Question 1

A global corporate-level strategy differs from a multi-domestic corporate-level strategy in that in a global strategy:

Accepted Answer

A)  competitive strategy is dictated by the home office. 
B)  competitive strategy is decentralized and controlled by individual strategic business units. 
C)  products are customized to meet the individual needs of each country. 
D)  the firm sells in multiple countries. 
A)  competitive strategy is dictated by the home office. 
B)  competitive strategy is decentralized and controlled by individual strategic business units. 
C)  products are customized to meet the individual needs of each country. 
D)  the firm sells in multiple countries.

Question 2

Associations such as the European Union, Organization of American States, and the North American Free Trade Association, encourage:

Accepted Answer

A)  global strategies. 
B)  domestication. 
C)  regional strategies. 
D)  nationalization. 
A)  global strategies. 
B)  domestication. 
C)  regional strategies. 
D)  nationalization.

Question 3

Factors of production in Porter's model of international competitive advantage include all of the following EXCEPT:

Accepted Answer

A)  labor. 
B)  capital. 
C)  infrastructure. 
D)  technology. 
A)  labor. 
B)  capital. 
C)  infrastructure. 
D)  technology.

Question 4

Skaredykat Inc. is considering initial expansion beyond its home market. The firm has decided not to enter markets that differ greatly from its home market, instead expanding within the twelve-nation region that includes its home country.  Which one of these is true?

Accepted Answer

A)  The firm is not engaging in international trade. 
B)  The firm is using a regional approach to international expansion. 
C)  The firm will not be able understand the cultures, legal, and social norms of this market. 
D)  Skaredykat is too afraid to implement an international strategy. 
A)  The firm is not engaging in international trade. 
B)  The firm is using a regional approach to international expansion. 
C)  The firm will not be able understand the cultures, legal, and social norms of this market. 
D)  Skaredykat is too afraid to implement an international strategy.

Question 5

Effectively implementing the ________ international corporate-level strategy often produces higher performance than does implementing either the _______ or _________ strategies.

Accepted Answer

A)  multi-domestic; global; transnational 
B)  global; multi-domestic; transnational 
C)  cost leadership; differentation; focus 
D)  transnational; multi-domestic; global 
A)  multi-domestic; global; transnational 
B)  global; multi-domestic; transnational 
C)  cost leadership; differentation; focus 
D)  transnational; multi-domestic; global

Question 6

Exporting and licensing are the most appropriate ways for smaller firms to first enter international markets.

Accepted Answer

A) True 
 B)False

Question 7

An international diversification strategy is one in which a firm:

Accepted Answer

A)  expands into nearby markets. 
B)  expands into a potentially large number of geographic locations and markets. 
C)  expands into one or a few markets. 
D)  acquires a firm in a foreign country. 
A)  expands into nearby markets. 
B)  expands into a potentially large number of geographic locations and markets. 
C)  expands into one or a few markets. 
D)  acquires a firm in a foreign country.

Question 8

The four aspects of Porter's model of international competitive advantage include all of the following EXCEPT:

Accepted Answer

A)  factors of production. 
B)  demand conditions. 
C)  political and economic institutions. 
D)  related and supporting industries. 
A)  factors of production. 
B)  demand conditions. 
C)  political and economic institutions. 
D)  related and supporting industries.

Question 9

Firms able to standardize the processes used to produce, sell, distribute, and service their products across country borders enhance their ability to:

Accepted Answer

A)  learn how to continuously reduce costs while increase the value of their products. 
B)  increase investment in research and development. 
C)  access to a low-cost labor force in the host market. 
D)  mitigate cultural differences. 
A)  learn how to continuously reduce costs while increase the value of their products. 
B)  increase investment in research and development. 
C)  access to a low-cost labor force in the host market. 
D)  mitigate cultural differences.

Question 10

When a firm INITIALLY becomes internationally diversified, its returns:

Accepted Answer

A)  remain stable. 
B)  decrease. 
C)  become more variable. 
D)  increase. 
A)  remain stable. 
B)  decrease. 
C)  become more variable. 
D)  increase.

