Question 1

Michael Porter's diamond framework explains

Accepted Answer

A)  national value creation. 
B)  domestic value creation. 
C)  national competitive advantage. 
D)  domestic competitive advantage. 
A)  national value creation. 
B)  domestic value creation. 
C)  national competitive advantage. 
D)  domestic competitive advantage.

Question 2

A firm is said to be pursuing a polycentric innovation strategy when

Accepted Answer

A)  its research facility is situated in the headquarters and all other business activities are located around the world. 
B)  it draws from multiple, equally important research facilities located throughout the world. 
C)  it restricts its innovation to Western economies and production to developing markets. 
D)  its knowledge flow takes a one-way path-from its headquarters to the subsidiaries. 
A)  its research facility is situated in the headquarters and all other business activities are located around the world. 
B)  it draws from multiple, equally important research facilities located throughout the world. 
C)  it restricts its innovation to Western economies and production to developing markets. 
D)  its knowledge flow takes a one-way path-from its headquarters to the subsidiaries.

Question 3

Most businesses around the world are more than 50 percent globalized, meaning that more than half their revenues are from outside the home country.

Accepted Answer

A) True 
 B)False

Question 4

When should a firm choose exporting as a foreign entry mode?

Accepted Answer

Exporting as a foreign entry mode requir

Question 5

When multinational enterprises enter host countries such as Saudi Arabia and Japan, the most logical option is usually to pursue a multidomestic strategy even though that strategy rarely leads to significant cost reductions.

Accepted Answer

A) True 
 B)False

Question 6

Maddox Bauxite Extraction Inc. has decided to enter into a foreign market by setting up its own production facilities and distribution channels from scratch. This will give it strong control over all its business activities. Which of these foreign entry modes will Maddox most likely choose?

Accepted Answer

A)  greenfield operation 
B)  export 
C)  joint venture 
D)  acquisition 
A)  greenfield operation 
B)  export 
C)  joint venture 
D)  acquisition

Question 7

Milk Benefits Inc., a company popular for its dairy products, successfully follows a multidomestic strategy. Andrew Products Inc., a large conglomerate, pursues a transnational strategy. Which of the following statements is most likely true of this scenario?

Accepted Answer

A)  While Andrew's competitive advantage will lie in its high local responsiveness, Milk Benefits Inc. will lack such competencies. 
B)  Andrew Products Inc. will face greater pressure for cost reductions than Milk Benefits Inc. due to strategy choice. 
C)  Both Milk Benefits Inc. and Andrew Products Inc. will have to duplicate key business functions in multiple host countries. 
D)  While Milk Benefits Inc. will require a global matrix structure, Andrew Products Inc. will require a traditional headquarters model. 
A)  While Andrew's competitive advantage will lie in its high local responsiveness, Milk Benefits Inc. will lack such competencies. 
B)  Andrew Products Inc. will face greater pressure for cost reductions than Milk Benefits Inc. due to strategy choice. 
C)  Both Milk Benefits Inc. and Andrew Products Inc. will have to duplicate key business functions in multiple host countries. 
D)  While Milk Benefits Inc. will require a global matrix structure, Andrew Products Inc. will require a traditional headquarters model.

Question 8

Calabash Inc. is located in the nation of West Fenwick near the nation of East Fenwick. Calabash is considering expanding into East Fenwick. Both countries have similar consumer incomes and knowledge bases and share a common language. Also, the transportation networks between the countries are strong. Even so, the two nations have a long-standing dispute concerning the control of an area of land along their common border. Currently, West Fenwick rules this land. Which of the following would most likely prevent Calabash from expanding into East Fenwick?

Accepted Answer

A)  geographic distance 
B)  economic distance 
C)  political distance 
D)  cultural distance 
A)  geographic distance 
B)  economic distance 
C)  political distance 
D)  cultural distance

Question 9

To keep track of the latest developments in computing, Lenovo's research centers are located in China, the United States, and Japan. Also, to benefit from low-cost labor and reduced shipping costs, the company's manufacturing facilities are in Mexico, India, and China. Lenovo's products are the same for its domestic and foreign markets. Which strategy does Lenovo follow?

