Question 1

In addition to the four basic dimensions of Porter's "diamond" model, ____ may also contribute to the success or failure of firms.

Accepted Answer

A)  national work ethic 
B)  educational requirements 
C)  government policy 
D)  national pride 
A)  national work ethic 
B)  educational requirements 
C)  government policy 
D)  national pride C

Question 2

The transnational strategy is becoming increasingly necessary to compete in international markets for all the following reasons EXCEPT:

Accepted Answer

A)  the growing number of competitors heightens the requirements to keep costs down. 
B)  the desire for specialized products to meet consumers' needs. 
C)  differences in culture and institutional environments also require firms to adapt their products and approaches to local environments. 
D)  it is easy to use. 
A)  the growing number of competitors heightens the requirements to keep costs down. 
B)  the desire for specialized products to meet consumers' needs. 
C)  differences in culture and institutional environments also require firms to adapt their products and approaches to local environments. 
D)  it is easy to use. D

Question 3

The three basic benefits of international strategies are 1) increased market size; 2) increased economies of scale and learning; and 3) development of competitive advantages through location.

Accepted Answer

A) True 
 B)False  True

Question 4

The two important environmental trends that influence a firm's choice and use of international corporate-level strategies are _________ and __________.

Accepted Answer

A)  culture; geographic scope 
B)  cost; quality 
C)  regionalization; globalization 
D)  liability of foreignness; regionalization 
A)  culture; geographic scope 
B)  cost; quality 
C)  regionalization; globalization 
D)  liability of foreignness; regionalization

Question 5

Arkadelphia Polymers, Inc., earns 60 percent of its revenue from exports to Europe and Asia. The CEO of the company would be:

Accepted Answer

A)  concerned if the value of the dollar strengthened. 
B)  pleased if the value of the dollar strengthened. 
C)  unconcerned about the fluctuation in the value of the dollar because the company is widely diversified geographically. 
D)  likely to consider moving to international strategic alliances or acquisitions if the value of the dollar fell and remained low. 
A)  concerned if the value of the dollar strengthened. 
B)  pleased if the value of the dollar strengthened. 
C)  unconcerned about the fluctuation in the value of the dollar because the company is widely diversified geographically. 
D)  likely to consider moving to international strategic alliances or acquisitions if the value of the dollar fell and remained low.

Question 6

The three corporate-level international strategies are cost leadership, differentiation, and focus.

Accepted Answer

A) True 
 B)False

Question 7

Acquisitions, greenfield ventures, and sometimes joint ventures are appropriate when firms want to establish a strong presence in an international market.

Accepted Answer

A) True 
 B)False

Question 8

A U.S. manufacturer of adaptive devices for persons with disabilities is considering expanding internationally. It is a fairly small company, but it is looking for growth opportunities. This company should primarily consider the option of:

Accepted Answer

A)  licensing. 
B)  exporting. 
C)  a strategic alliance. 
D)  a greenfield venture. 
A)  licensing. 
B)  exporting. 
C)  a strategic alliance. 
D)  a greenfield venture.

Question 9

All of the following are international corporate-level strategies EXCEPT the ____ strategy.

Accepted Answer

A)  multi-domestic 
B)  universal 
C)  global 
D)  transnational 
A)  multi-domestic 
B)  universal 
C)  global 
D)  transnational

Question 10

Identify and describe the modes of entering international markets. What are their advantages and disadvantages?

Accepted Answer

Firms may enter international markets in

Question 11

International corporate-level strategy focuses on:

Accepted Answer

A)  the scope of operations through both product and geographic diversification. 
B)  competition within each country. 
C)  economies of scale. 
D)  sophistication of monitoring and controlling systems. 
A)  the scope of operations through both product and geographic diversification. 
B)  competition within each country. 
C)  economies of scale. 
D)  sophistication of monitoring and controlling systems.

