1. A global corporate-level strategy emphasizes

   	a.	sensitivity to local product preferences.
   	b.	decentralizing control and limited monitoring.
   	c.	economies of scale.
   	d.	differentiated products.

5 points

QUESTION 21

1. Increasingly, customers worldwide are demanding emphasis on local requirements and companies are needing efficiency as global competition increases. This has triggered an increase in the number of firms using the ____ strategy.

   	a.	multidomestic
   	b.	transnational
   	c.	global
   	d.	universal

5 points

QUESTION 22

1. The choices that a firm has for entering the international market include all of the following EXCEPT

   	a.	licensing.
   	b.	acquisition.
   	c.	leasing.
   	d.	exporting.

5 points

QUESTION 23

1. A strategy in which firms work together to achieve a shared objective is a

   	a.	business-level strategy.
   	b.	corporate-level strategy.
   	c.	cooperative strategy.
   	d.	functional-level strategy.

5 points

QUESTION 24

1. Moon Flower cosmetics company executives are aware that their Asian customer base is interested in advanced skin care treatments beyond Moon Flowers traditional herbal and organic compounds. Moon Flower and a large American chemical company are in discussions to create a 50-50 partnership in a new firm which would create skin care treatments based on innovative chemical formulations which would be marketed both in Asia and in the U.S. Beyond being a cross-border alliance, this partnership can be called a(an)

   	a.	joint venture.
   	b.	nonequity strategic alliance.
   	c.	horizontal complementary alliance.
   	d.	equity strategic alliance.

5 points

QUESTION 25

1. A nonequity strategic alliance exists when

   	a.	the partners agree to sell bonds instead of stock in order to finance a new venture.
   	b.	two partners in an alliance own unequal shares in the combined entity.
   	c.	two or more firms have a contractual relationship to share resources and capabilities.
   	d.	two firms join together to create a new company.

5 points

QUESTION 26

1. The fact that the prices consumers pay for branded breakfast cereals are above the prices that would exist if there were true competition suggests that the cereal manufacturers are engaging in

   	a.	joint ventures.
   	b.	tacit collusion.
   	c.	excessive cooperation.
   	d.	horizontal strategic alliances.

5 points

QUESTION 27

1. Of the various business-level strategic alliances, ____ alliances have the most probability of creating sustainable competitive advantage, and ____ have the lowest.

   	a.	vertical complementary, competition reducing
   	b.	uncertainty reducing, competition reducing
   	c.	horizontal complementary, vertical complementary
   	d.	competition reducing, horizontal complementary

5 points

QUESTION 28

1. The collaboration between Volvo Aero (a subsidiary of Swedens AB Volvo) and U.S.-based Pratt & Whitney to produce a new jet engine would be characterized as a(an)

   	a.	international acquisition.
   	b.	merger.
   	c.	cross-border strategic alliance.
   	d.	collusive tactic.

5 points

QUESTION 29

1. Greentech, Inc., is a bioengineering firm specializing in food crops. It is considering a cooperative alliance with an Asian agribusiness firm, AsiaFoods, to jointly produce improved crops for the Asian market. The risks that Greentech should consider before entering this alliance include all of the following EXCEPT:

   	a.	Will Greentech be able to use a cost-minimization management strategy in the AsiaFoods alliance?
   	b.	Will AsiaFoods make alliance-specific investments?
   	c.	Has AsiaFoods accurately represented its competencies?
   	d.	Can Greentech expect opportunistic behavior from AsiaFoods?