国际商务期末作业.doc

Multiple Choice QuestionsCh131.Which of these terms means the totality of a firms organization, including formal organization structure, control systems and incentives, processes, organizational culture, and people?A.Organizational ethicsB.Organizational architectureC.Organizational normsD.Organizational hierarchy2.The norms and values systems that are shared among the employees of a company are referred to as:A.processes.B.control systems.C.incentives.D.organizational culture.3.A firms _ determines where in its hierarchy the decision-making power is concentrated.A.integrating mechanismB.vertical differentiationC.knowledge networkD.horizontal differentiation4.What is horizontal differentiation?A.The mechanisms that enable each subunit to operate independentlyB.The formal division of the organization into subunitsC.The location of decision-making responsibilities within a structureD.The mechanisms for coordinating subunits5. Integration mechanisms are:A.the formal division of the organization into subunits.B.the mechanisms that enable each subunit to operate independently.C.the mechanisms for coordinating subunits.D.the location of decision making responsibilities within a structure.6.Which of the following is an argument favoring centralization?A.It permits greater flexibility.B.Motivational research favors it.C.It can avoid the duplication of activities.D.It gives top management time to focus on critical issues by delegating routine issues to lower-level managers.7.A firm that needs greater flexibility should choose _ for its decision-making.A.vertical differentiationB.centralizationC.horizontal differentiationD.decentralization8.The emphasis on local responsiveness in firms pursuing a local responsiveness strategy creates strong pressures for:A.decentralizing all decisions to foreign subsidiaries.B.decentralizing operating decisions to foreign subsidiaries.C.centralizing all operating decisions.D.centralizing all decisions.9.Global learning based on the multidirectional transfer of skills between subsidiaries and the corporate center is a central feature of a firm pursuing a(n) _ strategy.A.localizationB.global standardizationC.transnationalD.international10.Which of the following would be a typical responsibility of a product division in a product divisional structure?A.Operating decisionsB.Overall strategic development of the firmC.Financial control of the various divisionsD.None. All decisions are typically centralized.11.Which of the following is a problem that arises due to an international division structure?A.The need to get an area and a product division to reach a decision can slow decision making and produce an inflexible organization unable to respond quickly to innovate.B.It gives limited voice to area or country managers, since it makes them subservient to product division managers.C.The heads of foreign subsidiaries are not given as much voice in the organization as the heads of domestic functions or divisions.D.The dual-hierarchy structure can lead to conflict and perpetual power struggles between the areas and the product divisions, catching many managers in the middle.12.Which of the following is not true regarding a worldwide area structure?A.It tends to be favored by firms with a low degree of diversification.B.It facilitates local responsiveness.C.It tends to be favored by firms with a domestic structure based on function.D.Decision-making responsibilities are centralized.13.Firms structured on this basis may encounter significant problems if local responsiveness is less critical than reducing costs or transferring core competencies for establishing a competitive advantage.A.International division structureB.Worldwide area structureC.Global matrix structureD.Worldwide product division structure14. _ tends to be adopted by firms that are reasonably diversified and, accordingly, originally had domestic structures based on product divisions.A.worldwide area structureB.international division structureC.worldwide product division structureD.global matrix structure15. In the classic global matrix structure, horizontal differentiation proceeds along two dimensions. These dimensions are:A.hierarchy and overall strategy.B.target returns and sales potential.C.marketing strategy and sales potential.D.product division and geographic area.16.The need for coordination between subunits is lowest in firms pursuing a(n):A.localization strategy.B.international strategy.C.global strategy.D.transnational strategy.17. The need for coordination between subunits is highest in firms pursuing a(n)A.localization strategy.B.international strategy.C.global strategy.D.transnational strategy.Chapter 1418.Other things being equal, the benefit-cost-risk trade-off is likely to be most favorable in:A.politically unstable developing nations that operate with a mixed or command economy.B.nations where there is a dramatic upsurge in either inflation rates or private-sector debt.C.politically stable developed and developing nations that have free market systems.D.developing nations where speculative financial bubbles have led to excess borrowing.19. Which of the following is not an advantage associated with entering a foreign market before other international businesses?A.Ability to preempt rivals and capture demand by establishing a strong brand name.B.Ability to ride down the experience curve ahead of rivals.C.Ability to create switching costs.D.Ability to avoid pioneering costs.20. All of the following are examples of pioneering costs except the costs of:A.business failure.B.educating consumers.C.promoting and establishing a product offering.D.learning from the mistakes of early entrants.21. A large-scale entrant is more likely than a small-scale entrant to be able to capture first-mover advantages associated with:A.demand preemption.B.diseconomies of scale.C.pioneering costs.D.diseconomies of scope.22. Which of the following is not an advantage of a small-scale entry?A.A small-scale entrant is more likely to be able to capture first-mover advantages associated