Question 1

High pressure for local adaptation combined with low pressure for lower costs would suggest what type of international strategy?

Accepted Answer

A)  global 
B)  multidomestic 
C)  transnational 
D)  overall cost leadership 
A)  global 
B)  multidomestic 
C)  transnational 
D)  overall cost leadership B

Question 2

Discuss why international expansion is a viable diversification strategy that is being pursued by many firms.

Accepted Answer

The rise of globalization and market capitalism around the world has contributed to the economic boom in the New Economy, where knowledge is the key source of competitive advantage and value creation. Foreign markets can provide many opportunities for firms to increase their revenue base and their profitability.

Question 3

All of the following are limitations of a global strategy except

Accepted Answer

A)  limited ability to adapt to local markets. 
B)  the ability to locate activities in optimal locations. 
C)  the concentration of activities may increase dependence on a single facility. 
D)  single locations may lead to higher tariffs and transportation costs. 
A)  limited ability to adapt to local markets. 
B)  the ability to locate activities in optimal locations. 
C)  the concentration of activities may increase dependence on a single facility. 
D)  single locations may lead to higher tariffs and transportation costs. B

Question 4

___________ occurs when a firm decides to utilize other firms to perform value-creating activities that were previously performed in-house.

Accepted Answer

A)  Offshoring 
B)  Strategic alliance 
C)  Outsourcing 
D)  Wholly owned subsidiary 
A)  Offshoring 
B)  Strategic alliance 
C)  Outsourcing 
D)  Wholly owned subsidiary

Question 5

Since Molson's investment in Kaiser in Brazil, that company's market share in Brazil has

Accepted Answer

A)  increased to second place. 
B)  stayed the same. 
C)  fallen to third place. 
D)  increased to fourth place. 
A)  increased to second place. 
B)  stayed the same. 
C)  fallen to third place. 
D)  increased to fourth place.

Question 6

A key tenet of a transnational strategy is improved adaptation to all competitive situations as well as flexibility by capitalizing on communication and knowledge flows throughout the organization.

Accepted Answer

A) True 
 B)False

Question 7

International expansion can extend the life cycle of a product that is in its maturity stage in a firm's home country.

Accepted Answer

A) True 
 B)False

Question 8

Multinational firms following a transnational strategy strive to optimize the trade-offs associated with efficiency, local adaptation, and learning.

Accepted Answer

A) True 
 B)False

Question 9

Units coordinate their activities with headquarters and with one another, units adapt to special circumstances only they face, and the entire organization draws upon relevant corporate resources. These are all attributes of which type of strategy?

Accepted Answer

A)  a global strategy 
B)  a transnational strategy 
C)  an international strategy 
D)  a multidomestic strategy 
A)  a global strategy 
B)  a transnational strategy 
C)  an international strategy 
D)  a multidomestic strategy

Question 10

By the end of the 20th century, the world's population exceeded 6 billion, with Canada representing

Accepted Answer

A)  less than 0.5 percent 
B)  slightly more than 5 percent 
C)  about 320 million 
D)  less than 3.2 million 
A)  less than 0.5 percent 
B)  slightly more than 5 percent 
C)  about 320 million 
D)  less than 3.2 million

Question 11

According to Theodore Levitt, what are the three assumptions that favour the pursuit of a "pure" global strategy?

Accepted Answer

Levitt observed that media, low cost tra

Question 12

Dispersion of value chains across different countries mainly occurs through offshoring and outsourcing.

Accepted Answer

A) True 
 B)False

Question 13

Many international firms are increasing their efforts to market their products and services to countries such as India and China as the ranks of their middle class continue to increase.

Accepted Answer

A) True 
 B)False

Question 14

Explain Michael Porter's "diamond of national advantage."

Accepted Answer

Porter conducted a four-year study in wh

Question 15

Industries in which proportionally more value is added in upstream activities are more likely to benefit from a global strategy than those in which more value is added downstream (closer to the customer).

Accepted Answer

A) True 
 B)False

Question 16

Microsoft decided to establish a corporate research laboratory in Cambridge, England

Accepted Answer

A)  because England is an ally of the United States. 
B)  because they could access technical and professional talent available in Cambridge. 
C)  because the local language is English. 
D)  because the company views the United States as a risky place to expand due to the actions of the U.S. Department of Justice. 
A)  because England is an ally of the United States. 
B)  because they could access technical and professional talent available in Cambridge. 
C)  because the local language is English. 
D)  because the company views the United States as a risky place to expand due to the actions of the U.S. Department of Justice.

Question 17

What are some of the primary benefits of transnational strategies?

Accepted Answer

A multinational firm following a transna

Question 18

Corporations with multiple foreign operations that act very independently of one another are following a multidomestic strategy.

Accepted Answer

A) True 
 B)False

Question 19

Low pressure for local adaptation combined with low pressure for lower costs would suggest what type of strategy?

Accepted Answer

A)  international 
B)  global 
C)  multidomestic 
D)  transnational 
A)  international 
B)  global 
C)  multidomestic 
D)  transnational

Question 20

The need to attain economies of scale encourages multinational firms to operate under a multidomestic strategy.

