Question 1

Strategic alliances can be designed to make it difficult (if not impossible) to transfer technology that is not meant to be transferred.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following factors increases pressures for cost reductions?

Accepted Answer

A)  Meaningful differentiation between products 
B)  Reduced international competition 
C)  Competitors that are based in high-cost locations 
D)  High switching costs 
E)  Persistent excess capacity 
A)  Meaningful differentiation between products 
B)  Reduced international competition 
C)  Competitors that are based in high-cost locations 
D)  High switching costs 
E)  Persistent excess capacity

Question 3

Which entry mode gives a multinational the tightest control over foreign operations?

Accepted Answer

A)  Exporting from the home country and letting a foreign agent organize local marketing 
B)  Licensing 
C)  Franchising 
D)  Entering into a joint venture with a foreign company to set up overseas operations 
E)  Setting up a wholly owned subsidiary 
A)  Exporting from the home country and letting a foreign agent organize local marketing 
B)  Licensing 
C)  Franchising 
D)  Entering into a joint venture with a foreign company to set up overseas operations 
E)  Setting up a wholly owned subsidiary

Question 4

Companies should form strategic alliances with firms that have a reputation for being opportunistic.

Accepted Answer

A) True 
 B)False

Question 5

Most manufacturing companies begin their global expansion by exporting.

Accepted Answer

A) True 
 B)False

Question 6

A company, Pluto Inc., employs the franchising strategy to enter a new national market. Which of the following statements is more likely to be true of Pluto?

Accepted Answer

A)  It is more likely to be a service company. 
B)  It is more likely to have a greater control over the quality the products manufactured in the foreign country. 
C)  It is less likely to impose strict rules regarding how a franchisee does business. 
D)  It is less likely to receive royalty payment from the franchisee. 
E)  It is more likely to bear the development costs associated with opening a foreign market on its own. 
A)  It is more likely to be a service company. 
B)  It is more likely to have a greater control over the quality the products manufactured in the foreign country. 
C)  It is less likely to impose strict rules regarding how a franchisee does business. 
D)  It is less likely to receive royalty payment from the franchisee. 
E)  It is more likely to bear the development costs associated with opening a foreign market on its own.

Question 7

Factor endowments, the cost and quality of factors of production, are a prime determinant of the competitive advantage that certain countries have in certain industries.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is not a risk of exporting?

Accepted Answer

A)  Tariff barriers 
B)  Transportation costs 
C)  Location diseconomies 
D)  High manufacturing costs 
E)  Delegation of marketing activities to a local agent 
A)  Tariff barriers 
B)  Transportation costs 
C)  Location diseconomies 
D)  High manufacturing costs 
E)  Delegation of marketing activities to a local agent

Question 9

The globalization of production has caused firms to:

Accepted Answer

A)  lower their market share. 
B)  lower their cost structure. 
C)  centralize their production process. 
D)  curb international competition. 
E)  limit the number of market segments. 
A)  lower their market share. 
B)  lower their cost structure. 
C)  centralize their production process. 
D)  curb international competition. 
E)  limit the number of market segments.

Question 10

Aries Travels is a company that offers holiday and travel packages. The company realizes that customer preferences vary and thus extensively customizes its packages. As there are not many competitors in the market in which Aries Travels operates, there are minimal pressures to reduce costs. Aries Travels is most likely to have adopted a _____ strategy.

Accepted Answer

A)  global standardization 
B)  international 
C)  localization 
D)  transnational 
E)  harvest 
A)  global standardization 
B)  international 
C)  localization 
D)  transnational 
E)  harvest

Question 11

What are the potential benefits and risks of global strategic alliances? What actions can a firm take to minimize the risks and maximize the benefits?

Accepted Answer

Global strategic alliances share the ris

Question 12

The Achilles heel of international strategy is that:

Accepted Answer

A)  economies of scale cannot be achieved. 
B)  customization of products makes the company lose its credibility. 
C)  competitors inevitably emerge. 
D)  non-price differences among products hold little importance. 
E)  customer preferences eventually become identical. 
A)  economies of scale cannot be achieved. 
B)  customization of products makes the company lose its credibility. 
C)  competitors inevitably emerge. 
D)  non-price differences among products hold little importance. 
E)  customer preferences eventually become identical.

Question 13

Which of the following is not an attribute of a national or country-specific environment that has an impact on global competitiveness of companies located in that nation?

Accepted Answer

A)  Factor endowments 
B)  Local demand conditions 
C)  Related and supporting industries 
D)  Strategy, structure, and rivalry of firms within the nation 
E)  Advertising expenses 
A)  Factor endowments 
B)  Local demand conditions 
C)  Related and supporting industries 
D)  Strategy, structure, and rivalry of firms within the nation 
E)  Advertising expenses

Question 14

Which of the following statements is true about localization strategy?

