ashworth college BZ480 Online Exam 5 latest 2016 may
Part 1 of 2 – 90.0/
100.0 Points
Question 1 of 40
5.0/ 5.0 Points
Which of the following is the quickest and cheapest way to
develop a global strategy?
A. Fully-owned
subsidiaries
B. Greenfield
investments
C. Strategic
alliances
D. Acquisitions
Question 2 of 40
5.0/ 5.0 Points
Offshoring provides the company with access to foreign
markets while avoiding:
A. relocation of the
company to other countries.
B. competition
between companies in the global market.
C. trade risks.
D. trade barriers.
Question 3 of 40
5.0/ 5.0 Points
Meryl Software Inc., an American MNC wishing total control
of its operations, wants to acquire an existing firm, Graphiti Animations, in
Canada. If acquired, Graphiti Animations would be a:
A. fully-owned
subsidiary.
B. holding company.
C. greenfield
investment.
D. shell
corporation.
Question 4 of 40
5.0/ 5.0 Points
The first broad scan of all potential world markets should
result in the firm being able to:
A. identify the strengths
and weaknesses of its competitors.
B. eliminate markets
with unreasonable entry conditions.
C. determine the
best sources for raw materials.
D. eliminate
countries with high cultural risk.
Question 5 of 40
5.0/ 5.0 Points
Which of the following is a way in which formal institutions
affect international competition?
A. Decreasing trade
restrictions
B. Enforcing
organizational laws
C. Enforcing
antidumping laws
D. Enforcing strict
exit barriers
Question 6 of 40
5.0/ 5.0 Points
A(n) __________ analysis determines which areas of a firm’s
operations represent strengths or weaknesses (currently or potentially)
compared to competitors.
A. transactional
B. internal
C. structural
D. break-even
Question 7 of 40
5.0/ 5.0 Points
Which of the following strategies would a non-European
company most likely use if it wanted to gain quick entry inside the European
community?
A. International
joint venture
B. Greenfield
investment
C. Turnkey operation
D. Offshoring
Question 8 of 40
5.0/ 5.0 Points
Which of the following is the most likely result of
regulations and restrictions enforced by a firm’s home government that prove to
be expensive for the firm’s operations?
A. The firm searches
for less restrictive operating environments overseas
B. The firm responds
to customers’ demands more promptly
C. The firm becomes
entangled in lengthy litigation
D. The firm expands
its domestic operations
Question 9 of 40
5.0/ 5.0 Points
Which of the following is a global risk with regard to
strategic entry scanning?
A. Economic and
fiscal policies
B. Corruption
C. Economic and
financial risk
D. Trade
restrictions
Question 10 of 40
5.0/ 5.0 Points
Which of the following is the most common reactive reason
for a firm to extend its operations overseas?
A. Tax incentives
B. Economies of
scale
C. Globalization of
competitors
D. Resource access
and cost savings
Question 11 of 40
5.0/ 5.0 Points
The primary motive in the contract manufacturing strategy
is:
A. utilizing
inexpensive overseas labor.
B. obtaining rights
to patented technology.
C. sharing
managerial expertise.
D. sharing financial
resources.
Question 12 of 40
0.0/ 5.0 Points
Futura-Core Technologies, an electronics manufacturing firm,
has advantages in financial capability and sustainability, but a disadvantage
in speed of innovation. It is also at a disadvantage relative to Core-Dynamix
Technologies, another electronics manufacturing firm, in important factors such
as manufacturing capability and adaptability to market conditions. Which of the
following terms best describes Futura-Core’s abilities in comparison to
Core-Dynamix?
A. Comparative
advantage
B. Collective
bargaining
C. Competitive
advantage
D. Absolute
advantage
Question 13 of 40
5.0/ 5.0 Points
At which three levels should firms ideally perform global
environmental analysis?
A. Product, domestic
market, and consumer
B. Multinational,
regional, and local
C. Operational,
tactical, and top management
D. Innovation,
production, and local distribution
Question 14 of 40
5.0/ 5.0 Points
Restrictive trade barriers most likely influence the
globalization of businesses by encouraging firms to:
A. develop joint
ventures with local firms.
B. import supplies
from foreign vendors.
C. expand the
exportation of raw materials.
D. switch from
exporting to overseas manufacturing.
Question 15 of 40
5.0/ 5.0 Points
Which of the following terms refers to the basic means by
which a company competes?
