Question 1

Which of the following statements is true about global standardization strategy?

Accepted Answer

A) It emphasizes product customization to specifically meet customer needs. 
B) It involves the spreading of production, marketing, and research and development activities of companies to all the location it operates in. 
C) It makes most sense when there are strong pressures for cost reductions. 
D) It makes most sense when the pressures for local responsiveness are maximum. 
E) It fails to focus on achieving location and scale economies. 
A) It emphasizes product customization to specifically meet customer needs. 
B) It involves the spreading of production, marketing, and research and development activities of companies to all the location it operates in. 
C) It makes most sense when there are strong pressures for cost reductions. 
D) It makes most sense when the pressures for local responsiveness are maximum. 
E) It fails to focus on achieving location and scale economies.

Question 2

Which of the following factors increases pressures for local responsiveness?

Accepted Answer

A) Powerful buyers 
B) Uniformity in distribution channels 
C) Host government demands 
D) Similarities in customer tastes and preferences 
E) Competitors that are based in high-cost locations 
A) Powerful buyers 
B) Uniformity in distribution channels 
C) Host government demands 
D) Similarities in customer tastes and preferences 
E) Competitors that are based in high-cost locations

Question 3

When a company performs a value creation activity in a region that is optimal for that activity,wherever in the world that might be,it is trying to capitalize on:

Accepted Answer

A) negative feedback loops. 
B) economies of scope. 
C) the transnational strategy. 
D) location economies. 
E) its localization strategy. 
A) negative feedback loops. 
B) economies of scope. 
C) the transnational strategy. 
D) location economies. 
E) its localization strategy.

Question 4

Which of the following statements is true about localization strategy?

Accepted Answer

A) It focuses on marketing a standardized product worldwide to achieve cost reductions. 
B) It makes most sense when cost pressures are extremely intense. 
C) It is most appropriate when there are similarities across nations with regard to consumer tastes and preferences. 
D) It involves some duplication of functions and smaller production runs. 
E) It usually relieves companies of the task of closely monitoring their costs. 
A) It focuses on marketing a standardized product worldwide to achieve cost reductions. 
B) It makes most sense when cost pressures are extremely intense. 
C) It is most appropriate when there are similarities across nations with regard to consumer tastes and preferences. 
D) It involves some duplication of functions and smaller production runs. 
E) It usually relieves companies of the task of closely monitoring their costs.

Question 5

Strong pressures for convergence due to a shared history and culture,or the establishment of a trading block where there are deliberate attempts to harmonize trade policies,infrastructure,and regulations have contributed to the rise in what trend?

Accepted Answer

A) Regionalism 
B) Globalization 
C) Monopolies 
D) Nationalism 
E) Traditional Practices 
A) Regionalism 
B) Globalization 
C) Monopolies 
D) Nationalism 
E) Traditional Practices

Question 6

Which of the following is disadvantage of strategic alliances?

Accepted Answer

A) They give competitors a low-cost route to new technology and markets. 
B) They do not facilitate entry into a foreign market. 
C) They do not allow for sharing of risks and fixed costs. 
D) They mandate that the companies do not share complementary competencies and assets. 
E) They cause problems when it comes to establishing technological standards for the industry. 
A) They give competitors a low-cost route to new technology and markets. 
B) They do not facilitate entry into a foreign market. 
C) They do not allow for sharing of risks and fixed costs. 
D) They mandate that the companies do not share complementary competencies and assets. 
E) They cause problems when it comes to establishing technological standards for the industry.

Question 7

Host government demands generally:

Accepted Answer

A) increase pressures for local responsiveness. 
B) decrease pressures for cost reductions. 
C) do not encompass local content rules. 
D) compel companies to abandon localization strategies. 
E) impede a company's ability to differentiate its product offering across national borders. 
A) increase pressures for local responsiveness. 
B) decrease pressures for cost reductions. 
C) do not encompass local content rules. 
D) compel companies to abandon localization strategies. 
E) impede a company's ability to differentiate its product offering across national borders.

Question 8

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 9

If a company's competitive advantage derives from its control of proprietary technological know-how,it should either license its technology to others or pursue a joint venture.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following entry modes allows a company to engage in global strategic coordination?

Accepted Answer

A) Exporting 
B) Licensing 
C) Joint ventures 
D) Wholly owned subsidiaries 
E) Franchising 
A) Exporting 
B) Licensing 
C) Joint ventures 
D) Wholly owned subsidiaries 
E) Franchising

Question 11

WKL Entertainment Inc.is a service-based firm with very few competitors.The company is looking to sell its services in different nations with substantial differences in consumer preferences and where cost pressures are not too intense.Which of the following strategies should WKL Entertainment Inc.managers pursue?

Accepted Answer

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

Question 12

Companies that pursue a _____ strategy are trying to develop a business model that simultaneously achieves low costs,differentiates the product offering across geographic markets,and fosters a flow of skills between different subsidiaries in the company's global network of operations.

