Question 1

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 2

A company with a business-level strategy of cost leadership should pursue which of the following global expansion strategies?

Accepted Answer

A)  Localization 
B)  Simple 
C)  International 
D)  Transnational 
E)  Global standardization 
A)  Localization 
B)  Simple 
C)  International 
D)  Transnational 
E)  Global standardization

Question 3

When a company expands its sales volume through international expansion,it can realize cost savings from economies of scale through all of the following except

Accepted Answer

A)  spreading fixed costs over its global sales volume. 
B)  utilizing its production facilities more intensely. 
C)  increased bargaining power with its suppliers. 
D)  learning effects associated with higher volume. 
E)  improved responsiveness. 
A)  spreading fixed costs over its global sales volume. 
B)  utilizing its production facilities more intensely. 
C)  increased bargaining power with its suppliers. 
D)  learning effects associated with higher volume. 
E)  improved responsiveness.

Question 4

Global economies of scale can be realized by

Accepted Answer

A)  expansion of overseas sales. 
B)  better utilization of production facilities. 
C)  boosting bargaining power with suppliers. 
D)  increasing cost savings through learning effects. 
E)  all of these choices. 
A)  expansion of overseas sales. 
B)  better utilization of production facilities. 
C)  boosting bargaining power with suppliers. 
D)  increasing cost savings through learning effects. 
E)  all of these choices.

Question 5

Host government demands generally

Accepted Answer

A)  increase pressures for local responsiveness. 
B)  increase pressures for cost reductions. 
C)  discourage foreign companies from operating in the home country. 
D)  impede a company's ability to minimize its transaction costs. 
E)  impede a company's ability to differentiate its product offering across national borders. 
A)  increase pressures for local responsiveness. 
B)  increase pressures for cost reductions. 
C)  discourage foreign companies from operating in the home country. 
D)  impede a company's ability to minimize its transaction costs. 
E)  impede a company's ability to differentiate its product offering across national borders.

Question 6

Which of the following entry modes allow(s)a company to engage in global strategic coordination?

Accepted Answer

A)  Exporting 
B)  Licensing 
C)  Joint ventures 
D)  Wholly owned subsidiaries 
E)  Joint ventures and wholly owned subsidiaries 
A)  Exporting 
B)  Licensing 
C)  Joint ventures 
D)  Wholly owned subsidiaries 
E)  Joint ventures and wholly owned subsidiaries

Question 7

In 2000,the best-selling Christmas item was the Razor Scooter and in 2001 it was Bratz dolls.Today,these items are not in high demand.This represents differences in customer tastes and preferences.

Accepted Answer

A) True 
 B)False

Question 8

A company that enters a foreign market by entering into a licensing agreement with a local company

Accepted Answer

A)  can realize location economies. 
B)  can engage in global strategic coordination. 
C)  can realize experience-curve effects. 
D)  risks losing control over its technology to the venture partner. 
E)  can engage in global strategic coordination and realize experience-curve effects. 
A)  can realize location economies. 
B)  can engage in global strategic coordination. 
C)  can realize experience-curve effects. 
D)  risks losing control over its technology to the venture partner. 
E)  can engage in global strategic coordination and realize experience-curve effects.

Question 9

Managers at WKL Entertainment Inc.are deciding on a global strategy.The company is looking to sell its services across nations with substantial differences in consumer preferences and where cost pressures are not too intense.Which strategy should WKL Entertainment Inc.managers pursue?

Accepted Answer

A)  Global standardization 
B)  Transnational 
C)  Localization 
D)  International 
E)  Multinational 
A)  Global standardization 
B)  Transnational 
C)  Localization 
D)  International 
E)  Multinational

Question 10

Disadvantages of a global strategy include

Accepted Answer

A)  lack of local responsiveness. 
B)  inability to engage in global strategic coordination. 
C)  failure to exploit experience curve effects. 
D)  lack of control over quality. 
E)  inability to realize location economies. 
A)  lack of local responsiveness. 
B)  inability to engage in global strategic coordination. 
C)  failure to exploit experience curve effects. 
D)  lack of control over quality. 
E)  inability to realize location economies.

Question 11

Which of the following is not a risk of exporting?

Accepted Answer

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

Question 12

A localization strategy is based on which of the following ideas?

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 13

The globalization of production has allowed firms to

Accepted Answer

A)  lower their market share. 
B)  lower their cost structure. 
C)  respond to individual market segments. 
D)  avoid international competition. 
E)  all of these choices. 
A)  lower their market share. 
B)  lower their cost structure. 
C)  respond to individual market segments. 
D)  avoid international competition. 
E)  all of these choices.

Question 14

A telecommunications firm develops new wireless cellular phones,a technology in which foreign competition is low and the need for local responsiveness is high.What is the most appropriate short-term strategy for this firm?

