Question 1

Pressures for cost reduction are intense in industries where

Accepted Answer

A)  major competitors are based in high-cost locations. 
B)  consumers are weak and face high switching costs. 
C)  there is persistent excess capacity. 
D)  the company is located in a low-cost location. 
A)  major competitors are based in high-cost locations. 
B)  consumers are weak and face high switching costs. 
C)  there is persistent excess capacity. 
D)  the company is located in a low-cost location.

Question 2

The strategy, operations, and organization of a firm must all be consistent with each other if the firm is to ________ and achieve superior profitability.

Accepted Answer

A)  exploit core competencies 
B)  attain a comparative advantage 
C)  experience a learning curve 
D)  attain a competitive advantage 
A)  exploit core competencies 
B)  attain a comparative advantage 
C)  experience a learning curve 
D)  attain a competitive advantage

Question 3

________ refer(s) to systematic reductions in production costs that have been observed to occur over the life of a product.

Accepted Answer

A)  Experience curve 
B)  Economies of scale 
C)  Location economies 
D)  Production possibility 
A)  Experience curve 
B)  Economies of scale 
C)  Location economies 
D)  Production possibility

Question 4

A firm facing low pressures for cost reductions and low pressures for local responsiveness is most likely to follow ________ strategy.

Accepted Answer

A)  a global standardization 
B)  a localization 
C)  an international 
D)  a transnational 
A)  a global standardization 
B)  a localization 
C)  an international 
D)  a transnational

Question 5

According to researchers Bartlett and Ghoshal, for transnational enterprises to be successful, they must focus on

Accepted Answer

A)  selling a product that serves universal needs. 
B)  leveraging subsidiary skills. 
C)  increasing profitability by customizing the firm's goods or services so that they provide a good match to tastes and preferences in different national markets. 
D)  ensuring that the flow of skills from the home country to the foreign subsidiaries is one way and uninterrupted. 
A)  selling a product that serves universal needs. 
B)  leveraging subsidiary skills. 
C)  increasing profitability by customizing the firm's goods or services so that they provide a good match to tastes and preferences in different national markets. 
D)  ensuring that the flow of skills from the home country to the foreign subsidiaries is one way and uninterrupted.

Question 6

When the firm simultaneously faces both strong cost pressures and strong pressures for local responsiveness, the ideal strategy to follow is the ________ strategy.

Accepted Answer

A)  global standardization 
B)  localization 
C)  transnational 
D)  international 
A)  global standardization 
B)  localization 
C)  transnational 
D)  international

Question 7

Which of the following is one of the two types of competitive pressure that affects the ability of multinational enterprises to compete in the global marketplace?

Accepted Answer

A)  pressure for cost increases 
B)  pressure for local responsiveness 
C)  pressure for value creation 
D)  pressure for increased profitability 
A)  pressure for cost increases 
B)  pressure for local responsiveness 
C)  pressure for value creation 
D)  pressure for increased profitability

Question 8

Discuss how a firm's marketing strategies may have to address differences in distribution channels in other countries.

Accepted Answer

A firm's marketing strategies may have t

Question 9

Which of the following is an example of a primary activity in a firm's value chain?

Accepted Answer

A)  information systems 
B)  research and development 
C)  logistics 
D)  human relations 
A)  information systems 
B)  research and development 
C)  logistics 
D)  human relations

Question 10

Which of the following statements is true?

Accepted Answer

A)  The way to increase the profitability of a firm is to create a greater number of products. 
B)  The amount of value a firm creates is measured by the difference between its costs of production and the value that consumers perceive in its products. 
C)  The more value customers place on a firm's products, the lower the price the firm is able to charge for those products. 
D)  The price a firm charges for a good or service is typically more than the value the customer places on that good or service. 
A)  The way to increase the profitability of a firm is to create a greater number of products. 
B)  The amount of value a firm creates is measured by the difference between its costs of production and the value that consumers perceive in its products. 
C)  The more value customers place on a firm's products, the lower the price the firm is able to charge for those products. 
D)  The price a firm charges for a good or service is typically more than the value the customer places on that good or service.

