Exam 13: The Strategy of International Business

Discuss the creation of a global web of value creation activities.

________ strategy customizes the product offering to local demands and increases the value of that product in the local market.

The preeminent strategic goal for most firms is to maximize the value of the firm for its owners and shareholders.

What is a disadvantage of the localization strategy?

Economies that arise from performing a value creation activity in the optimal location are known as

Location economies are the economies that arise from performing a ________ activity in the optimal location for that activity.

Responding to pressure for ________ requires that a firm differentiate its products and marketing strategy from country to country, even though it may raise costs.

The term ________ refers to skills within the firm that competitors cannot easily match or imitate and that may exist in the firm's value creation activities.

Which of the following is true of firms that compete in the global marketplace?

A firm that is pursuing ________ strategy is simultaneously trying to achieve low costs through location economies, economies of scale, and learning effects; and trying to differentiate its product offering across geographic markets.

What is strategy? How does strategy relate to a firm's profitability?

According to Porter, the way to create superior value is to drive down the cost structure of the business and/or differentiate the product in some way so that consumers value it more.

In a multinational enterprise, skills are typically generated at the home location and are then dispersed to the rest of the organization.

Economies of scale arise from which of the following sources?

________ activities of the value chain provide inputs that allow the primary activities to occur.

A firm benefits by basing each value creation activity it performs at that location where economic, political, and cultural conditions, including relative factor costs, are most conducive to the performance of that activity. Firms that pursue such a strategy can realize

A consumer surplus can be best described as

Once a firm has established a low-cost position, it can act as a barrier to new competition.

Describe the benefits of global expansion for firms.

________ needs exist when the tastes and preferences of consumers in different nations are similar if not identical.