Deck 7: International Strategies

Question 1

Quality issues are a potential advantage of going international.

Answer 1

False

Question 2

Going international can lead to achieving benefits of economies of scale.

Answer 2

True

Question 3

Organizations are considered international if they exchange goods and services with consumers in other countries.

Answer 3

True

Question 4

A multicountry approach is based on developing a ________ advantage.

A) differentiation
B) low-cost
C) integrated
D) focused
E) None of the answer choices is correct.

Question 5

The global approach to strategy is designed to help develop a (n)________ advantage.

A) low-cost
B) differentiation
C) integrated
D) niche
E) None of the above

Question 6

One of the advantages of going international is that it can potentially lower operational costs.

Question 7

One of the potential drawbacks of going international is that interdependencies among multiple countries cannot be exploited.

Question 8

The ________ approach is one in which the strategies are basically the same in all countries in which the organization does business.

A) transnational
B) multidomestic
C) global
D) country-specific
E) ethnocentric

Question 9

International strategy is a type of growth strategy.

Question 10

A ________ approach is one in which the organization's strategies vary according to the country in which it does business.

A) global
B) multicountry
C) transnational
D) differentiated
E) integrated

Question 11

Organizations wanting to do business in countries with low stability levels face great certainty.

Question 12

The legal-political environment in the United States is stable.

Question 13

Protectionism is one of the drwabacks of being international.

Question 14

A free market economy is one in which resources are primarily owned and controlled by the private sector.

Question 15

Australia is an example of a country on the low political stability list.

Question 16

________ refers to the values and attitudes shared by individuals from a specific country that shape their behavior and their beliefs about what is important.

A) National culture
B) National values
C) International value systems
D) Global culture
E) None of the above

Question 17

International strategy is a corporate strategy that describes companies that do business in multiple countries simultaneously.

Question 18

Vietnam and North Korea are examples of planned economies.

Question 19

Global political risk is minimized when a firm goes international.

Question 20

A planned economy is one in which economic decisions are planned by the private sector.

Question 21

A(n)________ is any type of international company that maintains operations in multiple countries.

A) international company
B) conglomerate
C) multinational corporation
D) prospector.
E) None of the answer choices is correct.

Question 22

In relative terms, which of the following involves significant global investment?

A) Global sourcing
B) Foreign subsidiary
C) Licensing
D) Franchising
E) Exporting

Question 23

Which of the following is NOT an international strategy alternative?

A) Exporting
B) Importing
C) Deporting
D) Licensing
E) Franchising

Question 24

Which of the following involves the greatest commitment of resources and poses the greatest amount of risk?

A) Global sourcing
B) Exporting and importing
C) Licensing
D) Franchising
E) Foreign subsidiary

Question 25

________ is purchasing materials or labor from around the world wherever it is cheapest.

A) Transnational sourcing
B) Global sourcing
C) Value chain sourcing
D) Niche-based sourcing
E) Cooperative sourcing

Question 26

In the ________ approach, products are tailored to fit consumer tastes and preferences.

A) global.
B) multicountry
C) integrated
D) focused
E) reactor

Question 27

A ________ decentralizes management and other decisions to the local country.

A) multidomestic corporation
B) global company
C) glocal company
D) transnational organization
E) borderless organization

Question 28

A ________ doesn't attempt to replicate its domestic successes by managing foreign operations from its home country.

A) multidomestic corporation
B) global company
C) glocal company
D) transnational organization
E) boundryless organization

Question 29

Nestle has operations in almost every country on the globe and its managers match the company's products to its consumers. Nestle is an example of a

A) global company.
B) glocal company.
C) transnational organization.
D) multidomestic corporation.
E) None of the answer choices is correct.

Question 30

A subsidiary in a global organization is managed through

A) local control.
B) decentralized control.
C) centralized control.
D) national control.
E) None of the answer choices is correct.

Question 31

In relative terms, which of the following involves minimal global investment?

A) Exporting
B) Importing
C) Global sourcing
D) Licensing
E) Franchising

Question 32

Anheuser-Busch InBev uses a ________ strategy in foreign markets.

A) franchising
B) sourcing
C) importing
D) licensing
E) None of the answer choices is correct.

Question 33

A subsidiary in a multidomestic organization is managed through

A) transnational control.
B) globalized control.
C) centralized control.
D) local control.
E) None of the answer choices is correct.

Question 34

________ involves acquiring products made abroad and selling them domestically.

A) Exporting
B) Importing
C) Licensing
D) Franchising
E) Focusing

Question 35

________ and ________ are similar approaches involving one organization giving another organization the right to use its brand name, technology, or product specifications in return for a lump sum payment or a fee usually based on sales.

