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Exam 7: International Strategy: Creating Value in Global Markets

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Question 1

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The __________ entail the creation of a third-party legal entity,whereas the __________ do not.

A) licensing agreements; joint ventures
B) strategic alliances; joint ventures
C) joint ventures; strategic alliances
D) franchising agreements; strategic alliances

E) C) and D)
F) B) and C)

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Question 2

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Shared Arabic language and the Muslim religion is one reason that explains regionalism tendencies in

A) South America.
B) the Maghreb.
C) European Union.
D) North America.

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

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Question 3

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Recent trends that might lead managers of multinational corporations (MNCs) to adopt a more decentralized strategy for their operations would include all of the following except

A key tenet of a transnational strategy is improved adaptation to all competitive situations as well as flexibility by capitalizing on communication and knowledge flows throughout the organization.

Wholly owned subsidiaries are typically the most expensive and risky entry mode.The risk is shared,however,with the company partners.

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

For years O.R.T.Technologies resisted moving any operations outside Israel.However,when faced with a sharp rise in the value of the shekel,the maker of specialized software for managing gas stations froze all local hiring and decided to transfer some developmental work to Eastern Europe.This is an example of _____________ risk.

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

When differentiating products and services to local markets,strategies and tactics are likely to __________ company costs.

Which would be the appropriate strategy for companies to use to compete in the global marketplace if the marketplace pressure is for lower costs with little pressure for local adaptation?

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

In choosing one of the four basic strategies for competing in the global marketplace (international,global,multidomestic,transnational),the strategy that a company selects depends upon the degree of pressure that it is facing for revenues.

By 2015,it is predicted that trade within nations will exceed trade across nations.

Ricoh Americas Corporation has significant international operations.Faced with local reticence to adapt changes that come from other global regions,what does Ricoh suggest is the most successful approach?

Regionalization is most important because it permits companies to organize their activities based upon

High pressure for local adaptation combined with low pressure for lower costs would suggest what type of international strategy?

Traditionally,company globalization is measured in terms of its foreign sales as a percentage of total sales,but this can be confused with regionalization.

If a company is considering optimizing the physical location for every activity in the value chain,which of the following is not a possible strategic advantage for that decision?

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.