Question 12

A firm may narrow its focus to a specific region of the world:

Accepted Answer

A)  because that market is most different from its domestic market and so represents an unexploited "greenfield opportunity" for its products. 
B)  in order to obtain greater economies of scale. 
C)  so that it can better understand the cultures, legal and social norms, and other factors that are important for effective competition in those markets. 
D)  to take advantage of limited protections of intellectual property so that it can manufacture innovative products without restrictions. 
A)  because that market is most different from its domestic market and so represents an unexploited "greenfield opportunity" for its products. 
B)  in order to obtain greater economies of scale. 
C)  so that it can better understand the cultures, legal and social norms, and other factors that are important for effective competition in those markets. 
D)  to take advantage of limited protections of intellectual property so that it can manufacture innovative products without restrictions.

Question 13

Coca Cola and PepsiCo are examples of firms that have found it unnecessary to aggressively pursue international strategies because of extensive growth opportunities available in the U.S. market.

Accepted Answer

A) True 
 B)False

Question 14

The problems associated with exporting include:

Accepted Answer

A)  merging corporate cultures. 
B)  a partner's incompatibility. 
C)  difficulty in negotiating relationships. 
D)  high transportation costs and the expense of tariffs. 
A)  merging corporate cultures. 
B)  a partner's incompatibility. 
C)  difficulty in negotiating relationships. 
D)  high transportation costs and the expense of tariffs.

Question 15

The growing number of global competitors heightens the requirements to keep costs down and there is the desire for more specialized products to meet customer needs. These two pressures make transnational strategies increasingly necessary.

Accepted Answer

A) True 
 B)False

Question 16

Multinational firms have many opportunities to learn from their experiences in international markets, but they must have a strong R&D system to absorb the knowledge.

Accepted Answer

A) True 
 B)False

Question 17

International strategy refers to a(n):

Accepted Answer

A)  action plan pursued by American companies to compete against foreign companies operating in the United States. 
B)  strategy through which the firm sells products in markets outside the firm's domestic market. 
C)  political and economic action plan developed by businesses and governments to cope with global competition. 
D)  strategy American firms use to dominate international markets. 
A)  action plan pursued by American companies to compete against foreign companies operating in the United States. 
B)  strategy through which the firm sells products in markets outside the firm's domestic market. 
C)  political and economic action plan developed by businesses and governments to cope with global competition. 
D)  strategy American firms use to dominate international markets.

Question 18

The amount of diversification in a firm's international operations that can be managed varies from company to company and is affected by managers' abilities to deal with ambiguity and complexity.

Accepted Answer

A) True 
 B)False

Question 19

A multi-domestic strategy is an international strategy in which a firm's home office determines the strategies business units are to use in each region.

Accepted Answer

A) True 
 B)False

Question 20

A global strategy:

Accepted Answer

A)  is easy to manage because of common operating decisions across borders. 
B)  achieves efficient operations without sharing resources across country boundaries. 
C)  increases risk because decision making is centralized at the home office. 
D)  lacks responsiveness to local markets. 
A)  is easy to manage because of common operating decisions across borders. 
B)  achieves efficient operations without sharing resources across country boundaries. 
C)  increases risk because decision making is centralized at the home office. 
D)  lacks responsiveness to local markets.

In addition to the four basic dimensions of Porter's "diamond" model, ____ may also contribute to the success or failure of firms.

The transnational strategy is becoming increasingly necessary to compete in international markets for all the following reasons EXCEPT:

The three basic benefits of international strategies are 1) increased market size; 2) increased economies of scale and learning; and 3) development of competitive advantages through location.

The two important environmental trends that influence a firm's choice and use of international corporate-level strategies are _ and __.

Arkadelphia Polymers, Inc., earns 60 percent of its revenue from exports to Europe and Asia. The CEO of the company would be:

The three corporate-level international strategies are cost leadership, differentiation, and focus.

Acquisitions, greenfield ventures, and sometimes joint ventures are appropriate when firms want to establish a strong presence in an international market.