Accepted Answer

A) True 
 B)False

High pressure for local adaptation combined with low pressure for lower costs would suggest what type of international strategy?

Discuss why international expansion is a viable diversification strategy that is being pursued by many firms.

All of the following are limitations of a global strategy except

___________ occurs when a firm decides to utilize other firms to perform value-creating activities that were previously performed in-house.

Since Molson's investment in Kaiser in Brazil, that company's market share in Brazil has

A key tenet of a transnational strategy is improved adaptation to all competitive situations as well as flexibility by capitalizing on communication and knowledge flows throughout the organization.

International expansion can extend the life cycle of a product that is in its maturity stage in a firm's home country.

Multinational firms following a transnational strategy strive to optimize the trade-offs associated with efficiency, local adaptation, and learning.

Units coordinate their activities with headquarters and with one another, units adapt to special circumstances only they face, and the entire organization draws upon relevant corporate resources. These are all attributes of which type of strategy?

By the end of the 20^th century, the world's population exceeded 6 billion, with Canada representing

According to Theodore Levitt, what are the three assumptions that favour the pursuit of a "pure" global strategy?

Dispersion of value chains across different countries mainly occurs through offshoring and outsourcing.

Many international firms are increasing their efforts to market their products and services to countries such as India and China as the ranks of their middle class continue to increase.

Explain Michael Porter's "diamond of national advantage."

Industries in which proportionally more value is added in upstream activities are more likely to benefit from a global strategy than those in which more value is added downstream (closer to the customer).

Microsoft decided to establish a corporate research laboratory in Cambridge, England

What are some of the primary benefits of transnational strategies?

Corporations with multiple foreign operations that act very independently of one another are following a multidomestic strategy.

Low pressure for local adaptation combined with low pressure for lower costs would suggest what type of strategy?

The need to attain economies of scale encourages multinational firms to operate under a multidomestic strategy.

Strategic Management: Creating Competitive Advantages

Analyzing the External Environment of the Firm: Creating Competitive Advantages

Assessing the Internal Environment of the Firm

Recognizing a Firms Intellectual Assets: Moving Beyond a Firms Tangible Resources

Business-Level Strategy: Creating and Sustaining Competitive Advantages

Corporate-Level Strategy: Creating Value Through Diversification

Entrepreneurial Strategy and Competitive Dynamics

Strategic Control and Corporate Governance

Creating Effective Organizational Designs

Strategic Leadership: Creating a Learning Organization and an Ethical Organization

Managing Innovation and Fostering Corporate Entrepreneurship

Filters

Exam 7: International Strategy: Creating Value in Global Markets

High pressure for local adaptation combined with low pressure for lower costs would suggest what type of international strategy?

Discuss why international expansion is a viable diversification strategy that is being pursued by many firms.

All of the following are limitations of a global strategy except

___________ occurs when a firm decides to utilize other firms to perform value-creating activities that were previously performed in-house.

Since Molson's investment in Kaiser in Brazil, that company's market share in Brazil has

A key tenet of a transnational strategy is improved adaptation to all competitive situations as well as flexibility by capitalizing on communication and knowledge flows throughout the organization.

International expansion can extend the life cycle of a product that is in its maturity stage in a firm's home country.

Multinational firms following a transnational strategy strive to optimize the trade-offs associated with efficiency, local adaptation, and learning.

Units coordinate their activities with headquarters and with one another, units adapt to special circumstances only they face, and the entire organization draws upon relevant corporate resources. These are all attributes of which type of strategy?

By the end of the 20th century, the world's population exceeded 6 billion, with Canada representing

According to Theodore Levitt, what are the three assumptions that favour the pursuit of a "pure" global strategy?

Dispersion of value chains across different countries mainly occurs through offshoring and outsourcing.

Many international firms are increasing their efforts to market their products and services to countries such as India and China as the ranks of their middle class continue to increase.

Explain Michael Porter's "diamond of national advantage."

Industries in which proportionally more value is added in upstream activities are more likely to benefit from a global strategy than those in which more value is added downstream (closer to the customer).

Microsoft decided to establish a corporate research laboratory in Cambridge, England

What are some of the primary benefits of transnational strategies?

Corporations with multiple foreign operations that act very independently of one another are following a multidomestic strategy.

Low pressure for local adaptation combined with low pressure for lower costs would suggest what type of strategy?

The need to attain economies of scale encourages multinational firms to operate under a multidomestic strategy.

Strategic Management: Creating Competitive Advantages

Analyzing the External Environment of the Firm: Creating Competitive Advantages

Assessing the Internal Environment of the Firm

Recognizing a Firms Intellectual Assets: Moving Beyond a Firms Tangible Resources

Business-Level Strategy: Creating and Sustaining Competitive Advantages

Corporate-Level Strategy: Creating Value Through Diversification

Entrepreneurial Strategy and Competitive Dynamics

Strategic Control and Corporate Governance

Creating Effective Organizational Designs

Strategic Leadership: Creating a Learning Organization and an Ethical Organization

Managing Innovation and Fostering Corporate Entrepreneurship

Filters

By the end of the 20^th century, the world's population exceeded 6 billion, with Canada representing