Mid-Term II

Question 1

“Capitalism without risk of failure becomes socialism” is the essence of the moral hazard of government bailouts (TRUE/FALSE)

Answer 1

True

Question 2

Understanding the framework for competitor analysis between a pair of rivals can help managers allocate resources in proportion to the degree of threat from each rival. (TRUE/FALSE)

Answer 2

True

Question 3

Name 3 members of APEC & 3 members of OECD

Answer 3

APEC - China, New Zealand, Australia
OECD - Estonia, France (headquarters), Luxembourg

Question 4

Multi-market competitors can respond to a firm’s action in any of the markets where the firms meet (TRUE/FALSE)

Answer 4

True

Question 5

According to game theory, two competitors who have agreed to cooperate no longer have incentive to cheat (TRUE/FALSE)

Answer 5

False

Question 6

Critics of U.S. policy on dumping at least agree that our policy on predatory pricing is consistent both domestically and internationally (TRUE/FALSE)

Answer 6

False

Question 7

Rivals within strategic alliances can legally reduce cost through price fixing (TRUE/FALSE)

Answer 7

False

Question 8

A blue ocean strategy often leads to a destructive price war (TRUE/FALSE)

Answer 8

True

Question 9

For firms considering an acquisition, product relatedness is easy to measure. (TRUE/FALSE)

Answer 9

True

Question 10

Agency cost: the cost associated with principle-agent relationships. They are the sum of (1) the principals’ costs of monitoring and controlling agents and (2) the agents’ costs of bonding (TRUE/FALSE)

Answer 10

True

Question 11

Absorptive capacity: the ability to absorb new knowledge be recognizing the value of new information, assimilating it, and applying it (TRUE/FALSE)

Answer 11

True