Exam 4: The Macroeconomics of Strategy

Strategy is about the future, therefore some insight into future economic conditions is desirable. The most common method of gaining insight into the economic future is to model the ________

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Question 1

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Porter (1980) argues that a nation is more likely to achieve global competitive advantage if the home industry comprises of lots of small firms rather than a few large firms. Porter is therefore arguing that global competitive advantage is more likely with a low degree of

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Question 2

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Give an example of an industry that is greatly affected by exchange rate fluctuations and explain the reasons why.

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Question 3

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An example could be the automobile industry because it is a global industry. Exchange rate changes can cause a change to the cost of raw materials as well as a change to the price of the automobile to the consumer. For example, a car which costs £5000 to make and is sold to the USA market for £10,000 - if the £ becomes stronger then the equivalent price in $ will be higher for the USA consumer. This is a very simplified example of course. Automobile companies can be manufacturing and selling in many different countries. They can get round this problem by hedging.

An _____________ economy is one which allows international trade.

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Question 4

What can cause changes in aggregate demand?

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Question 5

A boom will come to an end when capacity shortages result in acceleration of___________

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Question 6

If a car is manufactured in the UK, the price of one of the cars will increase in USA when the £ becomes stronger.

(True/False)

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Question 7

A weak £ to $ rate will encourage USA tourists to come to the UK.

(True/False)

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Question 8

Economic variables such as Gross Domestic Product, exchange rates and inflation rates are issues central to the study of which field of economics?

(Multiple Choice)

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Question 9

Changes in GDP affects the metal producing industry and the food industry by roughly the same amount.

(True/False)

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Question 10

If an economy faces a financial crisis, it is crucially important that;

(Multiple Choice)

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Question 11

A nation's organizations are most likely to gain global competitive advantage in their particular industry if there is an abundance of valuable natural resources in that nation.

(True/False)

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Question 12

Outline the elements that make up aggregate demand.

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Question 13

The total demand for goods and services from all industries in a nation's economy is called________________ demand.

(Short Answer)

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Question 14

A 'credit-crunch' arises because of a large reduction in GDP

(True/False)

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Question 15

Aggregate demand can be represented by the sum C+I+G+(X-F). What does the 'F' stand for?

(Multiple Choice)

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Question 16

Strategic managers should not allow their judgement to be influenced greatly by macro-economic factors because the variables are uncontrollable by the individual firm.

(True/False)

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Question 17

Italian firms have global competitive advantage in the leather goods industry because they have had to respond to the highly discerning Italian consumer.

(True/False)

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Question 18

It is difficult to do economic modelling of _______________ economies because the historical time period of the data is too small.

(Short Answer)

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Question 19

The East Asian economies boomed in the 1990s but this boom came to and end by the late 1990s primarily because

(Multiple Choice)

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Question 20

Showing 1 - 20 of 32

Strategy is about the future, therefore some insight into future economic conditions is desirable. The most common method of gaining insight into the economic future is to model the ________

Porter (1980) argues that a nation is more likely to achieve global competitive advantage if the home industry comprises of lots of small firms rather than a few large firms. Porter is therefore arguing that global competitive advantage is more likely with a low degree of

Give an example of an industry that is greatly affected by exchange rate fluctuations and explain the reasons why.

An _____________ economy is one which allows international trade.

What can cause changes in aggregate demand?

A boom will come to an end when capacity shortages result in acceleration of___________

If a car is manufactured in the UK, the price of one of the cars will increase in USA when the £ becomes stronger.

A weak £ to $ rate will encourage USA tourists to come to the UK.

Economic variables such as Gross Domestic Product, exchange rates and inflation rates are issues central to the study of which field of economics?

Changes in GDP affects the metal producing industry and the food industry by roughly the same amount.

If an economy faces a financial crisis, it is crucially important that;

A nation's organizations are most likely to gain global competitive advantage in their particular industry if there is an abundance of valuable natural resources in that nation.

Outline the elements that make up aggregate demand.

The total demand for goods and services from all industries in a nation's economy is called________________ demand.

A 'credit-crunch' arises because of a large reduction in GDP

Aggregate demand can be represented by the sum C+I+G+(X-F). What does the 'F' stand for?

Strategic managers should not allow their judgement to be influenced greatly by macro-economic factors because the variables are uncontrollable by the individual firm.

Italian firms have global competitive advantage in the leather goods industry because they have had to respond to the highly discerning Italian consumer.

It is difficult to do economic modelling of _______________ economies because the historical time period of the data is too small.

The East Asian economies boomed in the 1990s but this boom came to and end by the late 1990s primarily because

Introduction to Strategy

Systems Model and Strategy Map

The Microeconomics of Strategy

Competitive Strategy: The Analysis of Strategic Position

Competitive Strategy: The Analysis of Strategic Capability

The Competitive Environment

Corporate Strategy: Adding Value in Multi-Business Firms

Global Strategies and International Advantage

Organisational Models and Approaches to Strategy

Risk, Uncertainty and Strategy

Strategic Decision Making: Process Analysis

Strategic Decision Making: Managing Strategic Change

Strategy As Knowledge: Innovation and Learning

Strategy and Corporate Governance

Analyzing and Measuring Strategic Performance

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