Question 11

A U.S. manufacturer of pigments for household paint that exports about 40 percent of its production to European markets will find its sales will be harmed by a weak dollar.

Accepted Answer

A) True 
 B)False

Question 12

Both the size and the nature of a country's domestic demand for a particular industry's good or service are important in Porter's determinants of national advantage.

Accepted Answer

A) True 
 B)False

Question 13

All of the following are correct about what managers should know about firms based in a country with a national competitive advantage EXCEPT:

Accepted Answer

A)  success is not guaranteed as the firm implements its chosen international business-level strategy. 
B)  the actual strategic choices made are most compelling reasons for success or failure. 
C)  success is guaranteed as the firm implements its chosen international business-level strategy. 
D)  the determinants of national competitive advantage provide a foundation for a firm's competitive advantages. 
A)  success is not guaranteed as the firm implements its chosen international business-level strategy. 
B)  the actual strategic choices made are most compelling reasons for success or failure. 
C)  success is guaranteed as the firm implements its chosen international business-level strategy. 
D)  the determinants of national competitive advantage provide a foundation for a firm's competitive advantages.

Question 14

Italy has become the leader in the shoe industry because of related and supporting industries such as a well-established leather-processing industry that provides the leather needed to construct shoes and related products.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is NOT a disadvantage associated with exporting?

Accepted Answer

A)  Potential loss of proprietary technologies 
B)  High transportation costs 
C)  Loss of control over distribution activities 
D)  Tariffs imposed by local governments 
A)  Potential loss of proprietary technologies 
B)  High transportation costs 
C)  Loss of control over distribution activities 
D)  Tariffs imposed by local governments

Question 16

The positive results associated with increasing international diversification have been shown to:

Accepted Answer

A)  continue as the level of international diversification increases. 
B)  level off and become negative as diversification increases past some point. 
C)  become negative quickly. 
D)  be centered in only one or two industries. 
A)  continue as the level of international diversification increases. 
B)  level off and become negative as diversification increases past some point. 
C)  become negative quickly. 
D)  be centered in only one or two industries.

Question 17

Discuss the effect of international diversification on a firm's returns.

Accepted Answer

Research shows that returns vary as the

Question 18

Establishing a wholly-owned subsidiary provides the quickest access to a new market.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is NOT a disadvantage of international acquisitions?

Accepted Answer

A)  They are very expensive and often require debt financing. 
B)  The acquiring firm has to deal with the regulatory requirements of a host country. 
C)  Merging the acquired and acquiring firm is difficult. 
D)  It is the slowest way to enter a new market. 
A)  They are very expensive and often require debt financing. 
B)  The acquiring firm has to deal with the regulatory requirements of a host country. 
C)  Merging the acquired and acquiring firm is difficult. 
D)  It is the slowest way to enter a new market.

Question 20

A licensing agreement:

Accepted Answer

A)  results in two firms agreeing to share the risks and the resources of a new venture. 
B)  is best way to protect proprietary technology from future competitors. 
C)  allows a foreign firm to purchase the rights to manufacture and sell a firm's products within a host country. 
D)  can be greatly impacted by currency exchange rate fluctuations. 
A)  results in two firms agreeing to share the risks and the resources of a new venture. 
B)  is best way to protect proprietary technology from future competitors. 
C)  allows a foreign firm to purchase the rights to manufacture and sell a firm's products within a host country. 
D)  can be greatly impacted by currency exchange rate fluctuations.

A global corporate-level strategy differs from a multi-domestic corporate-level strategy in that in a global strategy:

Associations such as the European Union, Organization of American States, and the North American Free Trade Association, encourage:

Factors of production in Porter's model of international competitive advantage include all of the following EXCEPT:

Skaredykat Inc. is considering initial expansion beyond its home market. The firm has decided not to enter markets that differ greatly from its home market, instead expanding within the twelve-nation region that includes its home country. Which one of these is true?

