Question 1

International expansion can extend the life cycle of a product that is in its maturity stage in the company home country.

Accepted Answer

A) True 
 B)False

Question 2

When considering the export decision, firms should not partner with local distributors because many foreign markets are nationally regulated.

Accepted Answer

A) True 
 B)False

Question 3

The __________ entail the creation of a third-party legal entity, whereas the __________ do not.

Accepted Answer

A) licensing agreements; joint ventures 
B) strategic alliances; joint ventures 
C) joint ventures; strategic alliances 
D) franchising agreements; strategic alliances 
A) licensing agreements; joint ventures 
B) strategic alliances; joint ventures 
C) joint ventures; strategic alliances 
D) franchising agreements; strategic alliances

Question 4

A key tenet of a transnational strategy is improved adaptation to all competitive situations as well as flexibility by capitalizing on communication and knowledge flows throughout the organization.

Accepted Answer

A) True 
 B)False

Question 5

Customer needs and interests are becoming increasingly divergent worldwide, according to Theodore Levitt.

Accepted Answer

A) True 
 B)False

Question 6

When the GE wind energy business tapped into world-wide talent, it was able to expand using a(n) _________________ strategy.

Accepted Answer

A) focus 
B) diversification 
C) unrelated 
D) generic 
A) focus 
B) diversification 
C) unrelated 
D) generic

Question 7

In the quest to achieve competitive advantage in global markets, competitive pressures require that firms do what they can to _______ unit costs so that consumers will not perceive their product and service offerings as too expensive.

Accepted Answer

A) raise 
B) decentralize 
C) define 
D) lower 
A) raise 
B) decentralize 
C) define 
D) lower

Question 8

According to Michael Porter, firms that have experienced intense domestic competition are

Accepted Answer

A) unlikely to have the time or resources to compete abroad. 
B) more likely to demand protection from their governments. 
C) most likely to design strategies aimed primarily at the domestic market. 
D) more likely to design strategies that will allow them to successfully compete abroad. 
A) unlikely to have the time or resources to compete abroad. 
B) more likely to demand protection from their governments. 
C) most likely to design strategies aimed primarily at the domestic market. 
D) more likely to design strategies that will allow them to successfully compete abroad.

Question 9

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).

Accepted Answer

A) True 
 B)False

Question 10

The laws and the enforcement of laws associated with the protection of intellectual property rights represent a significant currency and management risk to multinational firms.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Reverse innovation occurs when a company develops a product that meets the needs of a developed country and then adapts it to the needs of the developing country.

Accepted Answer

A) True 
 B)False

Question 13

A U.S. firm expands into China and Canada at exactly the same sales volume. The physical distance is the only factor that affects the true distance between the countries.

Accepted Answer

A) True 
 B)False

Question 14

According to the textbook, _______________ economic integration has progressed as a faster pace than _________ economic integration.

Accepted Answer

A) global; international 
B) international; regional 
C) regional; global 
D) regional; inter-regional 
A) global; international 
B) international; regional 
C) regional; global 
D) regional; inter-regional

Question 15

Theodore Levitt, a marketing strategist, argued that people around the world are willing to sacrifice preferences in product features, functions, and design for lower prices and lower quality.

Accepted Answer

A) True 
 B)False

Question 16

According to studies by Rugman and Verbeke, most of the 500 largest companies in the world are global.

Accepted Answer

A) True 
 B)False

Question 17

With regard to factor conditions, the pool of resources that a firm (or nation) has is much more important than the speed and efficiency with which these resources are deployed.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) increased freedom of individual business units to adapt to local tastes. 
B) the creation of a worldwide network to achieve consistent service regardless of location. 
C) flexibility in applying Research and Development to meet country-specific needs. 
D) tailoring products to meet country-specific needs. 
A) increased freedom of individual business units to adapt to local tastes. 
B) the creation of a worldwide network to achieve consistent service regardless of location. 
C) flexibility in applying Research and Development to meet country-specific needs. 
D) tailoring products to meet country-specific needs.

