MGMT 4660 Exam 3 Questions with Correct Answers Latest Update 2025/2026
1. Strategic alliances are popular among multinational firms primarily because they: - Answers B.
Provide a fast and flexible way to gain resources
2. The main reason many alliances fail is because: - Answers 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 - Answers C. Ignoring cultural differences
4. In Chapter 9, linking parts of two firms' value chains helps companies: - Answers C. Share
risks and achieve efficiency
5. According to the CNBC/Bain article, companies shifting manufacturing from China are an
example of: - Answers A. Value-chain restructuring
6. The term "anchor partner" refers to: - Answers B. A partner that slows down alliance progress
7. The "elephant-and-ant complex" describes: - Answers A. Unequal power between large and
small firms
8. An Informal International Cooperative Alliance is best described as: - Answers B. A non-
binding agreement between firms
9. A Formal International Cooperative Alliance (ICA) typically: - Answers B. Includes a detailed
written agreement
10. An International Joint Venture (IJV) is: - Answers 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 - Answers C. Cultural clash elimination
12. A "prenuptial agreement" in alliance contracts refers to: - Answers B. An exit clause
, established at the start
13. In a Dominant-Parent management structure: - Answers B. A single firm controls operations
and strategy
14. The Shared-Management structure is most effective when: - Answers C. Both partners
contribute similar resources
15. Rotating-Management structures are common in: - Answers B. Developing countries to build
management talent
16. The type of trust based on belief in a partner's honesty and goodwill is called: - Answers C.
Benevolent trust
17. Credibility trust means: - Answers A. Confidence that the partner will meet obligations
18. Attitudinal commitment refers to: - Answers A. Willingness to dedicate effort and resources
19. Calculative commitment is based on: - Answers B. Financial calculations and expected
rewards
20. The CNBC/Bain article said about 60 % of U.S. multinationals were: - Answers B. Ready to
take action to change supply chains
21. The phrase "fragmented manufacturing" means: - Answers B. Many smaller facilities closer
to target markets
22. A main reason for alliance instability is: - Answers B. Poor design and lack of trust
23. Alliances allow companies to: - Answers B. Combine strengths and share risks
24. The Houston Chronicle article emphasized that firms ally internationally to: - Answers A.
Reduce taxes and gain market knowledge
25. In the YouTube video "Successful Joint Venture—What Do You Bring to the Deal?" success
depends on: - Answers B. Both partners bringing complementary value
26. A common benefit of alliances in manufacturing is: - Answers A. Gaining access to lower-
cost raw materials or labor
27. Which structure suits partners contributing different technologies equally? - Answers B. Split
-control
28. When evaluating performance, alliances focused on learning should use: - Answers B.
Strategic and subjective measures
29. Continuing an alliance despite poor results due to emotional or financial investment is: -
Answers B. Escalation of commitment
1. Strategic alliances are popular among multinational firms primarily because they: - Answers B.
Provide a fast and flexible way to gain resources
2. The main reason many alliances fail is because: - Answers 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 - Answers C. Ignoring cultural differences
4. In Chapter 9, linking parts of two firms' value chains helps companies: - Answers C. Share
risks and achieve efficiency
5. According to the CNBC/Bain article, companies shifting manufacturing from China are an
example of: - Answers A. Value-chain restructuring
6. The term "anchor partner" refers to: - Answers B. A partner that slows down alliance progress
7. The "elephant-and-ant complex" describes: - Answers A. Unequal power between large and
small firms
8. An Informal International Cooperative Alliance is best described as: - Answers B. A non-
binding agreement between firms
9. A Formal International Cooperative Alliance (ICA) typically: - Answers B. Includes a detailed
written agreement
10. An International Joint Venture (IJV) is: - Answers 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 - Answers C. Cultural clash elimination
12. A "prenuptial agreement" in alliance contracts refers to: - Answers B. An exit clause
, established at the start
13. In a Dominant-Parent management structure: - Answers B. A single firm controls operations
and strategy
14. The Shared-Management structure is most effective when: - Answers C. Both partners
contribute similar resources
15. Rotating-Management structures are common in: - Answers B. Developing countries to build
management talent
16. The type of trust based on belief in a partner's honesty and goodwill is called: - Answers C.
Benevolent trust
17. Credibility trust means: - Answers A. Confidence that the partner will meet obligations
18. Attitudinal commitment refers to: - Answers A. Willingness to dedicate effort and resources
19. Calculative commitment is based on: - Answers B. Financial calculations and expected
rewards
20. The CNBC/Bain article said about 60 % of U.S. multinationals were: - Answers B. Ready to
take action to change supply chains
21. The phrase "fragmented manufacturing" means: - Answers B. Many smaller facilities closer
to target markets
22. A main reason for alliance instability is: - Answers B. Poor design and lack of trust
23. Alliances allow companies to: - Answers B. Combine strengths and share risks
24. The Houston Chronicle article emphasized that firms ally internationally to: - Answers A.
Reduce taxes and gain market knowledge
25. In the YouTube video "Successful Joint Venture—What Do You Bring to the Deal?" success
depends on: - Answers B. Both partners bringing complementary value
26. A common benefit of alliances in manufacturing is: - Answers A. Gaining access to lower-
cost raw materials or labor
27. Which structure suits partners contributing different technologies equally? - Answers B. Split
-control
28. When evaluating performance, alliances focused on learning should use: - Answers B.
Strategic and subjective measures
29. Continuing an alliance despite poor results due to emotional or financial investment is: -
Answers B. Escalation of commitment