Accepted Answer

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

Question 13

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 14

Whirlpool,a leading U.S.maker of household appliances,has a wholly owned subsidiary that is responsible for research and development (R&D),manufacturing,and sales in over two dozen European countries,from Norway to Greece.What are some of the potential advantages that Whirlpool may gain from its use of a wholly owned subsidiary for global expansion? What are some of the potential disadvantages?

Accepted Answer

Whirlpool stands to make high profits fr

Question 15

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 16

Which of the following statements is true about international strategy?

Accepted Answer

A) It is usually adopted by companies that face intense cost pressures due to competition. 
B) It makes most sense when the pressures for local responsiveness are very intense. 
C) It often involves the head office retaining tight control over marketing and product strategy. 
D) It often involves decentralizing product development functions such as R&D to different subsidiaries. 
E) It involves extensive scope for localization and product differentiation. 
A) It is usually adopted by companies that face intense cost pressures due to competition. 
B) It makes most sense when the pressures for local responsiveness are very intense. 
C) It often involves the head office retaining tight control over marketing and product strategy. 
D) It often involves decentralizing product development functions such as R&D to different subsidiaries. 
E) It involves extensive scope for localization and product differentiation.

Question 17

When a company grows its sales volume through international expansion,it can realize cost savings from economies of scale through all of the following except:

Accepted Answer

A) spreading fixed costs over its global sales volume. 
B) utilizing its production facilities more intensely. 
C) increased bargaining power with its suppliers. 
D) learning effects associated with higher volume. 
E) adopting high cost structures. 
A) spreading fixed costs over its global sales volume. 
B) utilizing its production facilities more intensely. 
C) increased bargaining power with its suppliers. 
D) learning effects associated with higher volume. 
E) adopting high cost structures.

Question 18

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 _____ strategy.

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 19

Local responsiveness may be driven by economic and political demands placed on companies by host country governments.

Accepted Answer

A) True 
 B)False

Question 20

In the wireless telecommunications industry,different technical standards are found in different parts of the world.A technical standard known as GSM is common in Europe,and an alternative standard,CDMA,is more common in the United States and parts of Asia.Equipment designed for GSM will not work on a CDMA network and vice versa.Which of the following pressures for local responsiveness does this represent?

Accepted Answer

A) Global environmental demands 
B) Host government demands 
C) Differences in distribution channels 
D) Differences in customer tastes and preferences 
E) Differences in infrastructure 
A) Global environmental demands 
B) Host government demands 
C) Differences in distribution channels 
D) Differences in customer tastes and preferences 
E) Differences in infrastructure

Which of the following statements is true about global standardization strategy?

Which of the following factors increases pressures for local responsiveness?

When a company performs a value creation activity in a region that is optimal for that activity,wherever in the world that might be,it is trying to capitalize on:

Which of the following statements is true about localization strategy?

Strong pressures for convergence due to a shared history and culture,or the establishment of a trading block where there are deliberate attempts to harmonize trade policies,infrastructure,and regulations have contributed to the rise in what trend?

Which of the following is disadvantage of strategic alliances?

Host government demands generally:

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

If a company's competitive advantage derives from its control of proprietary technological know-how,it should either license its technology to others or pursue a joint venture.

Which of the following entry modes allows a company to engage in global strategic coordination?

Companies that pursue a _____ strategy are trying to develop a business model that simultaneously achieves low costs,differentiates the product offering across geographic markets,and fosters a flow of skills between different subsidiaries in the company's global network of operations.

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?

Which of the following is not a risk of exporting?

Which of the following statements is true about international strategy?

When a company grows its sales volume through international expansion,it can realize cost savings from economies of scale through all of the following except:

Local responsiveness may be driven by economic and political demands placed on companies by host country governments.

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

Which of the following statements is true about global standardization strategy?

Which of the following factors increases pressures for local responsiveness?

When a company performs a value creation activity in a region that is optimal for that activity,wherever in the world that might be,it is trying to capitalize on:

Which of the following statements is true about localization strategy?

Strong pressures for convergence due to a shared history and culture,or the establishment of a trading block where there are deliberate attempts to harmonize trade policies,infrastructure,and regulations have contributed to the rise in what trend?

Which of the following is disadvantage of strategic alliances?

Host government demands generally:

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

If a company's competitive advantage derives from its control of proprietary technological know-how,it should either license its technology to others or pursue a joint venture.

Which of the following entry modes allows a company to engage in global strategic coordination?

Companies that pursue a _____ strategy are trying to develop a business model that simultaneously achieves low costs,differentiates the product offering across geographic markets,and fosters a flow of skills between different subsidiaries in the company's global network of operations.

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?

Which of the following is not a risk of exporting?

Which of the following statements is true about international strategy?

When a company grows its sales volume through international expansion,it can realize cost savings from economies of scale through all of the following except:

Local responsiveness may be driven by economic and political demands placed on companies by host country governments.

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