CH08_Testbank_HIH9e - Chapter 8International Strategy...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 8—International Strategy TRUE/FALSE 1. Many firms choose direct investment in assets in foreign countries (e.g., establishing new subsidiaries, making acquisitions, or building joint ventures) over direct investment because it provides better pro- tection for their assets. ANS: T PTS: 1 DIF: Medium REF: 218 OBJ: 08-01 TYPE: knowledge NOT: AACSB: Multicultural & Diversity | Management: Environmental Influence | Dierdorff & Ru- bin: Managing the task environment 2. After a firm decides to compete internationally, it must select its strategy and choose a mode of entry into international markets. ANS: T PTS: 1 DIF: Easy REF: 218 (Figure 8.1) OBJ: 08-01 TYPE: knowledge NOT: AACSB: Multicultural & Diversity | Management: Environmental Influence | Dierdorff & Ru- bin: Managing the task environment 3. The benefits of international diversification must be tempered by political and economic risks and the problems of managing a complex international firm with operations in multiple countries. ANS: T PTS: 1 DIF: Easy REF: 218 OBJ: 08-01 TYPE: knowledge NOT: AACSB: Multicultural & Diversity | Management: Environmental Influence | Dierdorff & Ru- bin: Managing the task environment 4. According to the Opening Case about entry into China, a common entry strategy for automobile firms such as General Motors and Volkswagen is licensing. ANS: F PTS: 1 DIF: Medium REF: 217-218 | 233-234 OBJ: 08-01 | 08-06 TYPE: application NOT: AACSB: Multicultural & Diversity | Management: Environmental Influence | Dierdorff & Ru- bin: Managing the task environment 5. As noted in the Opening Case, the Chinese market is attractive only for manufacturing firms such as those in the automobile industry. ANS: F PTS: 1 DIF: Medium REF: 217 OBJ: 08-01 TYPE: application NOT: AACSB: Multicultural & Diversity | Management: Environmental Influence | Dierdorff & Ru- bin: Managing the task environment 6. The Opening case gives examples of Chinese firms such as Huawei Technologies Co. Ltd. which has been more successful abroad than in China. ANS: T PTS: 1 DIF: Medium REF: 217 OBJ: 08-01 TYPE: application NOT: AACSB: Multicultural & Diversity | Management: Environmental Influence | Dierdorff & Ru- bin: Managing the task environment
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
7. An important aspect of doing business internationally is that firms develop relationships with suppli- ers, customers, and partners and learn from these relationships as SAIC did in its partnerships with GM and Volkswagen. ANS: T PTS: 1 DIF: Medium REF: 217-219 OBJ: 08-01 TYPE: application NOT: AACSB: Multicultural & Diversity | Management: Environmental Influence | Dierdorff & Ru- bin: Managing the task environment 8. One reason why firms pursue international opportunities is to extend the product's life cycle. ANS: T
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 35

CH08_Testbank_HIH9e - Chapter 8International Strategy...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online