Question 1

Global economies of scale can be realized by:

Accepted Answer

A)  restricting the expansion of overseas sales. 
B)  limiting the utilization of production facilities. 
C)  curbing bargaining power with suppliers. 
D)  decreasing cost savings through learning effects. 
E)  spreading the fixed costs associated with developing a product. 
A)  restricting the expansion of overseas sales. 
B)  limiting the utilization of production facilities. 
C)  curbing bargaining power with suppliers. 
D)  decreasing cost savings through learning effects. 
E)  spreading the fixed costs associated with developing a product.

Question 2

Aries Travels is a company that offers holiday and travel packages. The company realizes that customer preferences vary and thus extensively customizes its packages. As there are not many competitors in the market in which Aries Travels operates, there are minimal pressures to reduce costs. Aries Travels is most likely to have adopted which of the following strategies?

Accepted Answer

A)  Global standardization 
B)  International 
C)  Localization 
D)  Transnational 
E)  Harvest 
A)  Global standardization 
B)  International 
C)  Localization 
D)  Transnational 
E)  Harvest

Question 3

Which of the following statements is true in the context of local demand conditions?

Accepted Answer

A)  Companies are typically least sensitive to the needs of their closest customers. 
B)  Home demand plays little role in helping companies upgrade their national competitive advantage. 
C)  A nation's companies gain competitive advantage if their domestic customers are sophisticated and demanding. 
D)  The characteristics of international demand alone shape the attributes of a company's products; not local demand. 
E)  Local demand characteristics have little role to play in creating pressure for innovation and quality. 
A)  Companies are typically least sensitive to the needs of their closest customers. 
B)  Home demand plays little role in helping companies upgrade their national competitive advantage. 
C)  A nation's companies gain competitive advantage if their domestic customers are sophisticated and demanding. 
D)  The characteristics of international demand alone shape the attributes of a company's products; not local demand. 
E)  Local demand characteristics have little role to play in creating pressure for innovation and quality.

Question 4

Nutrimax, a sports foods manufacturer, has recently expanded its operations to different countries. The company has realized that customers in different countries have different tastes and preferences. So, the company customizes its products based on the country where it's selling. In this scenario, Nutrimax is most likely to be using which of the following strategies?

Accepted Answer

A)  Global standardization 
B)  Localization 
C)  Achilles heel 
D)  Centralization 
E)  Transnational 
A)  Global standardization 
B)  Localization 
C)  Achilles heel 
D)  Centralization 
E)  Transnational

Question 5

Which of the following is an example of regional convergence?

Accepted Answer

A)  Organization of the Petroleum Exporting Countries (OPE
C)  
B)  European Union (EU) 
C)  North American Free Trade Agreement (NAFT
A)  
D)  Association of South East Asian Nations (ASEAN) 
E)  All of these are examples of regional convergence. 
A)  Organization of the Petroleum Exporting Countries (OPE
C)  
B)  European Union (EU) 
C)  North American Free Trade Agreement (NAFT
A)  
D)  Association of South East Asian Nations (ASEAN) 
E)  All of these are examples of regional convergence.

Question 6

Which of the following is an advantage of international licensing?

Accepted Answer

A)  It enables the company to realize scale economies and location economies through manufacturing products in a centralized location. 
B)  It allows the company to collect profits from one licensee and use them to support others. 
C)  It eliminates the risk of losing control over a technology that the company owns. 
D)  It enables the company to coordinate its strategy efficiently to achieve competitive advantage. 
E)  It takes away the pressure of development costs and risks associated with opening a foreign market from the company. 
A)  It enables the company to realize scale economies and location economies through manufacturing products in a centralized location. 
B)  It allows the company to collect profits from one licensee and use them to support others. 
C)  It eliminates the risk of losing control over a technology that the company owns. 
D)  It enables the company to coordinate its strategy efficiently to achieve competitive advantage. 
E)  It takes away the pressure of development costs and risks associated with opening a foreign market from the company.

Question 7

What is meant by the term national competitive advantage, and what are the attributes of a nation that affect the global competitiveness of companies located within that nation?

Accepted Answer

National competitive advantage refers to

Question 8

A transnational strategy makes the most sense when demand for local responsiveness is minimal.

Accepted Answer

A) True 
 B)False

Question 9

A company, Pluto Inc., employs the franchising strategy to enter a new national market. Which of the following statements is MOST likely to be true of Pluto?

Accepted Answer

A)  It is more likely to be a service company. 
B)  It is more likely to have a greater control over the quality the products manufactured in the foreign country. 
C)  It is less likely to impose strict rules regarding how a franchisee does business. 
D)  It is less likely to receive royalty payments from the franchisee. 
E)  It is more likely to bear the development costs associated with opening a foreign market on its own. 
A)  It is more likely to be a service company. 
B)  It is more likely to have a greater control over the quality the products manufactured in the foreign country. 
C)  It is less likely to impose strict rules regarding how a franchisee does business. 
D)  It is less likely to receive royalty payments from the franchisee. 
E)  It is more likely to bear the development costs associated with opening a foreign market on its own.

Global economies of scale can be realized by:

Which of the following statements is true in the context of local demand conditions?

Which of the following is an example of regional convergence?

Which of the following is an advantage of international licensing?

What is meant by the term national competitive advantage, and what are the attributes of a nation that affect the global competitiveness of companies located within that nation?

A transnational strategy makes the most sense when demand for local responsiveness is minimal.

A company, Pluto Inc., employs the franchising strategy to enter a new national market. Which of the following statements is MOST likely to be true of Pluto?

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

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Exam 8: Strategy in the Global Environment

Global economies of scale can be realized by:

Which of the following statements is true in the context of local demand conditions?

Which of the following is an example of regional convergence?

Which of the following is an advantage of international licensing?

What is meant by the term national competitive advantage, and what are the attributes of a nation that affect the global competitiveness of companies located within that nation?

A transnational strategy makes the most sense when demand for local responsiveness is minimal.

A company, Pluto Inc., employs the franchising strategy to enter a new national market. Which of the following statements is MOST likely to be true of Pluto?

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