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.