Question 19

What agreement entails the creation of a third-party legal entity?

Accepted Answer

A) strategic alliance 
B) joint venture 
C) licensing 
D) exporting 
A) strategic alliance 
B) joint venture 
C) licensing 
D) exporting

Question 20

The need to attain economies of scale encourages multinational firms to operate under a multidomestic strategy.

Accepted Answer

A) True 
 B)False

International expansion can extend the life cycle of a product that is in its maturity stage in the company home country.

When considering the export decision, firms should not partner with local distributors because many foreign markets are nationally regulated.

The entail the creation of a third-party legal entity, whereas the do not.

A key tenet of a transnational strategy is improved adaptation to all competitive situations as well as flexibility by capitalizing on communication and knowledge flows throughout the organization.

Customer needs and interests are becoming increasingly divergent worldwide, according to Theodore Levitt.

When the GE wind energy business tapped into world-wide talent, it was able to expand using a(n) _________________ strategy.

In the quest to achieve competitive advantage in global markets, competitive pressures require that firms do what they can to _______ unit costs so that consumers will not perceive their product and service offerings as too expensive.

According to Michael Porter, firms that have experienced intense domestic competition are

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).

The laws and the enforcement of laws associated with the protection of intellectual property rights represent a significant currency and management risk to multinational firms.

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

Reverse innovation occurs when a company develops a product that meets the needs of a developed country and then adapts it to the needs of the developing country.

A U.S. firm expands into China and Canada at exactly the same sales volume. The physical distance is the only factor that affects the true distance between the countries.

According to the textbook, _______ economic integration has progressed as a faster pace than _ economic integration.

Theodore Levitt, a marketing strategist, argued that people around the world are willing to sacrifice preferences in product features, functions, and design for lower prices and lower quality.

According to studies by Rugman and Verbeke, most of the 500 largest companies in the world are global.

With regard to factor conditions, the pool of resources that a firm (or nation) has is much more important than the speed and efficiency with which these resources are deployed.

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

What agreement entails the creation of a third-party legal entity?

The need to attain economies of scale encourages multinational firms to operate under a multidomestic 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

International expansion can extend the life cycle of a product that is in its maturity stage in the company home country.

When considering the export decision, firms should not partner with local distributors because many foreign markets are nationally regulated.

The __________ entail the creation of a third-party legal entity, whereas the __________ do not.

A key tenet of a transnational strategy is improved adaptation to all competitive situations as well as flexibility by capitalizing on communication and knowledge flows throughout the organization.

Customer needs and interests are becoming increasingly divergent worldwide, according to Theodore Levitt.

When the GE wind energy business tapped into world-wide talent, it was able to expand using a(n) _________________ strategy.

In the quest to achieve competitive advantage in global markets, competitive pressures require that firms do what they can to _______ unit costs so that consumers will not perceive their product and service offerings as too expensive.

According to Michael Porter, firms that have experienced intense domestic competition are

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).

The laws and the enforcement of laws associated with the protection of intellectual property rights represent a significant currency and management risk to multinational firms.

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

Reverse innovation occurs when a company develops a product that meets the needs of a developed country and then adapts it to the needs of the developing country.

A U.S. firm expands into China and Canada at exactly the same sales volume. The physical distance is the only factor that affects the true distance between the countries.

According to the textbook, _______________ economic integration has progressed as a faster pace than _________ economic integration.

Theodore Levitt, a marketing strategist, argued that people around the world are willing to sacrifice preferences in product features, functions, and design for lower prices and lower quality.

According to studies by Rugman and Verbeke, most of the 500 largest companies in the world are global.

With regard to factor conditions, the pool of resources that a firm (or nation) has is much more important than the speed and efficiency with which these resources are deployed.

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

What agreement entails the creation of a third-party legal entity?

The need to attain economies of scale encourages multinational firms to operate under a multidomestic 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

The entail the creation of a third-party legal entity, whereas the do not.

According to the textbook, _______ economic integration has progressed as a faster pace than _ economic integration.