Question 11

Michael Porter argues that

Accepted Answer

A)  those firms that create superior value will achieve superior profitability. 
B)  standardization of product is a basic strategy for attaining a competitive advantage in an industry. 
C)  it is necessary for a firm to have the lowest cost structure or create the most valuable product. 
D)  it is important that the gap between value and the cost of production be smaller than that of competitors. 
A)  those firms that create superior value will achieve superior profitability. 
B)  standardization of product is a basic strategy for attaining a competitive advantage in an industry. 
C)  it is necessary for a firm to have the lowest cost structure or create the most valuable product. 
D)  it is important that the gap between value and the cost of production be smaller than that of competitors.

Question 12

A multinational firm may need to delegate marketing functions to national subsidiaries to

Accepted Answer

A)  fully implement the firm's localization strategy. 
B)  employ economies of scale. 
C)  meet the requirements for a global standardization strategy. 
D)  be responsive to local differences in distribution channels. 
A)  fully implement the firm's localization strategy. 
B)  employ economies of scale. 
C)  meet the requirements for a global standardization strategy. 
D)  be responsive to local differences in distribution channels.

Question 13

Universal needs exist when

Accepted Answer

A)  the tastes and preferences of consumers in different nations are similar if not identical. 
B)  conventional commodity products requested in one country are different than those requested in another country. 
C)  the tastes and preferences of consumers in the same nation are similar if not identical. 
D)  consumers are willing to pay a high price for a product regardless of what country they reside in. 
A)  the tastes and preferences of consumers in different nations are similar if not identical. 
B)  conventional commodity products requested in one country are different than those requested in another country. 
C)  the tastes and preferences of consumers in the same nation are similar if not identical. 
D)  consumers are willing to pay a high price for a product regardless of what country they reside in.

Question 14

Lenovo's ThinkPad laptop computers are designed in the United States; the case, keyboard, and hard drive are made in Thailand; the display screen and memory in South Korea; the built-in wireless card in Malaysia; and the microprocessor in the United States. In each case, these components are manufactured and sourced from the optimal location given current factor costs. In this example, Lenovo has

Accepted Answer

A)  vertical integration advantages. 
B)  a global web of value creation activities. 
C)  learning effects. 
D)  high local responsiveness. 
A)  vertical integration advantages. 
B)  a global web of value creation activities. 
C)  learning effects. 
D)  high local responsiveness.

Question 15

Learning effects tend to be

Accepted Answer

A)  the same regardless of whether a task is simple or complex. 
B)  more significant when a technologically simple task is repeated. 
C)  less significant when a technologically complex task is repeated. 
D)  more significant when a technologically complex task is repeated. 
A)  the same regardless of whether a task is simple or complex. 
B)  more significant when a technologically simple task is repeated. 
C)  less significant when a technologically complex task is repeated. 
D)  more significant when a technologically complex task is repeated.

Question 16

The basic strategy paradigm suggests that to maximize its profitability, a firm should do which of the following?

Accepted Answer

A)  Choose, according to strategy, any position on the efficiency frontier as all positions are viable. 
B)  Pick a position on the efficiency frontier that is viable in the sense that there is a low product demand anticipated. 
C)  Configure its external operations so that they support the position of diminishing returns. 
D)  Make sure that the right organization structure is in place to execute its strategy. 
A)  Choose, according to strategy, any position on the efficiency frontier as all positions are viable. 
B)  Pick a position on the efficiency frontier that is viable in the sense that there is a low product demand anticipated. 
C)  Configure its external operations so that they support the position of diminishing returns. 
D)  Make sure that the right organization structure is in place to execute its strategy.

Question 17

When a firm has a strategic goal of pursuing a low-cost strategy on a worldwide scale, the firm should follow ________ strategy.

Accepted Answer

A)  a global standardization 
B)  a localization 
C)  an international 
D)  a customization 
A)  a global standardization 
B)  a localization 
C)  an international 
D)  a customization

Question 18

How can firms successfully leverage the skills developed at the subsidiary level?

