Question 1

Global standardization strategy emphasizes customization and product differentiation.

Accepted Answer

A) True 
 B)False  False

Question 2

What is meant by the term national competitive advantage, and what are the attributes of a nation that affect the global competitiveness of companies located within that nation?

Accepted Answer

National competitive advantage refers to the fact that the nation within which a company is based may have an important bearing on the competitive position of that company in the global marketplace. There are four attributes of a country-specific environment that have an important impact on the global competitiveness of companies based within that country. Factor endowments encompass a nation's position in factors of production and include factors such as skilled labor and the infrastructure necessary to compete in a given industry. Demand conditions refer to the nature of demand for a product or service in the home country. Relating and supporting industries refer to the presence or absence of supplier industries and related industries that are internationally competitive. Finally, firm strategy, structure, and rivalry refers to the conditions in the nation governing how companies are created, organized, and managed and the nature of domestic rivalry.

Question 3

Companies that pursue a _____ strategy are trying to develop a business model that simultaneously achieves low costs, differentiates the product offering across geographic markets, and fosters a flow of skills between different subsidiaries in the company's global network of operations.

Accepted Answer

A)  transnational 
B)  downsizing 
C)  centralization 
D)  localization 
E)  global standardization 
A)  transnational 
B)  downsizing 
C)  centralization 
D)  localization 
E)  global standardization A

Question 4

Relish is a large fast food chain that operates in many countries. As there are several competitors in the fast food sector, the company has been facing intense pressures for achieving low cost structures. The company also faces the task of customizing its product line as there are significant differences in tastes and preferences among customers in different geographic locations. In order to achieve both low costs and product differentiation, the company should aim to pursue a _____ strategy.

Accepted Answer

A)  global standardization 
B)  transnational 
C)  localization 
D)  downsizing 
E)  divestment 
A)  global standardization 
B)  transnational 
C)  localization 
D)  downsizing 
E)  divestment

Question 5

Nutrimax, a sports foods manufacturer, has recently expanded its operations to different countries. The company has realized that customers in different countries have different tastes and preferences. So, the company customizes its products based on the country where it's selling. In this scenario, Nutrimax is most likely to be using _____ strategy.

Accepted Answer

A)  global standardization 
B)  localization 
C)  Achilles heel 
D)  centralization 
E)  transnational 
A)  global standardization 
B)  localization 
C)  Achilles heel 
D)  centralization 
E)  transnational

Question 6

Whirlpool, a leading U.S. maker of household appliances, has a wholly owned subsidiary that is responsible for research and development (R&D), manufacturing, and sales in over two dozen European countries, from Norway to Greece. What are some of the potential advantages that Whirlpool may gain from its use of a wholly owned subsidiary for global expansion? What are some of the potential disadvantages?

Accepted Answer

Whirlpool stands to make high profits fr

Question 7

Which of the following has occurred in international trade over the past half-century?

Accepted Answer

A)  There has been a dramatic increase in the barriers to international trade. 
B)  Tariff rates on manufactured goods traded by advanced nations have fallen. 
C)  Regulations prohibiting foreign companies from entering domestic markets and establishing production facilities have increased. 
D)  The volume of world trade has decreased dramatically. 
E)  There has been a decline in the value of foreign direct investment. 
A)  There has been a dramatic increase in the barriers to international trade. 
B)  Tariff rates on manufactured goods traded by advanced nations have fallen. 
C)  Regulations prohibiting foreign companies from entering domestic markets and establishing production facilities have increased. 
D)  The volume of world trade has decreased dramatically. 
E)  There has been a decline in the value of foreign direct investment.

Question 8

A company may create value if it can leverage the competencies created within subsidiaries and apply them to other operations within the firm's global network.

Accepted Answer

A) True 
 B)False

Question 9

Strong pressures for convergence due to a shared history and culture, or the establishment of a trading block where there are deliberate attempts to harmonize trade policies, infrastructure, and regulations have contributed to the rise in what trend?

Accepted Answer

A)  Regionalism 
B)  Globalization 
C)  Monopolies 
D)  Nationalism 
E)  Traditional Practices 
A)  Regionalism 
B)  Globalization 
C)  Monopolies 
D)  Nationalism 
E)  Traditional Practices

Question 10

Which of the following factors increases pressures for local responsiveness?

