Question 1

When firms expand into global markets,they are faced with the choice of reducing costs and/or adapting to the local market.When high pressures exist to adapt locally,companies should choose a __________ or __________ in order to compete in the global marketplace.

Accepted Answer

A)   global strategy; transnational strategy
B)   global strategy: multidomestic strategy
C)   international strategy; global strategy
D)   transnational strategy; multidomestic strategyE) A) and B)
F) B) and D)

Question 2

The form of entry strategy into international operations that offers the lowest level of control for the domestic corporation would be _________.

Accepted Answer

A)   franchising
B)   licensing
C)   joint venture
D)   exportingE) A) and D)
F) A) and B)

Question 3

Which of the following is not a motivation for a company to pursue international expansion?

Accepted Answer

A)   It wishes to increase the size of the potential markets for its products and services.
B)   It wishes to take advantage of arbitrage opportunities in order to increase profit.
C)   It wishes to optimize value-chain activities to enhance performance, reduce costs, and reduce risk.
D)   It wishes to increase foreign market penetration by developing products for the home market.E) A) and C)
F) None of the above

Question 4

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.E) None of the above
F) A) and B)

Question 5

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 6

Theodore Levitt,a marketing strategist,argued that people around the world are willing to sacrifice preferences in product features,functions,and design for lower prices and high quality.

Accepted Answer

A) True 
 B)False

Question 7

Offshoring takes place when a firm decides to shift an activity that they were previously performing in a domestic location to a foreign location.

Accepted Answer

A) True 
 B)False

Question 8

A __________ is a business in which a multinational company owns 100 percent of the stock.

Accepted Answer

A)   joint venture
B)   strategic alliance
C)   wholly owned subsidiary
D)   franchising operationE) None of the above
F) A) and D)

Question 9

PepsiCo successfully captured the Indian market by using a joint venture strategy.

Accepted Answer

A) True 
 B)False

Question 10

Summarize the most important benefits and risks associated with diversification into global markets.

Accepted Answer

Diversification into global markets offe...

Question 11

Industries in which proportionally more value is added in __________ activities are more likely to benefit from a global strategy.

Accepted Answer

A)   downstream
B)   upstream
C)   marketing
D)   salesE) All of the above
F) A) and B)

Question 12

With regard to factor conditions,the pool of resources that a firm (or nation)has is much more important than the speed and efficiency with which these resources are deployed.

Accepted Answer

A) True 
 B)False

Question 13

Firms following a global strategy strive to offer __________ products and services as well as locate manufacturing,Research and Development,and marketing activities in a limited number of locations.

Accepted Answer

A)   widely differentiated
B)   more expensive local
C)   internationally differentiated
D)   standardizedE) B) and D)
F) B) and C)

Question 14

Expanding the global presence of a firm does not automatically increase its scale of operations.

Accepted Answer

A) True 
 B)False

Question 15

Rivalry is intense in nations with conditions of __________ consumer demand,__________ supplier bases,and __________ new entrant potential from related industries.

Accepted Answer

A)   weak; weak; high
B)   strong; strong; low
C)   weak; weak; low
D)   strong; strong; highE) A) and B)
F) None of the above

Question 16

Units coordinate their activities with headquarters and with one another.Units adapt to special circumstances only they face.The entire organization draws upon relevant corporate resources.These are all attributes of which type of strategy?

Accepted Answer

A)   global strategy
B)   transnational strategy
C)   international strategy
D)   multidomestic strategyE) B) and D)
F) All of the above

Question 17

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

Question 18

In the Porter Diamond of National Advantage framework which of the following factors does not affect nation competitiveness?

Accepted Answer

A)   The position of the nation in factors of production necessary to compete in a given industry.
B)   The presence or absence in the nation of supplier industries that are internationally competitive.
C)   The conditions in the nation governing the nature of foreign rivalry.
D)   The nature of home-market demand of the products or services of the industry.E) A) and B)
F) A) and C)

Question 19

Which of the following is not a risk associated with a global strategy?

Accepted Answer

A)   A firm with only one manufacturing location must export its product, sometimes at great distance from the operation.
B)   The geographic concentration of any activity may also tend to isolate that activity from the targeted markets.
C)   Concentrating an activity in a single location makes the rest of the firm dependent on that location.
D)   The pressures for local adaptation may elevate the cost structure of the firm.E) None of the above
F) C) and D)

Question 20

The laws and the enforcement of laws associated with the protection of intellectual property rights,represent a significant currency and management risk to multinational firms.

Accepted Answer

A) True 
 B)False

Exam 7: International Strategy: Creating Valuein Global Markets

Units coordinate their activities with headquarters and with one another.Units adapt to special circumstances only they face.The entire organization draws upon relevant corporate resources.These are all attributes of which type of strategy?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The laws and the enforcement of laws associated with the protection of intellectual property rights,represent a significant currency and management risk to multinational firms.

Correct AnswerverifiedShow Answer

Firms following a global strategy strive to offer __________ products and services as well as locate manufacturing,Research and Development,and marketing activities in a limited number of locations.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When firms expand into global markets,they are faced with the choice of reducing costs and/or adapting to the local market.When high pressures exist to adapt locally,companies should choose a __________ or __________ in order to compete in the global marketplace.

Correct AnswerverifiedShow Answer

Rivalry is intense in nations with conditions of __________ consumer demand,__________ supplier bases,and __________ new entrant potential from related industries.

Correct AnswerverifiedShow Answer

Expanding the global presence of a firm does not automatically increase its scale of operations.

Correct AnswerverifiedShow Answer

Offshoring takes place when a firm decides to shift an activity that they were previously performing in a domestic location to a foreign location.

Correct AnswerverifiedShow Answer

In the Porter Diamond of National Advantage framework which of the following factors does not affect nation competitiveness?

Correct AnswerverifiedShow Answer

A __________ is a business in which a multinational company owns 100 percent of the stock.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Industries in which proportionally more value is added in __________ activities are more likely to benefit from a global strategy.

Correct AnswerverifiedShow Answer

Summarize the most important benefits and risks associated with diversification into global markets.

Correct AnswerAnswered by ExamLex AIDiversification into global markets offe...View AnswerShow Answer

Which of the following is not a motivation for a company to pursue international expansion?

Correct AnswerverifiedShow Answer

With regard to factor conditions,the pool of resources that a firm (or nation)has is much more important than the speed and efficiency with which these resources are deployed.

Correct AnswerverifiedShow Answer

PepsiCo successfully captured the Indian market by using a joint venture strategy.

Correct AnswerverifiedShow Answer

The form of entry strategy into international operations that offers the lowest level of control for the domestic corporation would be _________.

Correct AnswerverifiedShow Answer

Theodore Levitt,a marketing strategist,argued that people around the world are willing to sacrifice preferences in product features,functions,and design for lower prices and high quality.

Correct AnswerverifiedShow Answer

Which of the following is not a risk associated with a global strategy?

Correct AnswerverifiedShow Answer

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When firms expand into global markets,they are faced with the choice of reducing costs and/or adapting to the local market.When high pressures exist to adapt locally,companies should choose a or in order to compete in the global marketplace.

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Rivalry is intense in nations with conditions of consumer demand, supplier bases,and __ new entrant potential from related industries.

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Diversification into global markets offe...
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