Question 1

Recent problems for Cemex, the Mexican cement giant, were most likely caused by all of the following EXCEPT ________.

Accepted Answer

A)  tightened trade barriers 
B)  weakened value of the peso 
C)  aggressive global expansion 
D)  decline in construction industry 
A)  tightened trade barriers 
B)  weakened value of the peso 
C)  aggressive global expansion 
D)  decline in construction industry

Question 2

Which of the following terms refers to operating in concentrations of related, interdependent companies within an industry that uses the same suppliers, specialized labor, and distribution channels?

Accepted Answer

A)  service sector outsourcing 
B)  globalizing 
C)  franchising 
D)  clustering 
A)  service sector outsourcing 
B)  globalizing 
C)  franchising 
D)  clustering

Question 3

What is environmental scanning? What factors are most commonly evaluated in environmental scanning?

Accepted Answer

The process of gathering information and

Question 4

The primary motive in the contract manufacturing strategy generally is ________.

Accepted Answer

A)  utilizing inexpensive overseas labor 
B)  obtaining rights to patented technology 
C)  sharing managerial expertise 
D)  sharing financial resources 
A)  utilizing inexpensive overseas labor 
B)  obtaining rights to patented technology 
C)  sharing managerial expertise 
D)  sharing financial resources

Question 5

Which of the following is the most common reactive reason for a firm to extend its operations overseas?

Accepted Answer

A)  tax incentives 
B)  economies of scale 
C)  globalization of competitors 
D)  research and development needs 
A)  tax incentives 
B)  economies of scale 
C)  globalization of competitors 
D)  research and development needs

Question 6

Which of the following best explains why South Africa attracts global firms?

Accepted Answer

A)  highly skilled workers 
B)  stable exchange rate 
C)  good credit access 
D)  low crime rate 
A)  highly skilled workers 
B)  stable exchange rate 
C)  good credit access 
D)  low crime rate

Question 7

Panera Bread is a chain of cafes serving sandwiches, soups, and fresh baked artisan breads. The company began in 1981 with stores primarily located along the east coast of the U.S. Since then, the firm has expanded to over 1,300 locations throughout the U.S. and Canada. The firm has strong earnings and has been designated by Business Week as a "Hot Growth Company." Panera Bread executives are considering the idea of expanding globally by opening cafes in Asia through a franchising strategy. Which of the following questions is LEAST relevant to Panera Bread's decision to expand into Asia through franchising?

Accepted Answer

A)  Will Panera Bread franchisors in Asia have access to the supplies needed for the menu? 
B)  What aspects of the Asian culture might conflict with Panera Bread's menu offerings? 
C)  What marketing techniques will Panera Bread be able to use for Asian franchises? 
D)  What are the strengths and weaknesses of Panera Bread's Asian competitors? 
A)  Will Panera Bread franchisors in Asia have access to the supplies needed for the menu? 
B)  What aspects of the Asian culture might conflict with Panera Bread's menu offerings? 
C)  What marketing techniques will Panera Bread be able to use for Asian franchises? 
D)  What are the strengths and weaknesses of Panera Bread's Asian competitors?

Question 8

The licensing strategy is especially suitable for which of the following?

Accepted Answer

A)  high-tech products 
B)  newly emerging industries 
C)  mature products with declining profits 
D)  large firms with many financial resources 
A)  high-tech products 
B)  newly emerging industries 
C)  mature products with declining profits 
D)  large firms with many financial resources

Question 9

Which category is NOT typically addressed by a firm's global corporate objectives?

Accepted Answer

A)  research and development 
B)  employee profit sharing 
C)  production 
D)  marketing 
A)  research and development 
B)  employee profit sharing 
C)  production 
D)  marketing

Question 10

Which of the following terms refers to companies that go global from the outset, often through the use of the Internet for their operations?

Accepted Answer

A)  GLOCALS 
B)  MNEs 
C)  born globals 
D)  e-globals 
A)  GLOCALS 
B)  MNEs 
C)  born globals 
D)  e-globals

Question 11

Which of the following is most likely to encourage a firm to localize?

Accepted Answer

A)  decreasing tariffs 
B)  domestic subsidies 
C)  low costs of e-commerce 
D)  need for economies of scale 
A)  decreasing tariffs 
B)  domestic subsidies 
C)  low costs of e-commerce 
D)  need for economies of scale

Question 12

Which of the following is the LEAST relevant operational issue that firms should consider if they want to start or improve international ventures?

Accepted Answer

A)  difficulty of obtaining marketing information in many countries 
B)  complexities of exchanges rates and government controls 
C)  problems associated with promotion capabilities 
D)  poorly developed financial markets 
A)  difficulty of obtaining marketing information in many countries 
B)  complexities of exchanges rates and government controls 
C)  problems associated with promotion capabilities 
D)  poorly developed financial markets

Question 13

Why is strategic planning more complex on the global level than on the domestic level?

Accepted Answer

The three primary reasons are:the diffic

Question 14

When are alliance-based entry modes most appropriate?

Accepted Answer

The five conditions include:(1)physical,

Question 15

Which of the following is NOT an advantage of using licensing as an entry strategy?

