Question 1

Companies that compete in the global marketplace typically face two types of competitive pressures, cost reductions and expanding globally.

Accepted Answer

A) True 
 B)False

Question 2

Many of the issues that arise in the case of technological know-how do not arise in the case of management know-how.

Accepted Answer

A) True 
 B)False

Question 3

For a hotel company whose competitive advantage is based on high brand name recognition, which of the following ways of serving an overseas market makes the most sense?

Accepted Answer

A)  Exporting 
B)  Licensing 
C)  Franchising 
D)  Entering into a joint venture with a foreign company 
E)  Setting up a wholly owned subsidiary 
A)  Exporting 
B)  Licensing 
C)  Franchising 
D)  Entering into a joint venture with a foreign company 
E)  Setting up a wholly owned subsidiary

Question 4

Which of the following is not an implication of the globalization of production and markets for competition within an industry?

Accepted Answer

A)  Industry boundaries do not stop at national borders so managers must understand what is happening globally. 
B)  Increasing competitive rivalry in numerous industries 
C)  Creation of significant opportunities 
D)  Profit potential of any company rests on their international strategy. 
E)  All of these are implications of the globalization of production and markets. 
A)  Industry boundaries do not stop at national borders so managers must understand what is happening globally. 
B)  Increasing competitive rivalry in numerous industries 
C)  Creation of significant opportunities 
D)  Profit potential of any company rests on their international strategy. 
E)  All of these are implications of the globalization of production and markets.

Question 5

A company with a business-level strategy of cost leadership should pursue which of the following global expansion strategies?

Accepted Answer

A)  Localization 
B)  Global standardization 
C)  International 
D)  Transnational 
E)  Simple 
A)  Localization 
B)  Global standardization 
C)  International 
D)  Transnational 
E)  Simple

Question 6

When toy maker Mattel sells Barbie dolls in the Middle East, it changes the doll's shape to one that is a more accurate portrayal of a female body. Mattel does this in order to

Accepted Answer

A)  create a commodity-type product. 
B)  transfer technological know-how. 
C)  respond to differences in local tastes. 
D)  realize experience curve effects. 
E)  increase product standardization 
A)  create a commodity-type product. 
B)  transfer technological know-how. 
C)  respond to differences in local tastes. 
D)  realize experience curve effects. 
E)  increase product standardization

Question 7

The shift from national to global markets has intensified competitive rivalry in industry after industry.

Accepted Answer

A) True 
 B)False

Question 8

A company can increase it growth rate by taking goods or services developed at home and selling them internationally.

Accepted Answer

A) True 
 B)False

Question 9

A localization strategy is based on which of the following ideas?

Accepted Answer

A)  There is a convergence in the tastes of consumers in different nations of the world. 
B)  There are substantial economies of scale to be realized from centralizing global production. 
C)  Consumer tastes and preferences differ among national markets. 
D)  There are cost advantages associated with manufacturing a standard product for global consumption. 
E)  Competitive strategy should be centralized at the world head office. 
A)  There is a convergence in the tastes of consumers in different nations of the world. 
B)  There are substantial economies of scale to be realized from centralizing global production. 
C)  Consumer tastes and preferences differ among national markets. 
D)  There are cost advantages associated with manufacturing a standard product for global consumption. 
E)  Competitive strategy should be centralized at the world head office.

Question 10

Through transnational strategy a firm tries to achieve low costs, product differentiation across geographic markets, and foster skills among different subsidiaries.

Accepted Answer

A) True 
 B)False

Question 11

A localization strategy involves manufacturing global output in a limited number of centralized locations to realize scale economies.

Accepted Answer

A) True 
 B)False

Question 12

When a company increases its growth rate by taking goods or services developed at home and selling them internationally it is

Accepted Answer

A)  leveraging its existing products. 
B)  taking the path of least resistance. 
C)  engaging in product positioning. 
D)  realizing cost economies from global expansion. 
E)  realizing location economies. 
A)  leveraging its existing products. 
B)  taking the path of least resistance. 
C)  engaging in product positioning. 
D)  realizing cost economies from global expansion. 
E)  realizing location economies.

Question 13

When a company expands its sales volume through international expansion it can realize cost savings from economies of scale through all of the following except

Accepted Answer

A)  spreading fixed costs over its global sales volume. 
B)  utilizing its production facilities more intensely. 
C)  increased bargaining power with its suppliers. 
D)  improved customer responsiveness. 
E)  all of these are ways that a company can realize cost savings from economies of scale. 
A)  spreading fixed costs over its global sales volume. 
B)  utilizing its production facilities more intensely. 
C)  increased bargaining power with its suppliers. 
D)  improved customer responsiveness. 
E)  all of these are ways that a company can realize cost savings from economies of scale.

Question 14

Global strategy affects firms only at the corporate level.

Accepted Answer

A) True 
 B)False

Companies that compete in the global marketplace typically face two types of competitive pressures, cost reductions and expanding globally.

Many of the issues that arise in the case of technological know-how do not arise in the case of management know-how.

For a hotel company whose competitive advantage is based on high brand name recognition, which of the following ways of serving an overseas market makes the most sense?

Which of the following is not an implication of the globalization of production and markets for competition within an industry?

A company with a business-level strategy of cost leadership should pursue which of the following global expansion strategies?

When toy maker Mattel sells Barbie dolls in the Middle East, it changes the doll's shape to one that is a more accurate portrayal of a female body. Mattel does this in order to

The shift from national to global markets has intensified competitive rivalry in industry after industry.

A company can increase it growth rate by taking goods or services developed at home and selling them internationally.

A localization strategy is based on which of the following ideas?

Through transnational strategy a firm tries to achieve low costs, product differentiation across geographic markets, and foster skills among different subsidiaries.

A localization strategy involves manufacturing global output in a limited number of centralized locations to realize scale economies.

When a company increases its growth rate by taking goods or services developed at home and selling them internationally it is

When a company expands its sales volume through international expansion it can realize cost savings from economies of scale through all of the following except

Global strategy affects firms only at the corporate level.

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

Companies that compete in the global marketplace typically face two types of competitive pressures, cost reductions and expanding globally.

Many of the issues that arise in the case of technological know-how do not arise in the case of management know-how.

For a hotel company whose competitive advantage is based on high brand name recognition, which of the following ways of serving an overseas market makes the most sense?

Which of the following is not an implication of the globalization of production and markets for competition within an industry?

A company with a business-level strategy of cost leadership should pursue which of the following global expansion strategies?

When toy maker Mattel sells Barbie dolls in the Middle East, it changes the doll's shape to one that is a more accurate portrayal of a female body. Mattel does this in order to

The shift from national to global markets has intensified competitive rivalry in industry after industry.

A company can increase it growth rate by taking goods or services developed at home and selling them internationally.

A localization strategy is based on which of the following ideas?

Through transnational strategy a firm tries to achieve low costs, product differentiation across geographic markets, and foster skills among different subsidiaries.

A localization strategy involves manufacturing global output in a limited number of centralized locations to realize scale economies.

When a company increases its growth rate by taking goods or services developed at home and selling them internationally it is

When a company expands its sales volume through international expansion it can realize cost savings from economies of scale through all of the following except

Global strategy affects firms only at the corporate level.

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