Question 1

Research suggests that the performance of the global strategy is enhanced if it deploys in areas where regional integration among countries is occurring.

Accepted Answer

A) True 
 B)False

Question 2

Exporting, licensing, and the strategic alliance entry modes are all appropriate for initial entrance into a new market.

Accepted Answer

A) True 
 B)False

Question 3

Cultural elements may affect location advantages in that business transactions are easier for a firm to complete when there is a strong cultural match with the institutions with which the firm is involved while implanting its international strategy.

Accepted Answer

A) True 
 B)False

Question 4

The two important environmental trends that influence a firm's choice and use of international corporate-level strategies are __________ and __________.

Accepted Answer

A)  culture; geographic scope 
B)  cost; quality 
C)  regionalization; globalization 
D)  liability of foreignness; regionalization 
A)  culture; geographic scope 
B)  cost; quality 
C)  regionalization; globalization 
D)  liability of foreignness; regionalization

Question 5

By choosing a region where markets are more similar, the firm may be able to better understand those markets and cater to their needs, but also achieve economies through sharing of resources.

Accepted Answer

A) True 
 B)False

Question 6

Bunyan Heavy Equipment, a U.S.firm, is investigating expanding into Russia using a greenfield venture.The committee researching this project has delivered a negative report.The main concern of the committee is probably:

Accepted Answer

A)  loss of intellectual property due to Russian piracy. 
B)  the fluctuation in the value of the ruble. 
C)  the numerous and conflicting legal authorities in Russia. 
D)  Russia's recent actions to gain state control of private firms' assets. 
A)  loss of intellectual property due to Russian piracy. 
B)  the fluctuation in the value of the ruble. 
C)  the numerous and conflicting legal authorities in Russia. 
D)  Russia's recent actions to gain state control of private firms' assets.

Question 7

Which of the following is NOT an incentive for firms to become multinational?

Accepted Answer

A)  To gain access to consumers in emerging markets 
B)  To gain easier access to raw materials 
C)  To avoid high domestic taxation on corporate income 
D)  Opportunities to integrate operations on a global scale 
A)  To gain access to consumers in emerging markets 
B)  To gain easier access to raw materials 
C)  To avoid high domestic taxation on corporate income 
D)  Opportunities to integrate operations on a global scale

Question 8

Identify and describe the major risks of international diversification.

Accepted Answer

International diversification carries mu

Question 9

Lampster Corp.is exploring options for entering into international markets.The key stakeholders have expressed a desire for low cost and low risk, and are willing to give up control and to accept low returns.The best type of entry for Lampster would be a strategic alliance.

Accepted Answer

A) True 
 B)False

Question 10

Japan, which has a lack of undeveloped land, would be an unusual choice of location for a U.S.cattle company to set up local grazing operations.This limiting factor would be identified in what part of Porter's determinants of national advantage?

Accepted Answer

A)  Factors of production 
B)  Demand conditions 
C)  Related and supporting industries 
D)  Firm strategy, structure, and rivalry 
A)  Factors of production 
B)  Demand conditions 
C)  Related and supporting industries 
D)  Firm strategy, structure, and rivalry

Question 11

How does international diversification impact a firm's returns?

Accepted Answer

Research shows that returns vary as the

Question 12

The "regionalization" environmental trend means that firms can focus on a region (customization) but also have some standardization or sharing within the region.

Accepted Answer

A) True 
 B)False

Question 13

International corporate-level strategy focuses on:

Accepted Answer

A)  the scope of a firm's operations through geographic diversification. 
B)  competition within each country. 
C)  economies of scale. 
D)  sophistication of monitoring and controlling systems. 
A)  the scope of a firm's operations through geographic diversification. 
B)  competition within each country. 
C)  economies of scale. 
D)  sophistication of monitoring and controlling systems.

Question 14

FanFare United is a global firm with operations in 20 countries.The home office of FanFare United determines the strategies that business units are to use in each country or region.FanFare is applying a multidomestic strategy.

