Question 1

Which of the following most likely caused firms to re-trench operations and cancel joint venture plans in 2009?
A) global economic downturn
B) international terrorist threats
C) fluctuation of the euro
D) U.S. political atmosphere

Accepted Answer

The global economic downturn, also known as the Great Recession, had a significant impact on businesses and caused many to reassess and cut back on their operations. This led to the cancellation of joint venture plans as companies focused on cost-cutting measures and reevaluating their financial strategies. The other options (international terrorist threats, fluctuation of the euro, U.S. political atmosphere) may have had some impact on businesses but were not the primary cause for re-trenchment and cancellation of joint ventures in 2009.

Question 2

Which of the following is the primary concern that American computer makers have with production in China?
A) The Chinese market is not large enough to sell computer products domestically.
B) There will be loss of intellectual property if Chinese companies co-produce computers.
C) There are not enough high skilled workers available in China for American companies.
D) The Chinese government requires American firms to pay workers specific hourly wages.

Accepted Answer

American computer makers are concerned about the loss of intellectual property if Chinese companies co-produce computers. China has a history of copycatting and stealing technology, and American companies fear that their technology will be stolen or duplicated without proper compensation. This is why many American companies have been pushing for stronger protections for their intellectual property in China.

Question 3

David Lei noted that the single greatest impediment managers face when seeking to learn or renew sources of competitive advantage is that ________.
A) great venture partners are hard to find
B) technologies change very rapidly
C) partners can become competitors
D) governments can be fickle

Accepted Answer

Partners can become competitors, which can hinder the ability to maintain a competitive advantage as they might leverage shared knowledge and resources against the original company.

Question 4

All of the following are typical reasons for forming cross-border alliances EXCEPT ________.
A) avoiding import barriers
B) sharing R&D costs and risks
C) gaining access to specific markets
D) testing marketing campaigns overseas

Accepted Answer

Testing marketing campaigns overseas is not a typical reason for forming cross-border alliances. The other options, such as avoiding import barriers, sharing R&D costs and risks, and gaining access to specific markets, are commonly cited reasons for such alliances.

Question 5

________ are working partnerships between companies across national boundaries and increasingly across industries.
A) Global strategic alliances
B) National strategic alliances
C) Domestic strategic alliances
D) Transitional strategic alliances

Accepted Answer

Global strategic alliances are partnerships between companies across national boundaries and industries. The other choices (B, C, D) either refer to partnerships within a single country or do not cover partnerships between companies across national boundaries.

Question 6

Sharing the costs and risks associated with the research and development of new products and processes is the primary reason for cross-border alliances in the ________ industry.
A) semiconductor
B) beverage
C) tourism
D) publishing

Accepted Answer

The semiconductor industry is characterized by high costs associated with research and development (R&D) of new products and processes. Cross-border alliances help companies to share these costs and risks and accelerate the development of new technology. Other industries listed may also form cross-border alliances, but the primary reason for doing so is not related to sharing development costs and risks.

Question 7

Which of the following terms refers to an overseas business owned and controlled by two or more partners?
A) multinational enterprise
B) foreign direct investment
C) global management team
D) international joint venture

Accepted Answer

An international joint venture is a business enterprise established and operated by two or more companies from different countries. It is an overseas business owned and controlled by two or more partners. A multinational enterprise refers to a company with operations and subsidiaries in multiple countries, while foreign direct investment is a company's investment in a foreign country through the establishment of a wholly-owned subsidiary or the acquisition of a minority stake in a local company. Global management team refers to the group of executives responsible for managing a multinational enterprise.

Question 8

What is the most likely reason that GM and Toyota would form a cross-border alliance?
A) gain access to new markets
B) share R&D costs and risks
C) avoid import quotas
D) reduce political risk

Accepted Answer

The answer of What is the most likely reason that...

Question 9

France's Thomson Electronics combined with China's TCL to form TCL-Thomson Electronics. Thomson owns 33% and TCL owns the remaining 67% of the combined company. This is best described as a(n) ________.
A) non-equity strategic alliance
B) manufacturing joint venture
C) global licensing agreement
D) equity strategic alliance

Accepted Answer

TCL-Thomson Electronics is an equity strategic alliance as it involves the formation of a new legal entity where both companies have ownership stakes. In this case, Thomson owns 33% and TCL owns 67% of the combined company.

Question 10

In a study of corporate alliances in the technology and pharmaceutical industries, researchers found that decisions regarding the form of governance primarily depended upon the desire to control ________.
A) organizational structure
B) proprietary technology
C) marketing strategies
D) distribution methods

Accepted Answer

The study found that decisions regarding the form of governance primarily depended upon the desire to control proprietary technology. This suggests that the companies were more concerned with protecting their intellectual property and ensuring that they retained control over their unique technological advancements than with managing their organizational structure, marketing strategies, or distribution methods.

Question 11

Which of the following is NOT one of the primary categories under which alliances typically fall?
A) joint ventures
B) equity strategic alliances
C) international management
D) non-equity strategic alliances

Accepted Answer

The primary categories under which alliances typically fall are joint ventures, equity strategic alliances, and non-equity strategic alliances. International management is not a category of alliance, but rather a field of study related to managing global business operations.

