Question 1

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 B

Question 2

High pressure for local adaptation combined with low pressure for lower costs would suggest what type of international strategy?

Accepted Answer

A)  global strategy 
B)  multidomestic strategy 
C)  transnational strategy 
D)  overall cost leadership strategy 
A)  global strategy 
B)  multidomestic strategy 
C)  transnational strategy 
D)  overall cost leadership strategy B

Question 3

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. A

Question 4

For years O.R.T.Technologies resisted moving any operations outside Israel.However,when faced with a sharp rise in the value of the shekel,the maker of specialized software for managing gas stations froze all local hiring and decided to transfer some developmental work to Eastern Europe.This is an example of _____________ risk.

Accepted Answer

A)  political 
B)  economic 
C)  currency 
D)  management 
A)  political 
B)  economic 
C)  currency 
D)  management

Question 5

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 6

In choosing one of the four basic strategies for competing in the global marketplace (international,global,multidomestic,transnational),the strategy that a company selects depends upon the degree of pressure that it is facing for revenues.

Accepted Answer

A) True 
 B)False

Question 7

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 8

Wholly owned subsidiaries are typically the most expensive and risky entry mode.The risk is shared,however,with the company partners.

Accepted Answer

A) True 
 B)False

Question 9

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 10

Rivalry is particularly intense in nations with conditions of strong consumer demand,strong supplier bases,and high new-entrant potential from related industries.

Accepted Answer

A) True 
 B)False

Question 11

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 12

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.

Question 13

Many international firms are increasing their efforts to market their products and services to countries such as India and China as the ranks of their middle class continue to increase.

Accepted Answer

A) True 
 B)False

Question 14

Traditionally,company globalization is measured in terms of its foreign sales as a percentage of total sales,but this can be confused with regionalization.

Accepted Answer

A) True 
 B)False

Question 15

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 16

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 17

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 18

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 19

Ricoh Americas Corporation has significant international operations.Faced with local reticence to adapt changes that come from other global regions,what does Ricoh suggest is the most successful approach?

Accepted Answer

A)  Bring in global market representatives to force change locally. 
B)  Obligate local offices to adopt the corporate decision. 
C)  Ensure stakeholder participation early in the change process. 
D)  Ignore the problem because it is only a temporary issue. 
A)  Bring in global market representatives to force change locally. 
B)  Obligate local offices to adopt the corporate decision. 
C)  Ensure stakeholder participation early in the change process. 
D)  Ignore the problem because it is only a temporary issue.

Question 20

By 2015,it is predicted that trade within nations will exceed trade across nations.

Accepted Answer

A) True 
 B)False

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

High pressure for local adaptation combined with low pressure for lower costs would suggest what type of international strategy?

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

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

In choosing one of the four basic strategies for competing in the global marketplace (international,global,multidomestic,transnational),the strategy that a company selects depends upon the degree of pressure that it is facing for revenues.

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

Wholly owned subsidiaries are typically the most expensive and risky entry mode.The risk is shared,however,with the company partners.

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.

Rivalry is particularly intense in nations with conditions of strong consumer demand,strong supplier bases,and high new-entrant potential from related industries.

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?

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

Many international firms are increasing their efforts to market their products and services to countries such as India and China as the ranks of their middle class continue to increase.

Traditionally,company globalization is measured in terms of its foreign sales as a percentage of total sales,but this can be confused with regionalization.

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

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

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.

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?

Ricoh Americas Corporation has significant international operations.Faced with local reticence to adapt changes that come from other global regions,what does Ricoh suggest is the most successful approach?

By 2015,it is predicted that trade within nations will exceed trade across nations.

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

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

High pressure for local adaptation combined with low pressure for lower costs would suggest what type of international strategy?

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

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

In choosing one of the four basic strategies for competing in the global marketplace (international,global,multidomestic,transnational),the strategy that a company selects depends upon the degree of pressure that it is facing for revenues.

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

Wholly owned subsidiaries are typically the most expensive and risky entry mode.The risk is shared,however,with the company partners.

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.

Rivalry is particularly intense in nations with conditions of strong consumer demand,strong supplier bases,and high new-entrant potential from related industries.

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?

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

Many international firms are increasing their efforts to market their products and services to countries such as India and China as the ranks of their middle class continue to increase.

Traditionally,company globalization is measured in terms of its foreign sales as a percentage of total sales,but this can be confused with regionalization.

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

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

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.

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?

Ricoh Americas Corporation has significant international operations.Faced with local reticence to adapt changes that come from other global regions,what does Ricoh suggest is the most successful approach?

By 2015,it is predicted that trade within nations will exceed trade across nations.

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.