Accepted Answer

A) True 
 B)False

Question 15

The amount of diversification in a firm's international operations that can be managed varies from company to company and is affected by managers' abilities to deal with ambiguity and complexity.

Accepted Answer

A) True 
 B)False

Question 16

Internationally diversified firms:

Accepted Answer

A)  earn greater returns on their innovations through larger or more numerous markets. 
B)  are more likely to produce below-average returns for investors in the long run. 
C)  may need to decrease international activities when domestic profits are poor. 
D)  are generally unable to achieve high levels of synergy because of differences in cultures. 
A)  earn greater returns on their innovations through larger or more numerous markets. 
B)  are more likely to produce below-average returns for investors in the long run. 
C)  may need to decrease international activities when domestic profits are poor. 
D)  are generally unable to achieve high levels of synergy because of differences in cultures.

Question 17

The decision of what entry mode to use is primarily based on all of the following factors EXCEPT the:

Accepted Answer

A)  industry's competitive conditions. 
B)  country's situation and government policies. 
C)  worldwide economic situation. 
D)  firm's unique set of resources, capabilities, and core competencies. 
A)  industry's competitive conditions. 
B)  country's situation and government policies. 
C)  worldwide economic situation. 
D)  firm's unique set of resources, capabilities, and core competencies.

Question 18

A firm may narrow its focus to a specific region of the world:

Accepted Answer

A)  because that market is most different from its domestic market and so represents an unexploited "greenfield opportunity" for its products. 
B)  in order to obtain greater economies of scale. 
C)  so that it can better understand the cultures, legal and social norms, and other factors that are important for effective competition in those markets. 
D)  to take advantage of limited protections of intellectual property so that it can manufacture innovative products without restrictions. 
A)  because that market is most different from its domestic market and so represents an unexploited "greenfield opportunity" for its products. 
B)  in order to obtain greater economies of scale. 
C)  so that it can better understand the cultures, legal and social norms, and other factors that are important for effective competition in those markets. 
D)  to take advantage of limited protections of intellectual property so that it can manufacture innovative products without restrictions.

Question 19

The benefits of expanding into international markets include all of the following opportunities EXCEPT:

Accepted Answer

A)  increasing the size of the firm's potential markets. 
B)  economies of scale and learning. 
C)  location advantages. 
D)  favorable tax concessions and economic incentives by home-country governments. 
A)  increasing the size of the firm's potential markets. 
B)  economies of scale and learning. 
C)  location advantages. 
D)  favorable tax concessions and economic incentives by home-country governments.

Question 20

Grassley-Partition Ltd.(GPL) is embarking on an international strategy.The firm wants to be able to take advantage of the economies of scale offered by global efficiency and, at the same time, be responsive to the individual markets into which it enters.GPL needs to pursue a transnational strategy.

Accepted Answer

A) True 
 B)False

Research suggests that the performance of the global strategy is enhanced if it deploys in areas where regional integration among countries is occurring.

Exporting, licensing, and the strategic alliance entry modes are all appropriate for initial entrance into a new market.

Cultural elements may affect location advantages in that business transactions are easier for a firm to complete when there is a strong cultural match with the institutions with which the firm is involved while implanting its international strategy.

The two important environmental trends that influence a firm's choice and use of international corporate-level strategies are and .

By choosing a region where markets are more similar, the firm may be able to better understand those markets and cater to their needs, but also achieve economies through sharing of resources.

Bunyan Heavy Equipment, a U.S.firm, is investigating expanding into Russia using a greenfield venture.The committee researching this project has delivered a negative report.The main concern of the committee is probably:

Which of the following is NOT an incentive for firms to become multinational?

Identify and describe the major risks of international diversification.

Lampster Corp.is exploring options for entering into international markets.The key stakeholders have expressed a desire for low cost and low risk, and are willing to give up control and to accept low returns.The best type of entry for Lampster would be a strategic alliance.

Japan, which has a lack of undeveloped land, would be an unusual choice of location for a U.S.cattle company to set up local grazing operations.This limiting factor would be identified in what part of Porter's determinants of national advantage?

