Question 1

Most manufacturing companies begin their global expansion by:

Accepted Answer

A) licensing. 
B) franchising. 
C) exporting. 
D) forming a joint venture. 
E) setting up a wholly owned subsidiary in the host country. 
A) licensing. 
B) franchising. 
C) exporting. 
D) forming a joint venture. 
E) setting up a wholly owned subsidiary in the host country.

Question 2

Aries Travels is a company that offers holiday and travel packages.The company realizes that customer preferences vary and thus extensively customizes its packages.As there are not many competitors in the market in which Aries Travels operates, there are minimal pressures to reduce costs.Aries Travels is most likely to have adopted a strategy.

Accepted Answer

A) global standardization 
B) international 
C) localization 
D) transnational 
E) harvest 
A) global standardization 
B) international 
C) localization 
D) transnational 
E) harvest

Question 3

Which of the following statements is true in the context of attributes of national competitive advantage?

Accepted Answer

A) Factor endowments do not encompass aspects such as managerial sophistication. 
B) Companies are typically least sensitive to the needs of their closest customers. 
C) The benefits of investments in advanced factors of production by related and supporting industries are confined to those industries. 
D) Domestic rivalry creates pressures to increase costs and avoid investing in upgrading advanced factors. 
E) The nature of home demand shapes the attributes of domestically made products . 
A) Factor endowments do not encompass aspects such as managerial sophistication. 
B) Companies are typically least sensitive to the needs of their closest customers. 
C) The benefits of investments in advanced factors of production by related and supporting industries are confined to those industries. 
D) Domestic rivalry creates pressures to increase costs and avoid investing in upgrading advanced factors. 
E) The nature of home demand shapes the attributes of domestically made products .

Question 4

Despite the globalization of production and markets, many of the most successful companies in certain industries are still clustered in a small number of countries.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following factors increases pressures for local responsiveness?

Accepted Answer

A) Powerful buyers 
B) Uniformity in distribution channels 
C) Host govermnent demands 
D) Similarities in customer tastes and preferences 
E) Competitors that are based in high-cost locations 
A) Powerful buyers 
B) Uniformity in distribution channels 
C) Host govermnent demands 
D) Similarities in customer tastes and preferences 
E) Competitors that are based in high-cost locations

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Dietizza is a fast food network that makes low-calorie pizzas.As the finn wishes to expand its operations in different locations, it has licensed a few entrepreneurs to open Dietizza outlets under the company's trademark.The entrepreneurs will take up the responsibility of costs while Dietizza will assist them in running operations.The company will receive royalty payments and a percentage of profits from the entrepreneurs.Which of the following concepts is illustrated here?

Accepted Answer

A) Exporting 
B) Franchising 
C) Setting up of a wholly owned subsidiary 
D) Strategic alliance 
E) Joint venture 
A) Exporting 
B) Franchising 
C) Setting up of a wholly owned subsidiary 
D) Strategic alliance 
E) Joint venture

Question 8

Swedish strength in fabricated steel products (such as ball bearings and cutting tools) has drawn on strengths in Sweden's specialty steel industry.This is an example of which of the following attributes that impact national competitive advantage?

Accepted Answer

A) Local demand conditions 
B) Competitiveness of related and supporting industries 
C) Intensity of rivalry in an industry 
D) Factor endowments 
E) Differences in distribution channels 
A) Local demand conditions 
B) Competitiveness of related and supporting industries 
C) Intensity of rivalry in an industry 
D) Factor endowments 
E) Differences in distribution channels

Question 9

Nutrimax, a sports foods manufacturer, has recently expanded its operations to different countries.The company has realized that customers in different countries have different tastes and preferences.So, the company customizes its products based on the country where it's selling.In this scenario, Nutrirnax is most likely to be using strategy.

Accepted Answer

A) global standardization 
B) localization 
C) Achilles heel 
D) centralization 
E) transnational 
A) global standardization 
B) localization 
C) Achilles heel 
D) centralization 
E) transnational

Question 10

Companies that pursue a global standardization strategy are trying to develop a business model that simultaneously achieves low costs and differentiates the product offering across geographic markets.

Accepted Answer

A) True 
 B)False

Question 11

Relish is a large fast food chain that operates in many countries.As there are several competitors in the fast food sector, the company has been facing intense pressures for achieving low cost structures.The company also faces the task of customizing its product line as there are significant differences in tastes and preferences among customers in different geographic locations.In order to achieve both low costs and product differentiation, the company should aim to pursue a strategy.

Accepted Answer

A) global standardization 
B) transnational 
C) localization 
D) downsizing 
E) divestment 
A) global standardization 
B) transnational 
C) localization 
D) downsizing 
E) divestment

Question 12

Which of the following statements is true about international strategy?

Accepted Answer

A) It is usually adopted by companies that face intense cost pressures due to competition. 
B) It makes most sense when the pressures for local responsiveness are very intense. 
C) It often involves the head office retaining tight control over marketing and product strategy. 
D) It often involves decentralizing product development functions such as R&D to different subsidiaries. 
E) It involves extensive scope for localization and product differentiation. 
A) It is usually adopted by companies that face intense cost pressures due to competition. 
B) It makes most sense when the pressures for local responsiveness are very intense. 
C) It often involves the head office retaining tight control over marketing and product strategy. 
D) It often involves decentralizing product development functions such as R&D to different subsidiaries. 
E) It involves extensive scope for localization and product differentiation.

Question 13

Which of the following statements is true in the context oflocal demand conditions?

