Question 1

Industry-based considerations are fundamentally concerned with the very first of the Porter five forces, interfirm rivalry.

Accepted Answer

A) True 
 B)False

Question 2

Rather than illegally colluding to raise their prices 20%, two firms can work together to cut their prices 20% through:

Accepted Answer

A) ​Dumping. 
B) ​Game theory. 
C)  ​A feint. 
D)  ​Strategic alliance. 
A) ​Dumping. 
B) ​Game theory. 
C)  ​A feint. 
D)  ​Strategic alliance.

Question 3

Which of the following is NOT one of the major influences in antitrust law in the United States?

Accepted Answer

A) ​Sherman Act of 1890. 
B) ​Clayton Act of 1914. 
C)  ​Glass-Steagall Act of 1934. 
D)  ​Hart-Scott-Rodino Act of 1976. 
A) ​Sherman Act of 1890. 
B) ​Clayton Act of 1914. 
C)  ​Glass-Steagall Act of 1934. 
D)  ​Hart-Scott-Rodino Act of 1976.

Question 4

Two of the three drivers for counterattacks are motivation and concentration.

Accepted Answer

A) True 
 B)False

Question 5

A gambit move can be regarded as exchange of firm's spheres of influence.

Accepted Answer

A) True 
 B)False

Question 6

Multimarket competition destroys mutual forbearance.

Accepted Answer

A) True 
 B)False

Question 7

Firms that have a high degree of resource similarity are likely to have similar strengths and weaknesses.

Accepted Answer

A) True 
 B)False

Question 8

A local firm possesses an extensive understanding of an aspect of a market an MNE is not particularly strong in. Therefore, the local firm should probably pursue a(n):

Accepted Answer

A) ​Extender strategy. 
B) ​Defender strategy. 
C)  Dodger strategy. 
D)  ​Contender strategy. 
A) ​Extender strategy. 
B) ​Defender strategy. 
C)  Dodger strategy. 
D)  ​Contender strategy.

Question 9

The text points out that modern ideas of strategy, pioneered by Michael Porter, have turned IO economics "on its head." Although IO economics attempts to prevent any firm from gaining sustained competitive advantage, the very purpose of strategy is to gain a sustainable advantage. Is that good or bad?

Accepted Answer

There may be various views expressed in

Question 10

Anticompetitive actions can easily be distinguished from competitive actions.

Accepted Answer

A) True 
 B)False

Question 11

In essence, strategy is interaction in which:

Accepted Answer

A) ​Performance is not the goal. 
B) ​Action and reactions lead to competitive advantage. 
C)  ​Mutual forbearance is the goal. 
D)  ​Competitive performance is the result of collusion. 
A) ​Performance is not the goal. 
B) ​Action and reactions lead to competitive advantage. 
C)  ​Mutual forbearance is the goal. 
D)  ​Competitive performance is the result of collusion.

Question 12

"While you can't talk to your competitors on pricing, you can always wink at them." How do companies "wink"? And why might it be a good approach?

Accepted Answer

Answers should include mention of how so

Question 13

Market commonality may lead to tacit collusion.

Accepted Answer

A) True 
 B)False

Question 14

A firm that answers yes to the question, "If I set up a low-cost business, will it generate synergies with my existing business?" its next action should probably be to:

Accepted Answer

A) ​Watch out for rivals but not take them on. 
B) ​Switch to selling solutions. 
C)  ​Merge with or take over rivals. 
D)  ​Merge with or take over rivals 
A) ​Watch out for rivals but not take them on. 
B) ​Switch to selling solutions. 
C)  ​Merge with or take over rivals. 
D)  ​Merge with or take over rivals

Question 15

If an attack is so subtle that rivals are not aware of it, the attacker's objectives are not likely to have been attained.

Accepted Answer

A) True 
 B)False

Question 16

Explicit collusion is exemplified by:

Accepted Answer

A) Cartels. 
B) Trusts. 
C)  Users of game theory. 
D)  All of the above. 
A) Cartels. 
B) Trusts. 
C)  Users of game theory. 
D)  All of the above.

Question 17

When considering strategic actions for global competition, the first step for a strategist is to

Accepted Answer

A) ​Thoroughly understand the nature of your industry. 
B) ​Strengthen the resources and capabilities that help you compete more effectively. 
C)  ​Understand the rules of the game for domestic and international competition. 
D)  ​Determine whether collusion or competition is the best course of action. 
A) ​Thoroughly understand the nature of your industry. 
B) ​Strengthen the resources and capabilities that help you compete more effectively. 
C)  ​Understand the rules of the game for domestic and international competition. 
D)  ​Determine whether collusion or competition is the best course of action.

Question 18

To make an attack more likely to succeed, a firm needs to:

Accepted Answer

A) ​Make sure the rival is aware of the attack. 
B) ​Attack only strong rivals. 
C)  ​Follow a blue ocean strategy. 
D)  ​Go after rivals' core markets. 
A) ​Make sure the rival is aware of the attack. 
B) ​Attack only strong rivals. 
C)  ​Follow a blue ocean strategy. 
D)  ​Go after rivals' core markets.

