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Grades for essay questions, and comments from your instructor, are in the "Details" section below. Date Taken: 9/24/2011 Time Spent: 50 min , 13 secs Points Received: 40 / 40 (100%) Question Type: # Of Questions: # Correct: Multiple Choice 10 10 Essay 1 N/A Grade Details Page: 1 2 1. Question : (TCOs 4 & 5) A major trend in international developments includes: Student Answer: Greater international trade and operations A growing recognition of an international managerial perspective A large increase in international investment All of the above Instructor Explanation: Pages 234-235 Points Received: 3 of 3 Comments:

2. Question : (TCOs 4 & 5) Other than____________, the reasons that explain why some governments make better use of the inflows from foreign investment and know-how than others include all of the following: Student Answer: High tariffs and taxes on foreign investors and multinational corporations provide income to improve living conditions Sound management of broader economic factors such as interest rates and inflation Governmental practices that are business-friendly Local entrepreneurs that can train workers and invest in modern technology Instructor Explanation: Page 235 Points Received: 3 of 3 Comments: 3. Question : (TCOs 4 & 5) The framework that Porter devised considers all of the following factors that affect a nation's competitiveness except: Student Answer: Policies that protect the nation's domestic competitors. Factor conditions Demand characteristics Related and supported industries Instructor Explanation: Page 236 Points Received: 3 of 3 Comments:

4. Question : (TCOs 4 & 5) Rivalry is intense in nations with conditions of __________ consumer demand, __________ supplier bases, and __________ new entrant potential from related industries. Student Answer: weak; weak; high strong; strong; low strong; strong; high weak; weak; low Instructor Explanation: Page 238 Points Received: 3 of 3 Comments: 5. Question : (TCOs 4 & 5) Michael Porter states that firms that have experienced intense domestic competition are ____________. Student Answer: more likely to demand protection from their governments. unlikely to have the time or resources to compete abroad. most likely to design strategies aimed primarily at the domestic market. more likely to design strategies and structures that allow them to successfully compete abroad. Instructor Explanation: Page 238 Points Received: 3 of 3 Comments: 6. Question : (TCOs 4 & 5) There's a tremendous allure to __________. It's the big play, the dramatic gesture. With one stroke of the pen you can add billions to size, get a front page story, and create excitement in markets. Student Answer: internal development differentiation strategies strategic alliances and joint ventures mergers and acquisitions Instructor Explanation: Page 223 Points Received: 3 of 3 Comments:

7. Question : (TCOs 4 & 5) (A)_____________ is an antitakeover tactic where a firm offers to buy shares of their stock from a company (or individual) planning to acquire their firm at a higher price than the unfriendly company paid for it. Student Answer: scorched earth golden parachute greenmail poison pill Instructor Explanation: Page 225 Points Received: 3 of 3 Comments:

8. Question : (TCOs 4 & 5) An antitakeover tactic in which existing shareholders have the option to buy additional shares of stock at a discount to the current market price is called____________. Student Answer: greenmail a poison pill a golden parachute scorched earth Instructor Explanation: Page 225 Points Received: 3 of 3 Comments: 9. Question : (TCOs 4 & 5) "Golden parachutes" refers to ____________. Student Answer: a clause requiring that huge dividend payments be made upon takeover. financial inducements offered by a threatened firm to stop a hostile suitor from acquiring it. managers of a firm involved in a hostile takeover approaching a third party about making the acquisition. pay given to executives fired becuase of a takeover. Instructor Explanation: Page 225 Points Received: 3 of 3 Comments: 10. Question : (TCOs 4 & 5) All of the following are antitakeover tactics except: Student Answer: Golden handcuffs Poison pills Greenmail Golden parachutes Instructor Explanation: Page 225 Points Received: 3 of 3 Comments: Grade Details Page: 1 2 1. Question : (TCOs 4 & 5) What are the primary benefits and risks associated with related diversification?

Student Answer: Related diversification refers to a firm entering a different business in which it can benefit from leveraging core competencies, sharing activities, or building market power. Primary benefits of related diversification are: 1. A firm can capitalize on its strengths and on areas where they are best at and transfer these competencies to another business 2. In synergizing, businesses can increase their collective value which would be more than their individual or separate value 3. Reduces risk when the organization is less dependent on just one business activity 4. Reduces cost when firms share resources and activities common to the businesses 5. There will be knowledge sharing and skills transfer which will be of common gain and benefit for businesses Some of the risks are: 1. Shared risks, in some cases, where diversification is extensive. Different industries have different and unpredictable

business cycles 2. Shared losses when there are no strong commonalities to leverage competencies and during economic downturns when all industries will be hit altogether 3. High bureaucratic costs of diversification http://www.mightystudents.com/essay/advantages.disadvantages.related.23210 Instructor Explanation: Pages 199-209 Answers will vary. Enables a firm to benefit from horizontal relationships across different business in the diversified corporation by leveraging core competencies and sharing activities (i.e. production and distribution facilities). This enables corporations to benefit from economies of scope.

Points Received: 10 of 10 Comments: