Deck 11: International strategy

Question 1

In segmenting markets in countries abroad,all of the following fundamental questions must be addressed except:

A) Is there a market segment in the potential export market that will value the product characteristics of the exporter's product?
B) Does the segment have various customers groups?
C) Is this market segment large enough to justify the costs of exporting?
D) Is this segment adequately served by existing domestic producers or other exporters?

Answer 1

B

Question 2

International aircraft makers like Boeing and Airbus follow a:

A) MNE approach
B) global strategy
C) transnational strategy
D) multi-domestic strategy

Answer 2

B

Question 3

In some countries,the loss of control of technology is a critical problem with licensing.

Answer 3

True

Question 4

The reasons for a firm becoming international in scope do NOT include:

A) a desire for continued growth
B) domestic market saturation
C) the potential to exploit a new technological advantage
D) being international is the most effective strategy for growth

Question 5

The internationalisation of business depends on the interplay between:

A) market, cost, government and competitive drivers
B) trade, consumer, government and regulatory drivers
C) all of the above
D) none of the above

Question 6

The benefits of licensing are associated with:

A) its limited capital requirements
B) its capacity to leverage technology
C) both of the above
D) none of the above

Question 7

The outward-looking perspective of internalisation includes all of the following except:

A) exporting
B) managing as the wholly owned subsidiary of a foreign firm
C) establishing joint ventures outside the home country with foreign companies
D) acting as licensor to a foreign company

Question 8

ANZ Bank's international operations are an example of:

A) multinational strategy
B) multi-domestic strategy
C) export strategy
D) international strategy

Question 9

The sources of core competencies in international companies are:

A) decentralised
B) centralised
C) both of the above
D) none of the above

Question 10

The transnational strategy:

A) requires the production of products in large quantities in several countries
B) assumes a need for progressive and incremental efficiency across individual markets
C) has encouraged firms to disaggregate their activities to harness production and market opportunities
D) argues that there is a web of local operations producing a small range in each country

Question 11

A global strategy:

A) assumes a high need for customer responsiveness and a low need for coordination
B) focuses on different means to achieve the best cost and quality positions
C) is assessed first at the market level and then at the local product level
D) operates as a series of local hierarchies that answer to a global partnership

Question 12

A multi-domestic strategy:

A) thrives where markets operate under Free Trade Agreements
B) faces insignificant competition from companies that operate only in one country
C) focuses primarily on national differences to achieve most of its strategic objectives
D) is one in which the final products are fundamentally the same for each country

Question 13

In order to compete internationally,firms need to possess some degree of understanding of numerous cultures.

Question 14

The maintenance costs of licensing might include all of the following except:

A) backup services for licensees
B) ongoing market research
C) expenses for searching for suitable licensees
D) none of the above

Question 15

An excellent set of production and sourcing decisions that firms confront would include the following except:

A) from where should the firm supply the target market
B) should the firm produce in one plant or many, related or autonomous
C) where should research and development be located
D) what sort of marketing mix should be used

Question 16

In strategic practice and analysis,'global' means between nations or between at least two different countries.

Question 17

Stopford and Wells found that firms may transition from an international division form to the use of a:

A) worldwide product division
B) area division
C) both of the above
D) none of the above

Question 18

The inward-looking perspective of internalisation includes all of the following except:

A) acting as licensor to a foreign company
B) importing/sourcing
C) acting as licensee from a foreign company
D) managing as the wholly owned subsidiary of a foreign firm

Question 19

For strategic exporters,Stace suggests that:

A) firms have a clear strategic focus on export markets
B) firms target only export markets
C) pricing in export markets yields lower strategic returns, or even losses at least in the short run
D) firms price to sell production in excess of the needs of the domestic market so long as these sales make a contribution to fixed overhead and profit

Question 20

The four alternative approaches to managing international strategy are:

A) transglobal, export, international, multi-domestic
B) multi-domestic, global, transnational and export
C) global, multi-country, transnational, import
D) export, multi-domestic, international, transport corridor

Question 21

The decentralised federation structure is often best for a global strategy

Question 22

Describe the four alternative approaches used to manage worldwide operation.

Question 23

Franchising is a variation on licensing as an entry mode into the international market.

Question 24

In an integrated network,technical expertise tends to reside in the firm's head office.

Question 25

Briefly discuss how cultural differences can make international expansion more difficult.

Question 26

You are the manager of a firm producing high-technology medical equipment in New Zealand.What entry mode will you adopt for internationalisation and why?

Question 27

How to share the profits between joint venture partners is often difficult.