Exam 8: Competing Across Borders

The cognitive model that motivates a manager to search for opportunities in foreign markets is known as

If country-specific advantages for production are stronger in the home country, ____ is likely the best choice for entering an international market.

If the U.S. dollar continues to be weak compared with the euro for the long term, it will

The organizational structure which provides the most flexibility in designing products and responding to customer needs is the ____ structure.

The island of Madagascar has large, undeveloped deposits of a rare mineral. A European mining company is interested in locating in Madagascar to extract this mineral. This is an example of an international strategy being motivated by

For global companies, the Olympics present a significant opportunity to realize operational efficiencies.

Why would a company choose to use foreign direct investment as a way to enter a foreign market instead of other, less risky options? What are the disadvantages of foreign direct investment? What are the types of foreign direct investment?

The international strategy that attempts to combine global scale efficiencies with local responsiveness in a geographic region is the ____ strategy.

If an organization's goal in internationalizing is learning, then the best approach is the transnational strategy.

The international strategy that requires the least customization of the company's product or service is the

A manufacturer of kitchen and laundry appliances plans to produce and sell different varieties of appliances in various countries due to differences in kitchen and home sizes, electrical power variations, alternative fuels, and cultural preferences. This manufacturer will be following the ____ strategy.

What are the differences and similarities between licensing and franchising as means of entering the international market? What are the pros and cons of both licensing and franchising?

A German firm that manufactures precision scientific instruments has built a new factory in Nebraska on property that it has leased. It has hired German scientists and engineers as well as German technicians to work at the plant. The firm received tax benefits and other economic incentives from Nebraska in order to build this new plant. This is an example of a/an

There are two competing pressures organizations must consider when choosing an international strategy: pressures for global efficiencies and pressures for local responsiveness and flexibility.

An advantage of the geographic-area divisional structure is that it is easy to achieve economies of scale.

The ____ international strategy requires centralized production and marketing decisions to be make at a central divisional office.

Bouquet Fragrances, Inc., uses a multidomestic strategy. The ____ structure is most appropriate for it.

A country that has high political instability and increasing incidents of terrorism will be still be considered a high risk for foreign direct investments, even if the country's labor force is cheap.

Like many major rivals, Coca-Cola and Pepsi-Cola compete with each other internationally in order to prevent the other from gaining a significant advantage in any one country or region that it could exploit in the U.S. market.

A company that has significant internal-coordination advantages should not choose franchising or licensing as a mode of entering the international market.