Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

For a strategic alliance, fmns should seek partners that are:

Accepted Answer

A) different in terms of vision and agendas. 
B) known for being opportunistic. 
C) willing to share costs and risks of product development. 
D) radically different when it comes to strategic goals. 
E) similar when it comes to capabilities. 
A) different in terms of vision and agendas. 
B) known for being opportunistic. 
C) willing to share costs and risks of product development. 
D) radically different when it comes to strategic goals. 
E) similar when it comes to capabilities.

Question 3

Which of the following entry modes allows a company to engage in global strategic coordination?

Accepted Answer

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

Question 4

Which of the following is an advantage of international licensing?

Accepted Answer

A) It enables the company realize scale economies and location economies through manufacturing products in a centralized location. 
B) It allows the company to collect profits from one licensee and use it to support others. 
C) It eliminates the risk oflosing control over a technology that the company owns. 
D) It enables the company to coordinate its strategy efficiently to achieve competitive advantage. 
E) It takes away the pressure of development costs and risks associated with opening up a foreign market from the company. 
A) It enables the company realize scale economies and location economies through manufacturing products in a centralized location. 
B) It allows the company to collect profits from one licensee and use it to support others. 
C) It eliminates the risk oflosing control over a technology that the company owns. 
D) It enables the company to coordinate its strategy efficiently to achieve competitive advantage. 
E) It takes away the pressure of development costs and risks associated with opening up a foreign market from the company.

Question 5

Which of the following is not a necessity for leveraging the skills of global subsidiaries?

Accepted Answer

A) Incentives for local managers to share knowledge and ideas 
B) Awareness among managers that competencies can develop anywhere 
C) Assertion of monopoly of the corporate center over subsidiaries 
D) Transfer of competencies around the company 
E) Incentives that encourage employees to take necessary risks 
A) Incentives for local managers to share knowledge and ideas 
B) Awareness among managers that competencies can develop anywhere 
C) Assertion of monopoly of the corporate center over subsidiaries 
D) Transfer of competencies around the company 
E) Incentives that encourage employees to take necessary risks

Question 6

Which of the following has occurred in international trade over the past half-century?

Accepted Answer

A) There has been a dramatic increase in the barriers to international trade. 
B) Tariff rates on manufactured goods traded by advanced nations have fallen. 
C) Regulations prohibiting foreign companies from entering domestic markets and establishing production facilities have increased. 
D) The volume of world trade has decreased dramatically. 
E) There has been a decline in the value of foreign direct investment. 
A) There has been a dramatic increase in the barriers to international trade. 
B) Tariff rates on manufactured goods traded by advanced nations have fallen. 
C) Regulations prohibiting foreign companies from entering domestic markets and establishing production facilities have increased. 
D) The volume of world trade has decreased dramatically. 
E) There has been a decline in the value of foreign direct investment.

Question 7

Which of the following is not a risk of exporting?

Accepted Answer

A) Tariffbarriers 
B) Transportation costs 
C) Location diseconomies 
D) High manufacturing costs 
E) Delegation of marketing activities to a local agent 
A) Tariffbarriers 
B) Transportation costs 
C) Location diseconomies 
D) High manufacturing costs 
E) Delegation of marketing activities to a local agent

Question 8

WKL Entertainment Inc.is a service-based firm with very few competitors.The company is looking to sell its services in different nations with substantial differences in consumer preferences and where cost pressures are not too intense.Which of the following strategies should WKL Entertairnnentlnc.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 9

Location economies refer to the economic benefits that arise from performing a value creation activity at an optimal location.

Accepted Answer

A) True 
 B)False

Question 10

Host govermnent demands generally:

Accepted Answer

A) increase pressures for local responsiveness. 
B) decrease pressures for cost reductions. 
C) do not encompass local content rules. 
D) compel companies to abandon localization strategies. 
E) impede a company's ability to differentiate its product offering across national borders. 
A) increase pressures for local responsiveness. 
B) decrease pressures for cost reductions. 
C) do not encompass local content rules. 
D) compel companies to abandon localization strategies. 
E) impede a company's ability to differentiate its product offering across national borders.

Question 11

What are the potential benefits and risks of global strategic alliances? What actions can a finn take to minimize the risks and maximize the benefits?

Accepted Answer

Global strategic alliances share the ris

Question 12

List and briefly describe each of the four basic global strategies.

