Question 1

Corporations with multiple foreign operations that act very independently of one another are following a multidomestic strategy.

Accepted Answer

A) True 
 B)False

Question 2

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 3

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 4

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

Accepted Answer

A) True 
 B)False

Question 5

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 6

The U.S.and Mexico are close geographically and so is the true distance.

Accepted Answer

A) True 
 B)False

Question 7

Countries with a strong supplier base benefit by adding efficiency to downstream activities.

Accepted Answer

A) True 
 B)False

Question 8

The difference between a franchise contract and a licensing contract is that a

Accepted Answer

A)  franchise contract is more specific and usually longer in duration. 
B)  franchise contract must include a foreign government. 
C)  licensing contract covers more aspects of operations. 
D)  franchise contract involves less control and less risk. 
A)  franchise contract is more specific and usually longer in duration. 
B)  franchise contract must include a foreign government. 
C)  licensing contract covers more aspects of operations. 
D)  franchise contract involves less control and less risk.

Question 9

According to Exhibit 7.1 in the textbook,the country experiencing the highest rate of growth in GDP from 2001-2011 was

Accepted Answer

A)  the United States. 
B)  Japan. 
C)  China. 
D)  India. 
A)  the United States. 
B)  Japan. 
C)  China. 
D)  India.

Question 10

__________ are most appropriate when a firm already has the appropriate knowledge and capabilities that it can leverage rather easily through multiple locations in many countries.

Accepted Answer

A)  Joint ventures 
B)  Strategic alliances 
C)  Licensing agreements 
D)  Wholly owned subsidiaries 
A)  Joint ventures 
B)  Strategic alliances 
C)  Licensing agreements 
D)  Wholly owned subsidiaries

Question 11

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 12

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

Accepted Answer

A) True 
 B)False

Question 13

Multinational firms are constantly faced with the dilemma of choosing between _______ and __________.

Accepted Answer

A)  local adaptation; local integration 
B)  local adaptation; global integration 
C)  global adaptation; local integration 
D)  global adaptation; global integration 
A)  local adaptation; local integration 
B)  local adaptation; global integration 
C)  global adaptation; local integration 
D)  global adaptation; global integration

Question 14

Because many countries are investing in countries other than their own,each country is becoming more autonomous and independent.

Accepted Answer

A) True 
 B)False

Question 15

As the pressure to lower costs increases,firms move toward selecting global and transnational strategies for competing in the global marketplace.

Accepted Answer

A) True 
 B)False

Question 16

Among the assumptions of Theodore Levitt that would favor a global strategy is that consumers around the world are becoming less price-sensitive.

Accepted Answer

A) True 
 B)False

Question 17

Licensing is a contractual arrangement that involves a long period of time and includes factors such as monitoring of operations,training,and advertising.

Accepted Answer

A) True 
 B)False

Question 18

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 19

High levels of environmental awareness in Denmark have led to a decline in Danish industrial competitiveness in the international marketplace.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Corporations with multiple foreign operations that act very independently of one another are following a multidomestic strategy.

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).

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

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

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.

The U.S.and Mexico are close geographically and so is the true distance.

Countries with a strong supplier base benefit by adding efficiency to downstream activities.

The difference between a franchise contract and a licensing contract is that a

According to Exhibit 7.1 in the textbook,the country experiencing the highest rate of growth in GDP from 2001-2011 was

__________ are most appropriate when a firm already has the appropriate knowledge and capabilities that it can leverage rather easily through multiple locations in many countries.

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

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

Multinational firms are constantly faced with the dilemma of choosing between _ and ____.

Because many countries are investing in countries other than their own,each country is becoming more autonomous and independent.

As the pressure to lower costs increases,firms move toward selecting global and transnational strategies for competing in the global marketplace.

Among the assumptions of Theodore Levitt that would favor a global strategy is that consumers around the world are becoming less price-sensitive.

Licensing is a contractual arrangement that involves a long period of time and includes factors such as monitoring of operations,training,and advertising.

Sources of political risk do not include

High levels of environmental awareness in Denmark have led to a decline in Danish industrial competitiveness in the international marketplace.

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

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

Corporations with multiple foreign operations that act very independently of one another are following a multidomestic strategy.

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).

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

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

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.

The U.S.and Mexico are close geographically and so is the true distance.

Countries with a strong supplier base benefit by adding efficiency to downstream activities.

The difference between a franchise contract and a licensing contract is that a

According to Exhibit 7.1 in the textbook,the country experiencing the highest rate of growth in GDP from 2001-2011 was

__________ are most appropriate when a firm already has the appropriate knowledge and capabilities that it can leverage rather easily through multiple locations in many countries.

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

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

Multinational firms are constantly faced with the dilemma of choosing between _______ and __________.

Because many countries are investing in countries other than their own,each country is becoming more autonomous and independent.

As the pressure to lower costs increases,firms move toward selecting global and transnational strategies for competing in the global marketplace.

Among the assumptions of Theodore Levitt that would favor a global strategy is that consumers around the world are becoming less price-sensitive.

Licensing is a contractual arrangement that involves a long period of time and includes factors such as monitoring of operations,training,and advertising.

Sources of political risk do not include

High levels of environmental awareness in Denmark have led to a decline in Danish industrial competitiveness in the international marketplace.

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

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

Multinational firms are constantly faced with the dilemma of choosing between _ and ____.