with demand preemption, scale economies, and switching costs.B.Small-scale entry is a way to gather information about a foreign market before deciding how best to enter.C.By giving the firm time to collect information, small-scale entry reduces the risks associated with a subsequent large-scale entry.D.Small-scale entry allows a firm to learn about a foreign market while limiting the firms exposure to that market.23. If a firm can realize location economies by moving production elsewhere, it should avoid:A.exporting.B.turnkey contracts.C.licensing.D.wholly owned subsidiaries.24. When an exporting firm finds that its local agent is also carrying competitors products, the firm may switch to a _ to handle local marketing, sales, and service.A.wholly owned subsidiaryB.franchising arrangementC.turnkey operationD.licensing agreement25.Identify the incorrect statement about turnkey projects.A.The contractor agrees to handle every detail of the project for a foreign client.B.They are most common in industries which use inexpensive production technologies.C.This is a means of exporting process technology to other countries.D.They create efficient global competitors in the process.26. Many Western firms that sold oil-refining technology to firms in Gulf states now find themselves competing with these firms in the world oil market. This is an example of:A.the firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor.B.the firm entering into a turnkey deal having no long-term interest in the foreign country.C.the country subsequently proving to be a major market for the output of the process that has been exported.D.selling the firms process technology through a turnkey project which is also selling competitive advantage to potential competitors.27. Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms ofA.licensing agreements.B.franchising agreements.C.intangible property.D.tangible property.28. Which of the following is a disadvantage of licensing?A.It does not help firms that lack capital to develop operations overseas.B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies.C.It cannot be used when a firm possesses some intangible property that might have business applications.D.The firm has to bear the development costs and risks associated with opening a foreign market.29. This mode of entry is primarily used by service firms.A.FranchisingB.LicensingC.A strategic allianceD.A turnkey project30. Firms engaging in _ with a local company can benefit from a local partners knowledge of the host countrys competitive conditions, culture, language, political systems, and business systems.A.turnkey projectsB.joint venturesC.greenfield investmentsD.licensing arrangements31. Identify the advantage of establishing wholly owned subsidiaries.A.It is the least expensive method of serving a foreign market from a capital investment standpoint.B.Political considerations make it the most feasible entry mode.C.It may be required if a firm is trying to realize location and experience curve economies.D.It is particularly useful where FDI is limited by host-government regulations.32. A _ is the most costly method of serving a foreign market from a capital investment standpoint.A.wholly owned subsidiaryB.franchising agreementC.turnkey projectD.joint venture33. If a firms core competency is based on control over proprietary technological know-how, it should avoid _ and _ arrangements if possible, to minimize the risk of losing control over that technology.A.licensing; joint-ventureB.wholly owned subsidiary; exportingC.turnkey contracts; exportingD.exporting; joint-venture34. Firms may prefer acquisitions to greenfield investments for all of the following reasons except:A.they allow companies to completely sidestep government regulations on investment.B.they are quick to execute.C.they enable the firm to preempt competitors.D.managers believe acquisitions are less risky.Chapter 1735. Which of the following is not an element that constitutes a firms marketing mix?A.Product attributesB.Communication strategyC.Reverse engineeringD.Distribution strategy36. The continuing persistence of _ differences between nations acts as a major brake on any trend toward global consumer tastes and preferences.A.technological and industrialB.institutional and politicalC.cultural and economicD.GNP level and growth rate37. If market segments transcend national borders:A.the company should develop unique products for each national market.B.the company can view the global market as a single entity and pursue a global strategy.C.a localization strategy would be appropriate.D.consumers will have differing purchasing behavior in different nations.38. Contrary to Levitts suggestions, consumers in the most developed countries are often:A.willing to sacrifice their preferred attributes for lower prices.B.not willing to pay more for products that have additional features customized to their tastes.C.not willing to sacrifice their preferred attributes for lower prices.D.willing to accept globally standardized products that have been developed with the lowest common denominator in mind.39. In a concentrated retail system:A.there are many retailers who have a major share of the market.B.there are many retailers, no one of which has a major share of the market.C.a few retailers supply a small segment of the market.D.a few retailers supply most of the market.40. A _ retail system is one in which there are many retailers, no one of which has a major share of the market.A.concentratedB.consolidatedC.focusedD.fragmented41.Which of the following is not a key difference between distribution systems in different countries?A.Channel speedB.Channel lengthC.Channel exclusivityD.Channel quality42. If a producer sells through an import agent, a wholesaler, and a retailer, thenA.a long channel exists.B.the retail system must be concentrated.C.the Internet probably plays a big role in the economy.D.there is no channel.43.The most important determinant of channel length is the degree to which a retail system is:A.concentrated.B.fragmented