Chapter 12 Questions
- Turnkey projects are a means of exporting ________ to
other countries.
- If a firm is entering a market where there are already well-established incumbent enterprises, and where global competitors are also interested in establishing a presence, it may pay the firm to enter via an ___________.
- Creating efficient competitors and lack of long-term market presence are
disadvantages of ___________.
- When making basic entry decisions, the benefit-cost-risk trade-off is likely to be most favorable in what type of country
a. One that is large
b. One with a free-market system
c. One that is politically instable
d. A communist country
- What term refers to the management of the acquired firm is often too optimistic about the value that can be created via an acquisition and is thus willing to pay a significant premium over a target firm�s market capitalization?
- Entering a market on a large scale implies:
a. Rapid entry
b. Gradual entry
c. Forced entry
d. Domestic entry
- 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
- Most manufacturing firms bring their global expansion through:
a. A join venture
b. Licensing
c. Turnkey projects
d. Exporting
- _______ are less risky than _______ in the sense that there is less potential for unpleasant surprises.
a. Green-field ventures; acquisitions
b. Acquisitions, green-field ventures
c. Franchises; licensing
d. Licensing ventures, franchises
- The _______ hypothesis postulates that top managers typically overestimate their ability to create value from an acquisition, primarily because rising to the top of a corporation has given them an exaggerated sense of their own capabilities.