Question 1

Product tradability refers to:

Accepted Answer

A) The extent to which a product can be transported 
B) The extent to which it is subject to trade barriers 
C) The extent to which it has a low weight 
D) Answers a and b 
A) The extent to which a product can be transported 
B) The extent to which it is subject to trade barriers 
C) The extent to which it has a low weight 
D) Answers a and b D

Question 2

Nokia, Swatch, AP Moller-Maersk, BHP, and Research In Motion illustrate:

Accepted Answer

A) The opportunities offered to firms with small domestic markets to become global leaders 
B) The complexity of the analysis of competitive advantage in global markets 
C) Different industries' profitability 
D) The rise of Asian firms against Western firms 
A) The opportunities offered to firms with small domestic markets to become global leaders 
B) The complexity of the analysis of competitive advantage in global markets 
C) Different industries' profitability 
D) The rise of Asian firms against Western firms A

Question 3

Trade and foreign direct investment are, respectively:

Accepted Answer

A) Technology transfers from one country to another; and transfer of capital from one country to another 
B) Hiring workers in one country, transferring them to another; and sending their salaries back to their home country 
C) Technology transfers from one country to another; and mergers and acquisitions across countries 
D) Selling goods or services made in one country in another; and transferring the funds to create productive assets from one country to another 
A) Technology transfers from one country to another; and transfer of capital from one country to another 
B) Hiring workers in one country, transferring them to another; and sending their salaries back to their home country 
C) Technology transfers from one country to another; and mergers and acquisitions across countries 
D) Selling goods or services made in one country in another; and transferring the funds to create productive assets from one country to another D

Question 4

The first assumption that a firm makes when it enters a foreign market is that it will be profitable. What is the second assumption?

Accepted Answer

A) The firm can establish a competitive advantage in that market 
B) Competition exists at a reasonable level 
C) The infrastructure of the foreign country allows easy business 
D) No powerful developing country's champion is already present in that market 
A) The firm can establish a competitive advantage in that market 
B) Competition exists at a reasonable level 
C) The infrastructure of the foreign country allows easy business 
D) No powerful developing country's champion is already present in that market

Question 5

National differentiation means asserting the independence and values of one's home country

Accepted Answer

A) True 
 B)False

Question 6

The fact that Cadbury-Schweppes licenses its trademarks and product recipes to Hershey shows that:

Accepted Answer

A) Cadbury views Hershey as a capable and reliable partner 
B) They have reached an agreement 
C) They have overcome the risk of opportunistic behavior 
D) Both are resourcd.rich 
A) Cadbury views Hershey as a capable and reliable partner 
B) They have reached an agreement 
C) They have overcome the risk of opportunistic behavior 
D) Both are resourcd.rich

Question 7

Ecco's value chain illustrates:

Accepted Answer

A) The highest level of expertise of the "Capability Maturity Model" 
B) The location of its R&D in Netherlands 
C) The success of a footwear firm 
D) The location of its activities where the costs are the lowest 
A) The highest level of expertise of the "Capability Maturity Model" 
B) The location of its R&D in Netherlands 
C) The success of a footwear firm 
D) The location of its activities where the costs are the lowest

Question 8

How can one characterize the different forms of markets, in regard to globalization?

Accepted Answer

To establish a typology of industries, r

Question 9

The two main modes of entering an overseas market are:

Accepted Answer

A) Sales contracts and alliances 
B) Direct investment and transactions 
C) Transactions and joint ventures 
D) Technology transfers and franchise 
A) Sales contracts and alliances 
B) Direct investment and transactions 
C) Transactions and joint ventures 
D) Technology transfers and franchise

Question 10

Internationalization occurs through two mechanisms:

Accepted Answer

A) Direct investment and trade 
B) Trade and financial flows 
C) Production and consumption 
D) Joint ventures and industry mergers 
A) Direct investment and trade 
B) Trade and financial flows 
C) Production and consumption 
D) Joint ventures and industry mergers

Question 11

What is "cross-subsidization"?

Accepted Answer

A) Another name for price discrimination 
B) Another name for trans-substantiation 
C) Using funds from one business or sector to subsidize another 
D) Using funds from one customer to subsidize another 
A) Another name for price discrimination 
B) Another name for trans-substantiation 
C) Using funds from one business or sector to subsidize another 
D) Using funds from one customer to subsidize another

Question 12

In the fast food industry, why are some players (Burger King) not as well known as others (McDonalds)?

Accepted Answer

One explanation can be the date of entry

Question 13

Major benefits of a global strategy can include:

Accepted Answer

A) Serving customers who demand a global supplier 
B) Learning how to please the most demanding customers on the planet 
C) Economies of scale in R&D or product development 
D) All of the above 
A) Serving customers who demand a global supplier 
B) Learning how to please the most demanding customers on the planet 
C) Economies of scale in R&D or product development 
D) All of the above

Question 14

Internationalization of a large firm can lead to:

Accepted Answer

A) A reduction in economies of scale 
B) A decrease in marketing expenses 
C) A increase in unit costs of its products 
D) An increase in its bargaining power versus its suppliers 
A) A reduction in economies of scale 
B) A decrease in marketing expenses 
C) A increase in unit costs of its products 
D) An increase in its bargaining power versus its suppliers

