Marketing MCQ: Global Marketing Chapter 9

Which of the following statements most accurately describes the extent to which GM and Toyota outsource components?

A) GM and Toyota each outsource approximately 50% of their components.
B) Toyota outsources about 50% of its components; GM outsources about 75%.
C) GM outsources about 50% of its components; Toyota outsources about 75%.
D) Neither GM nor Toyota outsources a significant proportion of its components.
E) GM and Toyota each outsource approximately 25% of their components.

Answer: C) GM outsources about 50% of its components; Toyota outsources about 75%.

Another perspective on the future of cooperative strategies envisions the emergence of:

A) mergers and acquisition.
B) virtual corporations.
C) franchising.
D) joint ventures.
E) keiretsu.

Answer: B) virtual corporations.

Saab markets two luxury car models, both prized by drivers for their "quirkiness." About 30% of Saab's sales come from the USA, with most of the rest from Western Europe. Which strategy does Saab appear to be using?

A) country concentration/market segment concentration
B) country diversification/market segment concentration
C) country concentration/market segment diversification
D) country diversification/market segment diversification
E) none of the above

Answer: A) country concentration/market segment concentration

Boeing developed the wide-bodied aircraft, the 777, with about ________ of the work subcontracted out to Mitsubishi, Fuji, and Kawasaki.

A) 50%
B) 25%
C) 20%
D) 60%
E) 75%

Answer: C) 20%

A number of factors combine to make Russia an excellent location for an alliance which do not include:

A) a well-educated workforce.
B) quality is important to Russian consumers.
C) abundance of supplies.
D) potential for economic growth.
E) potential for growth in service sector.

Answer: C) abundance of supplies.

Which of the following is not true of Japanese keiretsu?

A) promotes risk sharing
B) promotes long-term employment
C) ensures low prices for Japanese consumers
D) blocks foreign suppliers from the Japanese market
E) relationships are cemented by bank ownership

Answer: C) ensures low prices for Japanese consumers

Which of the following is true about Japanese keiretsu?

A) Toyota is a vertical keiretsu, Mitsubishi is a horizontal keiretsu.
B) Toyota is a horizontal keiretsu, Mitsubishi is a vertical keiretsu.
C) Toyota and Mitsubishi are both horizontal keiretsu.
D) Toyota and Mitsubishi are both vertical keiretsu.
E) none of the above

Answer: A) Toyota is a vertical keiretsu, Mitsubishi is a horizontal keiretsu.

"Corporate amnesia" in global partnership is a term which refers to:

A) achieving world leadership by differentiation.
B) short-term goals with no memory on how to compete.
C) relationship which is short lived.
D) discontinuation of partnership due to personal chemistry.
E) losing national identity and ideology.

Answer: B) short-term goals with no memory on how to compete.

"Discussion and consensus must be the norms. Partners must be viewed as equals." When applied to global strategic partnerships, this statement indicates the importance of which factor?

A) mission
B) strategy
C) governance
D) culture
E) organization

Answer: C) governance

"Successful GSPs create win-win situations, where participants pursue objectives on the basis of mutual advantage." When applied to global strategic partnerships, this statement indicates the importance of which factor?

A) mission
B) strategy
C) governance
D) culture
E) organization

Answer: A) mission

According to a 1991 report by McKinsey & Co., problems of alliances between Western and Japanese firms were related to all of the following factors except:

A) objective levels of performance.
B) a feeling of mutual disillusionment.
C) difference in expectations.
D) balance between partners.
E) frictional loss.

Answer: A) objective levels of performance.

The success of CFM International (the strategic partnership between GE and Snecma) can be attributed to which of the following?

A) compatibility of the partners
B) capability of the partners
C) commitment of the partners
D) personal chemistry between executives
E) all of the above

Answer: E) all of the above

The terminology used to describe the new forms of cooperation strategies varies widely and the phrases used include all of the following except:

A) collaborative agreements.
B) strategic alliances.
C) global strategic partnerships.
D) strategic international alliances.
E) Greenfield operations.

Answer: E) Greenfield operations.

GSPs (Global Strategic Partnerships) are attractive for several reasons which do not include:

A) sharing high product development costs.
B) sharing technological developments.
C) securing access to national and regional markets.
D) continuous transfer of technology between partners.
E) focus on a single national market or a specific problem.

Answer: E) focus on a single national market or a specific problem.

Which of the following does not fit in with the factors that should be considered by companies forming GSPs?

A) Partners are competitors to each other.
B) Harmony is not the most important measure of success.
C) All employees and managers must understand where cooperation ends and competitive compromise begins.
D) Learning from partners is critically important.
E) none of the above

Answer: E) none of the above

Having partners from another country can have advantages which include all of the following except:

A) reducing product development costs.
B) securing technology.
C) access to capital.
D) shared risks.
E) increased competition.

Answer: E) increased competition.

An attribute which does not represent true global partnership is:

A) achieving world leadership by differentiation.
B) achieving a reciprocal relationship.
C) relationship is organized vertical lines.
D) continual transfer of resources.

Answer: C) relationship is organized vertical lines.

Avon Products uses ________ to enter developing markets.

A) franchising and licensing
B) joint venture and licensing
C) acquisition and franchising
D) licensing and franchising
E) acquisition and joint ventures

Answer: E) acquisition and joint ventures

Competitive business environment is now characterized by all of the following except:

A) unprecedented degrees of turbulence.
B) dynamism.
C) unpredictibility.
D) inadaptability.
E) environmental responsiveness.

Answer: D) inadaptability.

Which of the following is not a characteristic of global strategic alliances?

A) Participants maintain independence outside the framework of alliance.
B) Participants share benefits of the alliance.
C) Participants share control over the performance of the assigned tasks.
D) Participants make ongoing contributions in technology, products, and other areas.
E) Participants agree not to compete in areas unrelated to the alliance.

Answer: E) Participants agree not to compete in areas unrelated to the alliance.