How does international diversification impact a firm's returns?

The "regionalization" environmental trend means that firms can focus on a region (customization) but also have some standardization or sharing within the region.

International corporate-level strategy focuses on:

FanFare United is a global firm with operations in 20 countries.The home office of FanFare United determines the strategies that business units are to use in each country or region.FanFare is applying a multidomestic strategy.

The amount of diversification in a firm's international operations that can be managed varies from company to company and is affected by managers' abilities to deal with ambiguity and complexity.

Internationally diversified firms:

The decision of what entry mode to use is primarily based on all of the following factors EXCEPT the:

A firm may narrow its focus to a specific region of the world:

The benefits of expanding into international markets include all of the following opportunities EXCEPT:

Grassley-Partition Ltd.(GPL) is embarking on an international strategy.The firm wants to be able to take advantage of the economies of scale offered by global efficiency and, at the same time, be responsive to the individual markets into which it enters.GPL needs to pursue a transnational strategy.

Strategic Management and Strategic Competitiveness

The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis

The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages

Business-Level Strategy

Competitive Rivalry and Competitive Dynamics

Corporate-Level Strategy

Merger and Acquisition Strategies

Cooperative Strategy

Corporate Governance

Organizational Structure and Controls

Strategic Leadership

Strategic Entrepreneurship

Filters

Exam 8: International Strategy

Research suggests that the performance of the global strategy is enhanced if it deploys in areas where regional integration among countries is occurring.

Exporting, licensing, and the strategic alliance entry modes are all appropriate for initial entrance into a new market.

Cultural elements may affect location advantages in that business transactions are easier for a firm to complete when there is a strong cultural match with the institutions with which the firm is involved while implanting its international strategy.

The two important environmental trends that influence a firm's choice and use of international corporate-level strategies are __________ and __________.

By choosing a region where markets are more similar, the firm may be able to better understand those markets and cater to their needs, but also achieve economies through sharing of resources.

Bunyan Heavy Equipment, a U.S.firm, is investigating expanding into Russia using a greenfield venture.The committee researching this project has delivered a negative report.The main concern of the committee is probably:

Which of the following is NOT an incentive for firms to become multinational?

Identify and describe the major risks of international diversification.

Lampster Corp.is exploring options for entering into international markets.The key stakeholders have expressed a desire for low cost and low risk, and are willing to give up control and to accept low returns.The best type of entry for Lampster would be a strategic alliance.

Japan, which has a lack of undeveloped land, would be an unusual choice of location for a U.S.cattle company to set up local grazing operations.This limiting factor would be identified in what part of Porter's determinants of national advantage?

How does international diversification impact a firm's returns?

The "regionalization" environmental trend means that firms can focus on a region (customization) but also have some standardization or sharing within the region.

International corporate-level strategy focuses on:

FanFare United is a global firm with operations in 20 countries.The home office of FanFare United determines the strategies that business units are to use in each country or region.FanFare is applying a multidomestic strategy.

The amount of diversification in a firm's international operations that can be managed varies from company to company and is affected by managers' abilities to deal with ambiguity and complexity.

Internationally diversified firms:

The decision of what entry mode to use is primarily based on all of the following factors EXCEPT the:

A firm may narrow its focus to a specific region of the world:

The benefits of expanding into international markets include all of the following opportunities EXCEPT:

Grassley-Partition Ltd.(GPL) is embarking on an international strategy.The firm wants to be able to take advantage of the economies of scale offered by global efficiency and, at the same time, be responsive to the individual markets into which it enters.GPL needs to pursue a transnational strategy.

Strategic Management and Strategic Competitiveness

The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis

The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages

Business-Level Strategy

Competitive Rivalry and Competitive Dynamics

Corporate-Level Strategy

Merger and Acquisition Strategies

Cooperative Strategy

Corporate Governance

Organizational Structure and Controls

Strategic Leadership

Strategic Entrepreneurship

Filters

The two important environmental trends that influence a firm's choice and use of international corporate-level strategies are and .