First Half cements ments Jons Button ations te Catalog 65 eam Course Point Guides Course Ons n O Highly centralized Multidivisional with each division managing a specific product line globally Question 2 2 pts When discussing the "International" mode of the international expansion, we noted that there is a unique attribute that often separates that mode from the other three expansion modes. That unique feature is best described as: O International Mode can be a great first step in the expansion strategy, but managers should switch to one of the other three modes later on, as its potential to teach the company about international expansion is limited O International Mode can be a great choice as the expansion strategy, because it provides greater economies of scale opportunities than the global strategy O International Mode is typically superior to the Multidomestic Mode because it can provide for a better customization of the products according to varying customer tastes Question 3 2 pts There are certain situations in which vertical integration (acquiring the firm's buyers or suppliers) becomes a potentially optimal solution to the market failure problem. One of the factors that helps create such a situation is: O Both parties to the transaction have full and equal access to all the relevant information and knowledge about the transaction, but fail to utilize it because of the fear it would undermine efficiency of the exchange O One of the parties to the transaction would have to make a commitment and investment that is tailored specifically to the transaction and cannot be easily reversed or repurposed O The parties to the transaction operate in the industries with markedly different levels of profitability O Both parties to the transaction calculate the direct and indirect costs of organizing transaction through the market mechanisms to be lower than the costs associated with the vertical integration 1 pts Question 4 A BA NO