Question 1

Cost reduction pressures can be particularly intense in industries producing:

Accepted Answer

A)  commodity-type products.
B)  highly differential products.
C)  highly customized services.
D)  goods that have no close substitutes.
E)  goods that need minimal advertising.

Question 2

List and briefly describe each of the four basic global strategies.

Accepted Answer

Companies that pursue a global standardi...

Question 3

An international strategy may not be viable in the long term,but companies that can pursue it need to shift toward a global standardization strategy to survive.

Accepted Answer

A) True 
 B)False  True

Question 4

Global expansion:

Accepted Answer

A)  is feasible only for non-technology based companies.
B)  can enable companies to increase their profitability and grow their profits more rapidly.
C)  has significantly decreased in the recent years as the industry barriers are now higher.
D)  does not involve selling existing products to new markets in different countries.
E)  is not feasible for service-based firms.

Question 5

Which of the following is not a necessity for leveraging the competencies of global subsidiaries?

Accepted Answer

A)  Incentives for local managers to share knowledge and ideas
B)  Awareness among managers that competencies can develop anywhere
C)  Assertion of monopoly of the corporate center over subsidiaries
D)  Transfer of competencies around the company
E)  Incentives that encourage employees to take necessary risks

Question 6

Global economies of scale can be realized by:

Accepted Answer

A)  restricting the expansion of overseas sales.
B)  limiting the utilization of production facilities.
C)  curbing bargaining power with suppliers.
D)  decreasing cost savings through learning effects.
E)  spreading the fixed costs associated with developing. E

Question 7

Relish is a large fast food chain that operates in many countries.As there are several competitors in the fast food sector,the company has been facing intense pressures for achieving low cost structures.The company also faces the task of customizing its product line as there are significant differences in tastes and preferences among customers in different geographic locations.In order to achieve both low costs and product differentiation,the company should aim to pursue a _____ strategy.

Accepted Answer

A)  global standardization
B)  transnational
C)  localization
D)  downsizing
E)  divestment

Question 8

When a company licenses its technology it can quickly lose control over it.

Accepted Answer

A) True 
 B)False  True

Question 9

For a strategic alliance,firms should seek partners that are:

Accepted Answer

A)  different in terms of vision and agendas.
B)  known for being opportunistic.
C)  willing to share costs and risks of product development.
D)  radically different when it comes to strategic goals.
E)  similar when it comes to capabilities.

Question 10

Despite the globalization of production and markets,many of the most successful companies in certain industries are still clustered in a small number of countries.

Accepted Answer

A) True 
 B)False

Question 11

Which entry mode gives a multinational the tightest control over foreign operations?

Accepted Answer

A)  Exporting from the home country and letting a foreign agent organize local marketing
B)  Licensing
C)  Franchising
D)  Entering into a joint venture with a foreign company to set up overseas operations
E)  Setting up a wholly owned subsidiary

Question 12

Starbucks,Sony,and Coca-Cola conduct business in two or more countries.These companies can be referred to as multinational companies.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements is true in the context of local demand conditions?

Accepted Answer

A)  Companies are typically least sensitive to the needs of their closest customers.
B)  Home demand plays little role in helping companies upgrade their national competitive advantage.
C)  A nation's companies gain competitive advantage if their domestic customers are sophisticated and demanding.
D)  The characteristics of international demand alone shape the attributes of a company's products; not local demand.
E)  Local demand characteristics have little role to play in creating pressure for innovation and quality.

Question 14

Differences in tastes and preferences:

Accepted Answer

A)  increase pressures for cost reductions.
B)  do not affect service-based firms.
C)  increase pressures for local responsiveness.
D)  reduce pressures from the host government.
E)  significantly decrease R&D costs of a company.

Question 15

A company can increase its growth rate by taking goods or services developed at home and selling them internationally.

Accepted Answer

A) True 
 B)False

Question 16

Factor endowments,the cost and quality of factors of production,are a prime determinant of the competitive advantage that certain countries have in certain industries.

Accepted Answer

A) True 
 B)False

Question 17

Black and Decker,Capitol One,Gillette,and Unilever are all companies that conduct business in two or more national markets.These companies are known as:

Accepted Answer

A)  bimarket companies.
B)  national companies.
C)  domestic companies.
D)  multinational companies.
E)  localized companies.

Question 18

Strategic alliances can be designed to make it difficult (if not impossible)to transfer technology that is not meant to be transferred.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following factors increases pressures for cost reductions?