Accepted Answer

Leveraging the skills created within sub

Question 19

Firms usually respond to pressures for cost reduction by trying to

Accepted Answer

A)  lower the costs of value creation. 
B)  be locally responsive. 
C)  undertaking product differentiation. 
D)  diversifying product lines. 
A)  lower the costs of value creation. 
B)  be locally responsive. 
C)  undertaking product differentiation. 
D)  diversifying product lines.

Question 20

How can a firm increase its profitability?

Accepted Answer

The way to increase the profitability of

Pressures for cost reduction are intense in industries where

The strategy, operations, and organization of a firm must all be consistent with each other if the firm is to ________ and achieve superior profitability.

________ refer(s) to systematic reductions in production costs that have been observed to occur over the life of a product.

A firm facing low pressures for cost reductions and low pressures for local responsiveness is most likely to follow ________ strategy.

According to researchers Bartlett and Ghoshal, for transnational enterprises to be successful, they must focus on

When the firm simultaneously faces both strong cost pressures and strong pressures for local responsiveness, the ideal strategy to follow is the ________ strategy.

Which of the following is one of the two types of competitive pressure that affects the ability of multinational enterprises to compete in the global marketplace?

Discuss how a firm's marketing strategies may have to address differences in distribution channels in other countries.

Which of the following is an example of a primary activity in a firm's value chain?

Which of the following statements is true?

Michael Porter argues that

A multinational firm may need to delegate marketing functions to national subsidiaries to

Universal needs exist when

Learning effects tend to be

The basic strategy paradigm suggests that to maximize its profitability, a firm should do which of the following?

When a firm has a strategic goal of pursuing a low-cost strategy on a worldwide scale, the firm should follow ________ strategy.

How can firms successfully leverage the skills developed at the subsidiary level?

Firms usually respond to pressures for cost reduction by trying to

How can a firm increase its profitability?

Globalization

National Differences in Political, Economic, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, Corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Foreign Direct Investment

Regional Economic Integration

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Organization of International Business

Entry Strategy and Strategic Alliances

Exporting, Importing, and Countertrade

Global Production and Supply Chain Management

Global Marketing and R&D

Global Human Resource Management

Accounting and Finance in the International Business

Filters

Exam 13: The Strategy of International Business

Pressures for cost reduction are intense in industries where

The strategy, operations, and organization of a firm must all be consistent with each other if the firm is to ________ and achieve superior profitability.

________ refer(s) to systematic reductions in production costs that have been observed to occur over the life of a product.

A firm facing low pressures for cost reductions and low pressures for local responsiveness is most likely to follow ________ strategy.

According to researchers Bartlett and Ghoshal, for transnational enterprises to be successful, they must focus on

When the firm simultaneously faces both strong cost pressures and strong pressures for local responsiveness, the ideal strategy to follow is the ________ strategy.

Which of the following is one of the two types of competitive pressure that affects the ability of multinational enterprises to compete in the global marketplace?

Discuss how a firm's marketing strategies may have to address differences in distribution channels in other countries.

Which of the following is an example of a primary activity in a firm's value chain?

Which of the following statements is true?

Michael Porter argues that

A multinational firm may need to delegate marketing functions to national subsidiaries to

Universal needs exist when

Learning effects tend to be

The basic strategy paradigm suggests that to maximize its profitability, a firm should do which of the following?

When a firm has a strategic goal of pursuing a low-cost strategy on a worldwide scale, the firm should follow ________ strategy.

How can firms successfully leverage the skills developed at the subsidiary level?

Firms usually respond to pressures for cost reduction by trying to

How can a firm increase its profitability?

Globalization

National Differences in Political, Economic, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, Corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Foreign Direct Investment

Regional Economic Integration

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Organization of International Business

Entry Strategy and Strategic Alliances

Exporting, Importing, and Countertrade

Global Production and Supply Chain Management

Global Marketing and R&D

Global Human Resource Management

Accounting and Finance in the International Business

Filters