Question 1

Which of the following is a source of economic risk in many countries?

Accepted Answer

A) good intellectual property law 
B) counterfeiting 
C) good enforcement of property rights 
D) political unrest 
A) good intellectual property law 
B) counterfeiting 
C) good enforcement of property rights 
D) political unrest

Question 2

When firms expand into global markets,they are faced with the choice of reducing costs and/or adapting to the local market.When high pressures exist to adapt locally,companies should choose a(n)________ strategy or ________ strategy in order to compete in the global marketplace.

Accepted Answer

A) global;transnational 
B) global;multidomestic 
C) international;global 
D) transnational;multidomestic 
A) global;transnational 
B) global;multidomestic 
C) international;global 
D) transnational;multidomestic

Question 3

The factor endowments of a country are inherited and cannot be created.

Accepted Answer

A) True 
 B)False

Question 4

Which would be the appropriate strategy for companies to use to compete in the global marketplace if both the pressures to lower costs and adapt locally are low?

Accepted Answer

A) international strategy 
B) global strategy 
C) multidomestic strategy 
D) transnational strategy 
A) international strategy 
B) global strategy 
C) multidomestic strategy 
D) transnational strategy

Question 5

In considering the transnational strategy,Nestle evaluates the limits of decentralization.The closer they are to the consumer in activities such as branding and pricing,the more they tend to decentralize.The more they deal with production and logistics,the more they centralize decision-making.The production and logistics decisions involve ________ activities.

Accepted Answer

A) upstream 
B) in its infrastructure 
C) downstream 
D) midstream 
A) upstream 
B) in its infrastructure 
C) downstream 
D) midstream

Question 6

Which of the following types of international firms are most likely to benefit from a global strategy as opposed to a multidomestic strategy?

Accepted Answer

A) firms that compete in industries in which consumer preferences vary substantially in each country 
B) firms in industries that are expanding very rapidly 
C) firms in industries that have value added by sales and marketing departments 
D) firms in industries that have much value added in research and design or manufacturing 
A) firms that compete in industries in which consumer preferences vary substantially in each country 
B) firms in industries that are expanding very rapidly 
C) firms in industries that have value added by sales and marketing departments 
D) firms in industries that have much value added in research and design or manufacturing

Question 7

Trends that might lead managers of multinational corporations (MNCs)to adopt a more decentralized strategy for their operations would include all of the following except

Accepted Answer

A) customer needs,interests,and tastes becoming increasingly homogenized. 
B) consumers around the world increasingly willing to trade preferences in product features for lower price. 
C) manufacturing trends allowing a decline in the minimum volume required to reach acceptable levels of production efficiency. 
D) fluctuating exchange rates. 
A) customer needs,interests,and tastes becoming increasingly homogenized. 
B) consumers around the world increasingly willing to trade preferences in product features for lower price. 
C) manufacturing trends allowing a decline in the minimum volume required to reach acceptable levels of production efficiency. 
D) fluctuating exchange rates.

Question 8

Discuss the role of market size in motivating a company to pursue international expansion.Use statistics to illustrate your explanation.

Accepted Answer

There are many motivations for a company

Question 9

The most expensive and risky entry mode is

Accepted Answer

A) wholly owned subsidiaries. 
B) joint ventures. 
C) franchising. 
D) strategic alliances. 
A) wholly owned subsidiaries. 
B) joint ventures. 
C) franchising. 
D) strategic alliances.

Question 10

Wages in developing markets can be volatile and spike dramatically.The United States can be ________ on a wage basis if its average wages decline.

Accepted Answer

A) less competitive 
B) more competitive 
C) more risky 
D) more volatile 
A) less competitive 
B) more competitive 
C) more risky 
D) more volatile

Question 11

If the U.S.dollar appreciates relative to foreign currency,what is likely to be the result for the U.S.company that has branches abroad?

Accepted Answer

A) Profits will increase,when measured in U.S.dollars. 
B) Profits will decrease,when measured in U.S.dollars. 
C) Foreign exports to the United States will decrease. 
D) Foreign demand for U.S.goods and services will decrease. 
A) Profits will increase,when measured in U.S.dollars. 
B) Profits will decrease,when measured in U.S.dollars. 
C) Foreign exports to the United States will decrease. 
D) Foreign demand for U.S.goods and services will decrease.

