Question 1

Regionalization is most important because it permits companies to organize their activities based upon

Accepted Answer

A) physical distance between the home country and the foreign country. 
B) the extrinsic distance between the home country and the foreign country. 
C) the true distance between the home country offer and the foreign country. 
D) shareholder expectations. 
A) physical distance between the home country and the foreign country. 
B) the extrinsic distance between the home country and the foreign country. 
C) the true distance between the home country offer and the foreign country. 
D) shareholder expectations. C

Question 2

According to the textbook, globalization involves international exchange. Included in this exchange is trade in goods and services as well as the exchange of __________, __________, and _________ across countries.

Accepted Answer

A) habits; values; ideas 
B) traditions; legal systems; history 
C) money; ideas; information 
D) statistics; personnel; purchasing power 
A) habits; values; ideas 
B) traditions; legal systems; history 
C) money; ideas; information 
D) statistics; personnel; purchasing power C

Question 3

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

Accepted Answer

A) NAFTA 
B) MERCOSUR 
C) ASEAN 
D) Latin American Integration Association 
A) NAFTA 
B) MERCOSUR 
C) ASEAN 
D) Latin American Integration Association C

Question 4

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 5

Within a worldwide market, the most effective strategies are neither purely multidomestic nor purely global.

Accepted Answer

A) True 
 B)False

Question 6

If a company is considering optimizing the physical location for every activity in the value chain, which of the following is not a possible strategic advantage for that decision?

Accepted Answer

A) Performance enhancement 
B) Cost reduction 
C) Political risk reduction 
D) Life-cycle enhancement 
A) Performance enhancement 
B) Cost reduction 
C) Political risk reduction 
D) Life-cycle enhancement

Question 7

Central and South America are not part of a natural regional bloc because they only share language, religion, and colonization history.

Accepted Answer

A) True 
 B)False

Question 8

L'Oreal acquired two U.S. firms that developed and sold hair care products to African-American customers. This permitted it to build a new ethnic hair care division in Europe and Africa. This represents an advantage of international expansion using ____________.

Accepted Answer

A) arbitrage 
B) optimization of the location of value-chain activities 
C) performance enhancement 
D) learning opportunities 
A) arbitrage 
B) optimization of the location of value-chain activities 
C) performance enhancement 
D) learning opportunities

Question 9

To be responsive to local pressures, companies must ____________ their offerings and strategies from country to country to reflect local consumer preferences.

Accepted Answer

A) internationalize 
B) globalize 
C) differentiate 
D) standardize 
A) internationalize 
B) globalize 
C) differentiate 
D) standardize

Question 10

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 then 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 11

A firm can establish a wholly owned subsidiary by

Accepted Answer

A) acquiring an existing company in the home country. 
B) keeping all of the activity offshore. 
C) licensing intellectual property. 
D) entering into a franchising agreement. 
A) acquiring an existing company in the home country. 
B) keeping all of the activity offshore. 
C) licensing intellectual property. 
D) entering into a franchising agreement.

Question 12

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

Accepted Answer

A) downstream 
B) upstream 
C) marketing 
D) sales 
A) downstream 
B) upstream 
C) marketing 
D) sales

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

The World Bank publishes the Euromoney magazine Country Risk Rating semiannual report. In the text, the January 2013 sampling of these ratings indicates that Norway is the best country in which to invest in terms of its expected level of risk based on the evaluation of its political, economic and structural risks and debt indicators and access to capital.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following describes the most typical order of entry into foreign markets?

Accepted Answer

A) franchising, licensing, exporting, joint venture, and wholly owned subsidiary 
B) exporting, franchising, licensing, joint venture, and wholly owned subsidiary 
C) licensing, exporting, franchising, joint venture, and wholly owned subsidiary 
D) exporting, licensing, franchising, joint venture, and wholly owned subsidiary 
A) franchising, licensing, exporting, joint venture, and wholly owned subsidiary 
B) exporting, franchising, licensing, joint venture, and wholly owned subsidiary 
C) licensing, exporting, franchising, joint venture, and wholly owned subsidiary 
D) exporting, licensing, franchising, joint venture, and wholly owned subsidiary

Question 16

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

Accepted Answer

A) Total wage costs and indirect costs 
B) Wage deflation 
C) Reduction in intellectual property rights 
D) Increased inventory and coordination costs 
A) Total wage costs and indirect costs 
B) Wage deflation 
C) Reduction in intellectual property rights 
D) Increased inventory and coordination costs

Question 17

Emerging markets are growing slower than developed markets, thus shifting the structure of the global economy.

Accepted Answer

A) True 
 B)False

Question 18

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) __________ or __________ in order to compete in the global marketplace.

Accepted Answer

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

Question 19

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.

Question 20

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.

Regionalization is most important because it permits companies to organize their activities based upon

According to the textbook, globalization involves international exchange. Included in this exchange is trade in goods and services as well as the exchange of , , and _ across countries.

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

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

Within a worldwide market, the most effective strategies are neither purely multidomestic nor purely global.

If a company is considering optimizing the physical location for every activity in the value chain, which of the following is not a possible strategic advantage for that decision?

Central and South America are not part of a natural regional bloc because they only share language, religion, and colonization history.

L'Oreal acquired two U.S. firms that developed and sold hair care products to African-American customers. This permitted it to build a new ethnic hair care division in Europe and Africa. This represents an advantage of international expansion using ____________.

To be responsive to local pressures, companies must ____________ their offerings and strategies from country to country to reflect local consumer preferences.

A firm can establish a wholly owned subsidiary by

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

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

Which of the following describes the most typical order of entry into foreign markets?

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

Emerging markets are growing slower than developed markets, thus shifting the structure of the global economy.

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) or in order to compete in the global marketplace.

Which of the following is not a risk normally associated with Bottom of the Pyramid strategies?

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

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

Regionalization is most important because it permits companies to organize their activities based upon

According to the textbook, globalization involves international exchange. Included in this exchange is trade in goods and services as well as the exchange of __________, __________, and _________ across countries.

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

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

Within a worldwide market, the most effective strategies are neither purely multidomestic nor purely global.

If a company is considering optimizing the physical location for every activity in the value chain, which of the following is not a possible strategic advantage for that decision?

Central and South America are not part of a natural regional bloc because they only share language, religion, and colonization history.

L'Oreal acquired two U.S. firms that developed and sold hair care products to African-American customers. This permitted it to build a new ethnic hair care division in Europe and Africa. This represents an advantage of international expansion using ____________.

To be responsive to local pressures, companies must ____________ their offerings and strategies from country to country to reflect local consumer preferences.

A firm can establish a wholly owned subsidiary by

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

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

Which of the following describes the most typical order of entry into foreign markets?

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

Emerging markets are growing slower than developed markets, thus shifting the structure of the global economy.

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) __________ or __________ in order to compete in the global marketplace.

Which of the following is not a risk normally associated with Bottom of the Pyramid strategies?

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

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

According to the textbook, globalization involves international exchange. Included in this exchange is trade in goods and services as well as the exchange of , , and _ across 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) or in order to compete in the global marketplace.