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84. What gives a firm tight control for coordinating a globally dispersed value chain?
85. Why do firms pursuing global standardization or transnational strategies tend to prefer establishing wholly
owned subsidiaries?
86. Which of the following is an advantage of acquisitions as a means of entering foreign markets?
87. Which of the following postulates that top managers typically overestimate their ability to create value from
an acquisition?
88. Which of the following is a reason why firms often overpay for the assets of an acquired firm?
89. Why do acquisitions fail sometimes?
90. Spring, an American firm, recently acquired another company, Tazel Inc., in Indonesia. The high-level
managers at Tazel quit because they could not cope with the domineering and straightforward approach of their
American counterparts. This illustrates how acquisitions may fail because:
91. The risk of failure of an acquisition can be reduced by:
92. To reduce the risks of failure of an acquisition, managers must:
93. Which of the following is a disadvantage of greenfield ventures?
94. If a firm is seeking to enter a market via a wholly owned subsidiary where there are already well-established
incumbent enterprises, and where global competitors are also interested in establishing a presence, a suitable
mode of entry is a(n):
95. If a firm is considering entering a country where incumbents exist, and if the competitive advantage of the
firm is based on the transfer of organizationally embedded competencies, skills, routines, and culture, what
would be the preferable mode of entry?
96. Briefly describe the value that an international business can create in a foreign market.
97. What are first-mover advantages? Describe three first-mover advantages for international businesses.
98. In terms of international business, briefly describe pioneering costs.
99. What are the consequences of an international firm entering a foreign market on a significant scale?
100. Describe the entry modes that a firm with core competency in technological know-how can choose.
101. What are the advantages and disadvantages of exporting as a mode of entry into foreign markets?
102. Describe how pressures for cost reductions affect the choice of entry mode.
103. What are some of the ways in which a firm can reduce the risk of losing its proprietary know-how to
foreign companies through licensing agreements?
104. Describe the disadvantages of licensing as a mode of entry into the foreign market.
105. Which types of firms do NOT risk the loss of management control? What entry modes should such firms
employ? Give examples.
106. What is a wholly owned subsidiary? List its advantages.
107. Describe the advantages of turnkey projects as a mode of entry into a foreign market.
108. Describe the advantages and disadvantages of acquisitions.
109. Describe the pros and cons of greenfield ventures.
110. How should a firm choose between a greenfield venture and an acquisition?
