Question 1

The preeminent strategic goal for most firms is to maximize the value of the firm for its owners.

Accepted Answer

A) True 
 B)False

Question 2

Economies that arise from performing a value creation activity in the optimal place for that activity are referred to as _____.

Accepted Answer

A)  factor economies 
B)  production economies 
C)  location economies 
D)  value creation economies 
A)  factor economies 
B)  production economies 
C)  location economies 
D)  value creation economies

Question 3

As competition intensifies, global standardization strategies and transnational strategies tend to become less viable, and managers need to orientate their companies toward either an international strategy or a localization strategy.

Accepted Answer

A) True 
 B)False

Question 4

The percentage increase in net profits over time measures _____.

Accepted Answer

A)  capital return 
B)  profitability 
C)  market growth 
D)  profit growth 
A)  capital return 
B)  profitability 
C)  market growth 
D)  profit growth

Question 5

_____ is measured by the percentage increase in net profits over time.

Accepted Answer

A)  Profit growth 
B)  Value 
C)  Profitability 
D)  Operational economy 
A)  Profit growth 
B)  Value 
C)  Profitability 
D)  Operational economy

Question 6

Pressures for cost reduction are intense in industries where:

Accepted Answer

A)  major competitors are based in high-cost locations. 
B)  consumers are weak and face high switching costs. 
C)  there is persistent excess capacity. 
D)  the company is located in a low-cost location. 
A)  major competitors are based in high-cost locations. 
B)  consumers are weak and face high switching costs. 
C)  there is persistent excess capacity. 
D)  the company is located in a low-cost location.

Question 7

According to researchers Bartlett and Ghoshal, for transnational enterprises to be successful, they must focus on:

Accepted Answer

A)  selling a product that serves universal needs. 
B)  leveraging the skills found at their subsidiaries around the world. 
C)  increasing profitability by customizing the firm's goods or services so that they provide a good match to tastes and preferences in different national markets. 
D)  ensuring that the flow of skills from the home country to the foreign subsidiaries is one way and uninterrupted. 
A)  selling a product that serves universal needs. 
B)  leveraging the skills found at their subsidiaries around the world. 
C)  increasing profitability by customizing the firm's goods or services so that they provide a good match to tastes and preferences in different national markets. 
D)  ensuring that the flow of skills from the home country to the foreign subsidiaries is one way and uninterrupted.

Question 8

Global expansion offers companies the opportunity to generate greater profits than companies that focus strictly on _____.

Accepted Answer

A)  value creation 
B)  economies of scale 
C)  location economies 
D)  the domestic market 
A)  value creation 
B)  economies of scale 
C)  location economies 
D)  the domestic market

Question 9

Research has shown that in the modern multinational enterprise, core competencies and skills typically reside in the home country.

Accepted Answer

A) True 
 B)False

Question 10

When the firm simultaneously faces both strong cost pressures and strong pressures for local responsiveness, the ideal strategy to follow is the _____ strategy.

Accepted Answer

A)  global standardization 
B)  localization 
C)  transnational 
D)  international 
A)  global standardization 
B)  localization 
C)  transnational 
D)  international

Question 11

Which of the following is one of the two types of competitive pressure that affect the ability of multinational enterprises to compete in the global marketplace?

Accepted Answer

A)  Pressure for cost increases 
B)  Pressure for local responsiveness 
C)  Pressure for value creation 
D)  Pressure for increased profitability 
A)  Pressure for cost increases 
B)  Pressure for local responsiveness 
C)  Pressure for value creation 
D)  Pressure for increased profitability

Question 12

Discuss efficiency frontier. How does strategic positioning relate to the efficiency frontier?

Accepted Answer

The efficiency frontier shows all of the

Question 13

The basic strategy paradigm suggests that to maximize its profitability, a firm should do which of the following?

Accepted Answer

A)  Choose, according to strategy, any position on the efficiency frontier as all positions are viable. 
B)  Pick a position on the efficiency frontier that is viable in the sense that there is a low product demand anticipated. 
C)  Configure its external operations so that they support the position of diminishing returns. 
D)  Make sure that the right organization structure is in place to execute the strategy. 
A)  Choose, according to strategy, any position on the efficiency frontier as all positions are viable. 
B)  Pick a position on the efficiency frontier that is viable in the sense that there is a low product demand anticipated. 
C)  Configure its external operations so that they support the position of diminishing returns. 
D)  Make sure that the right organization structure is in place to execute the strategy.

Question 14

Which of the following is true of firms that compete in the global marketplace?

Accepted Answer

A)  They must employ a transnational policy in order to have a competitive edge. 
B)  Because differentiation across countries can involve significant duplication and a lack of product standardization, it may raise costs. 
C)  They must employ a domestic policy in order to have a competitive edge. 
D)  Because differentiation across countries can involve significant duplication and a lack of product standardization, it may reduce costs. 
A)  They must employ a transnational policy in order to have a competitive edge. 
B)  Because differentiation across countries can involve significant duplication and a lack of product standardization, it may raise costs. 
C)  They must employ a domestic policy in order to have a competitive edge. 
D)  Because differentiation across countries can involve significant duplication and a lack of product standardization, it may reduce costs.

Question 15

Discuss how a firm's marketing strategies may have to address differences in distribution channels in other countries.

