Question 1

The rise of _________ capitalism around the world creates tremendous business opportunities for multinational corporations.

Accepted Answer

A)   social
B)   multinational
C)   market
D)   democraticE) C) and D)
F) B) and D)

Question 2

According to Michael Porter,firms that have experienced intense domestic competition are

Accepted Answer

A)   unlikely to have the time or resources to compete abroad.
B)   more likely to demand protection from their governments.
C)   most likely to design strategies aimed primarily at the domestic market.
D)   more likely to design strategies that will allow them to successfully compete abroad.E) A) and B)
F) A) and C)

Question 3

The trade among nations has increased dramatically in recent years,and it is estimated that by 2015 the trade ________ nations will exceed the trade _______ nations.

Accepted Answer

A)   within; across
B)   across; within
C)   with; outside of
D)   above; withinE) All of the above
F) A) and C)

Question 4

Globalization opens the doors for companies to attract new customers.One of the challenges is to determine how to meet the needs of these customers who have

Accepted Answer

A)   different income levels.
B)   low income levels.
C)   high income levels.
D)   steady income levels.E) All of the above
F) B) and C)

Question 5

The sale of Boeing commercial aircraft and Microsoft operating systems in many countries enables these companies to benefit from

Accepted Answer

A)   higher prices in their domestic markets.
B)   reducing their exposure to currency risks.
C)   economies of scale.
D)   optimizing the location for many activities in their value chain.E) A) and C)
F) None of the above

Question 6

Similarity of culture,laws,rules,and norms encourages

Accepted Answer

A)   regionalization.
B)   globalization.
C)   trans-nationalization.
D)   ethnocentric expansion.E) None of the above
F) A) and B)

Question 7

Which one of the following is not a limitation of a global strategy?

Accepted Answer

A)   limited ability to adapt to local markets
B)   the ability to locate activities in optimal locations
C)   the concentration of activities may increase dependence on a single facility
D)   single locations may lead to higher tariffs and transportation costsE) B) and C)
F) A) and C)

Question 8

Multinational companies,like GE,take advantage of globalization to tap into talent around the world in order to build products.

Accepted Answer

A) True 
 B)False

Question 9

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) B) and C)
F) All of the above

Question 10

In the quest to achieve competitive advantage in global markets,competitive pressures require that firms do what they can to _______ unit costs so that consumers will not perceive their product and service offerings as too expensive.

Accepted Answer

A)   raise
B)   decentralize
C)   define
D)   lowerE) B) and D)
F) B) and C)

Question 11

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)   exporting.E) A) and B)
F) A) and C)

Question 12

Expanding the global presence of a firm automatically increases its scale of operations.

Accepted Answer

A) True 
 B)False

Question 13

As in the case of Siebel Systems (now part of Oracle) ,elements of a global strategy may facilitate the competitive advantage of differentiation by

Accepted Answer

A)   increased freedom of individual business units to adapt to local tastes.
B)   the creation of a worldwide network to achieve consistent service regardless of location.
C)   flexibility in applying Research and Development to meet country-specific needs.
D)   tailoring products to meet country-specific needs.E) A) and C)
F) B) and D)

Question 14

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) A) and B)

Question 15

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.E) None of the above
F) All of the above

Question 16

According to the Euromoney magazine 2014 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)   ArgentinaE) B) and C)
F) A) and D)

Question 17

Which of the following types of international firms are most likely to benefit from a global strategy as opposed to a multidomestic strategy?

Accepted Answer

A)   firms that compete in industries in which consumer preferences vary substantially in each country
B)   firms in industries that are expanding very rapidly
C)   firms in industries that have value added by sales and marketing departments
D)   firms in industries that have much value added in research and design or manufacturingE) A) and D)
F) A) and C)

Question 18

A natural regional trade bloc based upon language affinity is the region from Algeria and Morocco to Oman and Yemen.

Accepted Answer

A) True 
 B)False

Question 19

Fees that a multinational receives from a foreign licensee in return for its use of intellectual property (trademark,patent,trade secret,technology) are usually called

Accepted Answer

A)   transfer prices.
B)   dividends.
C)   royalties.
D)   intra-corporate inflows.E) B) and D)
F) B) and C)

Question 20

Customer needs and interests are becoming increasingly divergent worldwide,according to Theodore Levitt.

Accepted Answer

A) True 
 B)False

Exam 7: International Strategy: Creating Value in Global Markets

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

Correct AnswerverifiedShow Answer

Globalization opens the doors for companies to attract new customers.One of the challenges is to determine how to meet the needs of these customers who have

Correct AnswerverifiedShow Answer

The sale of Boeing commercial aircraft and Microsoft operating systems in many countries enables these companies to benefit from

Correct AnswerverifiedShow Answer

Similarity of culture,laws,rules,and norms encourages

Correct AnswerverifiedShow Answer

Customer needs and interests are becoming increasingly divergent worldwide,according to Theodore Levitt.

Correct AnswerverifiedShow Answer

According to Michael Porter,firms that have experienced intense domestic competition are

Correct AnswerverifiedShow Answer

Which of the following types of international firms are most likely to benefit from a global strategy as opposed to a multidomestic strategy?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Multinational companies,like GE,take advantage of globalization to tap into talent around the world in order to build products.

Correct AnswerverifiedShow Answer

In the quest to achieve competitive advantage in global markets,competitive pressures require that firms do what they can to _______ unit costs so that consumers will not perceive their product and service offerings as too expensive.

Correct AnswerverifiedShow Answer

Fees that a multinational receives from a foreign licensee in return for its use of intellectual property (trademark,patent,trade secret,technology) are usually called

Correct AnswerverifiedShow Answer

Which one of the following is not a limitation of a global strategy?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The rise of _________ capitalism around the world creates tremendous business opportunities for multinational corporations.

Correct AnswerverifiedShow Answer

The trade among nations has increased dramatically in recent years,and it is estimated that by 2015 the trade ________ nations will exceed the trade _______ nations.

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

According to the Euromoney magazine 2014 annual Country Risk Rating,which one of the following countries has the highest economic risk?

Correct AnswerverifiedShow Answer

As in the case of Siebel Systems (now part of Oracle) ,elements of a global strategy may facilitate the competitive advantage of differentiation by

Correct AnswerverifiedShow Answer

A natural regional trade bloc based upon language affinity is the region from Algeria and Morocco to Oman and Yemen.

Correct AnswerverifiedShow Answer

Expanding the global presence of a firm automatically increases its scale of operations.

Correct AnswerverifiedShow Answer

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

The trade among nations has increased dramatically in recent years,and it is estimated that by 2015 the trade __ nations will exceed the trade _ nations.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified