Question 1

All of the following are limitations of a multidomestic strategy, except

Accepted Answer

A)  less ability to realize cost savings through scale economies. 
B)  greater difficulty in transferring knowledge across countries. 
C)  single locations may lead to higher tariffs and transportation costs. 
D)  may lead to 'over-adaptation' as conditions change. 
A)  less ability to realize cost savings through scale economies. 
B)  greater difficulty in transferring knowledge across countries. 
C)  single locations may lead to higher tariffs and transportation costs. 
D)  may lead to 'over-adaptation' as conditions change. C

Question 2

In order to realize the strongest competitive advantage, firms engaged in worldwide competition must

Accepted Answer

A)  require that all of their various business units follow the same strategy regardless of location. 
B)  ensure that all business units follow a strategy strictly tailored to their respective locations. 
C)  pursue a strategy that combines the uniformity of a global strategy and the specificity of a multidomestic strategy in order to achieve optimal results. 
D)  attempt to use the strategy that was most successful in their home country. 
A)  require that all of their various business units follow the same strategy regardless of location. 
B)  ensure that all business units follow a strategy strictly tailored to their respective locations. 
C)  pursue a strategy that combines the uniformity of a global strategy and the specificity of a multidomestic strategy in order to achieve optimal results. 
D)  attempt to use the strategy that was most successful in their home country. C

Question 3

The difference between a franchise and licensing contract is that

Accepted Answer

A)  a franchise contract has a broader range of factors and is usually longer in duration. 
B)  a franchise contract must include a foreign government. 
C)  a licensing contract covers more aspects of operations. 
D)  a franchise contract involves less control and less risk. 
A)  a franchise contract has a broader range of factors and is usually longer in duration. 
B)  a franchise contract must include a foreign government. 
C)  a licensing contract covers more aspects of operations. 
D)  a franchise contract involves less control and less risk. A

Question 4

According to Michael Porter, firms that have experienced intense domestic competition are

Accepted Answer

A)  unlikely to have the time or resources to compete abroad. 
B)  most likely to design strategies aimed primarily at the domestic market. 
C)  more likely to design strategies and structures that allow them to successfully compete abroad. 
D)  more likely to demand protection from their governments. 
A)  unlikely to have the time or resources to compete abroad. 
B)  most likely to design strategies aimed primarily at the domestic market. 
C)  more likely to design strategies and structures that allow them to successfully compete abroad. 
D)  more likely to demand protection from their governments.

Question 5

What are the six basic types of entry strategies for international expansion?

Accepted Answer

The six basic entry strategies for inter

Question 6

Within a worldwide market, the most effective strategies are neither purely multidomestic nor purely global.

Accepted Answer

A) True 
 B)False

Question 7

During the 1990s, western telecommunication firms frequently sold its earlier generation telephone switches to developing countries at lower costs, and used the revenues for R&D.

Accepted Answer

A) True 
 B)False

Question 8

All of the following are risks associated with a global strategy, except

Accepted Answer

A)  a firm with only one manufacturing location must export its product-some of which may be a great distance from the operation. 
B)  the geographic concentration of any activity may also tend to isolate that activity from the targeted markets. 
C)  concentrating an activity in a single location makes the rest of the firm dependent on that location. 
D)  the pressures for local adaptation may elevate the firm's cost structure. 
A)  a firm with only one manufacturing location must export its product-some of which may be a great distance from the operation. 
B)  the geographic concentration of any activity may also tend to isolate that activity from the targeted markets. 
C)  concentrating an activity in a single location makes the rest of the firm dependent on that location. 
D)  the pressures for local adaptation may elevate the firm's cost structure.

Question 9

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

Question 10

Typically, the best method of entry into a foreign market is the establishment of a wholly owned foreign subsidiary so that the parent organization can maintain a high level of control.

Accepted Answer

A) True 
 B)False

Question 11

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 12

Arbitrage opportunities represent a disadvantage of international expansion.

Accepted Answer

A) True 
 B)False

Question 13

Rivalry is intense in nations with conditions of ________ consumer demand, ___________ supplier bases, and ____________ new entrant potential from related industries.

Accepted Answer

A)  weak; weak; high 
B)  strong; strong; low 
C)  strong; strong; high 
D)  weak; weak; low 
A)  weak; weak; high 
B)  strong; strong; low 
C)  strong; strong; high 
D)  weak; weak; low

Question 14

Pressures to 'reduce costs' require that

Accepted Answer

A)  a company should not trade idiosyncratic preferences in product features for higher economic returns. 
B)  a company must pursue what is economically beneficial to the company including maximizing economies of scale and learning curve effects. 
C)  the manager should follow a multidomestic strategy to maximize the economic benefits to the company. 
D)  the company needs to supplement the local foreign economy in a manner specified by the local government. 
A)  a company should not trade idiosyncratic preferences in product features for higher economic returns. 
B)  a company must pursue what is economically beneficial to the company including maximizing economies of scale and learning curve effects. 
C)  the manager should follow a multidomestic strategy to maximize the economic benefits to the company. 
D)  the company needs to supplement the local foreign economy in a manner specified by the local government.

Question 15

The absence of rules or the lack of uniform enforcement of existing rules leads to what might often seem to be arbitrary and inconsistent decisions by government officials.

Accepted Answer

A) True 
 B)False

Question 16

Many U.S. multinational companies set up maquiladora operations south of the United States-Mexico border primarily

Accepted Answer

A)  to sell products into the growing Mexican market. 
B)  to help diversify their product. 
C)  to avoid paying taxes to the Internal Revenue Agency (IR
A) . 
D)  to take advantage of the low cost of labour. 
A)  to sell products into the growing Mexican market. 
B)  to help diversify their product. 
C)  to avoid paying taxes to the Internal Revenue Agency (IR
A) . 
D)  to take advantage of the low cost of labour.

