mcq 100-200

International Business and Strategic Alliances Summary

• Global Strategic Alliances (GSA) are cross-border partnerships between firms from different countries aiming to pursue mutual interests through resource and capability sharing.
• Equity Joint Venture (EJV) is a separate entity created by two or more parent firms that collectively invest financial and other resources.
• Greenfield Investment involves building new facilities, contrasting with acquiring existing ones, and is a common form of Foreign Direct Investment (FDI).
• Joint Ventures (JVs) allow firms to enter costly and risky activities, acquire partner knowledge, enhance economies of scale, and prevent competition.
• Over 70% of JVs fail due to issues such as loss of autonomy, technology leakage, strategic goal differences, and potential future competition from local partners.
• Hofstede's High power distance component is associated with greater centralization, tall hierarchies, and more supervisory staff.
• Mergers & Acquisitions (M&A) motives include extensions, consolidation, capabilities, financial efficiency, and tax efficiency.
• Ethnocentrism is the perspective of individuals and organizations completely imbued with their own culture, excluding differing cultures.
• Indirect Exporting involves outsourcing the exporting function to intermediaries for export documentation, physical distribution, and sales channels in foreign markets.
• Potential issues with assuming English as the international language of business include foreign customers' inability to understand technical/legal terms and fluency differences.
• Export house, confirming house, and buying house are types of intermediaries involved in indirect exporting, each with specific roles in the export process.
• Ireland's top export product groups include perfumes and cosmetics, organic chemicals, and meat.

Management of Expatriates and Globalization

• Expatriates can be classified into bears, bumblebees, and spiders based on their roles in subsidiaries.
• Culture shock is caused by various factors including the failure of intercultural communication and the need to adapt to a new environment.
• Minimizing cultural risk involves fact-finding, developing an interest in the target culture, avoiding bias, and building cross-cultural skills.
• Cultural distance and the cultural psychic distance paradox are significant causes of culture shock for expatriates.
• Repatriation model issues include the U-curve model being more accurately described as a W-curve model.
• The U-curve hypothesis includes stages like honeymoon, culture shock, adjustment, and integration, while the W-curve hypothesis includes honeymoon, crisis, recovery, and adjustment.
• Repatriation problems include unrealistic expectations, lack of appreciation, unwelcoming social networks, and lack of appropriate jobs.
• Expatriates often face a lack of appropriate jobs due to the perception of international assignments as a means to increase personal market value.
• Only 4% of companies agree that taking on foreign assignments can enhance a career.
• Improving expat management involves enhancing selection, preparation, and support.
• The repatriation of international managers is critical for successful expatriate management.
• Globalization is defined as being tied together into a single globalized marketplace and village driven by the spread of free market capitalism.

Management of Expatriates and Globalization

• Expatriates can be classified into bears, bumblebees, and spiders based on their roles in subsidiaries.
• Culture shock is caused by various factors including the failure of intercultural communication and the need to adapt to a new environment.
• Minimizing cultural risk involves fact-finding, developing an interest in the target culture, avoiding bias, and building cross-cultural skills.
• Cultural distance and the cultural psychic distance paradox are significant causes of culture shock for expatriates.
• Repatriation model issues include the U-curve model being more accurately described as a W-curve model.
• The U-curve hypothesis includes stages like honeymoon, culture shock, adjustment, and integration, while the W-curve hypothesis includes honeymoon, crisis, recovery, and adjustment.
• Repatriation problems include unrealistic expectations, lack of appreciation, unwelcoming social networks, and lack of appropriate jobs.
• Expatriates often face a lack of appropriate jobs due to the perception of international assignments as a means to increase personal market value.
• Only 4% of companies agree that taking on foreign assignments can enhance a career.
• Improving expat management involves enhancing selection, preparation, and support.
• The repatriation of international managers is critical for successful expatriate management.
• Globalization is defined as being tied together into a single globalized marketplace and village driven by the spread of free market capitalism.

International Business and Strategic Alliances Summary

• Global Strategic Alliances (GSA) are cross-border partnerships between firms from different countries aiming to pursue mutual interests through resource and capability sharing.
• Equity Joint Venture (EJV) is a separate entity created by two or more parent firms that collectively invest financial and other resources.
• Greenfield Investment involves building new facilities, contrasting with acquiring existing ones, and is a common form of Foreign Direct Investment (FDI).
• Joint Ventures (JVs) allow firms to enter costly and risky activities, acquire partner knowledge, enhance economies of scale, and prevent competition.
• Over 70% of JVs fail due to issues such as loss of autonomy, technology leakage, strategic goal differences, and potential future competition from local partners.
• Hofstede's High power distance component is associated with greater centralization, tall hierarchies, and more supervisory staff.
• Mergers & Acquisitions (M&A) motives include extensions, consolidation, capabilities, financial efficiency, and tax efficiency.
• Ethnocentrism is the perspective of individuals and organizations completely imbued with their own culture, excluding differing cultures.
• Indirect Exporting involves outsourcing the exporting function to intermediaries for export documentation, physical distribution, and sales channels in foreign markets.
• Potential issues with assuming English as the international language of business include foreign customers' inability to understand technical/legal terms and fluency differences.
• Export house, confirming house, and buying house are types of intermediaries involved in indirect exporting, each with specific roles in the export process.
• Ireland's top export product groups include perfumes and cosmetics, organic chemicals, and meat.

International Business and Strategic Alliances Summary

• Global Strategic Alliances (GSA) are cross-border partnerships between firms from different countries aiming to pursue mutual interests through resource and capability sharing.
• Equity Joint Venture (EJV) is a separate entity created by two or more parent firms that collectively invest financial and other resources.
• Greenfield Investment involves building new facilities, contrasting with acquiring existing ones, and is a common form of Foreign Direct Investment (FDI).
• Joint Ventures (JVs) allow firms to enter costly and risky activities, acquire partner knowledge, enhance economies of scale, and prevent competition.
• Over 70% of JVs fail due to issues such as loss of autonomy, technology leakage, strategic goal differences, and potential future competition from local partners.
• Hofstede's High power distance component is associated with greater centralization, tall hierarchies, and more supervisory staff.
• Mergers & Acquisitions (M&A) motives include extensions, consolidation, capabilities, financial efficiency, and tax efficiency.
• Ethnocentrism is the perspective of individuals and organizations completely imbued with their own culture, excluding differing cultures.
• Indirect Exporting involves outsourcing the exporting function to intermediaries for export documentation, physical distribution, and sales channels in foreign markets.
• Potential issues with assuming English as the international language of business include foreign customers' inability to understand technical/legal terms and fluency differences.
• Export house, confirming house, and buying house are types of intermediaries involved in indirect exporting, each with specific roles in the export process.
• Ireland's top export product groups include perfumes and cosmetics, organic chemicals, and meat.

Test your knowledge of International Business and Strategic Alliances, and Management of Expatriates and Globalization with this quiz. Explore topics such as Global Strategic Alliances, Joint Ventures, Cultural Risk, Expatriate Classification, Repatriation, and Globalization. Sharpen your understanding of key concepts in international business and expatriate management.