Accepted Answer

A firm's marketing strategies may have t

Question 16

What are the two types of competitive pressures that firms competing in the global marketplace face? How do firms respond to these pressures?

Accepted Answer

Firms that compete in the global marketp

Question 17

_____ strategy is most appropriate when there are substantial differences across nations with regard to consumer tastes and preferences, and where cost pressures are not too intense.

Accepted Answer

A)  Localization 
B)  Transnational 
C)  Global standardization 
D)  International 
A)  Localization 
B)  Transnational 
C)  Global standardization 
D)  International

Question 18

When a firm has a strategic goal of pursuing a low-cost strategy on a worldwide scale, the firm should follow a(n) _____ strategy.

Accepted Answer

A)  global standardization 
B)  localization 
C)  international 
D)  customization 
A)  global standardization 
B)  localization 
C)  international 
D)  customization

Question 19

Discuss the creation of a global web of value creation activities.

Accepted Answer

The creation of a global web of value cr

Question 20

Primary activities have to do with:

Accepted Answer

A)  the logistics function. 
B)  the human resource function. 
C)  the design, creation, and delivery of the product. 
D)  company infrastructure. 
A)  the logistics function. 
B)  the human resource function. 
C)  the design, creation, and delivery of the product. 
D)  company infrastructure.

The preeminent strategic goal for most firms is to maximize the value of the firm for its owners.

Economies that arise from performing a value creation activity in the optimal place for that activity are referred to as _____.

As competition intensifies, global standardization strategies and transnational strategies tend to become less viable, and managers need to orientate their companies toward either an international strategy or a localization strategy.

The percentage increase in net profits over time measures _____.

_____ is measured by the percentage increase in net profits over time.

Pressures for cost reduction are intense in industries where:

According to researchers Bartlett and Ghoshal, for transnational enterprises to be successful, they must focus on:

Global expansion offers companies the opportunity to generate greater profits than companies that focus strictly on _____.

Research has shown that in the modern multinational enterprise, core competencies and skills typically reside in the home country.

When the firm simultaneously faces both strong cost pressures and strong pressures for local responsiveness, the ideal strategy to follow is the _____ strategy.

Which of the following is one of the two types of competitive pressure that affect the ability of multinational enterprises to compete in the global marketplace?

Discuss efficiency frontier. How does strategic positioning relate to the efficiency frontier?

The basic strategy paradigm suggests that to maximize its profitability, a firm should do which of the following?

Which of the following is true of firms that compete in the global marketplace?

Discuss how a firm's marketing strategies may have to address differences in distribution channels in other countries.

What are the two types of competitive pressures that firms competing in the global marketplace face? How do firms respond to these pressures?

_____ strategy is most appropriate when there are substantial differences across nations with regard to consumer tastes and preferences, and where cost pressures are not too intense.

When a firm has a strategic goal of pursuing a low-cost strategy on a worldwide scale, the firm should follow a(n) _____ strategy.

Discuss the creation of a global web of value creation activities.

Primary activities have to do with:

Globalization

National Differences in Political Economy, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, Corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Foreign Direct Investment

Regional Trade Pacts Give the Mexican Auto Industry an Edge

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Organization of International Business

Entry Strategy and Strategic Alliances

Exporting, Importing, and Countertrade

Global Production and Supply Chain Management

Global Marketing and RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters

Exam 13: The Strategy of International Business

The preeminent strategic goal for most firms is to maximize the value of the firm for its owners.

Economies that arise from performing a value creation activity in the optimal place for that activity are referred to as _____.

As competition intensifies, global standardization strategies and transnational strategies tend to become less viable, and managers need to orientate their companies toward either an international strategy or a localization strategy.

The percentage increase in net profits over time measures _____.

_____ is measured by the percentage increase in net profits over time.

Pressures for cost reduction are intense in industries where:

According to researchers Bartlett and Ghoshal, for transnational enterprises to be successful, they must focus on:

Global expansion offers companies the opportunity to generate greater profits than companies that focus strictly on _____.

Research has shown that in the modern multinational enterprise, core competencies and skills typically reside in the home country.

When the firm simultaneously faces both strong cost pressures and strong pressures for local responsiveness, the ideal strategy to follow is the _____ strategy.

Which of the following is one of the two types of competitive pressure that affect the ability of multinational enterprises to compete in the global marketplace?

Discuss efficiency frontier. How does strategic positioning relate to the efficiency frontier?

The basic strategy paradigm suggests that to maximize its profitability, a firm should do which of the following?

Which of the following is true of firms that compete in the global marketplace?

Discuss how a firm's marketing strategies may have to address differences in distribution channels in other countries.

What are the two types of competitive pressures that firms competing in the global marketplace face? How do firms respond to these pressures?

_____ strategy is most appropriate when there are substantial differences across nations with regard to consumer tastes and preferences, and where cost pressures are not too intense.

When a firm has a strategic goal of pursuing a low-cost strategy on a worldwide scale, the firm should follow a(n) _____ strategy.

Discuss the creation of a global web of value creation activities.

Primary activities have to do with:

Globalization

National Differences in Political Economy, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, Corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Foreign Direct Investment

Regional Trade Pacts Give the Mexican Auto Industry an Edge

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Organization of International Business

Entry Strategy and Strategic Alliances

Exporting, Importing, and Countertrade

Global Production and Supply Chain Management

Global Marketing and RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters