Exam 7: International Strategy Creating Value in Global Markets

Rivalry is intense in nations with conditions of ________ consumer demand, ________ supplier bases, and ________ new entrant potential from related industries.

A franchise generally expires after a few years, whereas a license is designed to last into perpetuity.

Regions represent the outcomes of centuries of political and cultural history that results in not only ________ but also mutual ________.

The most expensive and risky entry mode is

In Euromoney's 2017 semi-annual "Country Risk Rating" evaluating political, economic, and other risks that entrants to international markets potentially face, which of the following countries have the next to the highest country financial system risk?

A report issued by the World Trade Organization described the production of a particular U.S. car. The study showed that 30 percent of the car value goes to Korea for assembly, 17.5 percent to Japan for components and advanced technology, 7.5 percent to Germany for design, 4 percent to Taiwan and Singapore for minor parts, 2.5 percent to U.K. for advertising and marketing services, and 1.5 percent to Ireland and Barbados for data processing. This is an example of

________ are groups of countries that agree to increase trade among them by lowering trade barriers.

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

Industries in which proportionally more value is added in upstream activities are more likely to benefit from a global strategy than those in which more value is added downstream (closer to the customer).

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

Arbitrage opportunities are simple trading opportunities and therefore account for little of the success Walmart experiences.

Two opposing pressures that managers face when they compete in foreign markets are cost reduction and adaptation to foreign markets.

Panasonic entered the market in China and found that it needed to balance global integration with local adaptation. It set up a Lifestyle Research Center in China to interpret data oncustomer wants and needs. This is an example of a company using ________ strategy.

For years O.R.T. Technologies resisted moving any operations outside Israel. However, when faced with a sharp rise in the value of the shekel, the maker of specialized software for managing gas stations froze all local hiring and decided to transfer some developmental work to Eastern Europe. This is an example of ________ risk.

In a world of instant communication, rapid transportation, and governments that are increasingly willing to open up their markets to trade and investment, why are there so few globalfirms?

Industries in which proportionally more value is added in ________ activities are more likely to benefit from a global strategy.

In considering the decision to offshore, which of the following generally is not one of the hidden costs?

What are the four basic types of international strategies that a company may pursue? Explain how the selection of one of these strategies is largely dependent on the relative pressureonthe firm to address cost reduction and adaptation to local markets.

Which one of the following is not a Western hemisphere trade bloc?

As in the case of Siebel Systems (now part of Oracle), elements of a global strategy may facilitate the competitive advantage of differentiation by