MAR 4156 FINAL Questions with Correct Answers
For Starbucks and other companies whose business models include a
service component, it is not recommended that they use one of the
following methods for going global. Correct Answer-exporting
For Walt Disney Company, the best mode for going global is by: Correct
Answer-licensing.
One of the advantages of licensing is: Correct Answer-licensees have
considerable autonomy.
Licensing as a market entry mode has several disadvantages and
opportunity costs, which does not include: Correct Answer-adaptations
by licensee to fit local tastes.
________ represents a market entry strategy whereby one company
permits a foreign company to make use of its patents, know-how,
technology, company name, or other intangible assets in return for a
royalty payment. Correct Answer-Licensing
________ provides technical specifications to a subcontractor or local
manufacturer, who then oversees production. Correct Answer-Contract
manufacturing
In order to prevent a licensor-competitor from gaining unilateral benefit,
licensing agreements should provide for: Correct Answer-cross
licensing.
,The advantages of "contract manufacturing" include all of the following
except: Correct Answer-considerable commitment of management
resources.
Pollo Campero, a chicken restaurant chain based in Central America, is
using the following method for expanding operations in the United
States: Correct Answer-franchising.
Would-be franchisors ask all of the following questions except one
before expanding overseas: Correct Answer-Can products be easily
counterfeited?
The specialty retailing industry, as well as the fast-food industry, favors
________ for global growth. Correct Answer-franchising
The agreements that allow McDonald's franchisees around the globe to
use McDonald's trademarked name and menu items represent, in
essence, which form of market entry? Correct Answer-franchising
McDonald's success in franchising in global markets can be attributed to
several factors which do not include: Correct Answer-cross licensing.
Honda has invested $550 million in building an assembly plant in
Greensburg, Indiana; IKEA spent nearly $2 billion to open stores in
Russia; and South Korea's LG Electronics purchased a 58% stake in
Zenith Electronics. All of these are examples of: Correct Answer-FDI.
,Strictly speaking, a (n) ________ is an entry strategy for a single target
country in which the partners share ownership of a newly created
business entity. Correct Answer-joint venture
Disadvantages of joint venturing can include all of the following except:
Correct Answer-joint ventures allow partners to achieve synergy.
The strategy to use joint ventures has several advantages which do not
include: Correct Answer-reward sharing.
Which of the following does not fit into the sequence of experiences
Anheuser-Busch had in Japan? Correct Answer-Anheuser-Busch entered
into a joint venture with Kirin Brewery.
As a general rule, the Chinese government allows foreign companies to
participate in its market only if those companies agree to establish
operations with local Chinese enterprises. Which market entry mode
would be the appropriate choice under these circumstances? Correct
Answer-joint venture
The president of a Mexican company recently remarked, "Business in
Mexico is done on a consensus basis, very genteel and sometimes slow
by U.S. standards." A few months later, the Mexican company and its
U.S. joint venture partner parted company. Judging by the president's
remark, one important reason for the "divorce" was: Correct Answer-
cultural differences.
, Toyota learned many things from its partnership with GM, however
American managers involved in the venture complained that: Correct
Answer-Toyota did not apply manufacturing expertise at GM plant.
GM executives are looking for a joint venture with AvtoVAZ, the
largest carmaker in: Correct Answer-Russia.
In a joint venture with Russian manufacturer AvtoVAZ, GM executives
were planning to have a stripped-down reengineered car based on its
Opel model. However, the market research revealed that a "Made-in-
Russia" car would only be acceptable if: Correct Answer-it sported a
very low sticker price.
The Russian market for imported premium vehicles is exploding as the
number of households that can afford luxury products exhibit rapid
growth. The luxury cars include all of the following except: Correct
Answer-Lexus.
Ford Motor Company (United States) has a 50-50 joint venture to build
Ford Fiestas with: Correct Answer-Mahindra & Mahindra (India).
Which automaker currently has a joint venture with Hindustan Motors
(India)? Correct Answer-GM
Ford and Mazda have market entry and expansion in a relationship
known as: Correct Answer-joint venture.