Accepted Answer

A)  Meaningful differentiation between products
B)  Reduced international competition
C)  Competitors that are based in high-cost locations
D)  High switching costs
E)  Persistent excess capacity

Question 20

Most manufacturing companies begin their global expansion by exporting.

Accepted Answer

A) True 
 B)False

Exam 8: Strategy in the Global Environment

Cost reduction pressures can be particularly intense in industries producing:

Correct Answer
verified

List and briefly describe each of the four basic global strategies.

Correct Answer
verified
Companies that pursue a global standardi...
View Answer

An international strategy may not be viable in the long term,but companies that can pursue it need to shift toward a global standardization strategy to survive.

Correct Answer
verified
True

Global expansion:

Correct Answer
verified

Which of the following is not a necessity for leveraging the competencies of global subsidiaries?

Correct Answer
verified

Global economies of scale can be realized by:

Correct Answer
verified
E

Correct Answer
verified

When a company licenses its technology it can quickly lose control over it.

Correct Answer
verified
True

For a strategic alliance,firms should seek partners that are:

Correct Answer
verified

Despite the globalization of production and markets,many of the most successful companies in certain industries are still clustered in a small number of countries.

Correct Answer
verified

Which entry mode gives a multinational the tightest control over foreign operations?

Correct Answer
verified

Starbucks,Sony,and Coca-Cola conduct business in two or more countries.These companies can be referred to as multinational companies.

Correct Answer
verified

Which of the following statements is true in the context of local demand conditions?

Correct Answer
verified

Differences in tastes and preferences:

Correct Answer
verified

A company can increase its growth rate by taking goods or services developed at home and selling them internationally.

Correct Answer
verified

Factor endowments,the cost and quality of factors of production,are a prime determinant of the competitive advantage that certain countries have in certain industries.

Correct Answer
verified

Black and Decker,Capitol One,Gillette,and Unilever are all companies that conduct business in two or more national markets.These companies are known as:

Correct Answer
verified

Strategic alliances can be designed to make it difficult (if not impossible)to transfer technology that is not meant to be transferred.

Correct Answer
verified

Which of the following factors increases pressures for cost reductions?

Correct Answer
verified

Most manufacturing companies begin their global expansion by exporting.

Correct Answer
verified

Exam 8: Strategy in the Global Environment

Cost reduction pressures can be particularly intense in industries producing:

Correct AnswerverifiedShow Answer

List and briefly describe each of the four basic global strategies.

Correct AnswerverifiedCompanies that pursue a global standardi...View AnswerShow Answer

An international strategy may not be viable in the long term,but companies that can pursue it need to shift toward a global standardization strategy to survive.

Correct AnswerverifiedTrue

Global expansion:

Correct AnswerverifiedShow Answer

Which of the following is not a necessity for leveraging the competencies of global subsidiaries?

Correct AnswerverifiedShow Answer

Global economies of scale can be realized by:

Correct AnswerverifiedE

Correct AnswerverifiedShow Answer

When a company licenses its technology it can quickly lose control over it.

Correct AnswerverifiedTrue

For a strategic alliance,firms should seek partners that are:

Correct AnswerverifiedShow Answer

Despite the globalization of production and markets,many of the most successful companies in certain industries are still clustered in a small number of countries.

Correct AnswerverifiedShow Answer

Which entry mode gives a multinational the tightest control over foreign operations?

Correct AnswerverifiedShow Answer

Starbucks,Sony,and Coca-Cola conduct business in two or more countries.These companies can be referred to as multinational companies.

Correct AnswerverifiedShow Answer

Which of the following statements is true in the context of local demand conditions?

Correct AnswerverifiedShow Answer

Differences in tastes and preferences:

Correct AnswerverifiedShow Answer

A company can increase its growth rate by taking goods or services developed at home and selling them internationally.

Correct AnswerverifiedShow Answer

Factor endowments,the cost and quality of factors of production,are a prime determinant of the competitive advantage that certain countries have in certain industries.

Correct AnswerverifiedShow Answer

Black and Decker,Capitol One,Gillette,and Unilever are all companies that conduct business in two or more national markets.These companies are known as:

Correct AnswerverifiedShow Answer

Strategic alliances can be designed to make it difficult (if not impossible)to transfer technology that is not meant to be transferred.

Correct AnswerverifiedShow Answer

Which of the following factors increases pressures for cost reductions?

Correct AnswerverifiedShow Answer

Most manufacturing companies begin their global expansion by exporting.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
Companies that pursue a global standardi...
View Answer

Correct Answer
verified
True

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
E

Correct Answer
verified

Correct Answer
verified
True

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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