Question 1

Global expansion:

Accepted Answer

A)  is feasible only for non-technology-based companies. 
B)  can enable companies to increase their profitability and grow their profits more rapidly. 
C)  has significantly decreased in the recent years as the industry barriers are now higher. 
D)  does not involve selling existing products to new markets in different countries. 
E)  is not feasible for service-based firms. 
A)  is feasible only for non-technology-based companies. 
B)  can enable companies to increase their profitability and grow their profits more rapidly. 
C)  has significantly decreased in the recent years as the industry barriers are now higher. 
D)  does not involve selling existing products to new markets in different countries. 
E)  is not feasible for service-based firms. B

Question 2

Global standardization strategy emphasizes customization and product differentiation.

Accepted Answer

A) True 
 B)False  False

Question 3

Which of the following statements is true in the context of attributes of national competitive advantage?

Accepted Answer

A)  Factor endowments do not encompass aspects such as managerial sophistication. 
B)  Companies are typically least sensitive to the needs of their closest customers. 
C)  The benefits of investments in advanced factors of production by related and supporting industries are confined to those industries. 
D)  Domestic rivalry creates pressures to increase costs and avoid investing in upgrading advanced factors. 
E)  The nature of home demand shapes the attributes of domestically made products. 
A)  Factor endowments do not encompass aspects such as managerial sophistication. 
B)  Companies are typically least sensitive to the needs of their closest customers. 
C)  The benefits of investments in advanced factors of production by related and supporting industries are confined to those industries. 
D)  Domestic rivalry creates pressures to increase costs and avoid investing in upgrading advanced factors. 
E)  The nature of home demand shapes the attributes of domestically made products. E

Question 4

Company A has established itself in a global market. Company B entered the market with a lower cost structure due to efficient manufacturing and lower priced products and has taken the global market share from Company A. This is an example of a negative aspect of pursuing an international strategy.

Accepted Answer

A) True 
 B)False

Question 5

Economies of scale can be achieved by international expansion because a company can lower its average unit cost, better utilize its production facilities, and increase its bargaining power with suppliers.

Accepted Answer

A) True 
 B)False

Question 6

List and briefly describe each of the four basic global strategies.

Accepted Answer

Companies that pursue a global standardi

Question 7

Which of the following factors increases pressures for cost reductions?

Accepted Answer

A)  Meaningful differentiation between products 
B)  Reduced international competition 
C)  Competitors that are based in high-cost locations 
D)  High switching costs 
E)  Persistent excess capacity 
A)  Meaningful differentiation between products 
B)  Reduced international competition 
C)  Competitors that are based in high-cost locations 
D)  High switching costs 
E)  Persistent excess capacity

Question 8

Swedish strength in fabricated steel products (such as ball bearings and cutting tools) has drawn on strengths in Sweden's specialty steel industry. This is an example of which of the following attributes that impact national competitive advantage?

Accepted Answer

A)  Local demand conditions 
B)  Competitiveness of related and supporting industries 
C)  Intensity of rivalry in an industry 
D)  Factor endowments 
E)  Differences in distribution channels 
A)  Local demand conditions 
B)  Competitiveness of related and supporting industries 
C)  Intensity of rivalry in an industry 
D)  Factor endowments 
E)  Differences in distribution channels

Question 9

One advantage of a joint venture is that a company may benefit from a local partner's knowledge of the many dimensions of a host country.

Accepted Answer

A) True 
 B)False

Question 10

Which entry mode gives a multinational company the tightest control over foreign operations?

Accepted Answer

A)  Exporting from the home country and letting a foreign agent organize local marketing 
B)  Licensing 
C)  Franchising 
D)  Entering into a joint venture with a foreign company to set up overseas operations 
E)  Setting up a wholly owned subsidiary 
A)  Exporting from the home country and letting a foreign agent organize local marketing 
B)  Licensing 
C)  Franchising 
D)  Entering into a joint venture with a foreign company to set up overseas operations 
E)  Setting up a wholly owned subsidiary

Question 11

United States electronics companies setting up research and production facilities in Japan to take advantage of Japanese success in consumer electronics is an example of which of the following?