A. Mission
B. Procedure
C. Strategy
D. Process
Question 16 of 40
5.0/ 5.0 Points
Which of the following is a national risk with regard to
strategic entry scanning?
A. Energy
availability and prices
B. Regional
instability
C. Legal protection
D. Political turmoil
Question 17 of 40
5.0/ 5.0 Points
Which of the following entry strategies is most likely to
serve as a short-term strategy and to provide limited income?
A. Joint venture
B. Management
contract
C. Offshoring
D. Fully owned
subsidiary
Question 18 of 40
5.0/ 5.0 Points
Which of the following charts the direction of the company
and provides a basis for strategic decision making?
A. Environmental
assessment
B. Corporate
structure
C. Organizational
mission
D. SWOT analysis
Question 19 of 40
0.0/ 5.0 Points
Which of the following statements is true of clustering?
A. It uses different
suppliers and distribution channels for interdependent companies within an
industry.
B. It helps a firm
gain an increase in efficiencies.
C. It seldom uses
specialized labor.
D. It typically
increases the costs of production and distribution.
Question 20 of 40
5.0/ 5.0 Points
Due to the high demand for its handmade soaps in Canada,
Fragrance Exotica, an Indian Soap manufacturer, has decided to open a new
manufacturing unit in Canada, thereby expanding overseas. In this scenario,
which of the following reasons prompted Fragrance Exotica to set up a
manufacturing unit overseas?
A. Trade barriers
B. Manufacturer
demands
C. Customer demands
D. Tax incentives
Part 2 of 2 – 95.0/
100.0 Points
Question 21 of 40
5.0/ 5.0 Points
The degree to which headquarters’ practices and goals are
transferable most likely depends on whether:
A. top managers are
from the head office, the host country, or a third country.
B. the organization
is product- or service-oriented.
C. financial
performance reports show a positive trend in growth over the past several
years.
D. the production
system is standardized.
Question 22 of 40
5.0/ 5.0 Points
Sedona Inc. is an American firm that manufactures
high-quality handbags,
duffel bags, and leather belts at its facility in Arizona.
Sedona’s
products have been featured in various fashion magazines,
and as a
result, consumer demand has increased significantly.
Currently, Sedona
is organized as a domestic structure plus export department.
Executives
at Sedona believe the firm is ready to internationalize its
operations,
and they are considering various organizational structures.
Which of the
following best supports the argument that Sedona should give
its
subsidiary managers significant autonomy?
A. Praxis Inc., one
of Sedona’s domestic competitors, has a flat
organizational structure.
B. Sedona is a
family-owned business that began as a subsidiary to Aloha enterprises.
C. Sedona has
recently reorganized into a domestic structure plus foreign subsidiary.
D. Sedona conducts a
large percentage of domestic sales through the
company’s website.
Question 23 of 40
5.0/ 5.0 Points
All of the following are cooperative aspects of strategic
alliances EXCEPT:
A. creating
economies of scale in tangible assets.
B. forming
upstream–downstream divisions of labor.
C. limiting
investment risks through shared resources.
D. learning new
intangible skills from alliance partners.
Question 24 of 40
5.0/ 5.0 Points
Which of the following forms of organization is particularly
appropriate in a dynamic and diverse environment?
A. The global functional
structure
B. The global
product structure
C. The domestic
structure plus export department
D. The domestic
structure plus foreign subsidiary
Question 25 of 40
5.0/ 5.0 Points
In order to minimize potential problems in alliances,
companies should most likely choose partners with:
A. competitively
sensitive technology.
B. complementary
products and skills.
C. significant
control of the target market.
D. superior bargaining
power in the same industry.
Question 26 of 40
5.0/ 5.0 Points
The need for knowledge management in IJVs primarily stems
from: Answer: B
A. employee concerns
regarding job security and benefits.
B. cultural and
system differences between partners.
C. local government
regulations and restrictions.
D. proprietary
information legalities.
Question 27 of 40
5.0/ 5.0 Points
Which of the following types of alliances can be formed
between a company and a foreign government?
A. International
joint venture
B. Equity strategic
alliance
C. Non-equity
strategic alliance
D. Global strategic
alliance
Question 28 of 40
5.0/ 5.0 Points
Usually, smaller firms start their international involvement
by:
A. exporting.
B. divesting.
C. entering into a
full-blown global joint venture.
D. using foreign
direct investment.
Question 29 of 40
0.0/ 5.0 Points
Barton & Green is an MNC based in the U.S. that makes a
wide range of software development products. Executives at the firm are
considering the idea of outsourcing the company’s IT infrastructure. Which of
the following questions is the most relevant to Barton & Green’s decision
to outsource its IT infrastructure to TMC Enterprises, a firm in India?