Accepted Answer

A)  Powerful buyers 
B)  Uniformity in distribution channels 
C)  Host government demands 
D)  Similarities in customer tastes and preferences 
E)  Competitors that are based in high-cost locations 
A)  Powerful buyers 
B)  Uniformity in distribution channels 
C)  Host government demands 
D)  Similarities in customer tastes and preferences 
E)  Competitors that are based in high-cost locations

Question 11

One advantage of a joint venture is that a company may benefit from a local partner's knowledge of the many dimensions of a host country.

Accepted Answer

A) True 
 B)False

Question 12

Global expansion:

Accepted Answer

A)  is feasible only for non-technology based companies. 
B)  can enable companies to increase their profitability and grow their profits more rapidly. 
C)  has significantly decreased in the recent years as the industry barriers are now higher. 
D)  does not involve selling existing products to new markets in different countries. 
E)  is not feasible for service-based firms. 
A)  is feasible only for non-technology based companies. 
B)  can enable companies to increase their profitability and grow their profits more rapidly. 
C)  has significantly decreased in the recent years as the industry barriers are now higher. 
D)  does not involve selling existing products to new markets in different countries. 
E)  is not feasible for service-based firms.

Question 13

Which of the following ideas is a localization strategy is based on?

Accepted Answer

A)  There is a convergence in the tastes of consumers in different nations of the world. 
B)  There are substantial economies of scale to be realized from centralizing global production. 
C)  Consumer tastes and preferences differ among national markets. 
D)  There are cost advantages associated with manufacturing a standard product for global consumption. 
E)  Competitive strategy should be centralized at the world head office. 
A)  There is a convergence in the tastes of consumers in different nations of the world. 
B)  There are substantial economies of scale to be realized from centralizing global production. 
C)  Consumer tastes and preferences differ among national markets. 
D)  There are cost advantages associated with manufacturing a standard product for global consumption. 
E)  Competitive strategy should be centralized at the world head office.

Question 14

By offering a standardized product to the global marketplace and manufacturing that product in each nation in which it does business irrespective of production costs, a multinational company can realize substantial scale economies.

Accepted Answer

A) True 
 B)False

Question 15

Most manufacturing companies begin their global expansion by:

Accepted Answer

A)  licensing. 
B)  franchising. 
C)  exporting. 
D)  forming a joint venture. 
E)  setting up a wholly owned subsidiary in the host country. 
A)  licensing. 
B)  franchising. 
C)  exporting. 
D)  forming a joint venture. 
E)  setting up a wholly owned subsidiary in the host country.

Question 16

Which of the following statements is true in the context of attributes of national competitive advantage?

Accepted Answer

A)  Factor endowments do not encompass aspects such as managerial sophistication. 
B)  Companies are typically least sensitive to the needs of their closest customers. 
C)  The benefits of investments in advanced factors of production by related and supporting industries are confined to those industries. 
D)  Domestic rivalry creates pressures to increase costs and avoid investing in upgrading advanced factors. 
E)  The nature of home demand shapes the attributes of domestically made products . 
A)  Factor endowments do not encompass aspects such as managerial sophistication. 
B)  Companies are typically least sensitive to the needs of their closest customers. 
C)  The benefits of investments in advanced factors of production by related and supporting industries are confined to those industries. 
D)  Domestic rivalry creates pressures to increase costs and avoid investing in upgrading advanced factors. 
E)  The nature of home demand shapes the attributes of domestically made products .

Question 17

Which of the following statements is true in the context of local demand conditions?

Accepted Answer

A)  Companies are typically least sensitive to the needs of their closest customers. 
B)  Home demand plays little role in helping companies upgrade their national competitive advantage. 
C)  A nation's companies gain competitive advantage if their domestic customers are sophisticated and demanding. 
D)  The characteristics of international demand alone shape the attributes of a company's products; not local demand. 
E)  Local demand characteristics have little role to play in creating pressure for innovation and quality. 
A)  Companies are typically least sensitive to the needs of their closest customers. 
B)  Home demand plays little role in helping companies upgrade their national competitive advantage. 
C)  A nation's companies gain competitive advantage if their domestic customers are sophisticated and demanding. 
D)  The characteristics of international demand alone shape the attributes of a company's products; not local demand. 
E)  Local demand characteristics have little role to play in creating pressure for innovation and quality.

Question 18

Dietizza is a fast food network that makes low-calorie pizzas. As the firm wishes to expand its operations in different locations, it has licensed a few entrepreneurs to open Dietizza outlets under the company's trademark. The entrepreneurs will take up the responsibility of costs, while Dietizza will assist them in running operations. The company will receive royalty payments and a percentage of profits from the entrepreneurs. Which of the following concepts is illustrated here?

