Question 1

Companies should form strategic alliances with frrms that have a reputation for being opportunistic.

Accepted Answer

A) True 
 B)False  False

Question 2

What is meant by the term national competitive advantage, and what are the attributes of a nation that affect the global competitiveness of companies located within that nation?

Accepted Answer

National competitive advantage refers to the fact that the nation within which a company is based may have an important bearing on the competitive position of that company in the global marketplace.There are four attributes of a country-specific environment that have an important impact on the global competitiveness of companies based within that country.Factor endowments encompass a nation's position in factors of production and include factors such as skilled labor and the infrastructure necessary to compete in a given industry.Demand conditions refer to the nature of demand for a product or service in the horne country.Relating and supporting industries refer to the presence or absence of supplier industries and related industries that are internationally competitive.Finally, finn strategy, structure, and rivalry refers to the conditions in the nation governing how companies are created, organized, and managed and the nature
of domestic rivalry.

Question 3

Which of the following statements is true about global standardization strategy?

Accepted Answer

A) It emphasizes product customization to specifically meet customer needs. 
B) It involves the spreading of production, marketing, and research and development activities of companies to all the location it operates in. 
C) It makes most sense when there are strong pressures for cost reductions. 
D) It makes most sense when the pressures for local responsiveness are maximum. 
E) It fails to focus on achieving location and scale economies. 
A) It emphasizes product customization to specifically meet customer needs. 
B) It involves the spreading of production, marketing, and research and development activities of companies to all the location it operates in. 
C) It makes most sense when there are strong pressures for cost reductions. 
D) It makes most sense when the pressures for local responsiveness are maximum. 
E) It fails to focus on achieving location and scale economies. C

Question 4

Alliances can be designed to make it difficult (if not impossible) to transfer teclrnology not meant to be transferred.

Accepted Answer

A) True 
 B)False

Question 5

Factor endowments, the cost and quality of factors of production, are a prime determinant of the competitive advantage that certain countries have in certain industries.

Accepted Answer

A) True 
 B)False

Question 6

In the wireless teleconnnunications industry, different technical standards are found in different parts of the world.A technical standard known as GSM is common in Europe, and an alternative standard, CDMA, is more common in the United States and parts of Asia.Equipment designed for GSM will not work on a CDMA network and vice versa.Which of the following pressures for local responsiveness does this represent?

Accepted Answer

A) Global envirornnental demands 
B) Host govennnent demands 
C) Differences in distribution channels 
D) Differences in customer tastes and preferences 
E) Differences in infrastructure 
A) Global envirornnental demands 
B) Host govennnent demands 
C) Differences in distribution channels 
D) Differences in customer tastes and preferences 
E) Differences in infrastructure

Question 7

Which of the following factors increases pressures for cost reductions?

Accepted Answer

A) Meaningful differentiation between products 
B) Reduced international competition 
C) Competitors that are based in high-cost locations 
D) High switching costs 
E) Persistent excess capacity 
A) Meaningful differentiation between products 
B) Reduced international competition 
C) Competitors that are based in high-cost locations 
D) High switching costs 
E) Persistent excess capacity

Question 8

Most manufacturing companies begin their global expansion by exporting.

Accepted Answer

A) True 
 B)False

Question 9

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

Question 10

If a company's competitive advantage derives from its control of proprietary teclrnological know-how, it should either license its teclrnology to others or pursue a joint venture.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is disadvantage of strategic alliances?

Accepted Answer

A) They give competitors a low-cost route to new technology and markets. 
B) They do not facilitate entry into a foreign market. 
C) They do not allow for sharing of risks and fixed costs. 
D) They mandate that the companies do not share complementary skills and assets. 
E) They cause problems when it comes to establishing technological standards for the industry. 
A) They give competitors a low-cost route to new technology and markets. 
B) They do not facilitate entry into a foreign market. 
C) They do not allow for sharing of risks and fixed costs. 
D) They mandate that the companies do not share complementary skills and assets. 
E) They cause problems when it comes to establishing technological standards for the industry.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

When a company performs a value creation activity in a region that is optimal for that activity, wherever in the world that might be, it is trying to capitalize on:

Accepted Answer

A) negative feedback loops. 
B) economies of scope. 
C) the transnational strategy. 
D) location economies. 
E) its localization strategy. 
A) negative feedback loops. 
B) economies of scope. 
C) the transnational strategy. 
D) location economies. 
E) its localization strategy.

Question 14

The globalization of production has caused fmns to:

Accepted Answer

A) lower their market share. 
B) lower their cost structure. 
C) centralize their production process. 
D) curb international competition. 
E) limit the number of market segments. 
A) lower their market share. 
B) lower their cost structure. 
C) centralize their production process. 
D) curb international competition. 
E) limit the number of market segments.

Question 15

Which of the following statements is true about localization strategy?

Accepted Answer

A) It focuses on marketing a standardized product worldwide to achieve cost reductions. 
B) It makes most sense when cost pressures are extremely intense. 
C) It is most appropriate when there are similarities across nations with regard to consumer tastes and preferences. 
D) It involves some duplication of functions and smaller production runs. 
E) It usually relieves companies of the task of closely monitoring their costs. 
A) It focuses on marketing a standardized product worldwide to achieve cost reductions. 
B) It makes most sense when cost pressures are extremely intense. 
C) It is most appropriate when there are similarities across nations with regard to consumer tastes and preferences. 
D) It involves some duplication of functions and smaller production runs. 
E) It usually relieves companies of the task of closely monitoring their costs.

Question 16

Which of the following is not a factor of production?