A. Which type of
operating system is primarily used by TMC Enterprises?
B. What is the
attitude of U.S. consumers about TMC Enterprises?
C. What is the
financial health of TMC Enterprises?
D. Which other firms
have outsourced their processes to TMC Enterprises?
Question 30 of 40
5.0/ 5.0 Points
Which of the following indicates a need for change in
organizational design?
A. Low turnover
B. A decrease in
overseas customer complaints
C. Seamless
innovation
D. New management
with different goals and strategies
Question 31 of 40
5.0/ 5.0 Points
Which of the following is true with regard to information
systems in less-developed countries?
A. In less-developed
countries, the sources of reliable data for decision making is relatively high
in number.
B. The accuracy and
timeliness of information systems are often less than perfect in less-developed
countries.
C. In less-developed
countries, the sources of reliable data for decision making are easy to locate.
D. Government
information in less-developed countries is rarely fabricated, so it is
considered to be the most reliable source of information for headquarters’
managers.
Question 32 of 40
5.0/ 5.0 Points
Which of the following is true with regard to direct
coordinating mechanisms?
A. Expatriates from
“headquarters” do not exert control over the foreign affiliate
through the expectations of the national and corporate culture of the parent
company.
B. Even in
situations where parent control is considered less important, delegating the
control to the local level is ritually avoided.
C. Direct
coordinating mechanisms that provide the basis for the overall guidance and
management of foreign operations include the design of appropriate
organizational structures and the use of effective staffing practices.
D. Direct
coordinating mechanisms do not include staffing practices.
Question 33 of 40
5.0/ 5.0 Points
SoftCorp and TechGig, upcoming software companies in San
Diego, have decided to create a new and independent telecommunications company,
ST-source. Each parent firm has agreed to have 50 percent equity in the new
company. This is an example of a(n):
A. e-business.
B. subsidiary.
C. franchise.
D. joint venture.
Question 34 of 40
5.0/ 5.0 Points
In spite of the potential problems with local partners, many
firms rush the process of partner selection because they:
A. want to reduce
the amount spent on establishing subsidiaries abroad
B. want to take
advantage of the local partner’s technological innovations.
C. mostly aim at
increasing the number of equity shares within a short period of time.
D. are anxious to
get into an attractive market.
Question 35 of 40
5.0/ 5.0 Points
Managers choose the manufacturing location for each product
based on where the best combination of cost, quality, and technology can be
attained in order to achieve:
A. customer loyalty.
B. integration.
C. segregation.
D. rationalization.
Question 36 of 40
5.0/ 5.0 Points
Overlooking cultural differences in cross-border alliances
can create a negative impact when target country:
A. has similar views
on organizational formality.
B. and host country
equally participate in decision making.
C. is
technologically superior to the host country.
D. has conflicting
practices and systems.
Question 37 of 40
5.0/ 5.0 Points
Papillion Inc. is a small American high-technology firm that
has been successfully competing in the international business arena from its
inception two years ago. Instead of internationalizing slowly, Papillion
embarked upon an ambitious plan to leverage niche market opportunities
worldwide—right from the beginning. Papillion Inc. exemplifies the __________
phenomenon.
A. born-global
B. subordinateship
C. outsourcing
D. insourcing
Question 38 of 40
5.0/ 5.0 Points
According to the __________ model, as the company becomes
larger, more complex, and more sophisticated in its approach to world markets,
it may evolve into a transnational corporation.
A. four stages of
contribution
B. crowdsourcing
C. matrix
D. evolutionary
stages
Question 39 of 40
5.0/ 5.0 Points
Nimbus Inc. is a hybrid organization. The organizational
structure of
the company has been developed to combine geographic support
for both
global integration and local responsiveness. Nimbus is not a
hierarchical organization and uses cross-functional teams to
quickly
adapt to the dynamic business environment.
If the above information is
true, which of the following can be fittingly inferred?
A. Nimbus has only a
few SBUs.
B. Nimbus has a
matrix structure.
C. Nimbus is a born
global.
D. Nimbus does not
favor standardization of its products.
Question 40 of 40
5.0/ 5.0 Points
Which of the following primarily determines the extent of
control exercised over an IJV by its parent company?
A. Staffing choices
for top IJV positions
B. Policies of the
smaller firm
C. Cultural
background
D. IJV industry