Exam 9: International Strategy

Which of the following statements is true about a firm that adopts a global strategy?

The Purple Lace Inc., a home furnishing company, emphasizes standardization over local culture and needs of the specific market.It maintains consistency of operations across the different countries that the firm operates in.Which of the following is being exemplified in this scenario?

Neon Inc.considers two foreign markets for expansion.The first market has lesser taxes compared to the second along with more lenient trade regulations.Thus, Neon chooses the first market despite it being more distinct in terms of language and tradition.By choosing the first market, Neon exhibits a(n) _____.

Vactin Motors, an automobile company, is a well-recognized brand.It does not have the capital and capabilities to set up manufacturing units abroad, although it is keen to have its products made in the foreign market.It decides to have the products produced and sold under its brand name.In this case, which of the following modes of international market entry should be adopted by Vactin?

The spread of businesses across national borders is called _____.

Wale Inc., an electronics manufacturer, adopts a multidomestic strategy to enter the global market.It centers on tailoring products and operations to individual markets.However, the cost pressure becomes too intense.In order to manage high costs, it manages the variation by concentrating only on air conditioners in a specific country.Which of the following is being exemplified in this case?

Petick Inc., an electronic goods manufacturer, produces its products in the domestic unit.These products are sold in foreign markets across the globe.In this case, which of the following modes of international market entry is adopted by Petick?

The industries most affected by economic distance are those for which:

The stages a product or service goes through during its lifespan refers to a(n) _____.

Which of the following is most likely to be categorized as a market risk associated with entering a new market?

Shondura Inc.focuses on both local responsiveness and standardization in global business.The company typically begins with a strong emphasis in a single strategy and then works to minimize the downsides associated with that strategy as much as possible as they begin to implement the second strategy.Which of the following is best exemplified in this case?

A U.S.-based insurance firm purchases a company in Germany.The purchase allows the U.S.firm to acquire local resources, knowledge, and expertise while still maintaining control through 100 percent ownership.This process of purchasing a local firm is called _____.

Explain the ways to manage variation and successfully pursue a multidomestic strategy.

Explain why firms choose to compete in international markets.

What are the three primary strategies that firms can use to do business internationally?

Nina, a marketing student, studies how people from different countries accept ambiguity or follow rules and laws.When she focuses on this specific trait while studying the distance between a domestic and foreign market, she is likely to be focusing on the markets' _____.

Ryuuku Inc., a cloth manufacturing company, enters a foreign market.It tailors its products and distribution strategies to meet the needs of the local market.Modifying the products and operations to fit local customer requirements results in high cost to the company; however, the revenue was higher than that in the domestic market.In this case, the competing pressure addressed by Ryuuku is _____.

A multinational footwear company believes in capitalizing on differences in the cost of stocks by acquiring the stocks where they are less expensive.In this scenario, which of the following arbitrage strategies is adopted by the company?

Karl Jahaz Corp., an automobile company, has many business units across the globe.Although the company has reached saturation in the domestic market, it continues to generate substantial revenue by selling its old-model, light commercial vehicles in a few countries.In this case, which of the following is achieved by the globalization of the company?

An automobile manufacturing company has its production units and sales units in two different locations.The production units are situated in geographical areas that offer cheap labor and easy resource availability.On the other hand, the sales units are located in places where there is a high demand for the products.Which of the following strategies is best exemplified in this scenario?