Question 15

Porter's National diamond updates the theory of comparative advantage by integrating firms' development of resources and capabilities into a theory of factor and demand conditions, rather than relative (and fixed) factor endowments

Accepted Answer

A) True 
 B)False

Question 16

Internationalization increases rivalry pressures because,:

Accepted Answer

A) The number of producers in any market increases 
B) The diversity of those sellers increases 
C) Global excess capacity increases 
D) All of the above 
A) The number of producers in any market increases 
B) The diversity of those sellers increases 
C) Global excess capacity increases 
D) All of the above

Question 17

Comparative advantage refers to countries' relative efficiencies in producing different products

Accepted Answer

A) True 
 B)False

Question 18

The three fundamental international business activities are trading, human resource transfers, and foreign direct investment

Accepted Answer

A) True 
 B)False

Question 19

Porter's national diamond can be used to:

Accepted Answer

A) Predict the strategies of different countries 
B) Analyze why some firms and countries succeed internationally, and provide an intellectual framework for future analysis 
C) Calculate a firm's chances of success in an international venture 
D) Map the evolution of corporations like De Beers 
A) Predict the strategies of different countries 
B) Analyze why some firms and countries succeed internationally, and provide an intellectual framework for future analysis 
C) Calculate a firm's chances of success in an international venture 
D) Map the evolution of corporations like De Beers

Question 20

Where should a firm locate its activities?

Accepted Answer

Each firm comprises a vertical chain of

Product tradability refers to:

Nokia, Swatch, AP Moller-Maersk, BHP, and Research In Motion illustrate:

Trade and foreign direct investment are, respectively:

The first assumption that a firm makes when it enters a foreign market is that it will be profitable. What is the second assumption?

National differentiation means asserting the independence and values of one's home country

The fact that Cadbury-Schweppes licenses its trademarks and product recipes to Hershey shows that:

Ecco's value chain illustrates:

How can one characterize the different forms of markets, in regard to globalization?

The two main modes of entering an overseas market are:

Internationalization occurs through two mechanisms:

What is "cross-subsidization"?

In the fast food industry, why are some players (Burger King) not as well known as others (McDonalds)?

Major benefits of a global strategy can include:

Internationalization of a large firm can lead to:

Porter's National diamond updates the theory of comparative advantage by integrating firms' development of resources and capabilities into a theory of factor and demand conditions, rather than relative (and fixed) factor endowments

Internationalization increases rivalry pressures because,:

Comparative advantage refers to countries' relative efficiencies in producing different products

The three fundamental international business activities are trading, human resource transfers, and foreign direct investment

Porter's national diamond can be used to:

Where should a firm locate its activities?

The Concept of Strategy

Goals, Values and Performance

Industry Analysis: the Fundamentals

Further Topics in Industry and Competitive Analysis

Analyzing Resources and Capabilities

Developing Resources and Capabilities

Organization Structure and Management Systems: the Fundamentals of Strategy Implementation

The Nature and Sources of Competitive Advantage

Cost Advantage

Differentiation Advantage

Industry Evolution and Strategic Change

Technology-Based Industries and the Management of Innovation

Competitive Advantage in Mature Industries

Vertical Integration and the Scope of the Firm

Diversification Strategy

Implementing Corporate Strategy: Management of the Multibusiness Firm

Current Trends in Strategic Management

Filters

Exam 15: Global Strategies and the Multinational Corporation

Product tradability refers to:

Nokia, Swatch, AP Moller-Maersk, BHP, and Research In Motion illustrate:

Trade and foreign direct investment are, respectively:

The first assumption that a firm makes when it enters a foreign market is that it will be profitable. What is the second assumption?

National differentiation means asserting the independence and values of one's home country

The fact that Cadbury-Schweppes licenses its trademarks and product recipes to Hershey shows that:

Ecco's value chain illustrates:

How can one characterize the different forms of markets, in regard to globalization?

The two main modes of entering an overseas market are:

Internationalization occurs through two mechanisms:

What is "cross-subsidization"?

In the fast food industry, why are some players (Burger King) not as well known as others (McDonalds)?

Major benefits of a global strategy can include:

Internationalization of a large firm can lead to:

Porter's National diamond updates the theory of comparative advantage by integrating firms' development of resources and capabilities into a theory of factor and demand conditions, rather than relative (and fixed) factor endowments

Internationalization increases rivalry pressures because,:

Comparative advantage refers to countries' relative efficiencies in producing different products

The three fundamental international business activities are trading, human resource transfers, and foreign direct investment

Porter's national diamond can be used to:

Where should a firm locate its activities?

The Concept of Strategy

Goals, Values and Performance

Industry Analysis: the Fundamentals

Further Topics in Industry and Competitive Analysis

Analyzing Resources and Capabilities

Developing Resources and Capabilities

Organization Structure and Management Systems: the Fundamentals of Strategy Implementation

The Nature and Sources of Competitive Advantage

Cost Advantage

Differentiation Advantage

Industry Evolution and Strategic Change

Technology-Based Industries and the Management of Innovation

Competitive Advantage in Mature Industries

Vertical Integration and the Scope of the Firm

Diversification Strategy

Implementing Corporate Strategy: Management of the Multibusiness Firm

Current Trends in Strategic Management

Filters