Question 1

Multinational firms are constantly faced with the decision of choosing between ________ adaptation and ________ integration.

Accepted Answer

A)  local; local 
B)  local; global 
C)  global; local 
D)  global; global 
A)  local; local 
B)  local; global 
C)  global; local 
D)  global; global B

Question 2

A firm can establish a wholly owned subsidiary by

Accepted Answer

A)  acquiring an existing company in the home country. 
B)  keeping all of the activity offshore. 
C)  licensing intellectual property. 
D)  entering into a franchising agreement. 
A)  acquiring an existing company in the home country. 
B)  keeping all of the activity offshore. 
C)  licensing intellectual property. 
D)  entering into a franchising agreement. A

Question 3

A U.S. firm expands into China and Canada at exactly the same sales volume. The physical distance is the only factor that affects the true distance between the countries.

Accepted Answer

A) True 
 B)False  False

Question 4

When the GE wind energy business tapped into world-wide talent, it was able to expand using a(n) ________ strategy.

Accepted Answer

A)  focus 
B)  diversification 
C)  unrelated 
D)  generic 
A)  focus 
B)  diversification 
C)  unrelated 
D)  generic

Question 5

Which of the following is not a risk normally associated with bottom-of-the-pyramid strategies?

Accepted Answer

A)  A low-end version of a brand may detract from the overall brand attractiveness. 
B)  The new low-cost products they develop may cannibalize the sales of their core products. 
C)  Entrenched competitors can impact the ability of the new firm to enter the market successfully. 
D)  New products may be perceived as exploiting the privileged customer with substandard products. 
A)  A low-end version of a brand may detract from the overall brand attractiveness. 
B)  The new low-cost products they develop may cannibalize the sales of their core products. 
C)  Entrenched competitors can impact the ability of the new firm to enter the market successfully. 
D)  New products may be perceived as exploiting the privileged customer with substandard products.

Question 6

Which of the following is a source of economic risk in many countries?

Accepted Answer

A)  good intellectual property law 
B)  counterfeiting 
C)  good enforcement of property rights 
D)  political unrest 
A)  good intellectual property law 
B)  counterfeiting 
C)  good enforcement of property rights 
D)  political unrest

Question 7

In the Kulshrestha article "Learning from Mistakes" that is presented at the beginning of the textbook chapter, only a few Indian malls built after 1990 have been successful over thelongterm. Why?

Accepted Answer

Multinational firms are constantly faced

Question 8

Greeks reacted negatively to Coca-Cola advertising using Coke bottles as pillars for the Parthenon. This is a form of ________ risk.

Accepted Answer

A)  currency 
B)  management 
C)  economic 
D)  environmental 
A)  currency 
B)  management 
C)  economic 
D)  environmental

Question 9

What is a beachhead strategy and how does it contribute to a company's decision to internationalize?

Accepted Answer

Multinationals often stumble onto a step

Question 10

Similarity of culture, laws, rules, and norms encourages

Accepted Answer

A)  regionalization. 
B)  globalization. 
C)  trans-nationalization. 
D)  ethnocentric expansion. 
A)  regionalization. 
B)  globalization. 
C)  trans-nationalization. 
D)  ethnocentric expansion.

Question 11

Shared Arabic language and the Muslim religion is one reason that explains regionalism tendencies in

Accepted Answer

A)  South America. 
B)  the Maghreb. 
C)  European Union. 
D)  North America. 
A)  South America. 
B)  the Maghreb. 
C)  European Union. 
D)  North America.

Question 12

Wages in developing markets can be volatile and spike dramatically. The United States can be ________ on a wage basis if its average wages decline.

Accepted Answer

A)  less competitive 
B)  more competitive 
C)  more risky 
D)  more volatile 
A)  less competitive 
B)  more competitive 
C)  more risky 
D)  more volatile

Question 13

The trend towards worldwide markets makes it easier to predict where competitors will spring up.

Accepted Answer

A) True 
 B)False

Question 14

Countries with demanding consumers, like environmentally-concerned Denmark, drive ________ to meet the demand.

Accepted Answer

A)  worldwide innovation 
B)  in-country innovation 
C)  foreign manufacturing 
D)  global exchange 
A)  worldwide innovation 
B)  in-country innovation 
C)  foreign manufacturing 
D)  global exchange

Question 15

Explain the role of factor endowments in the rise of the software industry in India.

Accepted Answer

Factor endowments are conducive to the r

Question 16

The creation of a third-party legal entity is required for___________, whereas for ________ it is not.

Accepted Answer

A)  licensing agreements; joint ventures 
B)  strategic alliances; joint ventures 
C)  joint ventures; strategic alliances 
D)  franchising agreements; strategic alliances 
A)  licensing agreements; joint ventures 
B)  strategic alliances; joint ventures 
C)  joint ventures; strategic alliances 
D)  franchising agreements; strategic alliances

Question 17

Which of these points on the Porter diamond of national advantage is the strongest indicator of global competitive success?

Accepted Answer

A)  foreign rivalry 
B)  domestic rivalry 
C)  global rivalry 
D)  international rivalry 
A)  foreign rivalry 
B)  domestic rivalry 
C)  global rivalry 
D)  international rivalry

Question 18

When differentiating products and services to local markets, strategies and tactics are likely to ________ company costs.