Question 12

According to the textbook,________ economic integration has progressed at a faster pace than ________ economic integration.

Accepted Answer

A) global;international 
B) international;regional 
C) regional;global 
D) regional;inter-regional 
A) global;international 
B) international;regional 
C) regional;global 
D) regional;inter-regional

Question 13

Globalization opens the doors for companies to attract new customers.One of the challenges is to determine how to meet the needs of these customers who have

Accepted Answer

A) different income levels. 
B) low income levels. 
C) high income levels. 
D) steady income levels. 
A) different income levels. 
B) low income levels. 
C) high income levels. 
D) steady income levels.

Question 14

Trading blocs and free trade zones erode the rise of international expansion.

Accepted Answer

A) True 
 B)False

Question 15

In Fortune's annual list of the 500 biggest companies in the world,156 firms were from emerging markets in 2015 compared to 18 in 1996,owing to

Accepted Answer

A) the lower living standards throughout the world. 
B) traditional purchasing habits. 
C) a rapid rise in global capitalism. 
D) a divergence in world living standards. 
A) the lower living standards throughout the world. 
B) traditional purchasing habits. 
C) a rapid rise in global capitalism. 
D) a divergence in world living standards.

Question 16

Exemplifying the phenomenon of ________,companies like GE have committed significant resources to developing products that meet the needs of developing nations,products that deliver adequate functionality at a fraction of the cost.Interestingly,these products have subsequently found considerable success in value segments in wealthy countries as well.

Accepted Answer

A) total wage costs and indirect costs 
B) risk reduction 
C) reverse innovation 
D) the optimization of value-chain activity locations 
A) total wage costs and indirect costs 
B) risk reduction 
C) reverse innovation 
D) the optimization of value-chain activity locations

Question 17

Typically,joint ventures involve less control and risk than franchising.

Accepted Answer

A) True 
 B)False

Question 18

Which one of the following is one of the Theodore Levitt assumptions supporting a pure global strategy?

Accepted Answer

A) Consumers are willing to pay more for specific product features. 
B) Customer needs and interests are becoming more dissimilar. 
C) MNCs can successfully compete globally by aggressively pricing products at the sacrifice of product features. 
D) If the world markets are treated as heterogeneous,substantial economies of scale are easily achieved. 
A) Consumers are willing to pay more for specific product features. 
B) Customer needs and interests are becoming more dissimilar. 
C) MNCs can successfully compete globally by aggressively pricing products at the sacrifice of product features. 
D) If the world markets are treated as heterogeneous,substantial economies of scale are easily achieved.

Question 19

Which one of the following is not a limitation of a global strategy?

Accepted Answer

A) limited ability to adapt to local markets 
B) the ability to locate activities in optimal locations 
C) the concentration of activities may increase dependence on a single facility 
D) single locations may lead to higher tariffs and transportation costs 
A) limited ability to adapt to local markets 
B) the ability to locate activities in optimal locations 
C) the concentration of activities may increase dependence on a single facility 
D) single locations may lead to higher tariffs and transportation costs

Question 20

Which of the following is not a risk normally associated with bottom-of-the-pyramid strategies?

Accepted Answer

A) A low-end version of a brand may detract from the overall brand attractiveness. 
B) The new low-cost products they develop may cannibalize the sales of their core products. 
C) Entrenched competitors can impact the ability of the new firm to enter the market successfully. 
D) New products may be perceived as exploiting the privileged customer with substandard products. 
A) A low-end version of a brand may detract from the overall brand attractiveness. 
B) The new low-cost products they develop may cannibalize the sales of their core products. 
C) Entrenched competitors can impact the ability of the new firm to enter the market successfully. 
D) New products may be perceived as exploiting the privileged customer with substandard products.

Which of the following is a source of economic risk in many countries?

When firms expand into global markets,they are faced with the choice of reducing costs and/or adapting to the local market.When high pressures exist to adapt locally,companies should choose a(n) strategy or strategy in order to compete in the global marketplace.

The factor endowments of a country are inherited and cannot be created.

Which would be the appropriate strategy for companies to use to compete in the global marketplace if both the pressures to lower costs and adapt locally are low?

Which of the following types of international firms are most likely to benefit from a global strategy as opposed to a multidomestic strategy?

Trends that might lead managers of multinational corporations (MNCs)to adopt a more decentralized strategy for their operations would include all of the following except

Discuss the role of market size in motivating a company to pursue international expansion.Use statistics to illustrate your explanation.

