Question 1

How could a firm benefit from increased profits from expanding abroad?

Accepted Answer

Internationalisation of a firm's value c

Question 2

What are some of the reasons for a firm to enter the global market?

Accepted Answer

Typical reasons include:
• To reap the a

Question 3

Firms may become multinational in order to reduce costs and spread risk.

Accepted Answer

A) True 
 B)False

Question 4

Strategic management comprises three main components:
  • strategic analysis
• strategic choice
• strategic implementation.
Deciding who would be responsible for carrying out a strategy is part of

Accepted Answer

A)  routine management. 
B)  strategic implementation. 
C)  strategic analysis. 
D)  strategic choice. 
A)  routine management. 
B)  strategic implementation. 
C)  strategic analysis. 
D)  strategic choice.

Question 5

According to Porter, what are some of the factors that lead to high competitive rivalry?

Accepted Answer

• Having competitors of roughly equal si

Question 6

If a business had strategy based on its core competencies, this would be termed a _ 	_ strategy whereas, if a business had strategy based on cost leadership, this would be termed a 	 strategy.

Accepted Answer

A)  resource- based; market- based 
B)  perspective; niche 
C)  resource- based; niche 
D)  niche; market- based 
A)  resource- based; market- based 
B)  perspective; niche 
C)  resource- based; niche 
D)  niche; market- based

Question 7

If a firm has adopted a strategy of driving out inefficiency at every stage of the value chain in order to price below rivals, it is trying to adopt

Accepted Answer

A)  cost leadership. 
B)  vertical discrimination. 
C)  a resource- based strategy. 
D)  increased economies of scale. 
A)  cost leadership. 
B)  vertical discrimination. 
C)  a resource- based strategy. 
D)  increased economies of scale.

Question 8

Which of the following descriptions refers to the cost advantage of lower transaction costs?

Accepted Answer

A)  Producing overseas can save on the costs of arranging a contract with an overseas import agent, or with a firm in the host country to make the product under licence. 
B)  A country abroad might have a highly skilled or highly industrious workforce. 
C)  The tax rate may be lower abroad. 
D)  Wage rates may be lower abroad. 
E)  Where skills and productivity improve with experience, initial small cost advantages of locating overseas may become much more substantial over time. 
A)  Producing overseas can save on the costs of arranging a contract with an overseas import agent, or with a firm in the host country to make the product under licence. 
B)  A country abroad might have a highly skilled or highly industrious workforce. 
C)  The tax rate may be lower abroad. 
D)  Wage rates may be lower abroad. 
E)  Where skills and productivity improve with experience, initial small cost advantages of locating overseas may become much more substantial over time.

Question 9

Accessing global markets can

Accepted Answer

A)  spread risk. 
B)  allow firms to learn from experience. 
C)  exploit competitive advantages. 
D)  all of the above 
A)  spread risk. 
B)  allow firms to learn from experience. 
C)  exploit competitive advantages. 
D)  all of the above

Exam 13: An Introduction to Business Strategy

How could a firm benefit from increased profits from expanding abroad?

What are some of the reasons for a firm to enter the global market?

Firms may become multinational in order to reduce costs and spread risk.

Strategic management comprises three main components: • strategic analysis • strategic choice • strategic implementation. Deciding who would be responsible for carrying out a strategy is part of

According to Porter, what are some of the factors that lead to high competitive rivalry?

If a business had strategy based on its core competencies, this would be termed a _ _ strategy whereas, if a business had strategy based on cost leadership, this would be termed a strategy.

If a firm has adopted a strategy of driving out inefficiency at every stage of the value chain in order to price below rivals, it is trying to adopt

Which of the following descriptions refers to the cost advantage of lower transaction costs?

Accessing global markets can

The Business Environment and Business Economics

Economics and the World of Business

Business Organisations

The Working of Competitive Markets

Business in a Market Environment

Demand and the Consumer

Demand and the Firm

Products, Marketing and Advertising

Costs of Production

Revenue and Profit

Profit Maximisation Under Perfect Competition and Monopoly

Profit Maximisation Under Imperfect Competition

Alternative Theories of the Firm

Growth Strategy

The Small-Firm Sector

Pricing Strategy

Labour Markets, Wages and Industrial Relations

Investment and the Employment of Capital

Reasons for Government Intervention in the Market

Government and the Firm

Government and the Market

Globalisation and Multinational Business

International Trade

Trading Blocs

The Macroeconomic Environment of Business

The Balance of Payments and Exchange Rates

Banking, Money and Interest Rates

Business Activity, Employment and Inflation

Demand-Side Policy

Supply-Side Policy

International Economic Policy

Filters