Accepted Answer

A)  Factor endowments 
B)  Local demand conditions 
C)  Related and supporting industries 
D)  Firm strategy, structure, and rivalry 
E)  Using the framework 
A)  Factor endowments 
B)  Local demand conditions 
C)  Related and supporting industries 
D)  Firm strategy, structure, and rivalry 
E)  Using the framework

Question 12

Dietizza is a fast-food network that makes low-calorie pizzas. As the firm wishes to expand its operations in different locations, it has licensed a few entrepreneurs to open Dietizza outlets under the company's trademark. The entrepreneurs will take up the responsibility of costs, while Dietizza will assist them in running operations. The company will receive royalty payments and a percentage of profits from the entrepreneurs. Which of the following concepts is illustrated here?

Accepted Answer

A)  Exporting 
B)  Franchising 
C)  Wholly owned subsidiary 
D)  Strategic alliance 
E)  Joint venture 
A)  Exporting 
B)  Franchising 
C)  Wholly owned subsidiary 
D)  Strategic alliance 
E)  Joint venture

Question 13

Licensing is a good choice for companies that are short the capital funds needed to develop overseas operations or hesitant to risk resources in a questionable political climate in a foreign country.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following has occurred in international trade over the past half-century?

Accepted Answer

A)  There has been a dramatic increase in the barriers to international trade. 
B)  Tariff rates on manufactured goods traded by advanced nations have fallen. 
C)  Regulations prohibiting foreign companies from entering domestic markets and establishing production facilities have increased. 
D)  The volume of world trade has decreased dramatically. 
E)  There has been a decline in the value of foreign direct investment. 
A)  There has been a dramatic increase in the barriers to international trade. 
B)  Tariff rates on manufactured goods traded by advanced nations have fallen. 
C)  Regulations prohibiting foreign companies from entering domestic markets and establishing production facilities have increased. 
D)  The volume of world trade has decreased dramatically. 
E)  There has been a decline in the value of foreign direct investment.

Question 15

All nations have similar management ideologies, which enable them to build national competitive advantages.

Accepted Answer

A) True 
 B)False

Question 16

Japanese customer's sophisticated knowledge of cameras created pressure for innovation and quality that stimulated the Japanese camera industry to improve product quality and introduce innovative models. This is an example of which of the following attributes?

Accepted Answer

A)  Factor endowments 
B)  Local demand conditions 
C)  Related and supporting industries 
D)  Firm strategy, structure, and rivalry 
E)  Using the framework
​ 
A)  Factor endowments 
B)  Local demand conditions 
C)  Related and supporting industries 
D)  Firm strategy, structure, and rivalry 
E)  Using the framework
​

Question 17

Ford and Mazda have decided to enter into a strategic alliance and have agreed upon an appropriate alliance structure. The companies have decided to host a conference for management and employees to better understand the purpose and objectives of the alliance and allow employees of both companies to build interpersonal relationships which will build trust and facilitate harmonious relations between the two firms. Which of the following describes this alliance management technique?

Accepted Answer

A)  Building relational capital 
B)  Awareness of cultural sensitivity 
C)  Creating learning symmetry 
D)  Securing competitive position 
E)  Establishing a cost-sharing partnership 
A)  Building relational capital 
B)  Awareness of cultural sensitivity 
C)  Creating learning symmetry 
D)  Securing competitive position 
E)  Establishing a cost-sharing partnership

Question 18

Which of the following is NOT a risk of exporting?

Accepted Answer

A)  Tariff barriers 
B)  Transportation costs 
C)  Location diseconomies 
D)  High manufacturing costs 
E)  Delegation of marketing activities to a local agent 
A)  Tariff barriers 
B)  Transportation costs 
C)  Location diseconomies 
D)  High manufacturing costs 
E)  Delegation of marketing activities to a local agent

Question 19

Factor endowments-the cost and quality of factors of production-are a prime determinant of the competitive advantage that certain countries have in certain industries.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following statements is true about transnational strategy?

Accepted Answer

A)  It gives little emphasis to cost reduction and achieving scale economies. 
B)  It makes little sense when the pressures for local responsiveness are intense. 
C)  It is an easy one to pursue because it places minimal demands on the company. 
D)  It fosters a flow of resources such as process knowledge between different subsidiaries in the company's global network of operations. 
E)  It is adopted by companies that produce standardized goods that do not require product differentiation. 
A)  It gives little emphasis to cost reduction and achieving scale economies. 
B)  It makes little sense when the pressures for local responsiveness are intense. 
C)  It is an easy one to pursue because it places minimal demands on the company. 
D)  It fosters a flow of resources such as process knowledge between different subsidiaries in the company's global network of operations. 
E)  It is adopted by companies that produce standardized goods that do not require product differentiation.

