Question 91. Sometimes business partnerships are formed between traditional rivals competing f

91. Sometimes business partnerships are formed between traditional rivals competing for
market share in the same product class. These partnerships are known as
a) trading companies.
b) contract manufacturers.
c) joint ventures.
d) strategic alliances.
e) licenses.
92. Nuhitzu believes it has the technological expertise to produce communication systems that
will be leaders around the globe. Boston Electronics is widely regarded as having excellent
management systems and superior marketing programs. To utilize these strengths, the two firms
might form a(n) ___________ to work together on a worldwide basis.
a) licensing agreement
b) export trading company
c) joint agreement
d) strategic alliance
e) multinational enterprise
93. 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?
a) Trading company
b) Strategic alliance
c) Licensing
d) Direct ownership
e) Exporting
94. What is the primary distinction between a joint venture and a strategic alliance in
international marketing?
a) Strategic alliances are only formed between companies from well-developed countries
whereas joint ventures are between companies from economically-diverse countries.
b) A joint venture involves only two companies whereas a strategic alliance is formed between
three or more companies.
c) A strategic alliance is formed by companies who have traditionally been rivals, which is not
the case with a joint venture.
d) A joint venture is formed between companies with dissimilar product offerings while a
strategic alliance is formed between companies with similar product offerings.
e) A joint venture is simply a financial investment in a foreign firm while a strategic alliance
involves more than just financial support.
95. An alliance between Honda and Ford would most likely be classified as
a) a strategic alliance.
b) a joint venture.
c) direct ownership.
d) a multinational enterprise.
e) contract manufacturing.
96. Once a company makes a long-term commitment to a foreign market that has a promising
political and economic environment, which of the following options then emerges as a possibility?
a) Exporting

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