Question 19

When faced with a competitor that could take away a firm's current customers, the firm should immediately launch a price war.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following arguments is NOT among those offered by management scholars to explain in part why firms such as AT&T, IBM, and Microsoft faced antitrust accusations for engaging in the same activities that made them successful in the first place?

Accepted Answer

A) ​Antitrust laws were often created in response to the old realities of mostly domestic competition. 
B) ​The same actions labeled as anticompetitive may actually be highly competitive. 
C)  ​U.S. antitrust laws create strategic confusion. 
D)  ​U.S. antitrust laws are unfair because they discriminate against foreign firms. 
A) ​Antitrust laws were often created in response to the old realities of mostly domestic competition. 
B) ​The same actions labeled as anticompetitive may actually be highly competitive. 
C)  ​U.S. antitrust laws create strategic confusion. 
D)  ​U.S. antitrust laws are unfair because they discriminate against foreign firms.

Industry-based considerations are fundamentally concerned with the very first of the Porter five forces, interfirm rivalry.

Rather than illegally colluding to raise their prices 20%, two firms can work together to cut their prices 20% through:

Which of the following is NOT one of the major influences in antitrust law in the United States?

Two of the three drivers for counterattacks are motivation and concentration.

A gambit move can be regarded as exchange of firm's spheres of influence.

Multimarket competition destroys mutual forbearance.

Firms that have a high degree of resource similarity are likely to have similar strengths and weaknesses.

A local firm possesses an extensive understanding of an aspect of a market an MNE is not particularly strong in. Therefore, the local firm should probably pursue a(n):

Anticompetitive actions can easily be distinguished from competitive actions.

In essence, strategy is interaction in which:

"While you can't talk to your competitors on pricing, you can always wink at them." How do companies "wink"? And why might it be a good approach?

Market commonality may lead to tacit collusion.

A firm that answers yes to the question, "If I set up a low-cost business, will it generate synergies with my existing business?" its next action should probably be to:

If an attack is so subtle that rivals are not aware of it, the attacker's objectives are not likely to have been attained.

Explicit collusion is exemplified by:

When considering strategic actions for global competition, the first step for a strategist is to

To make an attack more likely to succeed, a firm needs to:

When faced with a competitor that could take away a firm's current customers, the firm should immediately launch a price war.

Which of the following arguments is NOT among those offered by management scholars to explain in part why firms such as AT&T, IBM, and Microsoft faced antitrust accusations for engaging in the same activities that made them successful in the first place?

Strategizing Around the Globe

Managing Industry Competition

Leveraging Resources and Capabilities

Emphasizing Institutions, Cultures, and Ethics

Growing and Internationalizingthe Entrepreneurial Firm

Entering Foreign Markets

Making Strategic Alliancee and Networks Work

Diversifying, Acquiring, and Restructuring

Strategizing, Structuring, and Learningaround the World

Governing the Corporation Around the World

Strategizing With Corporate Social Responsibility

Filters

Exam 8: Managing Global Competitive Dynamics

Industry-based considerations are fundamentally concerned with the very first of the Porter five forces, interfirm rivalry.

Rather than illegally colluding to raise their prices 20%, two firms can work together to cut their prices 20% through:

Which of the following is NOT one of the major influences in antitrust law in the United States?

Two of the three drivers for counterattacks are motivation and concentration.

A gambit move can be regarded as exchange of firm's spheres of influence.

Multimarket competition destroys mutual forbearance.

Firms that have a high degree of resource similarity are likely to have similar strengths and weaknesses.

A local firm possesses an extensive understanding of an aspect of a market an MNE is not particularly strong in. Therefore, the local firm should probably pursue a(n):

Anticompetitive actions can easily be distinguished from competitive actions.

In essence, strategy is interaction in which:

"While you can't talk to your competitors on pricing, you can always wink at them." How do companies "wink"? And why might it be a good approach?

Market commonality may lead to tacit collusion.

A firm that answers yes to the question, "If I set up a low-cost business, will it generate synergies with my existing business?" its next action should probably be to:

If an attack is so subtle that rivals are not aware of it, the attacker's objectives are not likely to have been attained.

Explicit collusion is exemplified by:

When considering strategic actions for global competition, the first step for a strategist is to

To make an attack more likely to succeed, a firm needs to:

When faced with a competitor that could take away a firm's current customers, the firm should immediately launch a price war.

Which of the following arguments is NOT among those offered by management scholars to explain in part why firms such as AT&T, IBM, and Microsoft faced antitrust accusations for engaging in the same activities that made them successful in the first place?

Strategizing Around the Globe

Managing Industry Competition

Leveraging Resources and Capabilities

Emphasizing Institutions, Cultures, and Ethics

Growing and Internationalizingthe Entrepreneurial Firm

Entering Foreign Markets

Making Strategic Alliancee and Networks Work

Diversifying, Acquiring, and Restructuring

Strategizing, Structuring, and Learningaround the World

Governing the Corporation Around the World

Strategizing With Corporate Social Responsibility

Filters