Global expansion:

Global standardization strategy emphasizes customization and product differentiation.

Which of the following statements is true in the context of attributes of national competitive advantage?

Company A has established itself in a global market. Company B entered the market with a lower cost structure due to efficient manufacturing and lower priced products and has taken the global market share from Company A. This is an example of a negative aspect of pursuing an international strategy.

Economies of scale can be achieved by international expansion because a company can lower its average unit cost, better utilize its production facilities, and increase its bargaining power with suppliers.

List and briefly describe each of the four basic global strategies.

Which of the following factors increases pressures for cost reductions?

Swedish strength in fabricated steel products (such as ball bearings and cutting tools) has drawn on strengths in Sweden's specialty steel industry. This is an example of which of the following attributes that impact national competitive advantage?

One advantage of a joint venture is that a company may benefit from a local partner's knowledge of the many dimensions of a host country.

Which entry mode gives a multinational company the tightest control over foreign operations?

United States electronics companies setting up research and production facilities in Japan to take advantage of Japanese success in consumer electronics is an example of which of the following?

Licensing is a good choice for companies that are short the capital funds needed to develop overseas operations or hesitant to risk resources in a questionable political climate in a foreign country.

Which of the following has occurred in international trade over the past half-century?

All nations have similar management ideologies, which enable them to build national competitive advantages.

Japanese customer's sophisticated knowledge of cameras created pressure for innovation and quality that stimulated the Japanese camera industry to improve product quality and introduce innovative models. This is an example of which of the following attributes?

Which of the following is NOT a risk of exporting?

Factor endowments-the cost and quality of factors of production-are a prime determinant of the competitive advantage that certain countries have in certain industries.

Which of the following statements is true about transnational strategy?

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: the Identification of Opportunities and Threats

Internal Analysis: Resources and Competitive Advantage

Competitive Advantage Through Functional-Level Strategies

Business-Level Strategy

Business-Level Strategy and the Industry Environment

Strategy and Technology

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Governance, Social Responsibility, and Ethics

Implementing Strategy Through Organization

Filters

Exam 8: Strategy in the Global Environment

Global expansion:

Global standardization strategy emphasizes customization and product differentiation.

Which of the following statements is true in the context of attributes of national competitive advantage?

Company A has established itself in a global market. Company B entered the market with a lower cost structure due to efficient manufacturing and lower priced products and has taken the global market share from Company A. This is an example of a negative aspect of pursuing an international strategy.

Economies of scale can be achieved by international expansion because a company can lower its average unit cost, better utilize its production facilities, and increase its bargaining power with suppliers.

List and briefly describe each of the four basic global strategies.

Which of the following factors increases pressures for cost reductions?

Swedish strength in fabricated steel products (such as ball bearings and cutting tools) has drawn on strengths in Sweden's specialty steel industry. This is an example of which of the following attributes that impact national competitive advantage?

One advantage of a joint venture is that a company may benefit from a local partner's knowledge of the many dimensions of a host country.

Which entry mode gives a multinational company the tightest control over foreign operations?

United States electronics companies setting up research and production facilities in Japan to take advantage of Japanese success in consumer electronics is an example of which of the following?

Licensing is a good choice for companies that are short the capital funds needed to develop overseas operations or hesitant to risk resources in a questionable political climate in a foreign country.

Which of the following has occurred in international trade over the past half-century?

All nations have similar management ideologies, which enable them to build national competitive advantages.

Japanese customer's sophisticated knowledge of cameras created pressure for innovation and quality that stimulated the Japanese camera industry to improve product quality and introduce innovative models. This is an example of which of the following attributes?

Which of the following is NOT a risk of exporting?

Factor endowments-the cost and quality of factors of production-are a prime determinant of the competitive advantage that certain countries have in certain industries.

Which of the following statements is true about transnational strategy?

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: the Identification of Opportunities and Threats

Internal Analysis: Resources and Competitive Advantage

Competitive Advantage Through Functional-Level Strategies

Business-Level Strategy

Business-Level Strategy and the Industry Environment

Strategy and Technology

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Governance, Social Responsibility, and Ethics

Implementing Strategy Through Organization

Filters