Question 1

How will an increase in coordinated economic and political integration between countries affect the world economy?

Accepted Answer

A)  The world's market economies will become self-sufficient and independent. 
B)  There will be gains in social welfare and living standards across the globe. 
C)  The cost of labor will further decline in emerging economies. 
D)  There will be a movement away from global collaboration networks among multinational enterprises (MNEs). 
A)  The world's market economies will become self-sufficient and independent. 
B)  There will be gains in social welfare and living standards across the globe. 
C)  The cost of labor will further decline in emerging economies. 
D)  There will be a movement away from global collaboration networks among multinational enterprises (MNEs). B

Question 2

The transnational strategy is similar to a(n) ________ strategy because they both focus on product differentiation and low costs.

Accepted Answer

A)  liquidation 
B)  product diversification 
C)  international 
D)  blue ocean 
A)  liquidation 
B)  product diversification 
C)  international 
D)  blue ocean D

Question 3

MacAdam Enterprises sells the same sparkplugs in more than 30 countries. MacAdam is an example that helps to support the globalization hypothesis.

Accepted Answer

A) True 
 B)False  True

Question 4

The administrative and political distance between two trading countries decreases when

Accepted Answer

A)  there are Foreign Direct Investment (FDI) restrictions in the host country. 
B)  the host country lacks an independent central bank. 
C)  tariffs and trade quotas exist in the host country. 
D)  there is a well-functioning capital market in the host country. 
A)  there are Foreign Direct Investment (FDI) restrictions in the host country. 
B)  the host country lacks an independent central bank. 
C)  tariffs and trade quotas exist in the host country. 
D)  there is a well-functioning capital market in the host country.

Question 5

Managers at Durkmunder, a firm in West Feenistan, want to make their company a global leader in business process outsourcing (BPO). What should the Durkmunder managers look for as they decide where to locate their BPO facilities?

Accepted Answer

A)  large, undeveloped plots of land for greenfield projects 
B)  plentiful natural resources 
C)  many uneducated workers who are highly trainable 
D)  an abundance of well-educated English speakers 
A)  large, undeveloped plots of land for greenfield projects 
B)  plentiful natural resources 
C)  many uneducated workers who are highly trainable 
D)  an abundance of well-educated English speakers

Question 6

Janessa Inc., a reputed brand for fine art supplies, is implementing an international strategy. Slalom Corp., a maker of mini computer tablets, is pursuing a global-standardization strategy. Which of the following statements most likely holds true in this scenario?

Accepted Answer

A)  While Janessa Inc.'s competitive advantage lies in its high local responsiveness, Slalom Corp. will lack such capabilities. 
B)  Slalom Corp. focuses more on cost-reductions when compared to Janessa Inc. 
C)  Slalom's business functions are highly centralized, whereas Janessa. organizes its activities worldwide. 
D)  Slalom is exposed to greater risks of exchange rate fluctuations. 
A)  While Janessa Inc.'s competitive advantage lies in its high local responsiveness, Slalom Corp. will lack such capabilities. 
B)  Slalom Corp. focuses more on cost-reductions when compared to Janessa Inc. 
C)  Slalom's business functions are highly centralized, whereas Janessa. organizes its activities worldwide. 
D)  Slalom is exposed to greater risks of exchange rate fluctuations.

Question 7

Under the CAGE distance framework, the administrative and political distance between two countries primarily increases with

Accepted Answer

A)  differences in climates and time zones. 
B)  the absence of a trading bloc. 
C)  physical remoteness. 
D)  the lack of connective ethnic and social networks. 
A)  differences in climates and time zones. 
B)  the absence of a trading bloc. 
C)  physical remoteness. 
D)  the lack of connective ethnic and social networks.

Question 8

The term demand conditions refers to how high the volume of demand is for a particular product in a particular country.

Accepted Answer

A) True 
 B)False

Question 9

What is the engine behind globalization? Provide a real-world example.