Accepted Answer

A)  It focuses on marketing a standardized product worldwide to achieve cost reductions. 
B)  It makes most sense when cost pressures are extremely intense. 
C)  It is most appropriate when there are similarities across nations with regard to consumer tastes and preferences. 
D)  It involves some duplication of functions and smaller production runs. 
E)  It usually relieves companies of the task of closely monitoring their costs. 
A)  It focuses on marketing a standardized product worldwide to achieve cost reductions. 
B)  It makes most sense when cost pressures are extremely intense. 
C)  It is most appropriate when there are similarities across nations with regard to consumer tastes and preferences. 
D)  It involves some duplication of functions and smaller production runs. 
E)  It usually relieves companies of the task of closely monitoring their costs.

Question 15

Starbucks, Sony, and Coca-Cola conduct business in two or more countries. These companies can be referred to as multinational companies.

Accepted Answer

A) True 
 B)False

Question 16

An international strategy may not be viable in the long term, but companies that can pursue it need to shift toward a global standardization strategy to survive.

Accepted Answer

A) True 
 B)False

Question 17

Cost reduction pressures can be particularly intense in industries producing:

Accepted Answer

A)  commodity-type products. 
B)  highly differential products. 
C)  highly customized services. 
D)  goods that have no close substitutes. 
E)  goods that need minimal advertising. 
A)  commodity-type products. 
B)  highly differential products. 
C)  highly customized services. 
D)  goods that have no close substitutes. 
E)  goods that need minimal advertising.

Question 18

Which of the following is an advantage of franchising?

Accepted Answer

A)  It ensures tight control over quality. 
B)  It enables companies to engage in global strategic coordination. 
C)  It involves low development costs and risks. 
D)  It enables the company to collect all the profits made by the franchisees. 
E)  It frees companies from the task of monitoring and assisting operations at franchisees. 
A)  It ensures tight control over quality. 
B)  It enables companies to engage in global strategic coordination. 
C)  It involves low development costs and risks. 
D)  It enables the company to collect all the profits made by the franchisees. 
E)  It frees companies from the task of monitoring and assisting operations at franchisees.

Question 19

Despite the globalization of production and markets, many of the most successful companies in certain industries are still clustered in a small number of countries.

Accepted Answer

A) True 
 B)False

Question 20

List and briefly describe each of the four basic global strategies.

Accepted Answer

Companies that pursue a global standardi

Strategic alliances can be designed to make it difficult (if not impossible) to transfer technology that is not meant to be transferred.

Which of the following factors increases pressures for cost reductions?

Which entry mode gives a multinational the tightest control over foreign operations?

Companies should form strategic alliances with firms that have a reputation for being opportunistic.

Most manufacturing companies begin their global expansion by exporting.

A company, Pluto Inc., employs the franchising strategy to enter a new national market. Which of the following statements is more likely to be true of Pluto?

Factor endowments, the cost and quality of factors of production, are a prime determinant of the competitive advantage that certain countries have in certain industries.

Which of the following is not a risk of exporting?

The globalization of production has caused firms to:

What are the potential benefits and risks of global strategic alliances? What actions can a firm take to minimize the risks and maximize the benefits?

The Achilles heel of international strategy is that:

Which of the following is not an attribute of a national or country-specific environment that has an impact on global competitiveness of companies located in that nation?

Which of the following statements is true about localization strategy?

Starbucks, Sony, and Coca-Cola conduct business in two or more countries. These companies can be referred to as multinational companies.

An international strategy may not be viable in the long term, but companies that can pursue it need to shift toward a global standardization strategy to survive.

Cost reduction pressures can be particularly intense in industries producing:

Which of the following is an advantage of franchising?

Despite the globalization of production and markets, many of the most successful companies in certain industries are still clustered in a small number of countries.

List and briefly describe each of the four basic global strategies.

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

Strategic alliances can be designed to make it difficult (if not impossible) to transfer technology that is not meant to be transferred.

Which of the following factors increases pressures for cost reductions?

Which entry mode gives a multinational the tightest control over foreign operations?

Companies should form strategic alliances with firms that have a reputation for being opportunistic.

Most manufacturing companies begin their global expansion by exporting.

A company, Pluto Inc., employs the franchising strategy to enter a new national market. Which of the following statements is more likely to be true of Pluto?

Factor endowments, the cost and quality of factors of production, are a prime determinant of the competitive advantage that certain countries have in certain industries.

Which of the following is not a risk of exporting?

The globalization of production has caused firms to:

What are the potential benefits and risks of global strategic alliances? What actions can a firm take to minimize the risks and maximize the benefits?

The Achilles heel of international strategy is that:

Which of the following is not an attribute of a national or country-specific environment that has an impact on global competitiveness of companies located in that nation?

Which of the following statements is true about localization strategy?

Starbucks, Sony, and Coca-Cola conduct business in two or more countries. These companies can be referred to as multinational companies.

An international strategy may not be viable in the long term, but companies that can pursue it need to shift toward a global standardization strategy to survive.

Cost reduction pressures can be particularly intense in industries producing:

Which of the following is an advantage of franchising?

Despite the globalization of production and markets, many of the most successful companies in certain industries are still clustered in a small number of countries.

List and briefly describe each of the four basic global strategies.

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