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Membership in ASEAN.

Question 1
Using intermediaries or go-between firms to provide the knowledge and contacts necessary to sell overseas is usually associated with

a. Direct exporting.

b. Licensing.

c. Franchising.

d. Indirect exporting.

Question 2
What dictates the choice of a multinational entry-mode strategy?

a. Strategic competition

b. Strategic reason to be in the market

c. Companies want to achieve economies of scale

d. Companies want to share risks and costs of developing technology

Question 3
The global solution to the global-local dilemma refers to

a. Conducting business similarly around the world.

b. Responding to differences in the global markets in which a company operates.

c. Customization of products to regional but not country differences.

d. None of the above

Question 4
Foreign direct investment

a. Is an entry-mode strategy.

b. Means that a multinational owns, in part or in whole, an operation in another country.

c. Symbolizes the highest rate of internationalization.

d. All of the above

Question 5
Which of the following statements regarding exporting is FALSE?

a. Exporting is the easiest of entry-mode strategies.

b. Because it is the easiest form of going international, exports are not as important to the US economy.

c. Export can be indirect where companies rely on intermediaries to sell overseas.

d. Export can be of the passive form where overseas orders are treated like domestic orders
Question 6
A __ helps link the organization horizontally.

a. Centralized operations

b. Coordination system

c. Control system

d. Cultural system

Question 7
All of the following statements are true about the functional structure EXCEPT

a. In the functional structure, departments perform separate business functions such as marketing or manufacturing.

b. In small organizations, the functional structure is the least efficient of all structures.

c. The functional structure is the simplest of organizations.

d. Because functional subunits are separated from each other, coordination among the units can be difficult.

Question 8
_ mean/means that management locates subsidiaries anywhere in the world where they can benefit the company.

a. Dispersed subunits

b. Specialized operations

c. Interdependent relationships

d. None of the above

Question 9
The type of vertical control mechanism most often associated with a profit center is

a. Bureaucratic.

b. Cultural.

c. Output.

d. Decision making.

uestion 10
Equity in a strategic alliance implies

a. Labor skills.

b. Ownership.

c. Domination.

d. None of the above

Question 11
There are several issues to consider in picking a partner for a strategic alliance. One of these is

a. Go for the biggest partner possible because they have the most assets.

b. Seek strategic complementarity.

c. Make sure your partner will be dependent on you and not vice versa.

d. All of the above

Sample Solution

usinesses and their employees to increase their profit margins. “Monopoly power allows a company that has eaten up an entire industry to fix prices for consumers, driving them higher than they would be if other companies were able to compete in the same market and offer lower prices.” (Covert, 3). In the Gilded Age, the monopolies like Andrew Carnegie’s U.S. Steel or John D. Rockefeller’s Oil refinery etc. controlled the economics of United States. But also, today it is “impossible for employees to leave for a better-paying job elsewhere” (Covert, 3). Companies regulate their own prices, in favor of their profit. The main goal of almost every business person, is to get the highest most possible profit and win. Customers will prefer a company which offers the lowest price and will regard the high-price-companies. Even though, most of the people would say, that monopolies do not have a big influence on the economic, as it was back then in the Gilded Age. Nevertheless, it still does affect the way how customers think or handle by regulating very cheap prices, manipulate smaller businesses and do not increasing the wages. Monopolies in the Gilded Age brought many jobs to the nation’s citizen, but they also set the wage very low, why also labor unions were created. Some obdurate Politician took benefit on the monopolies to strengthen their campaigns for their presidential elections, like the one in 1896 between Democrat W. Bryan and Republican W. McKinley, which was won by the Republican because the employees/voters were dependent on their job which were given by the monopolies (in cooperation to the Republican McKinley). But also, today some companies keep their wages by the minimum of $7.25 an hour. They also beat small businesses down by keeping the selling prices as low as possible to make the buyer a favor on their own industry and so other businesses go down and their will become a monopoly. Although most of the people will say that the conditions are different now than back then in the 19th century, but monopolies still do have a big influence on other businesses, the economic and politics. Back to Charles Darrow’s legendary board game “Monopoly”, it is really obvious how the rise of a monopoly can influence other players. Of course, this is the point of the game to get a monopoly, to leave the other players only one way, and to collect all the money by oneself. Indeed, it is only a game, but however this is also to find in the modern society and ancient history.

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