Effectively implementing the ____ international corporate-level strategy often produces higher performance than does implementing either the _ or _______ strategies.

Exporting and licensing are the most appropriate ways for smaller firms to first enter international markets.

An international diversification strategy is one in which a firm:

The four aspects of Porter's model of international competitive advantage include all of the following EXCEPT:

Firms able to standardize the processes used to produce, sell, distribute, and service their products across country borders enhance their ability to:

When a firm INITIALLY becomes internationally diversified, its returns:

A U.S. manufacturer of pigments for household paint that exports about 40 percent of its production to European markets will find its sales will be harmed by a weak dollar.

Both the size and the nature of a country's domestic demand for a particular industry's good or service are important in Porter's determinants of national advantage.

All of the following are correct about what managers should know about firms based in a country with a national competitive advantage EXCEPT:

Italy has become the leader in the shoe industry because of related and supporting industries such as a well-established leather-processing industry that provides the leather needed to construct shoes and related products.

Which of the following is NOT a disadvantage associated with exporting?

The positive results associated with increasing international diversification have been shown to:

Discuss the effect of international diversification on a firm's returns.

Establishing a wholly-owned subsidiary provides the quickest access to a new market.

Which of the following is NOT a disadvantage of international acquisitions?

A licensing agreement:

Strategic Management and Strategic Competitiveness

The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis

The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages

Business-Level Strategy

Competitive Rivalry and Competitive Dynamics

Corporate-Level Strategy

Merger and Acquisition Strategies

Cooperative Strategy

Corporate Governance

Organizational Structure and Controls

Strategic Leadership

Strategic Entrepreneurship

Filters

Exam 8: International Strategy

A global corporate-level strategy differs from a multi-domestic corporate-level strategy in that in a global strategy:

Associations such as the European Union, Organization of American States, and the North American Free Trade Association, encourage:

Factors of production in Porter's model of international competitive advantage include all of the following EXCEPT:

Skaredykat Inc. is considering initial expansion beyond its home market. The firm has decided not to enter markets that differ greatly from its home market, instead expanding within the twelve-nation region that includes its home country. Which one of these is true?

Effectively implementing the ________ international corporate-level strategy often produces higher performance than does implementing either the _______ or _________ strategies.

Exporting and licensing are the most appropriate ways for smaller firms to first enter international markets.

An international diversification strategy is one in which a firm:

The four aspects of Porter's model of international competitive advantage include all of the following EXCEPT:

Firms able to standardize the processes used to produce, sell, distribute, and service their products across country borders enhance their ability to:

When a firm INITIALLY becomes internationally diversified, its returns:

A U.S. manufacturer of pigments for household paint that exports about 40 percent of its production to European markets will find its sales will be harmed by a weak dollar.

Both the size and the nature of a country's domestic demand for a particular industry's good or service are important in Porter's determinants of national advantage.

All of the following are correct about what managers should know about firms based in a country with a national competitive advantage EXCEPT:

Italy has become the leader in the shoe industry because of related and supporting industries such as a well-established leather-processing industry that provides the leather needed to construct shoes and related products.

Which of the following is NOT a disadvantage associated with exporting?

The positive results associated with increasing international diversification have been shown to:

Discuss the effect of international diversification on a firm's returns.

Establishing a wholly-owned subsidiary provides the quickest access to a new market.

Which of the following is NOT a disadvantage of international acquisitions?

A licensing agreement:

Strategic Management and Strategic Competitiveness

The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis

The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages

Business-Level Strategy

Competitive Rivalry and Competitive Dynamics

Corporate-Level Strategy

Merger and Acquisition Strategies

Cooperative Strategy

Corporate Governance

Organizational Structure and Controls

Strategic Leadership

Strategic Entrepreneurship

Filters

Effectively implementing the ____ international corporate-level strategy often produces higher performance than does implementing either the _ or _______ strategies.