They export through domestically based export intermediaries.
Which of the following conforms to the notion put forward by the school of thought associated with stage models?
Firms enter culturally distant countries in later stages when they may gain more confidence.
Efficiency-seeking firms go to countries that have _____.
economies of scale and abundance of low-cost factors
Co-marketing refers to _____.
efforts among a number of firms to jointly market their products and services
Which of the following is true of licensing/franchising?
The licensor/franchisor does not have tight control over technology and marketing.
Which of the following is defined as the extent to which a given competitor possesses strategic endowment comparable, in terms of both type and amount, to those of the focal firm?
Resource similarity
A thrust on rivals’ core markets likely to result in a bloody price war is referred to as _____.
a red ocean
Which combination of resource similarity and market commonality results in the most intense competition?
High resource similarity, low market commonality
The American antitrust policy is considered to be _____.
proconsumer
What type of antirust policy would protect established firms that have already invested and nurtured an industry from new entrants?
Proincumbent
Dumping is defined as a(n) _____.
exporter selling below cost abroad
What is signaling?
A firm’s indirect way of letting other firms know it wants to cooperate
Which of the following is a theory that studies the interactions between two parties that compete and/or cooperate with each other?
Game theory
The act of setting prices below cost to eliminate rivals while intending to raise them in the long run to make up for the initial losses is known as _____.
predatory pricing
Which of the following is designed to combat monopolies and cartels?
Antitrust policy
Which of the following alliances is an equity-based alliance?
Strategic investment
In an alliance, keeping critical skills and technologies not meant to be shared a secret helps prevent _____.
opportunism
The difference between the acquisition price and the market value of target firms is called acquisition _____.
premium
The set of informal institutions that stresses the cognitive pillar lays emphasis on _____.
the internalized taken-for-granted values and beliefs that guide firm behavior
The combination of operations and management of two firms to establish a new legal entity is called a(n) _____.
merger
At which stage in the formation of alliance must a firm decide whether to take a contract or an equity approach?
Stage 2
Which of the following is a disadvantage of alliances?
Partner opportunism
In which type of equity-based alliance does one firm invest in another?
Strategic investment
Which of the following motives for acquisition addresses the resource-based issue of access to complementary resources?
Synergistic
Pre-acquisition analysis often focuses on strategic fit, which is the effective matching of what type of strategic capabilities?
Complementary