Accepted Answer

A)  avoids the tariffs and quotas usually imposed on exports 
B)  gives licensors total control over the licensee's activities 
C)  requires little investment which minimizes risk 
D)  offers fast market access 
A)  avoids the tariffs and quotas usually imposed on exports 
B)  gives licensors total control over the licensee's activities 
C)  requires little investment which minimizes risk 
D)  offers fast market access

Question 16

Which of the following terms refers to the basic means by which a company competes: its choice of business in which it operates and how it differentiates itself from its competitors?

Accepted Answer

A)  mission 
B)  procedure 
C)  strategy 
D)  process 
A)  mission 
B)  procedure 
C)  strategy 
D)  process

Question 17

All of the following are critical environmental factors that firms should consider before exporting EXCEPT ________.

Accepted Answer

A)  tariffs 
B)  freight costs 
C)  distance from supplier countries 
D)  patent and trademark protection 
A)  tariffs 
B)  freight costs 
C)  distance from supplier countries 
D)  patent and trademark protection

Question 18

Describe a firm that has followed the strategy of "Go Global, Act Local." What activities make the firm GLOCAL?

Accepted Answer

Matsushita, which grew to be Japan's lar

Question 19

Which of the following is the primary advantage of using e-business as a local-level entry strategy?

Accepted Answer

A)  shared costs and risks 
B)  access to highly skilled workers 
C)  rapid entry and exit from markets 
D)  avoidance of tariffs and regulations 
A)  shared costs and risks 
B)  access to highly skilled workers 
C)  rapid entry and exit from markets 
D)  avoidance of tariffs and regulations

Question 20

Why are internal sources of information preferable to external ones for environmental scanning?

Accepted Answer

Many countries, especially developing co

Recent problems for Cemex, the Mexican cement giant, were most likely caused by all of the following EXCEPT ________.

Which of the following terms refers to operating in concentrations of related, interdependent companies within an industry that uses the same suppliers, specialized labor, and distribution channels?

What is environmental scanning? What factors are most commonly evaluated in environmental scanning?

The primary motive in the contract manufacturing strategy generally is ________.

Which of the following is the most common reactive reason for a firm to extend its operations overseas?

Which of the following best explains why South Africa attracts global firms?

The licensing strategy is especially suitable for which of the following?

Which category is NOT typically addressed by a firm's global corporate objectives?

Which of the following terms refers to companies that go global from the outset, often through the use of the Internet for their operations?

Which of the following is most likely to encourage a firm to localize?

Which of the following is the LEAST relevant operational issue that firms should consider if they want to start or improve international ventures?

Why is strategic planning more complex on the global level than on the domestic level?

When are alliance-based entry modes most appropriate?

Which of the following is NOT an advantage of using licensing as an entry strategy?

Which of the following terms refers to the basic means by which a company competes: its choice of business in which it operates and how it differentiates itself from its competitors?

All of the following are critical environmental factors that firms should consider before exporting EXCEPT ________.

Describe a firm that has followed the strategy of "Go Global, Act Local." What activities make the firm GLOCAL?

Which of the following is the primary advantage of using e-business as a local-level entry strategy?

Why are internal sources of information preferable to external ones for environmental scanning?

Assessing the Environment Political, Economic, Legal, Technological

Managing Interdependence Social Responsibility and Ethics

Understanding the Role of Culture

Communicating Across Cultures

Cross Cultural Negotiation and Decision Making

Global Alliances and Strategy Implementation

Organization Structure and Control Systems

Staffing Training and Compensation for Global Operations

Developing a Global Management Cadre

Motivating and Leading

Filters

Exam 6: Formulating Strategy

Recent problems for Cemex, the Mexican cement giant, were most likely caused by all of the following EXCEPT ________.

Which of the following terms refers to operating in concentrations of related, interdependent companies within an industry that uses the same suppliers, specialized labor, and distribution channels?

What is environmental scanning? What factors are most commonly evaluated in environmental scanning?

The primary motive in the contract manufacturing strategy generally is ________.

Which of the following is the most common reactive reason for a firm to extend its operations overseas?

Which of the following best explains why South Africa attracts global firms?

The licensing strategy is especially suitable for which of the following?

Which category is NOT typically addressed by a firm's global corporate objectives?

Which of the following terms refers to companies that go global from the outset, often through the use of the Internet for their operations?

Which of the following is most likely to encourage a firm to localize?

Which of the following is the LEAST relevant operational issue that firms should consider if they want to start or improve international ventures?

Why is strategic planning more complex on the global level than on the domestic level?

When are alliance-based entry modes most appropriate?

Which of the following is NOT an advantage of using licensing as an entry strategy?

Which of the following terms refers to the basic means by which a company competes: its choice of business in which it operates and how it differentiates itself from its competitors?

All of the following are critical environmental factors that firms should consider before exporting EXCEPT ________.

Describe a firm that has followed the strategy of "Go Global, Act Local." What activities make the firm GLOCAL?

Which of the following is the primary advantage of using e-business as a local-level entry strategy?

Why are internal sources of information preferable to external ones for environmental scanning?

Assessing the Environment Political, Economic, Legal, Technological

Managing Interdependence Social Responsibility and Ethics

Understanding the Role of Culture

Communicating Across Cultures

Cross Cultural Negotiation and Decision Making

Global Alliances and Strategy Implementation

Organization Structure and Control Systems

Staffing Training and Compensation for Global Operations

Developing a Global Management Cadre

Motivating and Leading

Filters