Accepted Answer

Student examples will vary. A sample ans

Question 10

WackyPop Inc. produces an inexpensive microwave popcorn that is well tailored for the tastes of U.S. consumers. However, it has failed to satisfy the consumer preferences of its host country, Japan. Which of the following categories has WackyPop performed poorly in?

Accepted Answer

A)  cost reduction 
B)  local responsiveness 
C)  global standardization 
D)  transnational strategy 
A)  cost reduction 
B)  local responsiveness 
C)  global standardization 
D)  transnational strategy

Question 11

European aircraft maker Airbus invested $600 million in Mobile, Alabama, to build jetliners. Which of the following statements best explains why it used this strategy?

Accepted Answer

A)  to take advantage of the high labor costs in the southern United States 
B)  to take advantage of the high cost of living in the southern United States 
C)  to take advantage of the low impact of globalization in the United States 
D)  to take advantage of lower taxes in the southern United States 
A)  to take advantage of the high labor costs in the southern United States 
B)  to take advantage of the high cost of living in the southern United States 
C)  to take advantage of the low impact of globalization in the United States 
D)  to take advantage of lower taxes in the southern United States

Question 12

Save On Everything Inc., a supermarket chain, is implementing a multidomestic strategy. Solar Future Inc., a company that manufactures solar panels for commercial and domestic purposes, is pursuing a global-standardization strategy. How will the two companies most likely differ from each other?

Accepted Answer

A)  Save On Everything Inc. will focus more on cost-reduction than Solar Future Inc. 
B)  Save On Everything Inc. will have its business functions spread across the world; Solar Future Inc.'s business functions will be highly centralized. 
C)  Unlike Solar Future Inc., Save On Everything Inc. will be able to pursue a differentiation strategy at the business level. 
D)  Unlike Solar Future Inc., Save On Everything Inc. will be able to reap significant economies of scale and location economies. 
A)  Save On Everything Inc. will focus more on cost-reduction than Solar Future Inc. 
B)  Save On Everything Inc. will have its business functions spread across the world; Solar Future Inc.'s business functions will be highly centralized. 
C)  Unlike Solar Future Inc., Save On Everything Inc. will be able to pursue a differentiation strategy at the business level. 
D)  Unlike Solar Future Inc., Save On Everything Inc. will be able to reap significant economies of scale and location economies.

Question 13

Carpatia and Novenica are neighboring countries with strong economic disparities. However, both the countries share a common national language and the same political ideologies. The relationship between these two countries will most likely affect the trade of

Accepted Answer

A)  food processed in Novenica. 
B)  movies and TV shows produced in Carpatia. 
C)  iron ore extracted in Novenica. 
D)  luxury items manufactured in Carpatia. 
A)  food processed in Novenica. 
B)  movies and TV shows produced in Carpatia. 
C)  iron ore extracted in Novenica. 
D)  luxury items manufactured in Carpatia.

Question 14

Which of the following is most likely an accurate statement?

Accepted Answer

A)  The multinational enterprise Starship benefited from advances in communications technology. 
B)  The multinational enterprise United Allies was hindered by falling investment barriers. 
C)  The multinational enterprise MegaStore benefited from rising trade barriers. 
D)  The multinational enterprise Global Partners was hindered by reduced transportation costs. 
A)  The multinational enterprise Starship benefited from advances in communications technology. 
B)  The multinational enterprise United Allies was hindered by falling investment barriers. 
C)  The multinational enterprise MegaStore benefited from rising trade barriers. 
D)  The multinational enterprise Global Partners was hindered by reduced transportation costs.

Question 15

A greater cultural distance between two trading countries

Accepted Answer

A)  increases linguistic similarities between the two countries. 
B)  increases the liability of foreignness. 
C)  reduces the uncertainty of doing business. 
D)  reduces the transaction costs associated with business. 
A)  increases linguistic similarities between the two countries. 
B)  increases the liability of foreignness. 
C)  reduces the uncertainty of doing business. 
D)  reduces the transaction costs associated with business.

