Question 1

In a global strategy a firm operates all of its businesses under a single common strategy, regardless of location.

Accepted Answer

A) True 
 B)False

Question 2

In international markets, a disadvantage of licensing is that the firm granting a license incurs little risk, since it does not have to invest any significant resources into the country itself.

Accepted Answer

A) True 
 B)False

Question 3

Shared Arabic language and the Muslim religion is one reason that explains regionalism tendencies in

Accepted Answer

A) South America. 
B) the Maghreb. 
C) European Union. 
D) North America. 
A) South America. 
B) the Maghreb. 
C) European Union. 
D) North America.

Question 4

Which would be the appropriate strategy for companies to use to compete in the global marketplace if the marketplace pressure is for lower costs with little pressure for local adaptation?

Accepted Answer

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

Question 5

The U.S. and Australia have common language and culture and yet the true distance is great.

Accepted Answer

A) True 
 B)False

Question 6

There are risks associated with the Bottom of the Pyramid strategy. One of them is that the new low-cost products that are developed may cannibalize the sales of the core products of the company using the strategy.

Accepted Answer

A) True 
 B)False

Question 7

When differentiating products and services to local markets, strategies and tactics are likely to __________ company costs.

Accepted Answer

A) decrease 
B) increase 
C) obliterate 
D) decentralize 
A) decrease 
B) increase 
C) obliterate 
D) decentralize

Question 8

Which of the following is not a motivation for a company to pursue international expansion?

Accepted Answer

A) It wishes to increase the size of the potential markets for its products and services. 
B) It wishes to take advantage of arbitrage opportunities in order to increase profit. 
C) It wishes to optimize value-chain activities to enhance performance, reduce costs, and reduce risk. 
D) It wishes to increase foreign market penetration by developing products for the home market. 
A) It wishes to increase the size of the potential markets for its products and services. 
B) It wishes to take advantage of arbitrage opportunities in order to increase profit. 
C) It wishes to optimize value-chain activities to enhance performance, reduce costs, and reduce risk. 
D) It wishes to increase foreign market penetration by developing products for the home market.

Question 9

In the Porter Diamond of National Advantage framework, which of the following factors does not affect nation competitiveness?

Accepted Answer

A) The position of the nation in factors of production necessary to compete in a given industry. 
B) The presence or absence in the nation of internationally competitive supplier industries. 
C) The conditions in the nation governing the nature of foreign rivalry. 
D) The nature of home-market demand of the products or services of the industry. 
A) The position of the nation in factors of production necessary to compete in a given industry. 
B) The presence or absence in the nation of internationally competitive supplier industries. 
C) The conditions in the nation governing the nature of foreign rivalry. 
D) The nature of home-market demand of the products or services of the industry.

Question 10

The European Union is a trading bloc that eases trade restrictions, taxes, and tariffs for its members.

Accepted Answer

A) True 
 B)False

Question 11

The form of entry strategy into international operations that offers the lowest level of control for the domestic corporation would be

Accepted Answer

A) franchising. 
B) licensing. 
C) joint venture. 
D) exporting. 
A) franchising. 
B) licensing. 
C) joint venture. 
D) exporting.

Question 12

Sources of political risk do not include

Accepted Answer

A) availability of the rule of law. 
B) social unrest. 
C) military turmoil. 
D) demonstrations. 
A) availability of the rule of law. 
B) social unrest. 
C) military turmoil. 
D) demonstrations.

Question 13

Which of the factors below has not made the software services industry in India extremely competitive on a global scale?

Accepted Answer

A) large pool of skilled workers 
B) large, growing market and sophisticated customers 
C) tax and antitrust legislation that protects the dominant players in the industry 
D) large network of public and private educational institutions 
A) large pool of skilled workers 
B) large, growing market and sophisticated customers 
C) tax and antitrust legislation that protects the dominant players in the industry 
D) large network of public and private educational institutions

Question 14

A disadvantage of international expansion is that it can enable a firm to optimize the location of every activity in its value chain.

Accepted Answer

A) True 
 B)False

Question 15

When considering the exporting decision, companies should consider that the ability to tailor their products to meet local market needs typically is very limited.

Accepted Answer

A) True 
 B)False

Question 16

The trend towards worldwide markets makes it easier to predict where competitors will spring up.

Accepted Answer

A) True 
 B)False

Question 17

Statistics indicate that over half of the world output now comes from emerging markets. This is leading to a(n) ___________ of living standards across the globe and is changing the face of business.

Accepted Answer

A) divergence 
B) convergence 
C) expansion 
D) contraction 
A) divergence 
B) convergence 
C) expansion 
D) contraction

Question 18

Panasonic needed to change its strategy in the 1980s in order to respond to demographic and economic changes in China. As the Chinese middle class began to emerge, local companies responded with competitive products. Panasonic then changed its strategy from a transnational strategy to a global strategy.