Question 17

Firms following a global strategy strive to offer ______________ products and services as well as locate manufacturing, R&D, and marketing activities in _____________ locations.

Accepted Answer

A)  a wide variety of; several 
B)  a wide variety of; few 
C)  standardized; several 
D)  standardized; few 
A)  a wide variety of; several 
B)  a wide variety of; few 
C)  standardized; several 
D)  standardized; few

Question 18

What are some of the primary benefits of transnational strategies?

Accepted Answer

A multinational firm following a transna

Question 19

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

Accepted Answer

Porter conducted a four-year study in wh

Question 20

Which of the following describes the most typical order of entry into foreign markets?

Accepted Answer

A)  franchising, licensing, exporting, joint venture, and wholly owned subsidiary 
B)  exporting, licensing, franchising, joint venture, and wholly owned subsidiary 
C)  licensing, exporting, franchising, joint venture, and wholly owned subsidiary 
D)  exporting, franchising, licensing, joint venture, and wholly owned subsidiary 
A)  franchising, licensing, exporting, joint venture, and wholly owned subsidiary 
B)  exporting, licensing, franchising, joint venture, and wholly owned subsidiary 
C)  licensing, exporting, franchising, joint venture, and wholly owned subsidiary 
D)  exporting, franchising, licensing, joint venture, and wholly owned subsidiary

All of the following are limitations of a multidomestic strategy, except

In order to realize the strongest competitive advantage, firms engaged in worldwide competition must

The difference between a franchise and licensing contract is that

According to Michael Porter, firms that have experienced intense domestic competition are

What are the six basic types of entry strategies for international expansion?

Within a worldwide market, the most effective strategies are neither purely multidomestic nor purely global.

During the 1990s, western telecommunication firms frequently sold its earlier generation telephone switches to developing countries at lower costs, and used the revenues for R&D.

All of the following are risks associated with a global strategy, except

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

Typically, the best method of entry into a foreign market is the establishment of a wholly owned foreign subsidiary so that the parent organization can maintain a high level of control.

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.

Arbitrage opportunities represent a disadvantage of international expansion.

Rivalry is intense in nations with conditions of __ consumer demand, _ supplier bases, and ________ new entrant potential from related industries.

Pressures to 'reduce costs' require that

The absence of rules or the lack of uniform enforcement of existing rules leads to what might often seem to be arbitrary and inconsistent decisions by government officials.

Many U.S. multinational companies set up maquiladora operations south of the United States-Mexico border primarily

Firms following a global strategy strive to offer __ products and services as well as locate manufacturing, R&D, and marketing activities in _ locations.

What are some of the primary benefits of transnational strategies?

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

Which of the following describes the most typical order of entry into foreign markets?

Strategic Management: Creating Competitive Advantages: an Overview

Analyzing the External Environment of the Firm

Analyzing the Internal Environment of the Firm

Assessing the Intellectual Assets of the Firm

Business-Level Strategy: Creating and Sustaining Competitive Advanta

Corporate-Level Strategy: Creating Value Through Diversification

Industry Change and Competitive Dynamics

Creating Effective Organizational Designs

Strategic Control and Corporate Governance

Strategic Leadership: Creating a Learning, Ethical, and Socially Res

Managing Innovation and Fostering Entrepreneurship

Filters

Exam 7: International Strategy: Creating Value in Global Markets

All of the following are limitations of a multidomestic strategy, except

In order to realize the strongest competitive advantage, firms engaged in worldwide competition must

The difference between a franchise and licensing contract is that

According to Michael Porter, firms that have experienced intense domestic competition are

What are the six basic types of entry strategies for international expansion?

Within a worldwide market, the most effective strategies are neither purely multidomestic nor purely global.

During the 1990s, western telecommunication firms frequently sold its earlier generation telephone switches to developing countries at lower costs, and used the revenues for R&D.

All of the following are risks associated with a global strategy, except

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

Typically, the best method of entry into a foreign market is the establishment of a wholly owned foreign subsidiary so that the parent organization can maintain a high level of control.

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.

Arbitrage opportunities represent a disadvantage of international expansion.

Rivalry is intense in nations with conditions of ________ consumer demand, ___________ supplier bases, and ____________ new entrant potential from related industries.

Pressures to 'reduce costs' require that

The absence of rules or the lack of uniform enforcement of existing rules leads to what might often seem to be arbitrary and inconsistent decisions by government officials.

Many U.S. multinational companies set up maquiladora operations south of the United States-Mexico border primarily

Firms following a global strategy strive to offer ______________ products and services as well as locate manufacturing, R&D, and marketing activities in _____________ locations.

What are some of the primary benefits of transnational strategies?

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

Which of the following describes the most typical order of entry into foreign markets?

Strategic Management: Creating Competitive Advantages: an Overview

Analyzing the External Environment of the Firm

Analyzing the Internal Environment of the Firm

Assessing the Intellectual Assets of the Firm

Business-Level Strategy: Creating and Sustaining Competitive Advanta

Corporate-Level Strategy: Creating Value Through Diversification

Industry Change and Competitive Dynamics

Creating Effective Organizational Designs

Strategic Control and Corporate Governance

Strategic Leadership: Creating a Learning, Ethical, and Socially Res

Managing Innovation and Fostering Entrepreneurship

Filters

Rivalry is intense in nations with conditions of __ consumer demand, _ supplier bases, and ________ new entrant potential from related industries.

Firms following a global strategy strive to offer __ products and services as well as locate manufacturing, R&D, and marketing activities in _ locations.