QUESTION 33

1. Protection of technology, the ability to engage in global strategic coordination and the ability to realize location and experience economies are distinct advantages of ______.

   	A.	franchising
   	B.	wholly owned subsidiaries
   	C.	exporting
   	D.	licensing

QUESTION 34

1. The production, marketing, and R&D activities of firms pursuing a(n) ______ strategy are concentrated in a few favorable locations.

   	A.	international
   	B.	transnational
   	C.	global
   	D.	multidomestic

QUESTION 35

1. When a firm agrees to purchase a certain amount of materials back from a country to which a sale is made, it is called:

   	A.	barter.
   	B.	counterpurchase.
   	C.	offset.
   	D.	switch trading.

QUESTION 36

1. A weakness of the _____ strategy is that many of the firms that pursue this strategy have developed into decentralized federations in which each national subsidiary functions in a largely autonomous manner.

   	A.	multidomestic
   	B.	global
   	C.	international
   	D.	transnational

QUESTION 37

1. The ____________ of a firm is measured by the difference between value and cost.

   	A.	quality-cost differential
   	B.	value creation
   	C.	value differential
   	D.	efficiency curve

QUESTION 44

1. Which of the following are costs that an early entrant has to bear that a later entrant can avoid?

   	A.	Experimental costs
   	B.	Untried costs
   	C.	Introductory costs
   	D.	Pioneering costs

QUESTION 13

1. When cost pressures are low and the pressures for local responsiveness are high a(n) _____ strategy is the most appropriate.

   	A.	multidomestic
   	B.	global
   	C.	transnational
   	D.	international

QUESTION 11

1. In the context of value chain analysis, which of the following is an example of a primary activity?

   	A.	Materials management
   	B.	Research and development
   	C.	Manufacturing
   	D.	Human relations

QUESTION 8

1. A lack of local responsiveness, an inability to realize location economies, and a failure to exploit experience curve effects are disadvantages of a(n) _______ strategy.

   	A.	international
   	B.	global
   	C.	transnational
   	D.	multidomestic

QUESTION 9

1. A primary advantage of __________________ is that the firm does not have to bear the development costs and risks associated with opening a foreign market.

   	A.	green-field investments
   	B.	turnkey contracts
   	C.	licensing
   	D.	acquisitions