Strategic Global Management

Multiple-choice
Chapter 6
Which of the following is not true for a capability?
A) it cannot be traded
B) it changes over time
C) it can be easily described in detail
D) it can improve value
Which of the following is not a necessary condition for the effective implementation of a pay for performance system?
A) employees must be able to control the pace of production
B) there should be a lower bound on product quality
C) managers should receive a high bonus for the piece rate work of their employees
D) team members should have roughly the same preferences for effort
Which of the following is not an activity in the value chain?
A) outbound procurement
B) marketing
C) technology development
D) operations
Chapter 7
A key assumption underlying theories of vertical integration is:
A) Opportunistic behavior
B) Suppliers and buyers have the same size
C) Suppliers and buyers are located in the same country
D) Firms are boundaryless
In the strategic sourcing framework, firms vertically integrate when
A) the firm’s need to control and its ability to perform an activity are both high
B) there is high uncertainty surrounding the transaction with the supplier
C) the need to control and the ability to perform the activity are uncorrelated
D) the supplier has invested in high technology
14. The two most studied types of uncertainty that influence vertical integration decisions are: A) exchange rate and volume
B) labor cost and technological
C) material cost and labor cost
D) volume and technological
The standard theory of vertical integration over the industry life cycle states
A) vertical integration occurs primarily in the early and late stages

B) vertical integration increases in the shakeout
C) vertical integration increases throughout the life cycle
D) vertical integration decreases over the life cycle
Chapter 8
Which of the following is generally a motivation for the formation of technology partnerships among large firms?
A)