The most expensive and risky entry mode is

Wages in developing markets can be volatile and spike dramatically.The United States can be ________ on a wage basis if its average wages decline.

If the U.S.dollar appreciates relative to foreign currency,what is likely to be the result for the U.S.company that has branches abroad?

According to the textbook, economic integration has progressed at a faster pace than economic integration.

Globalization opens the doors for companies to attract new customers.One of the challenges is to determine how to meet the needs of these customers who have

Trading blocs and free trade zones erode the rise of international expansion.

In Fortune's annual list of the 500 biggest companies in the world,156 firms were from emerging markets in 2015 compared to 18 in 1996,owing to

Typically,joint ventures involve less control and risk than franchising.

Which one of the following is one of the Theodore Levitt assumptions supporting a pure global strategy?

Which one of the following is not a limitation of a global strategy?

Which of the following is not a risk normally associated with bottom-of-the-pyramid strategies?

Strategic Management: Creating Competitive Advantages

Analyzing the External Environment of the Firm: Creating Competitive Advantages

Assessing the Internal Environment of the Firm

Recognizing a Firms Intellectual Assets: Moving Beyond a Firms Tangible Resources

Business-Level Strategy: Creating and Sustaining Competitive Advantages

Corporate-Level Strategy: Creating Value Through Diversification

Entrepreneurial Strategy and Competitive Dynamics

Strategic Control and Corporate Governance

Creating Effective Organizational Designs

Strategic Leadership: Creating a Learning Organization and an Ethical Organization

Managing Innovation and Fostering Corporate Entrepreneurship

Filters

Exam 7: International Strategy: Creating Value in Global Markets

Which of the following is a source of economic risk in many countries?

When firms expand into global markets,they are faced with the choice of reducing costs and/or adapting to the local market.When high pressures exist to adapt locally,companies should choose a(n)________ strategy or ________ strategy in order to compete in the global marketplace.

The factor endowments of a country are inherited and cannot be created.

Which would be the appropriate strategy for companies to use to compete in the global marketplace if both the pressures to lower costs and adapt locally are low?

Which of the following types of international firms are most likely to benefit from a global strategy as opposed to a multidomestic strategy?

Trends that might lead managers of multinational corporations (MNCs)to adopt a more decentralized strategy for their operations would include all of the following except

Discuss the role of market size in motivating a company to pursue international expansion.Use statistics to illustrate your explanation.

The most expensive and risky entry mode is

Wages in developing markets can be volatile and spike dramatically.The United States can be ________ on a wage basis if its average wages decline.

If the U.S.dollar appreciates relative to foreign currency,what is likely to be the result for the U.S.company that has branches abroad?

According to the textbook,________ economic integration has progressed at a faster pace than ________ economic integration.

Globalization opens the doors for companies to attract new customers.One of the challenges is to determine how to meet the needs of these customers who have

Trading blocs and free trade zones erode the rise of international expansion.

In Fortune's annual list of the 500 biggest companies in the world,156 firms were from emerging markets in 2015 compared to 18 in 1996,owing to

Typically,joint ventures involve less control and risk than franchising.

Which one of the following is one of the Theodore Levitt assumptions supporting a pure global strategy?

Which one of the following is not a limitation of a global strategy?

Which of the following is not a risk normally associated with bottom-of-the-pyramid strategies?

Strategic Management: Creating Competitive Advantages

Analyzing the External Environment of the Firm: Creating Competitive Advantages

Assessing the Internal Environment of the Firm

Recognizing a Firms Intellectual Assets: Moving Beyond a Firms Tangible Resources

Business-Level Strategy: Creating and Sustaining Competitive Advantages

Corporate-Level Strategy: Creating Value Through Diversification

Entrepreneurial Strategy and Competitive Dynamics

Strategic Control and Corporate Governance

Creating Effective Organizational Designs

Strategic Leadership: Creating a Learning Organization and an Ethical Organization

Managing Innovation and Fostering Corporate Entrepreneurship

Filters

When firms expand into global markets,they are faced with the choice of reducing costs and/or adapting to the local market.When high pressures exist to adapt locally,companies should choose a(n) strategy or strategy in order to compete in the global marketplace.

According to the textbook, economic integration has progressed at a faster pace than economic integration.