1
MGMT 4660 Exam 3 Questions with Correct Answers
| Updated (100% Correct Answers)
1. Strategic alliances are popular among multinational firms primarily because
they: Answer: B. Provide a fast and flexible way to gain resources
2. The main reason many alliances fail is because: Answer: C. They are poorly
designed or managed
3. Which of the following is not a typical step in implementing a successful
alliance?
A. Identifying strategic needs
B. Selecting an appropriate partner
C. Ignoring cultural differences
D. Designing organizational structure Answer: C. Ignoring cultural differences
4. In Chapter 9, linking parts of two firms' value chains helps companies: Answer:
C. Share risks and achieve efficiency
5. According to the CNBC/Bain article, companies shifting manufacturing from
China are an example of: Answer: A. Value-chain restructuring
6. The term "anchor partner" refers to: Answer: B. A partner that slows down
alliance progress
© 2026 All rights reserved
,2
7. The "elephant-and-ant complex" describes: Answer: A. Unequal power
between large and small firms
8. An Informal International Cooperative Alliance is best described as: Answer: B.
A non-binding agreement between firms
9. A Formal International Cooperative Alliance (ICA) typically: Answer: B. Includes
a detailed written agreement
10. An International Joint Venture (IJV) is: Answer: B. A separate legal entity
jointly owned by partners
11. Which of the following is not an advantage of IJVs?
A. Risk and reward sharing
B. Market and distribution access
C. Cultural clash elimination
D. Enhanced brand credibility Answer: C. Cultural clash elimination
12. A "prenuptial agreement" in alliance contracts refers to: Answer: B. An exit
clause established at the start
13. In a Dominant-Parent management structure: Answer: B. A single firm
controls operations and strategy
14. The Shared-Management structure is most effective when: Answer: C. Both
partners contribute similar resources
© 2026 All rights reserved
, 3
15. Rotating-Management structures are common in: Answer: B. Developing
countries to build management talent
16. The type of trust based on belief in a partner's honesty and goodwill is called:
Answer: C. Benevolent trust
17. Credibility trust means: Answer: A. Confidence that the partner will meet
obligations
18. Attitudinal commitment refers to: Answer: A. Willingness to dedicate effort
and resources
19. Calculative commitment is based on: Answer: B. Financial calculations and
expected rewards
20. The CNBC/Bain article said about 60 % of U.S. multinationals were: Answer: B.
Ready to take action to change supply chains
21. The phrase "fragmented manufacturing" means: Answer: B. Many smaller
facilities closer to target markets
22. A main reason for alliance instability is: Answer: B. Poor design and lack of
trust
23. Alliances allow companies to: Answer: B. Combine strengths and share risks
24. The Houston Chronicle article emphasized that firms ally internationally to:
Answer: A. Reduce taxes and gain market knowledge
© 2026 All rights reserved
MGMT 4660 Exam 3 Questions with Correct Answers
| Updated (100% Correct Answers)
1. Strategic alliances are popular among multinational firms primarily because
they: Answer: B. Provide a fast and flexible way to gain resources
2. The main reason many alliances fail is because: Answer: C. They are poorly
designed or managed
3. Which of the following is not a typical step in implementing a successful
alliance?
A. Identifying strategic needs
B. Selecting an appropriate partner
C. Ignoring cultural differences
D. Designing organizational structure Answer: C. Ignoring cultural differences
4. In Chapter 9, linking parts of two firms' value chains helps companies: Answer:
C. Share risks and achieve efficiency
5. According to the CNBC/Bain article, companies shifting manufacturing from
China are an example of: Answer: A. Value-chain restructuring
6. The term "anchor partner" refers to: Answer: B. A partner that slows down
alliance progress
© 2026 All rights reserved
,2
7. The "elephant-and-ant complex" describes: Answer: A. Unequal power
between large and small firms
8. An Informal International Cooperative Alliance is best described as: Answer: B.
A non-binding agreement between firms
9. A Formal International Cooperative Alliance (ICA) typically: Answer: B. Includes
a detailed written agreement
10. An International Joint Venture (IJV) is: Answer: B. A separate legal entity
jointly owned by partners
11. Which of the following is not an advantage of IJVs?
A. Risk and reward sharing
B. Market and distribution access
C. Cultural clash elimination
D. Enhanced brand credibility Answer: C. Cultural clash elimination
12. A "prenuptial agreement" in alliance contracts refers to: Answer: B. An exit
clause established at the start
13. In a Dominant-Parent management structure: Answer: B. A single firm
controls operations and strategy
14. The Shared-Management structure is most effective when: Answer: C. Both
partners contribute similar resources
© 2026 All rights reserved
, 3
15. Rotating-Management structures are common in: Answer: B. Developing
countries to build management talent
16. The type of trust based on belief in a partner's honesty and goodwill is called:
Answer: C. Benevolent trust
17. Credibility trust means: Answer: A. Confidence that the partner will meet
obligations
18. Attitudinal commitment refers to: Answer: A. Willingness to dedicate effort
and resources
19. Calculative commitment is based on: Answer: B. Financial calculations and
expected rewards
20. The CNBC/Bain article said about 60 % of U.S. multinationals were: Answer: B.
Ready to take action to change supply chains
21. The phrase "fragmented manufacturing" means: Answer: B. Many smaller
facilities closer to target markets
22. A main reason for alliance instability is: Answer: B. Poor design and lack of
trust
23. Alliances allow companies to: Answer: B. Combine strengths and share risks
24. The Houston Chronicle article emphasized that firms ally internationally to:
Answer: A. Reduce taxes and gain market knowledge
© 2026 All rights reserved