Accepted Answer

A)  a transnational strategy 
B)  a multidomestic strategy 
C)  a localization strategy 
D)  a global-standardization strategy 
A)  a transnational strategy 
B)  a multidomestic strategy 
C)  a localization strategy 
D)  a global-standardization strategy

Question 10

The cultural distance between Australia and the United States is relatively high because of the physical distance between the two nations.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following foreign entry modes primarily involves producing goods in one country to sell in another?

Accepted Answer

A)  greenfield operations 
B)  brownfield operations 
C)  exporting 
D)  crowdsourcing 
A)  greenfield operations 
B)  brownfield operations 
C)  exporting 
D)  crowdsourcing

Question 12

Which of the following modes of entering a foreign market allows for the lowest level of control?

Accepted Answer

A)  greenfield ventures 
B)  exporting 
C)  joint ventures 
D)  acquisitions 
A)  greenfield ventures 
B)  exporting 
C)  joint ventures 
D)  acquisitions

Question 13

Badlands Corp., a tool and die maker, is considering where to locate its new factories and offices. According to the CAGE distance model, which of these countries is statistically most attractive to Badlands?

Accepted Answer

A)  one that is much poorer than the country where Badlands has its headquarters 
B)  one that is in the same trading bloc as Badlands' home country 
C)  a country that does not share the same currency as Badlands' home country 
D)  the country that is the greatest physical distance from existing Badlands facilities 
A)  one that is much poorer than the country where Badlands has its headquarters 
B)  one that is in the same trading bloc as Badlands' home country 
C)  a country that does not share the same currency as Badlands' home country 
D)  the country that is the greatest physical distance from existing Badlands facilities

Question 14

Administrative and political distances, such as the presence or absence of colonial ties, are part of the CAGE distance framework.

Accepted Answer

A) True 
 B)False

Question 15

Using the automotive industry in Germany as an example, explain how competitive intensity in a focal industry affects national competitive advantage.

Accepted Answer

Companies that face a highly competitive

Question 16

Emirates, Etihad Airlines, and Qatar Airways are a threat to U.S. legacy carriers because they offer

Accepted Answer

A)  higher quality for lower costs for international routes. 
B)  higher quality for similar costs for U.S. domestic routes. 
C)  similar quality for lower costs for international routes. 
D)  similar quality for lower costs for U.S. domestic routes. 
A)  higher quality for lower costs for international routes. 
B)  higher quality for similar costs for U.S. domestic routes. 
C)  similar quality for lower costs for international routes. 
D)  similar quality for lower costs for U.S. domestic routes.

Question 17

Blush Bashful Cosmetics Inc. operates in 20 countries around the globe. The company clearly understands that the skin and hair type of customers varies from one country to another. Consequently, its products are customized to suit local needs and preferences of customers, even though the costs incurred while producing these products are exceptionally high. This strategy helps the company behave as a local firm in a foreign market. In this scenario, which of the following strategies does Blush Bashful most likely implement?

Accepted Answer

A)  a multidomestic strategy 
B)  a local-as-global strategy 
C)  a transnational strategy 
D)  a sole provider strategy 
A)  a multidomestic strategy 
B)  a local-as-global strategy 
C)  a transnational strategy 
D)  a sole provider strategy

Question 18

Fierce domestic competition in New Schuyler makes a tough environment for any motorcycle company. Success requires top-notch engineering of chassis and engines, as well as keeping costs and fuel consumption in check. As a result, New Schuyler's motorcycles have a competitive advantage in the global market. According to Porter's diamond framework, this scenario shows the influence of competitive intensity in

Accepted Answer

A)  a peripheral industry. 
B)  a focal industry. 
C)  supportive complementors. 
D)  related complementors. 
A)  a peripheral industry. 
B)  a focal industry. 
C)  supportive complementors. 
D)  related complementors.

Question 19

Multinational enterprises (MNEs) like Harley-Davidson, Rolex, and Starbucks are said to be following an international strategy because

Accepted Answer

A)  they pursue a cost leadership strategy in their respective industries. 
B)  they are highly responsive to the local needs and preferences of customers in the host countries. 
C)  they offer the same products or services in all their stores throughout the world. 
D)  they attempt to combine benefits of localization and standardization strategies simultaneously. 
A)  they pursue a cost leadership strategy in their respective industries. 
B)  they are highly responsive to the local needs and preferences of customers in the host countries. 
C)  they offer the same products or services in all their stores throughout the world. 
D)  they attempt to combine benefits of localization and standardization strategies simultaneously.

