Question 1

One advantage of joint ventures is that a company may benefit from a local partner's knowledge of the many dimensions of a host country.

Accepted Answer

A) True 
 B)False

Question 2

Whirlpool, a leading U.S. maker of household appliances, has a wholly owned subsidiary that is responsible for R&D, manufacturing, and sales in over two dozen European countries, from Norway to Greece. What are some of the potential advantages that Whirlpool may gain from its use of a wholly owned subsidiary for global expansion? What are some of the potential disadvantages?

Accepted Answer

Whirlpool stands to make high profits fr

Question 3

A commodity oil producer would probably achieve the highest level of profitability with a(n) ___________ strategy.

Accepted Answer

A)  global standardization 
B)  international 
C)  localization 
D)  transnational 
E)  focus 
A)  global standardization 
B)  international 
C)  localization 
D)  transnational 
E)  focus

Question 4

If a company lacks the capital to develop operations overseas and/or they are unwilling to commit resources to an unfamiliar or politically volatile foreign market, which of the following entry options is the most viable?

Accepted Answer

A)  International licensing 
B)  Setting up a wholly owned subsidiary 
C)  Joint venture 
D)  Franchising 
E)  Global standardization 
A)  International licensing 
B)  Setting up a wholly owned subsidiary 
C)  Joint venture 
D)  Franchising 
E)  Global standardization

Question 5

A transnational strategy makes the most sense when there are strong pressures for cost reductions and demand for local responsiveness is minimal.

Accepted Answer

A) True 
 B)False

Question 6

MTV is a good example of a company that has had to pursue a localization strategy by varying its programming to match the demands of viewers in different nations.

Accepted Answer

A) True 
 B)False

Question 7

In which of the following circumstances does a global standardization strategy make the most sense?

Accepted Answer

A)  Global market standardization is not possible, and there are no significant economies of scale to be realized from centralizing global manufacturing. 
B)  Global market standardization is possible, but there are no significant economies of scale to be realized. 
C)  Global market standardization is not possible, but there are significant economies of scale to be realized from centralizing global manufacturing. 
D)  Consumer tastes and preferences differ among national markets, and economies of scale are insubstantial. 
E)  Global market standardization is possible, and there are significant economies of scale and location economies to be realized. 
A)  Global market standardization is not possible, and there are no significant economies of scale to be realized from centralizing global manufacturing. 
B)  Global market standardization is possible, but there are no significant economies of scale to be realized. 
C)  Global market standardization is not possible, but there are significant economies of scale to be realized from centralizing global manufacturing. 
D)  Consumer tastes and preferences differ among national markets, and economies of scale are insubstantial. 
E)  Global market standardization is possible, and there are significant economies of scale and location economies to be realized.

Question 8

Most manufacturing companies begin their global expansion via international licensing.

Accepted Answer

A) True 
 B)False

Question 9

Differences in tastes and preferences

Accepted Answer

A)  increase pressures for cost reductions. 
B)  reduce profit potential. 
C)  prevent a company from pursuing a licensing strategy 
D)  reduce pressures from the host government. 
E)  increase pressures for local responsiveness. 
A)  increase pressures for cost reductions. 
B)  reduce profit potential. 
C)  prevent a company from pursuing a licensing strategy 
D)  reduce pressures from the host government. 
E)  increase pressures for local responsiveness.

Question 10

The globalization of production has allowed firms to

Accepted Answer

A)  increase their market share. 
B)  lower their cost structure. 
C)  respond to individual market segments. 
D)  avoid international competition. 
E)  meet all of these goals. 
A)  increase their market share. 
B)  lower their cost structure. 
C)  respond to individual market segments. 
D)  avoid international competition. 
E)  meet all of these goals.

Question 11

Host government demands generally

Accepted Answer

A)  discourage foreign companies from operating in the home country. 
B)  increase pressures for cost reductions. 
C)  increase pressures for local responsiveness. 
D)  impede a company's ability to minimize its transaction costs. 
E)  impede a company's ability to differentiate its product offering across national borders.\ 
A)  discourage foreign companies from operating in the home country. 
B)  increase pressures for cost reductions. 
C)  increase pressures for local responsiveness. 
D)  impede a company's ability to minimize its transaction costs. 
E)  impede a company's ability to differentiate its product offering across national borders.\

Question 12

A localization strategy is most appropriate in an industry in which pressures for cost reductions are _________ and pressures for local responsiveness are _________.

Accepted Answer

A)  high; high 
B)  high; low 
C)  low; low 
D)  low; high 
E)  variable; high 
A)  high; high 
B)  high; low 
C)  low; low 
D)  low; high 
E)  variable; high

Question 13

Proctor & Gamble's global success was based only on its portfolio of consumer goods.

Accepted Answer

A) True 
 B)False

Question 14

When a company licenses its technology, it can quickly lose control over it.

Accepted Answer

A) True 
 B)False

Question 15

A company that enters a foreign market by entering into a licensing agreement with a local company

Accepted Answer

A)  will realize location economies. 
B)  must engage in global strategic coordination. 
C)  will realize experience curve effects. 
D)  risks losing control over its technology to the venture partner. 
E)  must engage in global strategic coordination and will realize experience curve effects. 
A)  will realize location economies. 
B)  must engage in global strategic coordination. 
C)  will realize experience curve effects. 
D)  risks losing control over its technology to the venture partner. 
E)  must engage in global strategic coordination and will realize experience curve effects.

Question 16

A global standardization strategy is most appropriate in an industry in which pressures for cost reductions are ____________ and pressures for local responsiveness are ___________.