For Starbucks and other companies whose business models include a
service component, it is not recommended that they use one of the
following methods for going global. Correct Answer-exporting
For Walt Disney Company, the best mode for going global is by: Correct
Answer-licensing.
One of the advantages of licensing is: Correct Answer-licensees have
considerable autonomy.
Licensing as a market entry mode has several disadvantages and
opportunity costs, which does not include: Correct Answer-adaptations
by licensee to fit local tastes.
________ represents a market entry strategy whereby one company
permits a foreign company to make use of its patents, know-how,
technology, company name, or other intangible assets in return for a
royalty payment. Correct Answer-Licensing
________ provides technical specifications to a subcontractor or local
manufacturer, who then oversees production. Correct Answer-Contract
manufacturing
In order to prevent a licensor-competitor from gaining unilateral benefit,
licensing agreements should provide for: Correct Answer-cross
licensing.
,The advantages of "contract manufacturing" include all of the following
except: Correct Answer-considerable commitment of management
resources.
Pollo Campero, a chicken restaurant chain based in Central America, is
using the following method for expanding operations in the United
States: Correct Answer-franchising.
Would-be franchisors ask all of the following questions except one
before expanding overseas: Correct Answer-Can products be easily
counterfeited?
The specialty retailing industry, as well as the fast-food industry, favors
________ for global growth. Correct Answer-franchising
The agreements that allow McDonald's franchisees around the globe to
use McDonald's trademarked name and menu items represent, in
essence, which form of market entry? Correct Answer-franchising
McDonald's success in franchising in global markets can be attributed to
several factors which do not include: Correct Answer-cross licensing.
Honda has invested $550 million in building an assembly plant in
Greensburg, Indiana; IKEA spent nearly $2 billion to open stores in
Russia; and South Korea's LG Electronics purchased a 58% stake in
Zenith Electronics. All of these are examples of: Correct Answer-FDI.
,Strictly speaking, a (n) ________ is an entry strategy for a single target
country in which the partners share ownership of a newly created
business entity. Correct Answer-joint venture
Disadvantages of joint venturing can include all of the following except:
Correct Answer-joint ventures allow partners to achieve synergy.
The strategy to use joint ventures has several advantages which do not
include: Correct Answer-reward sharing.
Which of the following does not fit into the sequence of experiences
Anheuser-Busch had in Japan? Correct Answer-Anheuser-Busch entered
into a joint venture with Kirin Brewery.
As a general rule, the Chinese government allows foreign companies to
participate in its market only if those companies agree to establish
operations with local Chinese enterprises. Which market entry mode
would be the appropriate choice under these circumstances? Correct
Answer-joint venture
The president of a Mexican company recently remarked, "Business in
Mexico is done on a consensus basis, very genteel and sometimes slow
by U.S. standards." A few months later, the Mexican company and its
U.S. joint venture partner parted company. Judging by the president's
remark, one important reason for the "divorce" was: Correct Answer-
cultural differences.
, Toyota learned many things from its partnership with GM, however
American managers involved in the venture complained that: Correct
Answer-Toyota did not apply manufacturing expertise at GM plant.
GM executives are looking for a joint venture with AvtoVAZ, the
largest carmaker in: Correct Answer-Russia.
In a joint venture with Russian manufacturer AvtoVAZ, GM executives
were planning to have a stripped-down reengineered car based on its
Opel model. However, the market research revealed that a "Made-in-
Russia" car would only be acceptable if: Correct Answer-it sported a
very low sticker price.
The Russian market for imported premium vehicles is exploding as the
number of households that can afford luxury products exhibit rapid
growth. The luxury cars include all of the following except: Correct
Answer-Lexus.
Ford Motor Company (United States) has a 50-50 joint venture to build
Ford Fiestas with: Correct Answer-Mahindra & Mahindra (India).
Which automaker currently has a joint venture with Hindustan Motors
(India)? Correct Answer-GM
Ford and Mazda have market entry and expansion in a relationship
known as: Correct Answer-joint venture.
