Exam 13: The Strategy of International Business

The skills within the firm that a competitor cannot easily match or imitate are known as the core knowledge base.

The value of a product to an average consumer is V; and the average price that the firm can charge a consumer for that product is P. Here, V - P can be termed as

________ include the design, creation, and delivery of a product.

Research and development, production, marketing and sales, and customer service are all examples of

A firm that is facing both strong cost pressures and strong pressures for local responsiveness should follow ________ strategy.

What is the difference between profitability and profit growth?

When a firm focuses on increasing profitability by customizing the product or service so that it provides a good match to tastes and preferences in different national markets, the firm is following ________ strategy.

The percentage increase in net profits over time measures

The customer is able to garner the benefit of the consumer surplus because one firm is competing with other firms for the customer's business, so the firm must charge a lower price than it could if it were a monopoly supplier.

For a firm, all positions on the efficiency frontier are viable.

Cost savings that come from learning by doing are known as

The price a firm charges for a good or service is typically less than the value placed on that good or service by the customer. This is because

Discuss the efficiency frontier. How does strategic positioning relate to the efficiency frontier?

Threats of protectionism, economic nationalism, and local content rules dictate that international businesses manufacture locally.

How can the marketing and sales functions of a firm create value?

Consider the firm in terms of a value chain. What is the difference between primary activities and support activities? Provide examples of each.

Discuss the evolution of strategy. How does cost become important in the long term?

The amount of value a firm creates is measured by the

________ strategy makes most sense when demands for local responsiveness are high, but cost pressures are moderate or low.

________ strategy is most appropriate when there are substantial differences across nations with regard to consumer tastes and preferences, and where cost pressures are not too intense.