Accepted Answer

A)  low; high 
B)  high; high 
C)  low; low 
D)  high; low 
E)  variable; high 
A)  low; high 
B)  high; high 
C)  low; low 
D)  high; low 
E)  variable; high

Question 17

Responding to pressures to be locally responsive requires that a company differentiate its products and marketing strategy.

Accepted Answer

A) True 
 B)False

Question 18

All of the following are consistent for a company pursuing a transnational strategy except

Accepted Answer

A)  achieve low costs. 
B)  differentiate the product offering across geographic markets. 
C)  increasing profitability. 
D)  foster a flow of skills. 
E)  focus on leveraging subsidiary skills. 
A)  achieve low costs. 
B)  differentiate the product offering across geographic markets. 
C)  increasing profitability. 
D)  foster a flow of skills. 
E)  focus on leveraging subsidiary skills.

Question 19

Global expansion

Accepted Answer

A)  is feasible only for large companies. 
B)  can enable companies to increase their profitability and grow their profits more rapidly. 
C)  allows domestic companies in the mature stage of the industry life cycle to maintain profits but not to increase them. 
D)  requires locating facilities in foreign countries. 
E)  makes sense for manufacturing firms, but not for service firms. 
A)  is feasible only for large companies. 
B)  can enable companies to increase their profitability and grow their profits more rapidly. 
C)  allows domestic companies in the mature stage of the industry life cycle to maintain profits but not to increase them. 
D)  requires locating facilities in foreign countries. 
E)  makes sense for manufacturing firms, but not for service firms.

Question 20

The volume of world merchandise trade has grown slower than the world's economy since 1950.

Accepted Answer

A) True 
 B)False

One advantage of joint ventures is that a company may benefit from a local partner's knowledge of the many dimensions of a host country.

A commodity oil producer would probably achieve the highest level of profitability with a(n) ___________ strategy.

If a company lacks the capital to develop operations overseas and/or they are unwilling to commit resources to an unfamiliar or politically volatile foreign market, which of the following entry options is the most viable?

A transnational strategy makes the most sense when there are strong pressures for cost reductions and demand for local responsiveness is minimal.

MTV is a good example of a company that has had to pursue a localization strategy by varying its programming to match the demands of viewers in different nations.

In which of the following circumstances does a global standardization strategy make the most sense?

Most manufacturing companies begin their global expansion via international licensing.

Differences in tastes and preferences

The globalization of production has allowed firms to

Host government demands generally

A localization strategy is most appropriate in an industry in which pressures for cost reductions are _ and pressures for local responsiveness are _.

Proctor & Gamble's global success was based only on its portfolio of consumer goods.

When a company licenses its technology, it can quickly lose control over it.

A company that enters a foreign market by entering into a licensing agreement with a local company

A global standardization strategy is most appropriate in an industry in which pressures for cost reductions are __ and pressures for local responsiveness are _.

Responding to pressures to be locally responsive requires that a company differentiate its products and marketing strategy.

All of the following are consistent for a company pursuing a transnational strategy except

Global expansion

The volume of world merchandise trade has grown slower than the world's economy since 1950.

The Strategy-Making Process

The Mission, Governance, and Business Ethics

External Analysis: the Identification of Opportunities and Threats

Building Competitive Advantage

Business-Level Strategy and Competitive Positioning

Corporate-Level Strategy and Long-Run Profitability

Strategic Change: Implementing Strategies to Build and Develop a Company

Implementing Strategy Through Organizational Design

Filters

Exam 6: Strategy in the Global Environment

One advantage of joint ventures is that a company may benefit from a local partner's knowledge of the many dimensions of a host country.

A commodity oil producer would probably achieve the highest level of profitability with a(n) ___________ strategy.

If a company lacks the capital to develop operations overseas and/or they are unwilling to commit resources to an unfamiliar or politically volatile foreign market, which of the following entry options is the most viable?

A transnational strategy makes the most sense when there are strong pressures for cost reductions and demand for local responsiveness is minimal.

MTV is a good example of a company that has had to pursue a localization strategy by varying its programming to match the demands of viewers in different nations.

In which of the following circumstances does a global standardization strategy make the most sense?

Most manufacturing companies begin their global expansion via international licensing.

Differences in tastes and preferences

The globalization of production has allowed firms to

Host government demands generally

A localization strategy is most appropriate in an industry in which pressures for cost reductions are _________ and pressures for local responsiveness are _________.

Proctor & Gamble's global success was based only on its portfolio of consumer goods.

When a company licenses its technology, it can quickly lose control over it.

A company that enters a foreign market by entering into a licensing agreement with a local company

A global standardization strategy is most appropriate in an industry in which pressures for cost reductions are ____________ and pressures for local responsiveness are ___________.

Responding to pressures to be locally responsive requires that a company differentiate its products and marketing strategy.

All of the following are consistent for a company pursuing a transnational strategy except

Global expansion

The volume of world merchandise trade has grown slower than the world's economy since 1950.

The Strategy-Making Process

The Mission, Governance, and Business Ethics

External Analysis: the Identification of Opportunities and Threats

Building Competitive Advantage

Business-Level Strategy and Competitive Positioning

Corporate-Level Strategy and Long-Run Profitability

Strategic Change: Implementing Strategies to Build and Develop a Company

Implementing Strategy Through Organizational Design

Filters

A localization strategy is most appropriate in an industry in which pressures for cost reductions are _ and pressures for local responsiveness are _.

A global standardization strategy is most appropriate in an industry in which pressures for cost reductions are __ and pressures for local responsiveness are _.