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1) ________ are partnerships between two or more firms that decide they can better pursue their
mutual goals by combining their resources as well as their existing distinctive competitive
advantages.
A) Greenfield investments
B) Strategic alliances
C) Foreign subsidiaries
D) Turnkey operations
Answer: B
Difficulty: 1: Easy
Chapter: 7
Skill: Concept
LO: 7-1: To realize that much of international business is conducted through strategic alliances
AACSB: Application of knowledge
3) ________ are transition mechanisms that propel the partners' strategies forward in a turbulent
environment faster than would be possible for each company alone.
A) Cooperative strategies
B) Entry strategies
C) Options strategies
D) Competitive strategies
Answer: A
Difficulty: 1: Easy
Chapter: 7
Skill: Concept
LO: 7-1: To realize that much of international business is conducted through strategic alliances
AACSB: Application of knowledge
1
Copyright © 2017 Pearson Education, Inc.
4) A ________ is a new independent entity that is collectively created and owned by two or more
parent companies.
A) subsidiary
B) joint venture
C) greenfield investment
D) turnkey operation
Answer: B
Difficulty: 1: Easy
Chapter: 7
Skill: Concept
LO: 7-1: To realize that much of international business is conducted through strategic alliances
AACSB: Application of knowledge
5) All of the following would be examples of international joint ventures EXCEPT ________.
A) two Japanese companies sharing ownership of a company in Canada
B) a Danish company sharing ownership with a South African company in South Africa
C) a government-owned company from China sharing ownership with an Australian company in
Panama
D) two Venezuelan companies sharing ownership of a company in Venezuela
Answer: D
Difficulty: 3: Challenging
Chapter: 7
Skill: Application
LO: 7-1: To realize that much of international business is conducted through strategic alliances
AACSB: Analytical thinking
2
Copyright © 2017 Pearson Education, Inc.
7) Which of the following is the most beneficial aspect of an international joint venture?
A) the international partner receives the entire profit
B) the responsibility of risks is solely taken by the international partner
C) the partner's local contacts and markets will be utilized
D) the entire cost of production will be borne by the local partner
Answer: C
Difficulty: 2: Moderate
Chapter: 7
Skill: Concept
LO: 7-1: To realize that much of international business is conducted through strategic alliances
AACSB: Application of knowledge
8) Trout Corp., Kirgo Ltd., and Sturgeon Inc., three of the leading construction companies in the
United States, have decided to join hands and create a new cement manufacturing company.
According to their agreement, Trout Corp. will have 50 percent equity, Kirgo Ltd. will have 20
percent equity, and Sturgeon Inc. will have 30 percent equity. In this given scenario, Sturgeon
Inc. is referred to as a ________.
A) minority JV partner
B) majority JV partner
C) sole proprietor
D) franchisor
Answer: A
Difficulty: 3: Challenging
Chapter: 7
Skill: Application
LO: 7-1: To realize that much of international business is conducted through strategic alliances
AACSB: Analytical thinking
3
Copyright © 2017 Pearson Education, Inc.
10) France's Thomson Electronics combined with China's TCL to form TCL-Thomson
Electronics. Thomson owns 33% and TCL owns the remaining 67% of TCL-Thomson
Electronics. This is best described as a(n) ________.
A) turnkey operation
B) acquisition
C) international licensing agreement
D) equity strategic alliance
Answer: D
Difficulty: 3: Challenging
Chapter: 7
Skill: Application
LO: 7-1: To realize that much of international business is conducted through strategic alliances
AACSB: Analytical thinking
11) Alliances that are carried out through contract rather than ownership sharing are called
________.
A) cultural strategic alliances
B) equity strategic alliances
C) non-equity strategic alliances
D) transmodal strategic alliances
Answer: C
Difficulty: 1: Easy
Chapter: 7
Skill: Concept
LO: 7-1: To realize that much of international business is conducted through strategic alliances
AACSB: Application of knowledge
12) Runnerz Inc., a leading manufacturing and retail company that designs and develops
footwear and apparel, has signed a contract with a particular courier service for managing the
delivery process. The courier service is required to deliver goods from the factory to the
warehouse, to customers, and also to collect customer payments for the goods. This is a typical
example of a(n) ________.
A) non-equity strategic alliance
B) turnkey operation
C) greenfield investment
D) international licensing agreement
Answer: A
Difficulty: 3: Challenging
Chapter: 7
Skill: Application
LO: 7-1: To realize that much of international business is conducted through strategic alliances
AACSB: Analytical thinking
4
Copyright © 2017 Pearson Education, Inc.
13) Which of the following types of alliances can be formed between a company and a foreign
government?
A) international joint venture
B) equity strategic alliance
C) non-equity strategic alliance
D) global strategic alliance
Answer: D
Difficulty: 2: Moderate
Chapter: 7
Skill: Concept
LO: 7-1: To realize that much of international business is conducted through strategic alliances
AACSB: Application of knowledge
14) Alliances can be formed for various purposes, e.g., sharing technology, marketing, or
production joint ventures.
