Question 1

Statistics indicate that over half of the world output now comes from emerging markets. This is leading to a(n) ________ of living standards across the globe and is changing the face of business.

Accepted Answer

A)  divergence 
B)  convergence 
C)  expansion 
D)  contraction

Question 2

Which one of the following is nota strength of transnational strategies?

Accepted Answer

A)  ability to attain economies of scale 
B)  ability to adapt to local markets 
C)  ability to locate activities in optimal locations 
D)  ability to decrease knowledge flows and learning

Question 3

In Euromoney magazine's 2017 semi-annual "Country Risk Rating" evaluating political, economic, and other risks that entrants to international markets potentially face, which of the following countries have the next to the highest country economic risk?

Accepted Answer

A)  South Africa and Russia 
B)  Singapore and China 
C)  Argentina and Bahrain 
D)  Kazakhstan and Colombia

Question 4

Shared Spanish colonialism is one reason that explains regionalism tendencies in

Accepted Answer

A)  Asia. 
B)  South America. 
C)  the United States. 
D)  Africa.

Question 5

Which of the following is not a source of political risk in many countries?

Accepted Answer

A)  the presence of social unrest 
B)  the presence of the rule of law 
C)  the presence of military turmoil 
D)  the presence of violent conflict

Question 6

According to Euromoney's 2017 semi-annual "Country Risk Rating," which one of the following countries has the highest economic risk?

Accepted Answer

A)  South Korea 
B)  China 
C)  Colombia 
D)  Argentina

Question 7

A domestic corporation considering international expansion for the first time typically will follow which of these paths?

Accepted Answer

A)  It will start by implementing a wholly owned foreign subsidiary. 
B)  It will implement a low-risk, low-control strategy such as exporting. 
C)  It will license or franchise its operations. 
D)  It will form a joint venture with a reputable foreign producer.

Question 8

Which of the following describes the most typical order of entry into foreign markets?

Accepted Answer

A)  franchising, licensing, exporting, joint venture, and wholly owned subsidiary 
B)  exporting, franchising, licensing, joint venture, and wholly owned subsidiary 
C)  licensing, exporting, franchising, joint venture, and wholly owned subsidiary 
D)  exporting, licensing, franchising, joint venture, and wholly owned subsidiary

Question 9

Which one of the following explains why so few firms are global?

Accepted Answer

A)  Culture, language, and religion are similar between countries. 
B)  Legal and political systems are similar between countries. 
C)  Governments are increasing trade restrictions in general. 
D)  Geographic distance is multiplied by distance in culture, language, religion, and legal and political systems.

Question 10

Because many countries are investing in countries other than their own, each country is becoming more autonomous and independent.

Accepted Answer

A) True 
 B)False

Question 11

When the U.S. dollar appreciates against other currencies, U.S. goods can be ________ to consumers in foreign countries but can have ________ implications for American companies with branch operations overseas.

Accepted Answer

A)  less expensive, positive 
B)  more expensive, negative 
C)  less expensive, negative 
D)  more expensive, positive

Question 12

A multidomestic strategy is the most appropriate strategy for international operations because it drives economies of scale as far as possible and provides a middle-of-the-road productthat appeals to the largest number of consumers in every market.

Accepted Answer

A) True 
 B)False

Question 13

________ are most appropriate when a firm already has the appropriate knowledge and capabilities that it can leverage rather easily through multiple locations in many countries.

Accepted Answer

A)  Joint ventures 
B)  Strategic alliances 
C)  Licensing agreements 
D)  Wholly owned subsidiaries

Question 14

Which of the factors below has not made the software services industry in India extremely competitive on a global scale?

Accepted Answer

A)  large pool of skilled workers 
B)  large, growing market and sophisticated customers 
C)  tax and antitrust legislation that protects the dominant players in the industry 
D)  large network of public and private educational institutions

Question 15

Reverse innovation occurs when a company develops a product that meets the needs of a developed country and then adapts it to the needs of the developing country.

Accepted Answer

A) True 
 B)False

Question 16

The need to attain economies of scale encourages multinational firms to operate under a multidomestic strategy.

Accepted Answer

A) True 
 B)False

Question 17

Many international firms are increasing their efforts to market their products and services to countries such as India and China as the ranks of their middle class continue to increase.

Accepted Answer

A) True 
 B)False

Question 18

Green tea Oreos in China, chocolate and peanut butter Oreos in Indonesia, and banana dulce de leche Oreos in Argentina are examples of Kraft using ________ strategy.

Accepted Answer

A)  an international 
B)  amultidomestic 
C)  a single country 
D)  a transnational

Question 19

Renault paid 1 billion USD to acquire a 25 percent ownership stake in the Russian automaker AvtoVAZ in 2008. Just one year later, Russian Prime Minister Vladimir Putin threatened to dilutethe Renault ownership stake unless it contributed more money to prop up AvtoVAZ, which was then experiencing a significant slide in sales. This is an example of ________ risk.

Accepted Answer

A)  currency 
B)  economic 
C)  political 
D)  management

Question 20

Which one of the following is one of the Theodore Levitt assumptions supporting a pure global strategy?

Accepted Answer

A)  Consumers are willing to pay more for specific product features. 
B)  Customer needs and interests are becoming more dissimilar. 
C)  MNCs can successfully compete globally by aggressively pricing products at the sacrifice of product features. 
D)  If the world markets are treated as heterogeneous, substantial economies of scale are easily achieved.

Exam 7: International Strategy Creating Value in Global Markets

Statistics indicate that over half of the world output now comes from emerging markets. This is leading to a(n) ________ of living standards across the globe and is changing the face of business.

Which one of the following is nota strength of transnational strategies?

In Euromoney magazine's 2017 semi-annual "Country Risk Rating" evaluating political, economic, and other risks that entrants to international markets potentially face, which of the following countries have the next to the highest country economic risk?

Shared Spanish colonialism is one reason that explains regionalism tendencies in

Which of the following is not a source of political risk in many countries?

According to Euromoney's 2017 semi-annual "Country Risk Rating," which one of the following countries has the highest economic risk?

A domestic corporation considering international expansion for the first time typically will follow which of these paths?

Which of the following describes the most typical order of entry into foreign markets?

Which one of the following explains why so few firms are global?

Because many countries are investing in countries other than their own, each country is becoming more autonomous and independent.

When the U.S. dollar appreciates against other currencies, U.S. goods can be to consumers in foreign countries but can have implications for American companies with branch operations overseas.

A multidomestic strategy is the most appropriate strategy for international operations because it drives economies of scale as far as possible and provides a middle-of-the-road productthat appeals to the largest number of consumers in every market.

________ are most appropriate when a firm already has the appropriate knowledge and capabilities that it can leverage rather easily through multiple locations in many countries.

Which of the factors below has not made the software services industry in India extremely competitive on a global scale?

Reverse innovation occurs when a company develops a product that meets the needs of a developed country and then adapts it to the needs of the developing country.

The need to attain economies of scale encourages multinational firms to operate under a multidomestic strategy.

Many international firms are increasing their efforts to market their products and services to countries such as India and China as the ranks of their middle class continue to increase.

Green tea Oreos in China, chocolate and peanut butter Oreos in Indonesia, and banana dulce de leche Oreos in Argentina are examples of Kraft using ________ strategy.

Which one of the following is one of the Theodore Levitt assumptions supporting a pure global strategy?