Accepted Answer

A) True 
 B)False

Question 19

Recent trends that might lead managers of multinational corporations (MNCs) to adopt a more decentralized strategy for their operations would include all of the following except

Accepted Answer

A) customer needs, interests, and tastes becoming increasingly homogenized. 
B) consumers around the world increasingly willing to tradeoff idiosyncratic preferences in product features for lower price. 
C) flexible manufacturing trends allowing a decline in the minimum volume required to reach acceptable levels of production efficiency. 
D) fluctuating exchange rates. 
A) customer needs, interests, and tastes becoming increasingly homogenized. 
B) consumers around the world increasingly willing to tradeoff idiosyncratic preferences in product features for lower price. 
C) flexible manufacturing trends allowing a decline in the minimum volume required to reach acceptable levels of production efficiency. 
D) fluctuating exchange rates.

Question 20

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

In a global strategy a firm operates all of its businesses under a single common strategy, regardless of location.

In international markets, a disadvantage of licensing is that the firm granting a license incurs little risk, since it does not have to invest any significant resources into the country itself.

Shared Arabic language and the Muslim religion is one reason that explains regionalism tendencies in

Which would be the appropriate strategy for companies to use to compete in the global marketplace if the marketplace pressure is for lower costs with little pressure for local adaptation?

The U.S. and Australia have common language and culture and yet the true distance is great.

There are risks associated with the Bottom of the Pyramid strategy. One of them is that the new low-cost products that are developed may cannibalize the sales of the core products of the company using the strategy.

When differentiating products and services to local markets, strategies and tactics are likely to __________ company costs.

Which of the following is not a motivation for a company to pursue international expansion?

In the Porter Diamond of National Advantage framework, which of the following factors does not affect nation competitiveness?

The European Union is a trading bloc that eases trade restrictions, taxes, and tariffs for its members.

The form of entry strategy into international operations that offers the lowest level of control for the domestic corporation would be

Sources of political risk do not include

Which of the factors below has not made the software services industry in India extremely competitive on a global scale?

A disadvantage of international expansion is that it can enable a firm to optimize the location of every activity in its value chain.

When considering the exporting decision, companies should consider that the ability to tailor their products to meet local market needs typically is very limited.

The trend towards worldwide markets makes it easier to predict where competitors will spring up.

Statistics indicate that over half of the world output now comes from emerging markets. This is leading to a(n) ___________ of living standards across the globe and is changing the face of business.

Recent trends that might lead managers of multinational corporations (MNCs) to adopt a more decentralized strategy for their operations would include all of the following except

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 lower costs, companies should choose a(n) or in order to compete in the global marketplace.

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

In a global strategy a firm operates all of its businesses under a single common strategy, regardless of location.

In international markets, a disadvantage of licensing is that the firm granting a license incurs little risk, since it does not have to invest any significant resources into the country itself.

Shared Arabic language and the Muslim religion is one reason that explains regionalism tendencies in

Which would be the appropriate strategy for companies to use to compete in the global marketplace if the marketplace pressure is for lower costs with little pressure for local adaptation?

The U.S. and Australia have common language and culture and yet the true distance is great.

There are risks associated with the Bottom of the Pyramid strategy. One of them is that the new low-cost products that are developed may cannibalize the sales of the core products of the company using the strategy.

When differentiating products and services to local markets, strategies and tactics are likely to __________ company costs.

Which of the following is not a motivation for a company to pursue international expansion?

In the Porter Diamond of National Advantage framework, which of the following factors does not affect nation competitiveness?

The European Union is a trading bloc that eases trade restrictions, taxes, and tariffs for its members.

The form of entry strategy into international operations that offers the lowest level of control for the domestic corporation would be

Sources of political risk do not include

Which of the factors below has not made the software services industry in India extremely competitive on a global scale?

A disadvantage of international expansion is that it can enable a firm to optimize the location of every activity in its value chain.

When considering the exporting decision, companies should consider that the ability to tailor their products to meet local market needs typically is very limited.

The trend towards worldwide markets makes it easier to predict where competitors will spring up.

Statistics indicate that over half of the world output now comes from emerging markets. This is leading to a(n) ___________ of living standards across the globe and is changing the face of business.

Recent trends that might lead managers of multinational corporations (MNCs) to adopt a more decentralized strategy for their operations would include all of the following except

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 lower costs, companies should choose a(n) __________ or __________ in order to compete in the global marketplace.

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

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 lower costs, companies should choose a(n) or in order to compete in the global marketplace.