Question 20

Esther is the CEO of a line of accessories and cosmetics, Starring Me! Inc., which has retail stores and production units in five countries. In this scenario, Starring Me! Inc. is most likely a

Accepted Answer

A)  nonprofit organization. 
B)  nationalized firm. 
C)  sole proprietorship. 
D)  multinational enterprise. 
A)  nonprofit organization. 
B)  nationalized firm. 
C)  sole proprietorship. 
D)  multinational enterprise.

Michael Porter's diamond framework explains

A firm is said to be pursuing a polycentric innovation strategy when

Most businesses around the world are more than 50 percent globalized, meaning that more than half their revenues are from outside the home country.

When should a firm choose exporting as a foreign entry mode?

When multinational enterprises enter host countries such as Saudi Arabia and Japan, the most logical option is usually to pursue a multidomestic strategy even though that strategy rarely leads to significant cost reductions.

Maddox Bauxite Extraction Inc. has decided to enter into a foreign market by setting up its own production facilities and distribution channels from scratch. This will give it strong control over all its business activities. Which of these foreign entry modes will Maddox most likely choose?

Milk Benefits Inc., a company popular for its dairy products, successfully follows a multidomestic strategy. Andrew Products Inc., a large conglomerate, pursues a transnational strategy. Which of the following statements is most likely true of this scenario?

The cultural distance between Australia and the United States is relatively high because of the physical distance between the two nations.

Which of the following foreign entry modes primarily involves producing goods in one country to sell in another?

Which of the following modes of entering a foreign market allows for the lowest level of control?

Badlands Corp., a tool and die maker, is considering where to locate its new factories and offices. According to the CAGE distance model, which of these countries is statistically most attractive to Badlands?

Administrative and political distances, such as the presence or absence of colonial ties, are part of the CAGE distance framework.

Using the automotive industry in Germany as an example, explain how competitive intensity in a focal industry affects national competitive advantage.

Emirates, Etihad Airlines, and Qatar Airways are a threat to U.S. legacy carriers because they offer

Multinational enterprises (MNEs) like Harley-Davidson, Rolex, and Starbucks are said to be following an international strategy because

Esther is the CEO of a line of accessories and cosmetics, Starring Me! Inc., which has retail stores and production units in five countries. In this scenario, Starring Me! Inc. is most likely a

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

Michael Porter's diamond framework explains

A firm is said to be pursuing a polycentric innovation strategy when

Most businesses around the world are more than 50 percent globalized, meaning that more than half their revenues are from outside the home country.

When should a firm choose exporting as a foreign entry mode?

When multinational enterprises enter host countries such as Saudi Arabia and Japan, the most logical option is usually to pursue a multidomestic strategy even though that strategy rarely leads to significant cost reductions.

Maddox Bauxite Extraction Inc. has decided to enter into a foreign market by setting up its own production facilities and distribution channels from scratch. This will give it strong control over all its business activities. Which of these foreign entry modes will Maddox most likely choose?

Milk Benefits Inc., a company popular for its dairy products, successfully follows a multidomestic strategy. Andrew Products Inc., a large conglomerate, pursues a transnational strategy. Which of the following statements is most likely true of this scenario?

The cultural distance between Australia and the United States is relatively high because of the physical distance between the two nations.

Which of the following foreign entry modes primarily involves producing goods in one country to sell in another?

Which of the following modes of entering a foreign market allows for the lowest level of control?

Badlands Corp., a tool and die maker, is considering where to locate its new factories and offices. According to the CAGE distance model, which of these countries is statistically most attractive to Badlands?

Administrative and political distances, such as the presence or absence of colonial ties, are part of the CAGE distance framework.

Using the automotive industry in Germany as an example, explain how competitive intensity in a focal industry affects national competitive advantage.

Emirates, Etihad Airlines, and Qatar Airways are a threat to U.S. legacy carriers because they offer

Multinational enterprises (MNEs) like Harley-Davidson, Rolex, and Starbucks are said to be following an international strategy because

Esther is the CEO of a line of accessories and cosmetics, Starring Me! Inc., which has retail stores and production units in five countries. In this scenario, Starring Me! Inc. is most likely a

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