Exam 8: Global Competitive Dynamics

Cartels: a. Involvecollusion. b. Are often outlawed. c. A and B above. d. Entail the "prisoner's dilemma for participants. e. All of the above.

If the attacked market is of marginal value, managers may decide not to counterattack.

"The extent to which a given competitor possesses strategic endowment comparable, in terms of both type and amount, to those of the focal firm" refers to similarity of: a. Strategy. b. Resources. c. Markets. d. Industry. e. Economic environment.

Barriers for entrants with similar products and with substitute products are involved in the other two of the five forces.

Bargaining can take place through signals and actions.

The capability to attack in multiple markets throws the firm off balance leaving it vulnerable to rivals and thus reducing value.

In some of the discussions of strategy. It was suggested that a firm might attempt to mislead a rival as to the firm's true objective - i.e. feint. Is that unethical? Explain.

Local firms' primary strengths lie in a deep understanding of local markets, and thus they would pursue a dodger strategy.

Which of the following would not be considered an initial set of actions to gain competitive advantage: a. Price cuts. b. Advertising campaigns. c. Market entries. d. Counterattacks. e. New product introductions.

Firm A may be more successful in imitating Firm B if Firm B: a. Is competitively aggressive. b. Carries out complex actions. c. Uses difficult to execute maneuvers. d. All of the above. e. None of the above.

A strategy that leverages local assets is called an extender strategy.

Local firms in emerging economies typically can at least match the ________ of MNEs. a. Expertise b. Experience c. Endowments d. A and B above e. None of the above

If an attack is so subtle that rivals are not aware of it, the attacker's objectives are not likely to have been attained.

Strategy involves planning for actions rather than reactions or interaction.

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

The "strategy as action" perspective highlights the power of creative destruction.

Which of the following is not a legal means of signaling? a. Nonaggression or fat cat. b. Direct discussion of reduced rivalry with competitors. c. Truce seeking. d. Communication via governments. e. Strategic alliances.

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

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

Which of the following will enable a firm to be competitive even if there is a lack of top management commitment and employee involvement? a. Organizational structure. b. Use of stealth attacks. c. Rapid responses, and willingness to answer challenges. d. All of the above. e. None of the above.