Accepted Answer

A)  Global standardization 
B)  International 
C)  Localization 
D)  Transnational 
E)  Joint venture 
A)  Global standardization 
B)  International 
C)  Localization 
D)  Transnational 
E)  Joint venture

Question 15

Which of these is (are)the risk(s)associated with licensing as a means of entering overseas markets?

Accepted Answer

A)  Licensing limits a company's ability to coordinate strategic moves across countries. 
B)  A company may lose control of its technology. 
C)  A company may lose control over its manufacturing, marketing, and strategic functions. 
D)  All of these. 
E)  None of these. 
A)  Licensing limits a company's ability to coordinate strategic moves across countries. 
B)  A company may lose control of its technology. 
C)  A company may lose control over its manufacturing, marketing, and strategic functions. 
D)  All of these. 
E)  None of these.

Question 16

A company can increase its growth rate by taking goods or services developed at home and selling them internationally.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Local responsiveness may be driven by economic and political demands placed on companies by host country governments.

Accepted Answer

A) True 
 B)False

Question 19

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

Question 20

The globalization of production has been decreasing as companies face lower barriers to international trade and location economies.

Accepted Answer

A) True 
 B)False

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?

A company with a business-level strategy of cost leadership should pursue which of the following global expansion strategies?

When a company expands its sales volume through international expansion,it can realize cost savings from economies of scale through all of the following except

Global economies of scale can be realized by

Host government demands generally

Which of the following entry modes allow(s)a company to engage in global strategic coordination?

In 2000,the best-selling Christmas item was the Razor Scooter and in 2001 it was Bratz dolls.Today,these items are not in high demand.This represents differences in customer tastes and preferences.

A company that enters a foreign market by entering into a licensing agreement with a local company

Managers at WKL Entertainment Inc.are deciding on a global strategy.The company is looking to sell its services across nations with substantial differences in consumer preferences and where cost pressures are not too intense.Which strategy should WKL Entertainment Inc.managers pursue?

Disadvantages of a global strategy include

Which of the following is not a risk of exporting?

A localization strategy is based on which of the following ideas?

The globalization of production has allowed firms to

A telecommunications firm develops new wireless cellular phones,a technology in which foreign competition is low and the need for local responsiveness is high.What is the most appropriate short-term strategy for this firm?

Which of these is (are)the risk(s)associated with licensing as a means of entering overseas markets?

A company can increase its growth rate by taking goods or services developed at home and selling them internationally.

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

Local responsiveness may be driven by economic and political demands placed on companies by host country governments.

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?

The globalization of production has been decreasing as companies face lower barriers to international trade and location economies.

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

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Distinctive Competencies, Competitive Advantage, and Profitability

Building Competitive Advantage Through Functional-Level Strategy

Building Competitive Advantage Through 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 in Companies That Compete in a Single Industry

Implementing Strategy in Companies That Compete Across Industries and Countries

Filters

Exam 8: Strategy in the Global Environment

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?

A company with a business-level strategy of cost leadership should pursue which of the following global expansion strategies?

When a company expands its sales volume through international expansion,it can realize cost savings from economies of scale through all of the following except

Global economies of scale can be realized by

Host government demands generally

Which of the following entry modes allow(s)a company to engage in global strategic coordination?

In 2000,the best-selling Christmas item was the Razor Scooter and in 2001 it was Bratz dolls.Today,these items are not in high demand.This represents differences in customer tastes and preferences.

A company that enters a foreign market by entering into a licensing agreement with a local company

Managers at WKL Entertainment Inc.are deciding on a global strategy.The company is looking to sell its services across nations with substantial differences in consumer preferences and where cost pressures are not too intense.Which strategy should WKL Entertainment Inc.managers pursue?

Disadvantages of a global strategy include

Which of the following is not a risk of exporting?

A localization strategy is based on which of the following ideas?

The globalization of production has allowed firms to

A telecommunications firm develops new wireless cellular phones,a technology in which foreign competition is low and the need for local responsiveness is high.What is the most appropriate short-term strategy for this firm?

Which of these is (are)the risk(s)associated with licensing as a means of entering overseas markets?

A company can increase its growth rate by taking goods or services developed at home and selling them internationally.

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

Local responsiveness may be driven by economic and political demands placed on companies by host country governments.

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?

The globalization of production has been decreasing as companies face lower barriers to international trade and location economies.

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

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Distinctive Competencies, Competitive Advantage, and Profitability

Building Competitive Advantage Through Functional-Level Strategy

Building Competitive Advantage Through 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 in Companies That Compete in a Single Industry

Implementing Strategy in Companies That Compete Across Industries and Countries

Filters