Exam 8: Strategy in the Global Environment

When a company performs a value creation activity in a region that is optimal for that activity, wherever in the world that might be, it is trying to capitalize on:

Which of the following statements is true about transnational strategy?

The globalization of production has been decreasing as companies have been facing lower barriers to international trade and location economies.

In the wireless telecommunications industry, different technical standards are found in different parts of the world. A technical standard known as GSM is common in Europe, and an alternative standard, CDMA, is more common in the United States and parts of Asia. Equipment designed for GSM will not work on a CDMA network and vice versa. Which of the following pressures for local responsiveness does this represent?

Identify and discuss the general ways in which companies can increase their profitability and profit growth through global expansion.

Which of the following statements is true about global standardization strategy?

When a company licenses its technology it can quickly lose control over it.

When a company grows its sales volume through international expansion, it can realize cost savings from economies of scale through all of the following except:

Which of the following entry modes allows a company to engage in global strategic coordination?

For a strategic alliance, firms should seek partners that are:

Which of the following is disadvantage of strategic alliances?

Swedish strength in fabricated steel products (such as ball bearings and cutting tools) has drawn on strengths in Sweden's specialty steel industry. This is an example of which of the following attributes that impact national competitive advantage?

Host government demands generally:

Which of the following is not a factor of production?

Local responsiveness may be driven by economic and political demands placed on companies by host country governments.

Differences in tastes and preferences:

Which of the following statements is true in the context of globalization of production and markets?

If a company's competitive advantage derives from its control of proprietary technological know-how, it should either license its technology to others or pursue a joint venture.

Which of the following statements is true about international strategy?

WKL Entertainment Inc. is a service-based firm with very few competitors. The company is looking to sell its services in different nations with substantial differences in consumer preferences and where cost pressures are not too intense. Which of the following  strategies should WKL Entertainment Inc. managers pursue?