Exam 8: International Strategy

Strategic alliances tend to increase the risk associated with international expansion for the U.S.partner because of the greater dependence on the foreign firm.

A multidomestic corporate-level strategy is one in which:

Michael Porter's determinants of national advantage describe factors associated with the firm's domestic environment that contribute to its dominance in a particular global industry.

Although licensing is the least costly method to enter a foreign market, its disadvantages include high costs of transportation and low control over the marketing and distribution of goods.

A U.S.manufacturer of adaptive devices for persons with disabilities is considering expanding internationally.It is a fairly small company, but it is looking for growth opportunities.This company should primarily consider the option of:

An international diversification strategy is one in which a firm:

In place of what historically were relatively stable and predictable domestic markets, firms across the globe find that they are now competing in relatively unstable and unpredictable global markets.

The positive results associated with increasing international diversification have been shown to:

Both the size and the nature of a country's domestic demand for a particular industry's good or service are important in Porter's determinants of national advantage.

Evidence suggests that, in general, using an international cost leadership strategy when exporting to developed countries has the most positive effect on firm performance, while using an international differentiation strategy with larger scale when exporting to emerging economies leads to the greatest amount of success.

Fluctuation in the value of different currencies is a major economic risk associated with international diversification.

The increased pressures for global integration of operations have been driven mostly by:

Effectively implementing the __________ international corporate-level strategy often produces higher performance than does implementing either the __________ or __________ strategies.

A firm based in a country with a national competitive advantage is not guaranteed success as it implements its chosen international business-level strategy.Instead, the actual strategic choices managers make may be the most compelling reasons for success or failure.

In Porter's model, if a country has both __________ and __________ production factors, it is likely to serve an industry well by spawning strong home-country competitors that can also be successful global competitors.

The location advantages associated with locating facilities in other countries can include all of the following EXCEPT:

Why do U.S.companies moving into the international market need to be sensitive to the need for local country or regional responsiveness?

International associations such as the European Union, the Organization of American States, and the North American Free Trade Agreement encourage regionalization strategies rather than globalization.

The four determinants in Porter's model of international competitive advantage include all of the following EXCEPT:

Spotnick Enterprises is exploring options for entering into international markets.The key stakeholders have expressed that the primary concern is that Spotnick maintain the maximum amount of control possible in order to protect its proprietary technology.What type of entry would be best for Spotnick?