A) Importing, exporting
B) Sourcing, procuring
C) Licensing, franchising
D) Globalizing, internationalizing
E) None of the answer choices is correct.

Question 36

Because they entail minimal investment and risk, many small businesses often use ________ and ________ to do business globally.

A) exporting, importing
B) exporting, sourcing
C) importing, sourcing
D) exporting, licensing
E) importing, licensing

Question 37

One type of MNC is a

A) multidomestic corporation.
B) transformational company.
C) border organization
D) All of the above answer choices are correct
E) None of the answer choices is correct.

Question 38

________ is primarily used by manufacturing companies.

A) Franchising
B) Licensing
C) Focusing
D) Procuring
E) None of the answer choices is correct.

Question 39

________ is primarily used by service organizations.

A) Licensing
B) Franchising
C) Sourcing
D) Procuring
E) Importing

Question 40

Setting up a(n)________ involves directly investing in a foreign country.

A) licensee
B) subsidiary
C) franchisee
D) international division
E) None of the answer choices is correct.

Question 41

Mulcahy believes that in the skincare industry, local responsiveness is important because significant country-to-country differences exist. She is suggesting a ________ approach.

A) global
B) ethnocentric
C) regiocentric
D) multicountry
E) regional

Question 42

Explain the key differences between a multidomestic corporation and a global company.

Question 43

________ treat the world market as an integrated whole.

A) Multidomestic corporations
B) Transnational organizations
C) Global companies
D) Glocal organizations
E) None of the answer choices is correct.

Question 44

What are the important potential advantages of being international?

Question 45

When Frito-Lay (a division of PepsiCo)markets a Dorito chip in the British market that differs in both taste and texture from the U.S. and Canadian version, Frito-Lay is most likely operated as a

A) global company.
B) multidomestic corporation.
C) glocal company.
D) transnational organization.
E) borderless organization.

Question 46

As a manufacturing company, CCP should probably use ________ in going international.

A) franchising
B) licensing
C) focusing
D) preempting
E) transitioning

Question 47

Megan Mulcahy and CCP believe that because the company has been extremely successful in the U.S., its home country work approaches and practices are the best and that these should be used globally. What is CCP's global perspective?

A) Geocentric attitude
B) Polycentric attitude
C) Ethnocentric attitude
D) Regiocentric attitude
E) None of the answer choices is correct.

Question 48

What is the difference between a free market and a planned economy?

Question 49

A transnational organization is also called a

A) borderless organization.
B) multidomestic corporation.
C) global company.
D) focused organization.

Question 50

How does the multicountry approach differ from the global approach?

Question 51

A ________ centralizes its management and other decisions in the home country.

A) global company
B) glocal company
C) multidomestic corporation
D) transnational organization
E) borderless organization

Question 52

When Walmart Stores "thinks locally to act globally," it is most likely approaching the global market as a

A) global company.
B) transnational organization.
C) borderless organization.
D) multidomestic corporation.
E) None of the answer choices is correct.

Question 53

What is parochialism?

Question 54

When IBM dropped its organizational structure based on country and reorganized into industry groups worldwide, it became a

A) transnational organization.
B) multidomestic corporation.
C) global company.
D) focused organization.

Question 55

One of the countries that Megan Mulcahy wants to enter is North Korea. You explain to her that North Korea is a ________ economy because economic decisions are planned by a central government.

A) tourist
B) planned
C) free market
D) focused
E) differentiated

Question 56

When a company says, "We don't want people to think we're based anyplace," the company is organized as a

A) transnational organization.
B) global company.
C) multidomestic corporation.
D) focused corporation.

Question 57

Many consumer product companies that compete in the global market organize themselves as a ________ because they must adapt their products to meet the needs of local markets.

A) global company
B) multidomestic corporation
C) transnational organization
D) borderless organization
E) None of the answer choices is correct.

Question 58

________ focus on the need for global efficiency and cost savings.

A) Global companies
B) Multidomestic corporations
C) Transnational organizations
D) Focused organizations

Question 59

A ________ eliminates artificial geographic barriers.

A) transnational organization
B) multidomestic corporation
C) global company
D) focused organization

Question 60

Ms. Mulcahy wants to understand the advantages of being international. Which of the following would you suggest?

A) Interdependencies among multiple countries can be exploited.
B) Potentially higher operational costs
C) Increased global competition for jobs, markets, and talents
D) Quality issues
E) None of the answer choices is correct.