Exam 11: The Strategy of International Business

A strategy that focuses on lowering operating costs is referred to as a ________ strategy.

The essence of a differentiation strategy is to ________.

Micro-multinationals are firms that globalize immediately and enter countries with numerous customers,productive workers,and attractive industries.

Which of the following is the most important constraint on the explanatory power of the IO paradigm?

A multidomestic strategy makes the most sense for companies that see high pressures for local responsiveness and low pressures for cost reductions.

Which of the following is LEAST likely to trigger the standardization of consumer preferences?

Which of the following is considered a primary activity in a company's value chain?

Managers use a value chain analysis to determine how the company will design,make,move,and sell products; how it will find efficiencies in doing so; and how it will coordinate the decisions in one part of the business with those made in other parts.

A core competency gives every employee in an MNE a principle that helps them coordinate transactions between value activities.

The potential of new entrants in an industry is one of the forces in the Five-Forces Model of Industry Structure.

Host governments' growing demands for increasing operational transparency will most likely spur companies to make their value chains more ________.

What is the difference between primary and secondary activities in the value chain? Describe the functions of configuration and coordination in these value activities.

Which strategy champions worldwide consistency and standardization to support the firm's goal to become the low-cost leader?

Zara creates,produces,and distributes most of its products from its headquarters in Spain. Zara is most likely using a ________ configuration.

The fundamental outlook of the global strategy is adaptation.

Preston Electronics is an MNE with facilities located in Taiwan,Singapore,and Germany. Preston gives its local operations the authority to adapt value activities to prevailing local economic,political,legal,and cultural conditions. Preston is most likely using a(n)________ strategy.

Change in the long-term industry growth rate has the potential to transform an industry's structure.

Pressures for global integration include economic integration,convergent consumer preferences,and political demands imposed by host countries.

Digitization has altered location economics and established a new global model for service providers in the financial and legal industries.

In a brief essay,discuss the strategy used by Zara,the firm described in the opening case. Also discuss the features of Zara's value chain.