Accepted Answer

Companies that pursue a global standardi

Question 13

A localization strategy is most appropriate when there are substantial differences across nations with regard to consumer tastes and preferences and when cost pressures are not too intense.

Accepted Answer

A) True 
 B)False

Question 14

A company may create value if it can leverage the skills created within subsidiaries and apply them to other operations within the finn's global network.

Accepted Answer

A) True 
 B)False

Question 15

When a company licenses its technology it can quickly lose control over it.

Accepted Answer

A) True 
 B)False

Question 16

Differences in tastes and preferences:

Accepted Answer

A) increase pressures for cost reductions. 
B) do not affect service-based firms. 
C) increase pressures for local responsiveness. 
D) reduce pressures from the host government. 
E) significantly decrease R&D costs of a company. 
A) increase pressures for cost reductions. 
B) do not affect service-based firms. 
C) increase pressures for local responsiveness. 
D) reduce pressures from the host government. 
E) significantly decrease R&D costs of a company.

Question 17

Black and Decker, Capitol One, Gillette, and Unilever are all companies that conduct business in two or more national markets.These companies are known as

Accepted Answer

A) bimarket companies. 
B) national companies. 
C) domestic companies. 
D) multinational companies. 
E) localized companies. 
A) bimarket companies. 
B) national companies. 
C) domestic companies. 
D) multinational companies. 
E) localized companies.

Question 18

Which of the following ideas is a localization strategy is based on?

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 19

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) adopting high cost structures. 
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) adopting high cost structures.

Question 20

Global expansion:

Accepted Answer

A) is feasible only for non-technology based companies. 
B) can enable companies to increase their profitability and grow their profits more rapidly. 
C) has significantly decreased in the recent years as the industry barriers are now higher. 
D) does not involve selling existing products to new markets in different countries. 
E) is not feasible for service-based firms. 
A) is feasible only for non-technology based companies. 
B) can enable companies to increase their profitability and grow their profits more rapidly. 
C) has significantly decreased in the recent years as the industry barriers are now higher. 
D) does not involve selling existing products to new markets in different countries. 
E) is not feasible for service-based firms.

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

For a strategic alliance, fmns should seek partners that are:

Which of the following entry modes allows a company to engage in global strategic coordination?

Which of the following is an advantage of international licensing?

Which of the following is not a necessity for leveraging the skills of global subsidiaries?

Which of the following has occurred in international trade over the past half-century?

Which of the following is not a risk of exporting?

Location economies refer to the economic benefits that arise from performing a value creation activity at an optimal location.

Host govermnent demands generally:

What are the potential benefits and risks of global strategic alliances? What actions can a finn take to minimize the risks and maximize the benefits?

List and briefly describe each of the four basic global strategies.

A localization strategy is most appropriate when there are substantial differences across nations with regard to consumer tastes and preferences and when cost pressures are not too intense.

A company may create value if it can leverage the skills created within subsidiaries and apply them to other operations within the finn's global network.

When a company licenses its technology it can quickly lose control over it.

Differences in tastes and preferences:

Black and Decker, Capitol One, Gillette, and Unilever are all companies that conduct business in two or more national markets.These companies are known as

Which of the following ideas is a localization strategy is based on?

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 expansion:

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

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

For a strategic alliance, fmns should seek partners that are:

Which of the following entry modes allows a company to engage in global strategic coordination?

Which of the following is an advantage of international licensing?

Which of the following is not a necessity for leveraging the skills of global subsidiaries?

Which of the following has occurred in international trade over the past half-century?

Which of the following is not a risk of exporting?

Location economies refer to the economic benefits that arise from performing a value creation activity at an optimal location.

Host govermnent demands generally:

What are the potential benefits and risks of global strategic alliances? What actions can a finn take to minimize the risks and maximize the benefits?

List and briefly describe each of the four basic global strategies.

A localization strategy is most appropriate when there are substantial differences across nations with regard to consumer tastes and preferences and when cost pressures are not too intense.

A company may create value if it can leverage the skills created within subsidiaries and apply them to other operations within the finn's global network.

When a company licenses its technology it can quickly lose control over it.

Differences in tastes and preferences:

Black and Decker, Capitol One, Gillette, and Unilever are all companies that conduct business in two or more national markets.These companies are known as

Which of the following ideas is a localization strategy is based on?

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 expansion:

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