COB 487- FINAL EXAM QUESTIONS & ANSWERS
The most expensive and risky entry mode is - Answer -wholly owned subsidaries
Community hospitals in Mississippi can video conference with the specialists at the
University of Mississippi Medical Center thus lowering health care delivery costs and
increasing the quality of medical care. This system mirrors that of the Indian health care
delivery system for reaching rural areas. This is an example of - Answer -Reverse
Innovation
The creation of a third-party legal entity is required for ______ , whereas for _________
it is not - Answer -joint ventures, strategic alliances
For years O.R.T. Technologies resisted moving any operations outside Israel. However,
when faced with a sharp rise in the value of the shekel, the maker of specialized
software for managing gas stations froze all local hiring and decided to transfer some
developmental work to Eastern Europe. This is an example of _____ risk - Answer -
currency
Green tea Oreos in China, chocolate and peanut butter Oreos in Indonesia, and banana
dulce de leche Oreos in Argentina are examples of Kraft using ________ strategy -
Answer -multidomestic
Rivalry is intense in nations with conditions of ______ consumer demand _______
supplier bases, and _______ new entrant potential from related industries - Answer -
strong, strong, high
When differentiating products and services to local markets, strategies and tactics are
likely to ________ company costs - Answer -increase
Building production capacity in locations outside of Europe can threaten
______________, an issue typically raised when investing in China - Answer -
intellectual property rights protection
_______ occurs when a firm decides to utilize other firms to perform value-creating
activities that were previously performed in-house. - Answer -outsourcing
Increasing international exchange in goods and services can run into the difficulty of
how to address the needs of customers at differing income levels? - Answer -True
Multinational firms are constantly faced with the decision of choosing between _______
adaptation and ______ integration - Answer -local, global
, Which of the factors below has not made the software services industry in India
extremely competitive on a global scale? - Answer -tax and antitrust legislation that
protects the dominant players in the industry
____________ are most appropriate when a firm already has the appropriate
knowledge and capabilities that it can leverage rather easily through multiple locations
in many countries. - Answer -wholly owned subsidaries
Greeks reacted negatively to Coca-Cola advertising using Coke bottles as pillars for the
Parthenon. This is a form of ________ Risk - Answer -management
Many international firms are increasing their efforts to market their products and
services to countries such as India and China as the ranks of their middle class
continue to increase. - Answer -True
Renault paid 1 billion USD to acquire a 25 percent ownership stake in the Russian
automaker avtovaz in 2008. Just one year later, Russian Prime Minister Vladimir Putin
threatened to dilute the Renault ownership stake unless it contributed more money to
prop up avtovaz, which was then experiencing a significant slide in sales. This is an
example of ________ risk - Answer -political
L'Oreal acquired two U.S. firms that developed and sold hair care products to African-
American customers. This permitted it to build a new ethnic hair care division in Europe
and Africa. This represents an advantage of international expansion using...? - Answer
-learning opportunities
When launching a new venture, finding a way to begin doing business must ________
generate cash flow, build credibility, attract good employees, and overcome the liability
of newness. - Answer -quickly
When an industry is mature, a(n) _______ strategy is considered one of the most
effective approaches for a new entrant. - Answer -focus
Which of the following is not a primary source of financing for entrepreneurial start-ups?
- Answer -public equity
Entrepreneurial firms that pursue a low-cost leadership strategy use all the following to
achieve lower costs except - Answer -extensive investment in order to achieve
economies of scale
As long as the benefits of __________ are enjoyed by all participants in a co-opetition
system, the practice can aid companies in avoiding intense and damaging competition. -
Answer -cooperating
Walmart began offering low-priced extended warranties on home electronics after
learning that its rivals such as Best Buy derived most of their profits from extended
The most expensive and risky entry mode is - Answer -wholly owned subsidaries
Community hospitals in Mississippi can video conference with the specialists at the
University of Mississippi Medical Center thus lowering health care delivery costs and
increasing the quality of medical care. This system mirrors that of the Indian health care
delivery system for reaching rural areas. This is an example of - Answer -Reverse
Innovation
The creation of a third-party legal entity is required for ______ , whereas for _________
it is not - Answer -joint ventures, strategic alliances
For years O.R.T. Technologies resisted moving any operations outside Israel. However,
when faced with a sharp rise in the value of the shekel, the maker of specialized
software for managing gas stations froze all local hiring and decided to transfer some
developmental work to Eastern Europe. This is an example of _____ risk - Answer -
currency
Green tea Oreos in China, chocolate and peanut butter Oreos in Indonesia, and banana
dulce de leche Oreos in Argentina are examples of Kraft using ________ strategy -
Answer -multidomestic
Rivalry is intense in nations with conditions of ______ consumer demand _______
supplier bases, and _______ new entrant potential from related industries - Answer -
strong, strong, high
When differentiating products and services to local markets, strategies and tactics are
likely to ________ company costs - Answer -increase
Building production capacity in locations outside of Europe can threaten
______________, an issue typically raised when investing in China - Answer -
intellectual property rights protection
_______ occurs when a firm decides to utilize other firms to perform value-creating
activities that were previously performed in-house. - Answer -outsourcing
Increasing international exchange in goods and services can run into the difficulty of
how to address the needs of customers at differing income levels? - Answer -True
Multinational firms are constantly faced with the decision of choosing between _______
adaptation and ______ integration - Answer -local, global
, Which of the factors below has not made the software services industry in India
extremely competitive on a global scale? - Answer -tax and antitrust legislation that
protects the dominant players in the industry
____________ are most appropriate when a firm already has the appropriate
knowledge and capabilities that it can leverage rather easily through multiple locations
in many countries. - Answer -wholly owned subsidaries
Greeks reacted negatively to Coca-Cola advertising using Coke bottles as pillars for the
Parthenon. This is a form of ________ Risk - Answer -management
Many international firms are increasing their efforts to market their products and
services to countries such as India and China as the ranks of their middle class
continue to increase. - Answer -True
Renault paid 1 billion USD to acquire a 25 percent ownership stake in the Russian
automaker avtovaz in 2008. Just one year later, Russian Prime Minister Vladimir Putin
threatened to dilute the Renault ownership stake unless it contributed more money to
prop up avtovaz, which was then experiencing a significant slide in sales. This is an
example of ________ risk - Answer -political
L'Oreal acquired two U.S. firms that developed and sold hair care products to African-
American customers. This permitted it to build a new ethnic hair care division in Europe
and Africa. This represents an advantage of international expansion using...? - Answer
-learning opportunities
When launching a new venture, finding a way to begin doing business must ________
generate cash flow, build credibility, attract good employees, and overcome the liability
of newness. - Answer -quickly
When an industry is mature, a(n) _______ strategy is considered one of the most
effective approaches for a new entrant. - Answer -focus
Which of the following is not a primary source of financing for entrepreneurial start-ups?
- Answer -public equity
Entrepreneurial firms that pursue a low-cost leadership strategy use all the following to
achieve lower costs except - Answer -extensive investment in order to achieve
economies of scale
As long as the benefits of __________ are enjoyed by all participants in a co-opetition
system, the practice can aid companies in avoiding intense and damaging competition. -
Answer -cooperating
Walmart began offering low-priced extended warranties on home electronics after
learning that its rivals such as Best Buy derived most of their profits from extended
