Exam 8: International Strategy

Which pair of industries would NOT be considered as "related and supporting" under Porter's diamond model?

Having substantial supplies of critical basic natural resources is a necessary condition for a country to support businesses that can successfully compete in international markets.

Associations such as the European Union, Organization of American States, and the North American Free Trade Agreement encourage:

Costco provides the service of buying goods in large quantities and selling them to consumers at lower prices.Economies of scale are a key aspect of Costco's business model.

South Korea's success in international markets is primarily a result of its abundant natural resources.

In some industries, technology drives globalization because the economies of scale necessary to reduce costs cannot be met by competing in domestic markets alone.

The three basic benefits of international strategies are increased market size, economies of scale and learning, and location advantages.

Discuss the three international corporate-level strategies.On what factors are these strategies based?

Samuelsons entered into a joint venture with a Japanese firm to gain entry into parts of the Asian market.Excessive conflict between the two firms is getting in the way of success.If the conflict remains unmanageable, Samuelsons would probably be better off considering what option to meet its goals?

The chief risks in the international environment are political and cultural.

A fundamental reason for a country's development of advanced and specialized factors of production is often its: ​

A major incentive for the use of international strategy by French-based Carrefour S.A.is the potential for large demand for goods and services from emerging markets such as China and India.

Rivals Airbus SAS and Boeing have multiple manufacturing facilities and outsource some activities to firms located throughout the world, partly for the purpose of developing economies of scale as a source of being able to create value for customers.

Leeway Corp.wants to pursue a business-level international strategy to export to developed countries.Which of the following strategies would Leeway most likely select?

The global strategy offers greater opportunities to take innovations developed at the corporate level, or in one market, and apply them in other markets.

Identify and compare the modes of entering international markets.What are the relative advantages and disadvantages of each?

Four types of distances are associated with the liability of foreignness: cultural, administrative, geographic, and economic.

Factors of production in Porter's model of international competitive advantage include all of the following EXCEPT:

The growing number of global competitors heightens the requirements to keep costs down and there is the desire for more specialized products to meet customer needs.These two pressures make transnational strategies increasingly necessary.

Which of the following is an advantage associated with greenfield ventures?