Exam 8: Managing Global Competitive Dynamics

Strategy involves planning for actions rather than reactions or interaction.

Which is true of strategy? a. Business strategy has similarities with military strategy. b. Military principles cannot be completely applied in business. c. Militaries fight over territories, waters, and air spaces, firms compete in markets. d. All of the above. e. None of the above.

An extender strategy is being used when local firms engage in rapid learning to approach the capabilities of the MNEs and then expand overseas.

A firm's attack on a focal arena important to a competitor, but not the attacker's true target area, is referred to as: a. Thrust. b. Feint. c. Gambit. d. Miscalculation. e. Practice attack.

Local firms' primary strengths lie in a deep understanding of local markets, and thus they would pursue a dodger strategy.

Which of the following are least likely to result in collusion? a. High concentration ratio. b. Heterogeneous products. c. High entry barriers. d. High market commonality. e. Industry price leader exists.

Cartels: a. Involvecollusion. b. Are often outlawed. c. A and B above. d. Entail the "prisoner's dilemma for participants. e. All of the above.

In the interest of maintaining high standards for international trade, the U.S. has at various times attempted to legislate the behavior of U.S. based companies. It has even at times tried to apply U.S. standards to those from other countries. Does this make sense to you?

Issues affecting collaboration include: a. Secrecy. b. Exclusivity. c. Informality. d. All of the above. e. None of the above.

Dumping is defined as: a. Shipping hazardous waste to locations in other countries. b. An exporter selling below cost abroad. c. Unloading unsold inventory from the US in other countries. d. Excessive criticism of international rivals. e. Getting rid of unprofitable operations.

US courts have not sought to unilaterally punish non-US cartels if they are legal elsewhere) simply because they may have a substantial adverse impact on US markets.

Multimarket competition occurs when firms engage the same rivals in multiple markets.

The main types of attack include: a. Thrust. b. Feint. c. Gambit. d. All of the above. e. None of the above.

Firms that have a high degree of resource similarity are likely to have similar strengths and weaknesses.

Explicit collusion is exemplified by: a. Cartels. b. Trusts. c. Users of game theory. d. All of the above. e. None of the above.

A strategy that leverages local assets is called an extender strategy.

Which is not true concerning US anti trust policy today? a. Legislation has legally permitted rivals to join hands in research and development R&D). b. There is increased permissiveness regarding mergers among rivals. c. Clarity of policy has improved. d. The legal standards for interfirm cooperation are no longer ambiguous in the United States. e. The legal standards for interfirm cooperation are ambiguous in many other countries.

Critics of US policy on dumping at least agree that our policy on predatory pricing is consistent both domestically and internationally.

The "strategy as action" perspective highlights the power of creative destruction.

If an attack is so subtle that rivals are not aware of it, the attacker's objectives are not likely to have been attained.