Accepted Answer

A) Land 
B) Labor 
C) Raw materials 
D) Competitive forces 
E) Managerial sophistication 
A) Land 
B) Labor 
C) Raw materials 
D) Competitive forces 
E) Managerial sophistication

Question 17

Which of the following statements is true in the context of globalization of production and markets?

Accepted Answer

A) Globalization of production has significantly increased the costs for many industries. 
B) The globalization of markets and production has failed to threaten companies' horne markets. 
C) Consolidated oligopolies continue to be dominated by a small number of companies despite globalization. 
D) The shift from national to global markets has curbed competitive rivalry in many industries. 
E) Globalization has significantly increased the threat of entry. 
A) Globalization of production has significantly increased the costs for many industries. 
B) The globalization of markets and production has failed to threaten companies' horne markets. 
C) Consolidated oligopolies continue to be dominated by a small number of companies despite globalization. 
D) The shift from national to global markets has curbed competitive rivalry in many industries. 
E) Globalization has significantly increased the threat of entry.

Question 18

Which of the following is an advantage of franchising?

Accepted Answer

A) It ensures tight control over quality. 
B) It enables companies to engage in global strategic coordination. 
C) It involves low development costs and risks. 
D) It enables the company to collect all the profits made by the franchisees. 
E) It frees companies from the task of monitoring and assisting operations at franchisees. 
A) It ensures tight control over quality. 
B) It enables companies to engage in global strategic coordination. 
C) It involves low development costs and risks. 
D) It enables the company to collect all the profits made by the franchisees. 
E) It frees companies from the task of monitoring and assisting operations at franchisees.

Question 19

A company, Pluto Inc., employs the franchising strategy to enter a new national market.Which of the following statements is more likely to be true of Pluto?

Accepted Answer

A) It is more likely to be a service company. 
B) It is more likely to have a greater control over the quality the products manufactured in the foreign country. 
C) It is less likely to impose strict rules regarding how a franchisee does business. 
D) It is less likely to receive royalty payment from the franchisee. 
E) It is more likely to bear the development costs associated with opening a foreign market on its own. 
A) It is more likely to be a service company. 
B) It is more likely to have a greater control over the quality the products manufactured in the foreign country. 
C) It is less likely to impose strict rules regarding how a franchisee does business. 
D) It is less likely to receive royalty payment from the franchisee. 
E) It is more likely to bear the development costs associated with opening a foreign market on its own.

Question 20

Which of the following statements is true about transnational strategy?

Accepted Answer

A) It gives little emphasis to cost reduction and achieving scale economies. 
B) It makes little sense when the pressures for local responsiveness are intense. 
C) It is an easy one to pursue because it places minimal demands on the company. 
D) It fosters a flow of skills between different subsidiaries in the company's global network of operations. 
E) It is adopted by companies that produce standardized goods that do not require product differentiation. 
A) It gives little emphasis to cost reduction and achieving scale economies. 
B) It makes little sense when the pressures for local responsiveness are intense. 
C) It is an easy one to pursue because it places minimal demands on the company. 
D) It fosters a flow of skills between different subsidiaries in the company's global network of operations. 
E) It is adopted by companies that produce standardized goods that do not require product differentiation.

Companies should form strategic alliances with frrms that have a reputation for being opportunistic.

What is meant by the term national competitive advantage, and what are the attributes of a nation that affect the global competitiveness of companies located within that nation?

Which of the following statements is true about global standardization strategy?

Alliances can be designed to make it difficult (if not impossible) to transfer teclrnology not meant to be transferred.

Factor endowments, the cost and quality of factors of production, are a prime determinant of the competitive advantage that certain countries have in certain industries.

Which of the following factors increases pressures for cost reductions?

Most manufacturing companies begin their global expansion by exporting.

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?

If a company's competitive advantage derives from its control of proprietary teclrnological know-how, it should either license its teclrnology to others or pursue a joint venture.

Which of the following is disadvantage of strategic alliances?

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

When a company performs a value creation activity in a region that is optimal for that activity, wherever in the world that might be, it is trying to capitalize on:

The globalization of production has caused fmns to:

Which of the following statements is true about localization strategy?

Which of the following is not a factor of production?

Which of the following statements is true in the context of globalization of production and markets?

Which of the following is an advantage of franchising?

A company, Pluto Inc., employs the franchising strategy to enter a new national market.Which of the following statements is more likely to be true of Pluto?

Which of the following statements is true about transnational strategy?

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

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

Companies should form strategic alliances with frrms that have a reputation for being opportunistic.

What is meant by the term national competitive advantage, and what are the attributes of a nation that affect the global competitiveness of companies located within that nation?

Which of the following statements is true about global standardization strategy?

Alliances can be designed to make it difficult (if not impossible) to transfer teclrnology not meant to be transferred.

Factor endowments, the cost and quality of factors of production, are a prime determinant of the competitive advantage that certain countries have in certain industries.

Which of the following factors increases pressures for cost reductions?

Most manufacturing companies begin their global expansion by exporting.

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?

If a company's competitive advantage derives from its control of proprietary teclrnological know-how, it should either license its teclrnology to others or pursue a joint venture.

Which of the following is disadvantage of strategic alliances?

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

When a company performs a value creation activity in a region that is optimal for that activity, wherever in the world that might be, it is trying to capitalize on:

The globalization of production has caused fmns to:

Which of the following statements is true about localization strategy?

Which of the following is not a factor of production?

Which of the following statements is true in the context of globalization of production and markets?

Which of the following is an advantage of franchising?

A company, Pluto Inc., employs the franchising strategy to enter a new national market.Which of the following statements is more likely to be true of Pluto?

Which of the following statements is true about transnational strategy?

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

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