WPC 480 Final EXAM 2
QUESTIONS AND VERIFIED
CORRECT ANSWERS
GRADED A+ LATEST 100%
GUARANTEED PASS
A drawback involved in using cross-border strategic alliances to enter new foreign markets is
that - CORRECT ANSWER-some of the firm's proprietary know-how may be appropriated by the
foreign partner.
It is necessary for government authorities such as the Federal Trade Commission (FTC) and/or
the European Commission to approve any large horizontal integration activity because -
CORRECT ANSWER-the horizontal integration activity has the potential to reduce competitive
intensity in an industry.
The managers at Speed Automobile Inc. want to diversify the business by acquiring a consumer
electronics company. This acquisition would mean increased job security, higher compensation,
and greater decision-making authority for the managers. The managers correlate this
acquisition to greater power for them rather than to the appreciation in shareholder value. In
this scenario, this acquisition by Speed Automobile is most likely a result of - CORRECT
ANSWER-principal-agent problems.
Which of the following examples describes the task of an alliance manager? - CORRECT
ANSWER-Hussein trained the employees of his alliance partner in the skills needed to create a
display for an e-notebook.
Amber is a strategist for a furniture manufacturer that has a large presence in the United States
and Canada. By checking economic and political reports, she knows that trade and investment
barriers are falling among wealthy nations. She also knows that the price of oil has dropped 50
, percent in the previous two years. Based on this information, what action should Amber and
her company take? - CORRECT ANSWER-They should seriously consider globalization because of
the falling trade and investment barriers.
A firm is said to be pursuing a polycentric innovation strategy when - CORRECT ANSWER-it
draws from multiple, equally important research facilities located throughout the world.
Which of the following factors is the most important determinant of economic distance? -
CORRECT ANSWER-the wealth and per capita income of consumers
Sky Pioneers Inc. manufactures airplane parts. It wants to globalize and is willing to spend a
considerable amount to protect its intellectual property. Which of these business ventures
makes the most sense for Sky Pioneers? - CORRECT ANSWER-acquiring an airplane-parts
manufacturer in another country
Myriad Inc., a well-established and reputed multinational enterprise (MNE), is headquartered in
a highly developed economy. It wants to start its operations in New Denistan, considered one of
the less-developed nations in the world. How will this strategic move most likely affect Myriad
Inc.? - CORRECT ANSWER-It will benefit from economic arbitrage.
While working a night job at a call center, Eric creates an app called EatOut, which can be used
to place orders at restaurants, rate the restaurants, and make reservations. Because he receives
good responses for his app, he quits his current job to focus his efforts on EatOut. He creates a
start-up called BestApps and hires three people to help him improve EatOut and maintain the
servers that run it. In this scenario, BestApps most likely has a ________ structure. - CORRECT
ANSWER-simple
Which of the following statements is true of organizational culture? - CORRECT ANSWER-It is
better for founder CEOs to create a relevant culture, structure, and strategy in the early stages.
QUESTIONS AND VERIFIED
CORRECT ANSWERS
GRADED A+ LATEST 100%
GUARANTEED PASS
A drawback involved in using cross-border strategic alliances to enter new foreign markets is
that - CORRECT ANSWER-some of the firm's proprietary know-how may be appropriated by the
foreign partner.
It is necessary for government authorities such as the Federal Trade Commission (FTC) and/or
the European Commission to approve any large horizontal integration activity because -
CORRECT ANSWER-the horizontal integration activity has the potential to reduce competitive
intensity in an industry.
The managers at Speed Automobile Inc. want to diversify the business by acquiring a consumer
electronics company. This acquisition would mean increased job security, higher compensation,
and greater decision-making authority for the managers. The managers correlate this
acquisition to greater power for them rather than to the appreciation in shareholder value. In
this scenario, this acquisition by Speed Automobile is most likely a result of - CORRECT
ANSWER-principal-agent problems.
Which of the following examples describes the task of an alliance manager? - CORRECT
ANSWER-Hussein trained the employees of his alliance partner in the skills needed to create a
display for an e-notebook.
Amber is a strategist for a furniture manufacturer that has a large presence in the United States
and Canada. By checking economic and political reports, she knows that trade and investment
barriers are falling among wealthy nations. She also knows that the price of oil has dropped 50
, percent in the previous two years. Based on this information, what action should Amber and
her company take? - CORRECT ANSWER-They should seriously consider globalization because of
the falling trade and investment barriers.
A firm is said to be pursuing a polycentric innovation strategy when - CORRECT ANSWER-it
draws from multiple, equally important research facilities located throughout the world.
Which of the following factors is the most important determinant of economic distance? -
CORRECT ANSWER-the wealth and per capita income of consumers
Sky Pioneers Inc. manufactures airplane parts. It wants to globalize and is willing to spend a
considerable amount to protect its intellectual property. Which of these business ventures
makes the most sense for Sky Pioneers? - CORRECT ANSWER-acquiring an airplane-parts
manufacturer in another country
Myriad Inc., a well-established and reputed multinational enterprise (MNE), is headquartered in
a highly developed economy. It wants to start its operations in New Denistan, considered one of
the less-developed nations in the world. How will this strategic move most likely affect Myriad
Inc.? - CORRECT ANSWER-It will benefit from economic arbitrage.
While working a night job at a call center, Eric creates an app called EatOut, which can be used
to place orders at restaurants, rate the restaurants, and make reservations. Because he receives
good responses for his app, he quits his current job to focus his efforts on EatOut. He creates a
start-up called BestApps and hires three people to help him improve EatOut and maintain the
servers that run it. In this scenario, BestApps most likely has a ________ structure. - CORRECT
ANSWER-simple
Which of the following statements is true of organizational culture? - CORRECT ANSWER-It is
better for founder CEOs to create a relevant culture, structure, and strategy in the early stages.