Question 16

Unilever's new-concept center is situated in downtown Shanghai, China, attracting hundreds of eager volunteers to test the firm's latest product innovations on-site while Unilever researchers monitor consumer reactions. In this example, Unilever is trying to reap the benefits of

Accepted Answer

A)  location economies. 
B)  economies of scope. 
C)  learning races. 
D)  network effects. 
A)  location economies. 
B)  economies of scope. 
C)  learning races. 
D)  network effects.

Question 17

Foreign-entry modes such as acquisitions and greenfield projects are usually disadvantageous because they require a high level of capital and resource investment but allow for a low level of control.

Accepted Answer

A) True 
 B)False

Question 18

In Michael Porter's diamond framework, ________ conditions describe a country's endowments in terms of natural, human, and other resources.

Accepted Answer

A)  market 
B)  factor 
C)  demand 
D)  supply 
A)  market 
B)  factor 
C)  demand 
D)  supply

Question 19

Downshift Autos Inc. has shifted its research and development unit from its home country to Germany. This allows the company to be better informed about the latest developments in the automotive industry by tapping into the highly advanced automotive industry in Germany. In this scenario, Downshift Autos Inc. is reaping the benefits of

Accepted Answer

A)  economies of scope. 
B)  location economies. 
C)  resource immobility. 
D)  resource ambiguity. 
A)  economies of scope. 
B)  location economies. 
C)  resource immobility. 
D)  resource ambiguity.

Question 20

Discuss the disadvantages of international expansion for firms, particularly in regard to intellectual property. Substantiate with an example from your reading assignment or from your own experience.

Accepted Answer

Student examples will vary. A sample ans

How will an increase in coordinated economic and political integration between countries affect the world economy?

The transnational strategy is similar to a(n) ________ strategy because they both focus on product differentiation and low costs.

MacAdam Enterprises sells the same sparkplugs in more than 30 countries. MacAdam is an example that helps to support the globalization hypothesis.

The administrative and political distance between two trading countries decreases when

Managers at Durkmunder, a firm in West Feenistan, want to make their company a global leader in business process outsourcing (BPO). What should the Durkmunder managers look for as they decide where to locate their BPO facilities?

Janessa Inc., a reputed brand for fine art supplies, is implementing an international strategy. Slalom Corp., a maker of mini computer tablets, is pursuing a global-standardization strategy. Which of the following statements most likely holds true in this scenario?

Under the CAGE distance framework, the administrative and political distance between two countries primarily increases with

The term demand conditions refers to how high the volume of demand is for a particular product in a particular country.

What is the engine behind globalization? Provide a real-world example.

WackyPop Inc. produces an inexpensive microwave popcorn that is well tailored for the tastes of U.S. consumers. However, it has failed to satisfy the consumer preferences of its host country, Japan. Which of the following categories has WackyPop performed poorly in?

European aircraft maker Airbus invested $600 million in Mobile, Alabama, to build jetliners. Which of the following statements best explains why it used this strategy?

Save On Everything Inc., a supermarket chain, is implementing a multidomestic strategy. Solar Future Inc., a company that manufactures solar panels for commercial and domestic purposes, is pursuing a global-standardization strategy. How will the two companies most likely differ from each other?

Carpatia and Novenica are neighboring countries with strong economic disparities. However, both the countries share a common national language and the same political ideologies. The relationship between these two countries will most likely affect the trade of

Which of the following is most likely an accurate statement?

A greater cultural distance between two trading countries

Unilever's new-concept center is situated in downtown Shanghai, China, attracting hundreds of eager volunteers to test the firm's latest product innovations on-site while Unilever researchers monitor consumer reactions. In this example, Unilever is trying to reap the benefits of

Foreign-entry modes such as acquisitions and greenfield projects are usually disadvantageous because they require a high level of capital and resource investment but allow for a low level of control.

In Michael Porter's diamond framework, ________ conditions describe a country's endowments in terms of natural, human, and other resources.