Accepted Answer

A)  Exporting 
B)  Franchising 
C)  Setting up of a wholly owned subsidiary 
D)  Strategic alliance 
E)  Joint venture 
A)  Exporting 
B)  Franchising 
C)  Setting up of a wholly owned subsidiary 
D)  Strategic alliance 
E)  Joint venture

Question 19

Location economies refer to the economic benefits that arise from performing a value creation activity at an optimal location.

Accepted Answer

A) True 
 B)False

Question 20

Global economies of scale can be realized by:

Accepted Answer

A)  restricting the expansion of overseas sales. 
B)  limiting the utilization of production facilities. 
C)  curbing bargaining power with suppliers. 
D)  decreasing cost savings through learning effects. 
E)  spreading the fixed costs associated with developing. 
A)  restricting the expansion of overseas sales. 
B)  limiting the utilization of production facilities. 
C)  curbing bargaining power with suppliers. 
D)  decreasing cost savings through learning effects. 
E)  spreading the fixed costs associated with developing.

Global standardization strategy emphasizes customization and product differentiation.

What is meant by the term national competitive advantage, and what are the attributes of a nation that affect the global competitiveness of companies located within that nation?

Companies that pursue a _____ strategy are trying to develop a business model that simultaneously achieves low costs, differentiates the product offering across geographic markets, and fosters a flow of skills between different subsidiaries in the company's global network of operations.

Which of the following has occurred in international trade over the past half-century?

A company may create value if it can leverage the competencies created within subsidiaries and apply them to other operations within the firm's global network.

Strong pressures for convergence due to a shared history and culture, or the establishment of a trading block where there are deliberate attempts to harmonize trade policies, infrastructure, and regulations have contributed to the rise in what trend?

Which of the following factors increases pressures for local responsiveness?

One advantage of a joint venture is that a company may benefit from a local partner's knowledge of the many dimensions of a host country.

Global expansion:

Which of the following ideas is a localization strategy is based on?

By offering a standardized product to the global marketplace and manufacturing that product in each nation in which it does business irrespective of production costs, a multinational company can realize substantial scale economies.

Most manufacturing companies begin their global expansion by:

Which of the following statements is true in the context of attributes of national competitive advantage?

Which of the following statements is true in the context of local demand conditions?

Location economies refer to the economic benefits that arise from performing a value creation activity at an optimal location.

Global economies of scale can be realized by:

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Resources and Competitive Advantage

Building Competitive Advantage Through Functional-Level Strategies

Business-Level Strategy

Business-Level Strategy and the Industry Environment

Strategy and Technology

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy Through Organization

Filters

Exam 8: Strategy in the Global Environment

Global standardization strategy emphasizes customization and product differentiation.

What is meant by the term national competitive advantage, and what are the attributes of a nation that affect the global competitiveness of companies located within that nation?

Companies that pursue a _____ strategy are trying to develop a business model that simultaneously achieves low costs, differentiates the product offering across geographic markets, and fosters a flow of skills between different subsidiaries in the company's global network of operations.

Which of the following has occurred in international trade over the past half-century?

A company may create value if it can leverage the competencies created within subsidiaries and apply them to other operations within the firm's global network.

Strong pressures for convergence due to a shared history and culture, or the establishment of a trading block where there are deliberate attempts to harmonize trade policies, infrastructure, and regulations have contributed to the rise in what trend?

Which of the following factors increases pressures for local responsiveness?

One advantage of a joint venture is that a company may benefit from a local partner's knowledge of the many dimensions of a host country.

Global expansion:

Which of the following ideas is a localization strategy is based on?

By offering a standardized product to the global marketplace and manufacturing that product in each nation in which it does business irrespective of production costs, a multinational company can realize substantial scale economies.

Most manufacturing companies begin their global expansion by:

Which of the following statements is true in the context of attributes of national competitive advantage?

Which of the following statements is true in the context of local demand conditions?

Location economies refer to the economic benefits that arise from performing a value creation activity at an optimal location.

Global economies of scale can be realized by:

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Resources and Competitive Advantage

Building Competitive Advantage Through Functional-Level Strategies

Business-Level Strategy

Business-Level Strategy and the Industry Environment

Strategy and Technology

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy Through Organization

Filters