Exam 13: The Strategy of International Business

A firm that is facing both strong cost pressures and strong pressures for local responsiveness should follow a(n) _____ strategy.

Which strategy focuses on increasing profitability by customizing the firm's goods or services so they provide a good match to tastes and preferences in different national markets?

For firms that are selling a product that serves universal needs, and that do not face significant competition, a(n) _____ strategy makes sense.

Responding to pressure for _____ requires that a firm differentiate its product offering and marketing strategy from country to country.

A strategy that focuses on increasing the attractiveness of a product is referred to as a(n) _____.

Research and development, production, marketing and sales, and customer service are all examples of _____.

Discuss the factors that lead to pressure for local responsiveness.

One of the sources of economies of scale is the ability to spread fixed costs over a large volume.

The customer is able to garner the benefit of the consumer surplus because one firm is competing with other firms for the customer's business, so the firm must charge a lower price than it could if it were a monopoly supplier.

_____ imply that when a firm already has significant value built into its product offering, increasing value by a relatively small amount requires significant additional costs.

The efficiency frontier has a convex shape because of _____.

A consumer surplus can be best described as:

The distinguishing feature of many firms that pursue a(n) _____ strategy is that they are selling a product that serves universal needs, but they do not face significant competitors.

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

_____ exists when the tastes and preferences of consumers in different nations are similar if not identical.

A firm facing low pressures for cost reductions and low pressures for local responsiveness, is most likely to follow a(n) _____ strategy.

Economies of scale arise from which of the following sources?

The consumer surplus per unit is determined by:

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

In a multinational enterprise, skills are always generated at the headquarters location and are then dispersed to the rest of the organization.