Exam 13: The Strategy of International Business

________ can be defined as the rate of return that the firm makes on its invested capital, which is calculated by dividing the net profits of the firm by total invested capital.

Support activities are always less important than the primary activities in achieving a competitive advantage.

Consider a transnational strategy. Why would a firm choose this strategic alternative? What are the disadvantages of this strategy?

Pursuing a global standardization strategy is appropriate when a firm is facing low pressures for cost reduction but high pressure for local responsiveness.

It has been suggested that learning effects are important only during the start-up period of a new process and that they cease after two or three years. Any decline in the experience curve after such a point is due to

Which of the following is true of the international strategy?

What are learning effects? When are learning effects most significant?

A strategy that focuses on increasing the attractiveness of a product is referred to as

When consumer tastes and preferences differ significantly between countries, there is low pressure for local responsiveness.

________ allows a firm to reduce its cost of creating value and increase its profitability.

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

For firms selling a product that serves universal needs but not facing significant competition, ________ strategy makes sense.

When AMD sells its computer chips in countries across the world, it doesn't need to worry too much about customizing the product to local needs and preferences because computer chips are ________ needs.

The ________ refers to systematic reductions in production costs that have been observed to occur over the life of a product.

What are the two types of competitive pressures that firms competing in the global marketplace face? How do firms respond to these pressures?

Learning effects

The efficiency frontier has a convex shape because of

________ enable a firm to reduce the costs of value creation and/or to create perceived value in such a way that premium pricing is possible.

When individuals gain knowledge of the most efficient ways to perform particular tasks, they are saving costs through

It has been observed that a product's production costs decline by some quantity about each time cumulative output