18 Questions
Why are shareholders concerned about stock price growth-decline?
Due to the need for more companies to be listed and more trades to be processed.
What is one of the benefits of global stock exchange consolidation mentioned in the text?
Economies of scale leading to lower transaction costs.
Why is Asia/Pacific consolidation unlikely according to the text?
Due to heavy protection against foreign ownership and growth through cooperative agreements.
Which factor contributes to attracting more trades and listing companies in global stock exchange consolidation?
Improved liquidity leading to more accurate share prices.
What is a possible cost-saving synergy mentioned in the text regarding global stock market consolidation?
Economies of scale leading to lower transaction costs.
What is the role of the Sarbanes-Oxley law in relation to US exchanges according to the text?
Serving companies wanting regulatory requirements.
Which of the following is NOT a category of strategic alliances mentioned in the text?
Mergers and acquisitions
What is an example of a joint venture mentioned in the text?
The Nummi Corporation created by Toyota and General Motors
Which of the following statements is true about non-equity strategic alliances?
They are carried out through contracts rather than ownership sharing.
What is the distinction made in the text regarding foreign manufacturing subsidiaries?
The distinction between foreign production and foreign assembly.
Which of the following is an example of an equity strategic alliance mentioned in the text?
Toyota's network of internal family and financial links with suppliers, subassemblers, and distributors
What is GM's recent expansion strategy?
Taking minority stakes (equity percentages) in other companies around the world
Which of the following is true about strategic alliances?
All of the above
What is the key difference between a multinational company and a transnational company?
A multinational has a centralized management system, while a transnational does not
Which of the following is a factor that determines a firm's market entry strategy?
All of the above
What is the primary reason why businesses often wait to set up wholly-owned subsidiaries in foreign markets?
Because foreign markets are perceived as risky
What is the key characteristic of a geocentric orientation according to Perlmutter's typology?
A global culture is adopted, with global products and local variations
What is the key difference between an international company and a multinational company?
A multinational company has a centralized management system, while an international company does not
Learn about different types of alliances in business, including joint ventures and equity strategic alliances. Explore examples like the Nummi Corporation, a joint venture between Toyota and General Motors.
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