Exam 8: Managing Global Competitive Dynamics

​Understanding the framework for competitor analysis between a pair of rivals can help managers allocate resources in proportion to the degree of threat from each rival.

​The goal of competition policies and antitrust policies is to:

​Rivals within strategic alliances can legally reduce cost through price fixing.

Firms that have a high degree of resource similarity are likely to have similar strengths and weaknesses.

​How do resource similarity and market similarity interact to influence the actions of rival firms,and why is awareness of resource similarities important?

​"While you can't talk to your competitors on pricing,you can always wink at them." How do companies "wink"? And why might it be a good approach?

Firm A may be more successful in imitating Firm B if Firm B:

​A local firm has built a successful business but acknowledges it would be difficult to continue to compete with a large MNE.The MNE makes an offer to buy the local firm's interests,and the local firm accepts the offer.It is following the:

U.S.courts have not sought to unilaterally punish non-U.S.cartels (if they are legal elsewhere)simply because they may have a substantial adverse impact on U.S.markets.

​Firms with a strong sphere of influence in responding to rival actions are better able to defend their core markets.

Which is true of strategy?

An extender strategy may be appropriate in some industries where pressures for globalization are relatively low.

Dumping is defined as:

​Which of the following arguments is NOT among those offered by management scholars to explain in part why firms such as AT&T,IBM,and Microsoft faced antitrust accusations for engaging in the same activities that made them successful in the first place?

​In general,stronger,pro-consumer antitrust laws result in greater competitive forces and lower prices in that country.

Cartels:

Thrust makes use of military theory that the attacker needs to overcome a well-defended position through a conventional frontal assault.

​A local firm finds it cannot compete head-to-head against a MNE in its market,so it decides the best strategy to use in this situation is the:

Multimarket competition occurs when firms engage the same rivals in multiple markets.

Collusion survives because it does not have an incentive problem as is illustrated by the prisoner's dilemma.