Accepted Answer

A) Companies are typically least sensitive to the needs of their closest customers. 
B) Home demand plays little role in helping companies upgrade their national competitive advantage. 
C) A nation's companies gain competitive advantage if their domestic customers are sophisticated and demanding. 
D) The characteristics of international demand alone shape the attributes of a company's products; not local demand. 
E) Local demand characteristics have little role to play in creating pressure for innovation and quality. 
A) Companies are typically least sensitive to the needs of their closest customers. 
B) Home demand plays little role in helping companies upgrade their national competitive advantage. 
C) A nation's companies gain competitive advantage if their domestic customers are sophisticated and demanding. 
D) The characteristics of international demand alone shape the attributes of a company's products; not local demand. 
E) Local demand characteristics have little role to play in creating pressure for innovation and quality.

Question 14

Which entry mode gives a multinational the tightest control over foreign operations?

Accepted Answer

A) Exporting from the horne country and letting a foreign agent organize local marketing 
B) Licensing 
C) Franchising 
D) Entering into a joint venture with a foreign company to set up overseas operations 
E) Setting up a wholly owned subsidiary 
A) Exporting from the horne country and letting a foreign agent organize local marketing 
B) Licensing 
C) Franchising 
D) Entering into a joint venture with a foreign company to set up overseas operations 
E) Setting up a wholly owned subsidiary

Question 15

Cost reduction pressures can be particularly intense in industries producing:

Accepted Answer

A) commodity-type products. 
B) highly differential products. 
C) highly customized services. 
D) goods that have no close substitutes. 
E) goods that need minimal advertising. 
A) commodity-type products. 
B) highly differential products. 
C) highly customized services. 
D) goods that have no close substitutes. 
E) goods that need minimal advertising.

Question 16

Global standardization strategy emphasizes customization and product differentiation.

Accepted Answer

A) True 
 B)False

Question 17

Global economies of scale can be realized by:

Accepted Answer

A) restricting the expansion of overseas sales. 
B) limiting the utilization of production facilities. 
C) curbing bargaining power with suppliers. 
D) decreasing cost savings through learning effects. 
E) spreading the fixed costs associated with developing. 
A) restricting the expansion of overseas sales. 
B) limiting the utilization of production facilities. 
C) curbing bargaining power with suppliers. 
D) decreasing cost savings through learning effects. 
E) spreading the fixed costs associated with developing.

Question 18

The Achilles heel of international strategy is that:

Accepted Answer

A) economies of scale cannot be achieved. 
B) customization of products makes the company lose its credibility. 
C) competitors inevitably emerge. 
D) non-price differences among products hold little importance. 
E) customer preferences eventually become identical. 
A) economies of scale cannot be achieved. 
B) customization of products makes the company lose its credibility. 
C) competitors inevitably emerge. 
D) non-price differences among products hold little importance. 
E) customer preferences eventually become identical.

Question 19

Whirlpool, a leading U.S.maker of household appliances, has a wholly owned subsidiary that is responsible for research and development (R&D), manufacturing, and sales in over two dozen European countries, from Norway to Greece.What are some of the potential advantages that Whirlpool may gain from its use of a wholly owned subsidiary for global expansion? What are some of the potential disadvantages?

Accepted Answer

Whirlpool stands to make high profits fr

Question 20

Southwest Airlines, Sony, and Costco conduct business in two or more countries.These companies can be referred to as multinational companies.

Accepted Answer

A) True 
 B)False

Most manufacturing companies begin their global expansion by:

Which of the following statements is true in the context of attributes of national competitive advantage?

Despite the globalization of production and markets, many of the most successful companies in certain industries are still clustered in a small number of countries.

Which of the following factors increases pressures for local responsiveness?

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

Swedish strength in fabricated steel products (such as ball bearings and cutting tools) has drawn on strengths in Sweden's specialty steel industry.This is an example of which of the following attributes that impact national competitive advantage?

Companies that pursue a global standardization strategy are trying to develop a business model that simultaneously achieves low costs and differentiates the product offering across geographic markets.

Which of the following statements is true about international strategy?

Which of the following statements is true in the context oflocal demand conditions?

Which entry mode gives a multinational the tightest control over foreign operations?

Cost reduction pressures can be particularly intense in industries producing:

Global standardization strategy emphasizes customization and product differentiation.

Global economies of scale can be realized by:

The Achilles heel of international strategy is that:

Southwest Airlines, Sony, and Costco conduct business in two or more countries.These companies can be referred to as multinational companies.

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

Most manufacturing companies begin their global expansion by:

Which of the following statements is true in the context of attributes of national competitive advantage?

Despite the globalization of production and markets, many of the most successful companies in certain industries are still clustered in a small number of countries.

Which of the following factors increases pressures for local responsiveness?

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

Swedish strength in fabricated steel products (such as ball bearings and cutting tools) has drawn on strengths in Sweden's specialty steel industry.This is an example of which of the following attributes that impact national competitive advantage?

Companies that pursue a global standardization strategy are trying to develop a business model that simultaneously achieves low costs and differentiates the product offering across geographic markets.

Which of the following statements is true about international strategy?

Which of the following statements is true in the context oflocal demand conditions?

Which entry mode gives a multinational the tightest control over foreign operations?

Cost reduction pressures can be particularly intense in industries producing:

Global standardization strategy emphasizes customization and product differentiation.

Global economies of scale can be realized by:

The Achilles heel of international strategy is that:

Southwest Airlines, Sony, and Costco conduct business in two or more countries.These companies can be referred to as multinational companies.

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