Question 12

Which of the following terms refers to working partnerships between MNCs across national boundaries and often across industries?
A) transnational corporations
B) strategic alliances
C) foreign subsidiaries
D) turnkey operations

Accepted Answer

Strategic alliances refer to partnerships between MNCs across national boundaries and often across industries. Transnational corporations generally refer to companies that have operations in multiple countries and may or may not engage in strategic alliances. Foreign subsidiaries refer to companies that are owned by MNCs but operate in a different country. Turnkey operations refer to projects where a contractor is responsible for the design, construction, and commissioning of a facility or system for the owner.

Question 13

Strategic alliances are also known as ________.
A) competitive strategies
B) cooperative strategies
C) independent strategies
D) virtual strategies

Accepted Answer

Strategic alliances are partnerships formed between two or more organizations that agree to work together towards common goals while remaining independent entities. This means that they are cooperative strategies since they involve collaboration and sharing of resources, knowledge, and expertise to achieve mutual benefits. The other options are incorrect because strategic alliances are not necessarily competitive, independent, or virtual strategies, although they may involve elements of each.

Question 14

According to research, which of the following is LEAST likely to cause a global alliance to fail?
A) differences in national cultures
B) issues with power distribution
C) differences in organizational systems
D) unnecessary government intervention

Accepted Answer

Unnecessary government intervention is the least likely factor to cause a global alliance to fail since it does not directly affect the internal dynamics of the alliance. Factors such as differences in national cultures, issues with power distribution, and differences in organizational systems can all create conflicts and challenges within the alliance, making it more difficult to achieve cooperation and success.

Question 15

Which of the following terms refers to a new independent entity that is mutually created and owned by two or more parent companies?
A) e-business
B) subsidiary
C) franchise
D) joint venture

Accepted Answer

Joint venture refers to a new independent entity that is mutually created and owned by two or more parent companies.

Question 16

Alliances that are carried out through contract rather than ownership sharing are called ________.
A) cultural strategic alliances
B) equity strategic alliances
C) non-equity strategic alliances
D) transmodal strategic alliances

Accepted Answer

Non-equity strategic alliances are based on contracts and do not involve ownership sharing. The other options listed are not accurate definitions of alliances based on contract versus ownership sharing.

Question 17

Japan's NEC and U.S. based AT&T most likely formed a strategic alliance in order to ________.
A) reduce political and cultural risks
B) avoid licensing requirements
C) access new technology and new markets
D) develop a mutually useful infrastructure

Accepted Answer

The formation of a strategic alliance between NEC and AT&T suggests that they are seeking to access new technology and new markets, which is a common objective of such partnerships.

Question 18

Alliances in which two or more partners have different relative ownership shares in the new venture are called ________.
A) cultural strategic alliances
B) equity strategic alliances
C) non-equity strategic alliances
D) transmodal strategic alliances

Accepted Answer

Equity strategic alliances involve partners having different relative ownership shares in the new venture. Cultural strategic alliances are partnerships in which partners share similar cultures or values. Non-equity strategic alliances involve partners collaborating without investing in each other's businesses. Transmodal strategic alliances involve partners in different transportation modes working together.

Question 19

The Haeir Group achieved rapid global growth by doing all of the following EXCEPT ________.
A) acquiring companies with significant market potential
B) implementing a performance management system
C) entering markets through franchise agreements
D) forming strategic alliances in foreign markets

Accepted Answer

Haier Group's global growth strategy did not primarily involve entering markets through franchise agreements, but rather through acquisitions, performance management, and strategic alliances.

Question 20

Firms most likely form cross-border strategic alliances with European companies because ________.
A) technology within the EU changes rapidly
B) EU regulations favor domestic companies
C) franchising and licensing are illegal in the EU
D) EU consumers demand foreign-made products

Accepted Answer

EU regulations often favor domestic companies, so forming alliances with European firms can help non-EU companies navigate these regulations and gain market access.

Quiz 7: Global Alliances and Strategy Implementation

Which of the following most likely caused firms to re-trench operations and cancel joint venture plans in 2009?

Which of the following is the primary concern that American computer makers have with production in China?

David Lei noted that the single greatest impediment managers face when seeking to learn or renew sources of competitive advantage is that ________.

All of the following are typical reasons for forming cross-border alliances EXCEPT ________.

________ are working partnerships between companies across national boundaries and increasingly across industries.

Sharing the costs and risks associated with the research and development of new products and processes is the primary reason for cross-border alliances in the ________ industry.

Which of the following terms refers to an overseas business owned and controlled by two or more partners?

What is the most likely reason that GM and Toyota would form a cross-border alliance?

France's Thomson Electronics combined with China's TCL to form TCL-Thomson Electronics. Thomson owns 33% and TCL owns the remaining 67% of the combined company. This is best described as a(n) ________.

In a study of corporate alliances in the technology and pharmaceutical industries, researchers found that decisions regarding the form of governance primarily depended upon the desire to control ________.

Which of the following is NOT one of the primary categories under which alliances typically fall?

Which of the following terms refers to working partnerships between MNCs across national boundaries and often across industries?

Strategic alliances are also known as ________.

According to research, which of the following is LEAST likely to cause a global alliance to fail?

Which of the following terms refers to a new independent entity that is mutually created and owned by two or more parent companies?

Alliances that are carried out through contract rather than ownership sharing are called ________.

Japan's NEC and U.S. based AT&T most likely formed a strategic alliance in order to ________.

Alliances in which two or more partners have different relative ownership shares in the new venture are called ________.

The Haeir Group achieved rapid global growth by doing all of the following EXCEPT ________.

Firms most likely form cross-border strategic alliances with European companies because ________.