Answer: TRUE
Difficulty: 1: Easy
Chapter: 7
Skill: Concept
LO: 7-1: To realize that much of international business is conducted through strategic alliances
AACSB: Application of knowledge
15) A merger is a transition mechanism that propels the partner's strategies forward in a turbulent
environment faster than would be possible for each company alone.
Answer: TRUE
Difficulty: 2: Moderate
Chapter: 7
Skill: Concept
LO: 7-1: To realize that much of international business is conducted through strategic alliances
AACSB: Application of knowledge
16) A joint venture is a situation in which two or more partners have different relative ownership
shares in the new venture.
Answer: FALSE
Difficulty: 2: Moderate
Chapter: 7
Skill: Concept
LO: 7-1: To realize that much of international business is conducted through strategic alliances
AACSB: Application of knowledge
17) Wholly owned operations abroad inhibit a company's ability to pursue a global strategy.
Answer: FALSE
Difficulty: 2: Moderate
Chapter: 7
Skill: Concept
LO: 7-1: To realize that much of international business is conducted through strategic alliances
AACSB: Application of knowledge
5
Copyright © 2017 Pearson Education, Inc.
18) Most global manufacturers have equity alliances with suppliers, sub-assemblers, and
distributors–forming a network of internal family and financial links. Risk-sharing is often the
motive behind equity alliances.
Answer: TRUE
Difficulty: 1: Easy
Chapter: 7
Skill: Concept
LO: 7-1: To realize that much of international business is conducted through strategic alliances
AACSB: Application of knowledge
19) Working partnerships between two or more companies across national boundaries and
increasingly across industries are referred to as global strategic alliances.
Answer: TRUE
Difficulty: 1: Easy
Chapter: 7
Skill: Concept
LO: 7-1: To realize that much of international business is conducted through strategic alliances
AACSB: Application of knowledge
20) Which of the following is NOT a typical reason for forming cross-border alliances?
A) to avoid import barriers
B) to share R&D costs and risks
C) to gain access to specific markets
D) to test marketing campaigns overseas
Answer: D
Difficulty: 2: Moderate
Chapter: 7
Skill: Concept
LO: 7-2: To understand the reasons that firms seek international business allies and the benefits
they bring
AACSB: Application of knowledge
6
Copyright © 2017 Pearson Education, Inc.
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APÉNDICES
I
(DE LA «MONJA-ALFÉREZ», DE MONTALBÁN.)
II.
(DE «LA MONJA ALFÉREZ», DE CARLOS COELLO).
APÉNDICES
Proposición de la Alcaldía para trasladar los restos de Pizarro.
«Considerando: Que es de dignidad nacional dar honrosa
sepultura á los restos del conquistador del Perú, que hoy se
encuentran en la bóveda de la Iglesia Catedral,
«Propone: Que se autorice á la Alcaldía para que solicite del Ilmo.
y Rmo. Sr. Arzobispo y del Cabildo metropolitano la licencia
correspondiente para colocar los restos del Capitán general D.
Francisco Pizarro en una de las capillas de la Iglesia Catedral,
quedando autorizada igualmente la Alcaldía para hacer construir
una urna donde reposen estos restos, hasta que la nación pueda
construir un monumento para tal objeto.
«Lima, Abril 30 de 1891.—Juan Revoredo.»
II
Discurso del Alcalde de Lima al entregar la urna que debía
guardar los despojos mortales de Pizarro.
«Excelentísimo Señor:
«Señor Ilustrísimo:
«Señores:
«Conmemoramos en este momento el aniversario del
fallecimiento del ilustre Capitán general D. Francisco Pizarro,
acaecido hace hoy trescientos cincuenta años.
«Nos encontramos en presencia de sus restos, de cuya
autenticidad no podemos dudar desde que la Historia así nos lo
demuestra y desde que las generaciones que se han venido
sucediendo nos los han ido haciendo conocer de padres á hijos
hasta llegar á nosotros.
«Don Francisco Pizarro fué el conquistador del Perú, el fundador
de esta capital, el que en sus propios hombros cargó el primer
madero que sirvió para la fabricación del templo en que nos
encontramos, y, lo que es más, fué el que nos legó la Religión que
profesamos, dándonos hasta su última hora pruebas del respeto y
de la veneración que tenía por ella; pues recordaréis que besando la
Cruz del Calvario, que con su propia sangre y puño había formado
para elevar sus preces al Todopoderoso, exhaló su último aliento.
Estamos obligados á creer, señores, que el alma del que así murió
tiene que estar gozando de las delicias del Paraíso.
«Toca á nosotros honrar sus inapreciables restos, que continuarán
bajo la custodia del Muy Ilustre Cabildo metropolitano.»
III