Exam 12: The Strategy of International Business

Markets are not always perfectly competitive and some firms consistently outperform industry averages.This suggests that firm performance is also influenced by the presence of bright, motivated managers and their keen sense of innovative products or processes.

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

An MNE in which new knowledge and capabilities are developed in both domestic and foreign locations, both independently and jointly, and then diffused throughout the worldwide organization, is following a ________ strategy.

Tel-Comm Tek is a company that sees the world as a single market, assuming that consumer preferences and industry conditions do not vary much among countries.Tel-Comm Tek is likely to adopt a multidomestic strategy.

Pressures for local responsiveness are especially important in industries where value creation is a function of a company's capacity to adapt to local market conditions.

Firms that compete in the global marketplace typically face the asymmetric forces of pressures for ________ and ________.

Mobile Technology is a company that sees the world as a single market, assuming that consumer preferences and industry conditions do not vary much among countries.Mobile Technology is likely to adopt a global strategy.

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

According to the Integration-Responsiveness (IR)Grid, consumer electronics and corporate banking are two types of industries with ________ industry pressure for global integration and ________ industry

What is configuration? Briefly list and discuss the factors that influence value chain configuration.

Political, legal, economic, monetary, and institutional forces comprise the ________ of international business and influence managers' actions.

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

When different companies produce the same commodity, their costs are essentially the same.

When the pressure for global integration is high and the pressure for local responsiveness is low, a company is most likely to pursue a(n)________ strategy.

Using a concentrated configuration, an MNE performs value activities in different countries.

A ________ is a special outlook, skill, capability, or technology that runs through the firm's operations, weaving together all value activities into an integrated value chain.

A company that develops different capabilities and contributions from different countries and shares them in integrated worldwide operations is using a transnational strategy.

A differentiation strategy works well in situations where there are many ways to differentiate a product or service and many buyers perceive these differences as having value.

In the context of value chain analysis, the support activities of a firm include ________.

The strategy of a firm using an international strategy is likely to entail producing and marketing mostly standardized products worldwide, with some customization where and when necessary.