Exam 13: The Strategy of International Business

Pressures for _____ imply that it may not be possible for a firm to realize the full benefits from economies of scale, learning effects, and location economies.

Firms usually respond to pressures for cost reduction by trying to:

Enterprises that pursue an international strategy tend to decentralize control over marketing and product strategies.

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

Top management should be viewed as part of the firm's _____.

The _____ all of the different positions that a firm can adopt with regard to adding value to the product and low cost assuming that its internal operations are configured efficiently to support a particular position.

The amount of value a firm creates is measured by the:

_____ activities of the value chain provide inputs that allow the primary activities to occur.

Cost savings that come from learning by doing are known as _____.

The success of many multinational corporations is based not just upon the goods or services that they sell in foreign nations, but also upon the core competencies that underlie the development, production, and marketing of those goods or services.

A multinational firm may need to delegate marketing functions to national subsidiaries to:

Location economies are the economies that arise from performing a _____ activity in the optimal location for that activity.

Learning effects tend to be:

Describe the benefits of global expansion for firms.

Threats of protectionism, economic nationalism, and local content rules dictate that international businesses manufacture locally.

Which of the following is true of the international strategy?

The price a firm charges for a good or service is typically less than the value placed on that good or service by the customer. This is because:

Michael Porter argues that:

Systematic increases in sales that have been observed to occur over the life of the product are referred to as the experience curve.

Which of the following is an example of a primary activity in a firm's value chain?