Exam 8: International Strategy

A global corporate-level strategy assumes:

When the country risk is high, firms prefer to enter with a greenfield investment rather than a joint venture.

Raymond Vernon states that the classic rationale for international diversification is to:

Export, licensing, and the strategic alliance entry modes are all appropriate for early market development.

In France, fine dressmaking and tailoring have been a tradition predating Queen Marie Antoinette. Cloth manufacturers, design schools, craft apprenticeship programs, modeling agencies, and so forth, all exist to supply the clothing industry. This is an example of the ____ in Porter's model.

Location advantages are influenced by costs of production, access to natural resources and critical supplies, as well as the needs of customers, but not culture.

Evidence suggests that, in general, using an international cost leadership strategy when exporting to developed countries has the most positive effect on firm performance while using an international differentiation strategy with larger scale when exporting to emerging economies leads to the greatest amounts of success.

Which of the following is NOT a typical disadvantage of licensing?

Strategic alliances tend to increase the risk associated with international expansion for the U.S. partner because of the greater dependence on the foreign firm.

After a firm decides to compete internationally, it must select its strategy and choose a mode of entry into international markets.

Some of the costs incurred by firms pursuing international diversification may derive from higher coordination expenses, trade barriers, and lack of familiarity with local cultures.

All of the following complicate the implementation of an international diversification strategy EXCEPT:

In China, Starbucks is standardizing its operations while simultaneously decentralizing some decision-making responsibility to local levels to meet customers' tastes. Starbucks is following the __________ international corporate-level strategy.

The increased pressures for global integration of operations have been driven mostly by:

International diversification is a strategy through which a firm expands the sale of its goods and services across borders of global regions and countries into a potentially large number of geographic locations of markets. Instead of entering one or a few markets, international diversification means that the firm enters multiple markets.

In some industries, technology drives globalization because the economies of scale necessary to reduce costs cannot be met by competing in domestic markets alone.

A major incentive for the use of international strategy by French-based Carrefour Group is the potential for large demand for goods and services from emerging markets such as China and India.

Working in multiple international markets can provide firms with __________ perhaps even in terms of __________.

Which of the following is NOT a factor pressuring companies for local responsiveness?

Fluctuation in the value of different currencies is a major economic risk associated with international diversification.