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) 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. E

Question 2

An international strategy may not be viable in the long term,but companies that can pursue it need to shift toward a global standardization strategy to survive.

Accepted Answer

A) True 
 B)False  True

Question 3

When a company licenses its technology it can quickly lose control over it.

Accepted Answer

A) True 
 B)False  True

Question 4

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

Accepted Answer

Companies that pursue a global standardi

Question 5

Differences in tastes and preferences:

Accepted Answer

A) increase pressures for cost reductions. 
B) do not affect service-based firms. 
C) increase pressures for local responsiveness. 
D) reduce pressures from the host government. 
E) significantly decrease R&D costs of a company. 
A) increase pressures for cost reductions. 
B) do not affect service-based firms. 
C) increase pressures for local responsiveness. 
D) reduce pressures from the host government. 
E) significantly decrease R&D costs of a company.

Question 6

A company can increase its growth rate by taking goods or services developed at home and selling them internationally.

Accepted Answer

A) True 
 B)False

Question 7

Relish is a large fast food chain that operates in many countries.As there are several competitors in the fast food sector,the company has been facing intense pressures for achieving low cost structures.The company also faces the task of customizing its product line as there are significant differences in tastes and preferences among customers in different geographic locations.In order to achieve both low costs and product differentiation,the company should aim to pursue a _____ strategy.

Accepted Answer

A) global standardization 
B) transnational 
C) localization 
D) downsizing 
E) divestment 
A) global standardization 
B) transnational 
C) localization 
D) downsizing 
E) divestment

Question 8

Which entry mode gives a multinational 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 9

Black and Decker,Capitol One,Gillette,and Unilever are all companies that conduct business in two or more national markets.These companies are known as:

Accepted Answer

A) bimarket companies. 
B) national companies. 
C) domestic companies. 
D) multinational companies. 
E) localized companies. 
A) bimarket companies. 
B) national companies. 
C) domestic companies. 
D) multinational companies. 
E) localized companies.

Question 10

Strategic alliances can be designed to make it difficult (if not impossible)to transfer technology that is not meant to be transferred.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is not a necessity for leveraging the competencies of global subsidiaries?

Accepted Answer

A) Incentives for local managers to share knowledge and ideas 
B) Awareness among managers that competencies can develop anywhere 
C) Assertion of monopoly of the corporate center over subsidiaries 
D) Transfer of competencies around the company 
E) Incentives that encourage employees to take necessary risks 
A) Incentives for local managers to share knowledge and ideas 
B) Awareness among managers that competencies can develop anywhere 
C) Assertion of monopoly of the corporate center over subsidiaries 
D) Transfer of competencies around the company 
E) Incentives that encourage employees to take necessary risks

Question 12

Cost reduction pressures can be particularly intense in industries producing:

Accepted Answer

A) commodity-type products. 
B) highly differential products. 
C) highly customized services. 
D) goods that have no close substitutes. 
E) goods that need minimal advertising. 
A) commodity-type products. 
B) highly differential products. 
C) highly customized services. 
D) goods that have no close substitutes. 
E) goods that need minimal advertising.

Question 13

For a strategic alliance,firms should seek partners that are:

Accepted Answer

A) different in terms of vision and agendas. 
B) known for being opportunistic. 
C) willing to share costs and risks of product development. 
D) radically different when it comes to strategic goals. 
E) similar when it comes to capabilities. 
A) different in terms of vision and agendas. 
B) known for being opportunistic. 
C) willing to share costs and risks of product development. 
D) radically different when it comes to strategic goals. 
E) similar when it comes to capabilities.

Question 14

Most manufacturing companies begin their global expansion by exporting.

Accepted Answer

A) True 
 B)False

Question 15

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.

Question 16

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 17

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 18

Despite the globalization of production and markets,many of the most successful companies in certain industries are still clustered in a small number of countries.

Accepted Answer

A) True 
 B)False

Question 19

Starbucks,Sony,and Coca-Cola conduct business in two or more countries.These companies can be referred to as multinational companies.

Accepted Answer

A) True 
 B)False

Question 20

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.

Global economies of scale can be realized by:

An international strategy may not be viable in the long term,but companies that can pursue it need to shift toward a global standardization strategy to survive.

When a company licenses its technology it can quickly lose control over it.

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

Differences in tastes and preferences:

A company can increase its growth rate by taking goods or services developed at home and selling them internationally.

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

Black and Decker,Capitol One,Gillette,and Unilever are all companies that conduct business in two or more national markets.These companies are known as:

Strategic alliances can be designed to make it difficult (if not impossible)to transfer technology that is not meant to be transferred.

Which of the following is not a necessity for leveraging the competencies of global subsidiaries?

Cost reduction pressures can be particularly intense in industries producing:

For a strategic alliance,firms should seek partners that are:

Most manufacturing companies begin their global expansion by exporting.

Global expansion:

Which of the following factors increases pressures for cost reductions?

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.

Despite the globalization of production and markets,many of the most successful companies in certain industries are still clustered in a small number of countries.

Starbucks,Sony,and Coca-Cola conduct business in two or more countries.These companies can be referred to as multinational companies.

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

Strategic Leadership: Managing the Strategy Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Resources and Competitive Advantage

Building 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 Performance, Governance, and Business Ethics

Implementing Strategy Through Organization

Filters

Exam 8: Strategy in the Global Environment

Global economies of scale can be realized by:

An international strategy may not be viable in the long term,but companies that can pursue it need to shift toward a global standardization strategy to survive.

When a company licenses its technology it can quickly lose control over it.

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

Differences in tastes and preferences:

A company can increase its growth rate by taking goods or services developed at home and selling them internationally.

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

Black and Decker,Capitol One,Gillette,and Unilever are all companies that conduct business in two or more national markets.These companies are known as:

Strategic alliances can be designed to make it difficult (if not impossible)to transfer technology that is not meant to be transferred.

Which of the following is not a necessity for leveraging the competencies of global subsidiaries?

Cost reduction pressures can be particularly intense in industries producing:

For a strategic alliance,firms should seek partners that are:

Most manufacturing companies begin their global expansion by exporting.

Global expansion:

Which of the following factors increases pressures for cost reductions?

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.

Despite the globalization of production and markets,many of the most successful companies in certain industries are still clustered in a small number of countries.

Starbucks,Sony,and Coca-Cola conduct business in two or more countries.These companies can be referred to as multinational companies.

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

Strategic Leadership: Managing the Strategy Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Resources and Competitive Advantage

Building 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 Performance, Governance, and Business Ethics

Implementing Strategy Through Organization

Filters