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multinational enterprise
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Question 93
Multiple Choice
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Toshiba Electronics is very interested in taking advantage of business opportunities in India
but does not have access to India's market. Toshiba has the patent on a low-cost, quality
computer system that could assist small businesses in India. Sony Computer, Toshiba's
competitor, is experienced in India's small business market but does not have a computer
comparable to Toshiba's. If Toshiba and Sony work together to utilize these strengths to
seize this opportunity in India, what type of business structure would they likely use?
Answer
Trading company
Strategic alliance
Licensing
Direct ownership
Exporting
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Question 94
Multiple Choice
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What is the primary distinction between a joint venture and a strategic alliance in
international marketing?
Answer
Strategic alliances are only formed between companies from well-developed
countries whereas joint ventures are between companies from economically-
diverse countries.
A joint venture involves only two companies whereas a strategic alliance is
formed between three or more companies.
A strategic alliance is formed by companies who have traditionally been rivals,
which is not the case with a joint venture.
A joint venture is formed between companies with dissimilar product offerings
while a strategic alliance is formed between companies with similar product
offerings.
A joint venture is simply a financial investment in a foreign firm while a strategic
alliance involves more than just financial support.
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Question 95
Multiple Choice
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An alliance between Honda and Ford would
most likely
be classified as
Answer
a strategic alliance.
a joint venture.
direct ownership.
a multinational enterprise.
contract manufacturing.
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Question 96
Multiple Choice
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Once a company makes a long-term commitment to a foreign market that has a promising


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political and economic environment, which of the following options then emerges as a
possibility?
Answer
Exporting
Joint venture
Limited exporting
Direct ownership
Licensing
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Question 97
Multiple Choice
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In relation to international marketing, which of the following best describes direct ownership?
Answer
A company owns its own manufacturing facilities.
A company forms an alliance with a similar company in a foreign country.
Foreign companies contract with manufacturers in other countries.
A company owns subsidiaries or facilities in foreign countries.
Two companies from different nations have interests in each other's facilities.
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Question 98
Multiple Choice
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IKEA, a Swedish retailer of contemporary furniture, operates several stores in various
Scandinavian countries, as well as in the United States and Canada. Which of the following
describes IKEA's level of commitment to international marketing?
Answer
Licensing
Direct ownership
Exporting
A trading company
A joint venture
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Question 99
Multiple Choice
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Firms that have operations or subsidiaries located in many countries are referred to as
Answer
multinational enterprises.
strategic alliances.
joint ventures.
international marketers.
export alliances.
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Question 100
Multiple Choice
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Southern Tier Industries has operations in more than 30 foreign countries. The headquarters
in Atlanta controls the entire organization while offering subsidiaries the freedom necessary
to achieve success in local markets. Southern Tier Industries is an example of a(n)
Answer
strategic alliance.


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