A U.S. manufacturer of adaptive devices for persons with disabilities is considering expanding internationally. It is a fairly small company, but it is looking for growth opportunities. This company should primarily consider the option of:

All of the following are international corporate-level strategies EXCEPT the ____ strategy.

Identify and describe the modes of entering international markets. What are their advantages and disadvantages?

International corporate-level strategy focuses on:

A firm may narrow its focus to a specific region of the world:

Coca Cola and PepsiCo are examples of firms that have found it unnecessary to aggressively pursue international strategies because of extensive growth opportunities available in the U.S. market.

The problems associated with exporting include:

The growing number of global competitors heightens the requirements to keep costs down and there is the desire for more specialized products to meet customer needs. These two pressures make transnational strategies increasingly necessary.

Multinational firms have many opportunities to learn from their experiences in international markets, but they must have a strong R&D system to absorb the knowledge.

International strategy refers to a(n):

The amount of diversification in a firm's international operations that can be managed varies from company to company and is affected by managers' abilities to deal with ambiguity and complexity.

A multi-domestic strategy is an international strategy in which a firm's home office determines the strategies business units are to use in each region.

A global strategy:

Strategic Management and Strategic Competitiveness

The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis

The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages

Business-Level Strategy

Competitive Rivalry and Competitive Dynamics

Corporate-Level Strategy

Merger and Acquisition Strategies

Cooperative Strategy

Corporate Governance

Organizational Structure and Controls

Strategic Leadership

Strategic Entrepreneurship

Filters

Exam 8: International Strategy

In addition to the four basic dimensions of Porter's "diamond" model, ____ may also contribute to the success or failure of firms.

The transnational strategy is becoming increasingly necessary to compete in international markets for all the following reasons EXCEPT:

The three basic benefits of international strategies are 1) increased market size; 2) increased economies of scale and learning; and 3) development of competitive advantages through location.

The two important environmental trends that influence a firm's choice and use of international corporate-level strategies are _________ and __________.

Arkadelphia Polymers, Inc., earns 60 percent of its revenue from exports to Europe and Asia. The CEO of the company would be:

The three corporate-level international strategies are cost leadership, differentiation, and focus.

Acquisitions, greenfield ventures, and sometimes joint ventures are appropriate when firms want to establish a strong presence in an international market.

A U.S. manufacturer of adaptive devices for persons with disabilities is considering expanding internationally. It is a fairly small company, but it is looking for growth opportunities. This company should primarily consider the option of:

All of the following are international corporate-level strategies EXCEPT the ____ strategy.

Identify and describe the modes of entering international markets. What are their advantages and disadvantages?

International corporate-level strategy focuses on:

A firm may narrow its focus to a specific region of the world:

Coca Cola and PepsiCo are examples of firms that have found it unnecessary to aggressively pursue international strategies because of extensive growth opportunities available in the U.S. market.

The problems associated with exporting include:

The growing number of global competitors heightens the requirements to keep costs down and there is the desire for more specialized products to meet customer needs. These two pressures make transnational strategies increasingly necessary.

Multinational firms have many opportunities to learn from their experiences in international markets, but they must have a strong R&D system to absorb the knowledge.

International strategy refers to a(n):

The amount of diversification in a firm's international operations that can be managed varies from company to company and is affected by managers' abilities to deal with ambiguity and complexity.

A multi-domestic strategy is an international strategy in which a firm's home office determines the strategies business units are to use in each region.

A global strategy:

Strategic Management and Strategic Competitiveness

The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis

The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages

Business-Level Strategy

Competitive Rivalry and Competitive Dynamics

Corporate-Level Strategy

Merger and Acquisition Strategies

Cooperative Strategy

Corporate Governance

Organizational Structure and Controls

Strategic Leadership

Strategic Entrepreneurship

Filters

The two important environmental trends that influence a firm's choice and use of international corporate-level strategies are _ and __.