Discuss the disadvantages of international expansion for firms, particularly in regard to intellectual property. Substantiate with an example from your reading assignment or from your own experience.

What Is Strategy

Strategic Leadership: Managing the Strategy Process

External Analysis: Industry Structure, Competitive Forces, and Strategic Groups

Internal Analysis: Resources, Capabilities, and Core Competencies

Competitive Advantage, Firm Performance, and Business Models

Business Strategy: Differentiation, Cost Leadership, and Blue Oceans

Business Strategy: Innovation, Entrepreneurship, and Platforms

Corporate Strategy: Vertical Integration and Diversification

Corporate Strategy: Strategic Alliances, Mergers, and Acquisitions

Organizational Design: Structure, Culture, and Control

Corporate Governance and Business Ethics

Filters

Exam 10: Global Strategy: Competing Around the World

How will an increase in coordinated economic and political integration between countries affect the world economy?

The transnational strategy is similar to a(n) ________ strategy because they both focus on product differentiation and low costs.

MacAdam Enterprises sells the same sparkplugs in more than 30 countries. MacAdam is an example that helps to support the globalization hypothesis.

The administrative and political distance between two trading countries decreases when

Managers at Durkmunder, a firm in West Feenistan, want to make their company a global leader in business process outsourcing (BPO). What should the Durkmunder managers look for as they decide where to locate their BPO facilities?

Janessa Inc., a reputed brand for fine art supplies, is implementing an international strategy. Slalom Corp., a maker of mini computer tablets, is pursuing a global-standardization strategy. Which of the following statements most likely holds true in this scenario?

Under the CAGE distance framework, the administrative and political distance between two countries primarily increases with

The term demand conditions refers to how high the volume of demand is for a particular product in a particular country.

What is the engine behind globalization? Provide a real-world example.

WackyPop Inc. produces an inexpensive microwave popcorn that is well tailored for the tastes of U.S. consumers. However, it has failed to satisfy the consumer preferences of its host country, Japan. Which of the following categories has WackyPop performed poorly in?

European aircraft maker Airbus invested $600 million in Mobile, Alabama, to build jetliners. Which of the following statements best explains why it used this strategy?

Save On Everything Inc., a supermarket chain, is implementing a multidomestic strategy. Solar Future Inc., a company that manufactures solar panels for commercial and domestic purposes, is pursuing a global-standardization strategy. How will the two companies most likely differ from each other?

Carpatia and Novenica are neighboring countries with strong economic disparities. However, both the countries share a common national language and the same political ideologies. The relationship between these two countries will most likely affect the trade of

Which of the following is most likely an accurate statement?

A greater cultural distance between two trading countries

Unilever's new-concept center is situated in downtown Shanghai, China, attracting hundreds of eager volunteers to test the firm's latest product innovations on-site while Unilever researchers monitor consumer reactions. In this example, Unilever is trying to reap the benefits of

Foreign-entry modes such as acquisitions and greenfield projects are usually disadvantageous because they require a high level of capital and resource investment but allow for a low level of control.

In Michael Porter's diamond framework, ________ conditions describe a country's endowments in terms of natural, human, and other resources.

Discuss the disadvantages of international expansion for firms, particularly in regard to intellectual property. Substantiate with an example from your reading assignment or from your own experience.

What Is Strategy

Strategic Leadership: Managing the Strategy Process

External Analysis: Industry Structure, Competitive Forces, and Strategic Groups

Internal Analysis: Resources, Capabilities, and Core Competencies

Competitive Advantage, Firm Performance, and Business Models

Business Strategy: Differentiation, Cost Leadership, and Blue Oceans

Business Strategy: Innovation, Entrepreneurship, and Platforms

Corporate Strategy: Vertical Integration and Diversification

Corporate Strategy: Strategic Alliances, Mergers, and Acquisitions

Organizational Design: Structure, Culture, and Control

Corporate Governance and Business Ethics

Filters