Exam 8: Strategy in the Global Environment

A) It gives little emphasis to cost reduction and achieving scale economies.
B) It makes little sense when the pressures for local responsiveness are intense.
C) It is an easy one to pursue because it places minimal demands on the company.
D) It fosters a flow of skills between different subsidiaries in the company's global network of operations.
E) It is adopted by companies that produce standardized goods that do not require product differentiation.

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A) It focuses on marketing a standardized product worldwide to achieve cost reductions.
B) It makes most sense when cost pressures are extremely intense.
C) It is most appropriate when there are similarities across nations with regard to consumer tastes and preferences.
D) It involves some duplication of functions and smaller production runs.
E) It usually relieves companies of the task of closely monitoring their costs.

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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

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A) Globalization of production has significantly increased the costs for many industries.
B) The globalization of markets and production has failed to threaten companies' horne markets.
C) Consolidated oligopolies continue to be dominated by a small number of companies despite globalization.
D) The shift from national to global markets has curbed competitive rivalry in many industries.
E) Globalization has significantly increased the threat of entry.

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False

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A) lower their market share.
B) lower their cost structure.
C) centralize their production process.
D) curb international competition.
E) limit the number of market segments.

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A) negative feedback loops.
B) economies of scope.
C) the transnational strategy.
D) location economies.
E) its localization strategy.

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A) It is more likely to be a service company.
B) It is more likely to have a greater control over the quality the products manufactured in the foreign country.
C) It is less likely to impose strict rules regarding how a franchisee does business.
D) It is less likely to receive royalty payment from the franchisee.
E) It is more likely to bear the development costs associated with opening a foreign market on its own.

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A) It ensures tight control over quality.
B) It enables companies to engage in global strategic coordination.
C) It involves low development costs and risks.
D) It enables the company to collect all the profits made by the franchisees.
E) It frees companies from the task of monitoring and assisting operations at franchisees.

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National competitive advantage refers to the fact that the nation within which a company is based may have an important bearing on the competitive position of that company in the global marketplace.There are four attributes of a country-specific environment that have an important impact on the global competitiveness of companies based within that country.Factor endowments encompass a nation's position in factors of production and include factors such as skilled labor and the infrastructure necessary to compete in a given industry.Demand conditions refer to the nature of demand for a product or service in the horne country.Relating and supporting industries refer to the presence or absence of supplier industries and related industries that are internationally competitive.Finally, finn strategy, structure, and rivalry refers to the conditions in the nation governing how companies are created, organized, and managed and the nature of domestic rivalry.

A) Factor endowments
B) Local demand conditions
C) Related and supporting industries
D) Strategy, structure, and rivalry of firms within the nation
E) Advertising expenses

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A) Global envirornnental demands
B) Host govennnent demands
C) Differences in distribution channels
D) Differences in customer tastes and preferences
E) Differences in infrastructure

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A) It emphasizes product customization to specifically meet customer needs.
B) It involves the spreading of production, marketing, and research and development activities of companies to all the location it operates in.
C) It makes most sense when there are strong pressures for cost reductions.
D) It makes most sense when the pressures for local responsiveness are maximum.
E) It fails to focus on achieving location and scale economies.

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C

A) They give competitors a low-cost route to new technology and markets.
B) They do not facilitate entry into a foreign market.
C) They do not allow for sharing of risks and fixed costs.
D) They mandate that the companies do not share complementary skills and assets.
E) They cause problems when it comes to establishing technological standards for the industry.

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A) Land
B) Labor
C) Raw materials
D) Competitive forces
E) Managerial sophistication

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