Accepted Answer

A)  decrease 
B)  increase 
C)  obliterate 
D)  decentralize 
A)  decrease 
B)  increase 
C)  obliterate 
D)  decentralize

Question 19

What is international strategy? Discuss the risks and challenges associated with an international strategy.

Accepted Answer

International strategy is a strategy bas

Question 20

What agreement entails the creation of a third-party legal entity?

Accepted Answer

A)  strategic alliance 
B)  joint venture 
C)  licensing 
D)  exporting 
A)  strategic alliance 
B)  joint venture 
C)  licensing 
D)  exporting

Multinational firms are constantly faced with the decision of choosing between adaptation and integration.

A firm can establish a wholly owned subsidiary by

A U.S. firm expands into China and Canada at exactly the same sales volume. The physical distance is the only factor that affects the true distance between the countries.

When the GE wind energy business tapped into world-wide talent, it was able to expand using a(n) ________ strategy.

Which of the following is not a risk normally associated with bottom-of-the-pyramid strategies?

Which of the following is a source of economic risk in many countries?

In the Kulshrestha article "Learning from Mistakes" that is presented at the beginning of the textbook chapter, only a few Indian malls built after 1990 have been successful over thelongterm. Why?

Greeks reacted negatively to Coca-Cola advertising using Coke bottles as pillars for the Parthenon. This is a form of ________ risk.

What is a beachhead strategy and how does it contribute to a company's decision to internationalize?

Similarity of culture, laws, rules, and norms encourages

Shared Arabic language and the Muslim religion is one reason that explains regionalism tendencies in

Wages in developing markets can be volatile and spike dramatically. The United States can be ________ on a wage basis if its average wages decline.

The trend towards worldwide markets makes it easier to predict where competitors will spring up.

Countries with demanding consumers, like environmentally-concerned Denmark, drive ________ to meet the demand.

Explain the role of factor endowments in the rise of the software industry in India.

The creation of a third-party legal entity is required for___, whereas for it is not.

Which of these points on the Porter diamond of national advantage is the strongest indicator of global competitive success?

When differentiating products and services to local markets, strategies and tactics are likely to ________ company costs.

What is international strategy? Discuss the risks and challenges associated with an international strategy.

What agreement entails the creation of a third-party legal entity?

Strategic Management Creating Competitive Advantages

Analyzing the External Environment of the Firm Creating Competitive Advantages

Assessing the Internal Environment of the Firm

Recognizing a Firm's Intellectual Assets Moving beyond a Firm's Tangible Resources

Business-Level Strategy Creating and Sustaining Competitive Advantages

Corporate-Level Strategy Creating Value through Diversification

Entrepreneurial Strategy and Competitive Dynamics

Strategic Control and Corporate Governance

Creating Effective Organizational Designs

Strategic Leadership Creating a Learning Organization and an Ethical Organization

Managing Innovation and Fostering Corporate Entrepreneurship

Filters

Exam 7: International Strategy Creating Value in Global Markets

Multinational firms are constantly faced with the decision of choosing between ________ adaptation and ________ integration.

A firm can establish a wholly owned subsidiary by

A U.S. firm expands into China and Canada at exactly the same sales volume. The physical distance is the only factor that affects the true distance between the countries.

When the GE wind energy business tapped into world-wide talent, it was able to expand using a(n) ________ strategy.

Which of the following is not a risk normally associated with bottom-of-the-pyramid strategies?

Which of the following is a source of economic risk in many countries?

In the Kulshrestha article "Learning from Mistakes" that is presented at the beginning of the textbook chapter, only a few Indian malls built after 1990 have been successful over thelongterm. Why?

Greeks reacted negatively to Coca-Cola advertising using Coke bottles as pillars for the Parthenon. This is a form of ________ risk.

What is a beachhead strategy and how does it contribute to a company's decision to internationalize?

Similarity of culture, laws, rules, and norms encourages

Shared Arabic language and the Muslim religion is one reason that explains regionalism tendencies in

Wages in developing markets can be volatile and spike dramatically. The United States can be ________ on a wage basis if its average wages decline.

The trend towards worldwide markets makes it easier to predict where competitors will spring up.

Countries with demanding consumers, like environmentally-concerned Denmark, drive ________ to meet the demand.

Explain the role of factor endowments in the rise of the software industry in India.

The creation of a third-party legal entity is required for___________, whereas for ________ it is not.

Which of these points on the Porter diamond of national advantage is the strongest indicator of global competitive success?

When differentiating products and services to local markets, strategies and tactics are likely to ________ company costs.

What is international strategy? Discuss the risks and challenges associated with an international strategy.

What agreement entails the creation of a third-party legal entity?

Strategic Management Creating Competitive Advantages

Analyzing the External Environment of the Firm Creating Competitive Advantages

Assessing the Internal Environment of the Firm

Recognizing a Firm's Intellectual Assets Moving beyond a Firm's Tangible Resources

Business-Level Strategy Creating and Sustaining Competitive Advantages

Corporate-Level Strategy Creating Value through Diversification

Entrepreneurial Strategy and Competitive Dynamics

Strategic Control and Corporate Governance

Creating Effective Organizational Designs

Strategic Leadership Creating a Learning Organization and an Ethical Organization

Managing Innovation and Fostering Corporate Entrepreneurship

Filters

Multinational firms are constantly faced with the decision of choosing between adaptation and integration.

The creation of a third-party legal entity is required for___, whereas for it is not.