Exam 2 Practice – Flashcards
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_____ has the lowest level of venture capital (VC) investment as a percentage of gross domestic product (GDP).
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b. China
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Which of the following is true of a multinational enterprise (MNE)?
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b. A firm that enters foreign market via foreign direct investment (FDI)
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In the context of acquisition, the only identifiable group of winners is:
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b. the shareholders of acquiring firms. THIS IS WRONG ANSWER
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Unlike a transnational strategy, a global standardization strategy involves:
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a. the development and transfer of knowledge from the center to the subsidiaries. THIS IS WRONG ANSWER
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In multinational enterprises (MNEs), third-country nationals:
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a. come from neither the parent country nor the host country
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In the context of marketing products, which of the following scenarios illustrates a standardization strategy?
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c. Charge Tool, a spark plug manufacturing company based in Lucitona, sells steel spark plugs in Cantononia because they are the most preferred spark plugs in Lucitona.
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In the context of corporate social responsibility (CSR), which of the following statements is true of the VRIO (Value, Rarity, Imitability, and Organization) framework?
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b. Corporate social responsibility (CSR)-related resources are always rare. THIS IS WRONG ANSWER
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Bristo Corp. provides software support to all its customers. In an internal survey, it was found that only 60 percent of its employees have been working full time. Hence, instead of hiring new employees to provide software support, the company has decided to train existing employees to ensure that its resources are fully utilized. In this case, Bristo's entrepreneurial focus is on _____.
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a. innovation THIS IS WRONG ANSWER
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Rues and West Bros., a technological giant, is a company motivated with the drive to find new and affordable technologies. It is selecting a location so that it can operate with its motive, as well as enjoy the benefits of the location. In this scenario, Rues and West Bros. should select locations:
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a. that possess abundance of innovative individuals, firms, and universities.
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In the three-stage model of alliance formation, which of the following is the first stage?
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a. Taking a decision on the mode of growth
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The two sets of pressures that multinational enterprises (MNEs) confront are _____.
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b. cost reduction and local responsiveness
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_____ is specific preparation to do a particular job.
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a. Training
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John works as a quality analyst at a technological firm. He wanted to buy a mobile phone for his wife. Though he was abreast of the latest mobile phone brands that were introduced in the global market, he bought a phone that was produced and marketed locally. He was skeptical about whether global brands deliver high-quality goods. In the context of market segmentation, it is evident that John falls under the segment of _____.
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c. antiglobals
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At Write White Publishing Corp., a paper manufacturing company, the managers have changed their traditional outlook of profit maximization. They are increasingly aware of their social responsibility and are passionate toward corporate social responsibility (CSR) causes. In this case, Write White Publishing Corp. follows a(n) _____.
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c. accommodative strategy
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Which of the following statements is true of entrepreneurship?
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c. It is often associated with small and medium-sized enterprises.
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In the context of real options, which of the following is a disadvantage of entering into alliances?
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d. Entering into alliances is very costly. THIS IS WRONG ANSWER
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In the context of strategizing, structuring, and learning around the world, an implication for savvy managers will be to:
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b. develop learning and innovative capabilities to leverage multinational presence as an asset.
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Expatriates acting as ambassadors:
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c. facilitate the socialization process to bring subsidiaries into a multinational enterprise's global orbit. d. build local capabilities where local management talent is lacking. THIS IS WRONG ANSWER
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Which of the following examples best illustrates the effect of informal institutions on marketing and supply chain management?
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b. Huran Inc. dropped the idea of advertising its products via newspapers in Duador because most of the people in Duador read news on the Internet. d. Esca Motors dissolved its contract with a company that was providing with aerodynamic frames for its vehicles because the company was using this as a leverage to compete with Esca Motors. THIS IS WRONG ANSWER
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Michael is a manager at a tannery. In the wake of numerous protests from animal activists, he suggested adopting corporate social responsibility (CSR) values. In this case, which of the following will be true if he has a positive view toward CSR values?
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d. He will be self-motivated to do it right regardless of social pressures.
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Tobias intends to start an automobile manufacturing company. According to the VRIO (value, rarity, imitability, and organizational) framework, which of the following ideas will lead to a successful entrepreneurship?
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He can manufacture automobiles that are unique and custom-built according to his customers' specifications.
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According to the hubristic motive, a winning acquirer may suffer from what is called the ''winner's curse'' when:
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a. the market price of target firms do not reflect their intrinsic value.
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TrinkCan Inc., a soft drink company in Wales, establishes new branches in England, Australia, and the United States. To minimize its costs, the company uses similar packaging, distribution, and promotion across all the countries. According to the integration-responsiveness framework, which of the following strategies is used by TrinkCan?
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d. Global standardization strategy
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Which of the following is true of social issue participation?
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d. It qualifies as value-adding firm resources. THIS IS WRONG ANSWER
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Which of the following steps should be taken by governments to be entrepreneur-friendly?
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b. Governments should impose fewer procedures for entrepreneurs
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Being a first mover in a market is advantageous for a firm because:
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b. it may gain advantage through proprietary technology.
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Genra Technologies, a computer manufacturer that specializes in custom-built computers, recently entered into an agreement with Fronton Corp., a computer hardware manufacturer. According to the agreement, the operations and management control of Fronton Corp. will be transferred to Genra Technologies. In addition, Fronton Corp. will be a unit of Genra Technologies. The given scenario is an example of a(n) _____.
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c. merger THIS IS WRONG ANSWER
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In the context of knowledge management, which of the following is true of multinational enterprises (MNEs) adopting a localization strategy?
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b. Knowledge is developed and retained within each subsidiary.
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To avoid expatriate failure, which of the following is true of the firms using only individual dimensions to select expatriates?
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d. They prefer employees with strong technical abilities and cross-cultural adaptability.
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Rues and West is a pharmaceutical firm based in Belwick. It was recently condemned by many social organizations for the harmful after-effects triggered by its new painkiller. In this scenario, which of the following will be true if Rues and West adopted a reactive strategy?
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a. It would, at first, deny the severity of the harmful effects caused.
