CHAPTER SUMMARY

What factors influence a country's foreign policy strategy.

• Military strength
• Natural resources
• Culture and religion
• All of the above options are correct.

Under the international business strategy, which method is used to minimize risk when expanding operations into international markets?

• Seeking local partners
• Building new factories in local markets
• Focusing on markets with less competition
• All of the above methods.

In the international business strategy, which method is used to reduce costs and increase competitiveness in international markets?

• Finding local partners
• Building new factories in local markets
• Using global supply chains
• All of the above methods.

Global standards are developed and managed by whom?

• International organizations and the legal regulations of each country and territory
• Multinational corporations and large manufacturers worldwide
• Quality management experts and researchers
• All of the above options are correct.

What does entering a market on a large scale imply?

• Commitment of significant resources
• Commitment of insignificant resources
• Rapid market exit
• Slow market entry

Under what circumstances might technology-based companies prefer joint-venture and licensing models over wholly-owned subsidiaries?

• When they want to minimize total costs
• When their competitors have advanced technology
• When they wish to expand their business rapidly
• When they want to establish internal management dominance

How does a Greenfield venture differ from an acquisition in terms of integration concerns?

• Greenfield ventures require building from the ground up, while acquisitions do not
• Greenfield ventures involve more cultural differences than acquisitions
• Greenfield ventures always result in successful integrations
• Greenfield ventures are quicker and more cost-effective than acquisitions

How can a firm maximize the learning benefits of a strategic alliance?

• By keeping knowledge acquisition limited to top-level executives.
• By only learning from their partner's weaknesses.
• By sharing knowledge gained with all operating employees.
• By avoiding any interaction with the partner firm.

Which is the effective way in which decisions are made and work is done in a company that is capable of reducing the cost of value creation and adding value to the product called?

• Control Systems
• Processes
• Horizontal Differentiation
• Incentive Systems

 Which element of organization refers to a shared system of abstract values and normative rules among people?

• Structure
• Bureaucracy
• Processes
• Culture