Question 1

Learning effects tend to be more significant when a technologically simple task is repeated.

Accepted Answer

A) True 
 B)False

Question 2

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:

Accepted Answer

A)  the customer's disposable income is significantly higher than what the market demands. 
B)  the customer captures some of that value in the form of a consumer surplus. 
C)  regulatory mechanisms ensure that the customer is not overcharged for products/services. 
D)  marketers implement psychological pricing tactics to ensure that customers perceive the prices to be low. 
A)  the customer's disposable income is significantly higher than what the market demands. 
B)  the customer captures some of that value in the form of a consumer surplus. 
C)  regulatory mechanisms ensure that the customer is not overcharged for products/services. 
D)  marketers implement psychological pricing tactics to ensure that customers perceive the prices to be low.

Question 3

The basic strategy paradigm suggests that to maximize its profitability, a firm should do all of the following, EXCEPT:

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 enough demand to support that choice. 
C)  configure its internal operations so that they support the position on the efficiency frontier. 
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 enough demand to support that choice. 
C)  configure its internal operations so that they support the position on the efficiency frontier. 
D)  make sure that the right organization structure is in place to execute the strategy.

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

A multinational firm may need to delegate marketing functions to national subsidiaries to be responsive to local differences in distribution channels.

Accepted Answer

A) True 
 B)False

Question 7

Core competencies enable a firm to reduce the costs of value creation and/or to create perceived value in such a way that premium pricing is possible.

Accepted Answer

A) True 
 B)False

Question 8

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 9

Learning effects:

Accepted Answer

A)  tend to be less significant when a technologically complex task is repeated. 
B)  will be less significant in an assembly process involving 1,000 complex steps than in one of only 100 simple steps. 
C)  typically disappear after a while, in spite of the complexity of the task. 
D)  are more significant after two or three years of the introduction of a new process. 
A)  tend to be less significant when a technologically complex task is repeated. 
B)  will be less significant in an assembly process involving 1,000 complex steps than in one of only 100 simple steps. 
C)  typically disappear after a while, in spite of the complexity of the task. 
D)  are more significant after two or three years of the introduction of a new process.

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Diminishing returns 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.

Accepted Answer

A) True 
 B)False

Question 12

What is strategy? How does strategy relate to a firm's profitability?

Accepted Answer

A firm's strategy can be defined as the

Question 13

A firm benefits by basing each value creation activity it performs at that location where economic, political, and cultural conditions, including relative factor costs, are most conducive to the performance of that activity. Firms that pursue such a strategy can realize:

Accepted Answer

A)  differentiation. 
B)  location economies. 
C)  vertical integration. 
D)  horizontal integration. 
A)  differentiation. 
B)  location economies. 
C)  vertical integration. 
D)  horizontal integration.

Question 14

Explain the concept of universal needs and in which type of industry it is most likely to occur.

Accepted Answer

Pressures for cost reduction can be part

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

When a firm focuses on increasing profitability by customizing the product or service so that they provide a good match to tastes and preferences in different national markets, the firm is following a transnational strategy.

Accepted Answer

A) True 
 B)False

Question 17

Explain the concept of location economies.

Accepted Answer

Location economies are the economies tha

Question 18

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

Accepted Answer

The efficiency frontier shows all of the

Question 19

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 20

How can a firm increase its profitability?

Accepted Answer

The way to increase the profitability of

Learning effects tend to be more significant when a technologically simple task is repeated.

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:

The basic strategy paradigm suggests that to maximize its profitability, a firm should do all of the following, EXCEPT:

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

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

A multinational firm may need to delegate marketing functions to national subsidiaries to be responsive to local differences in distribution channels.

Core competencies enable a firm to reduce the costs of value creation and/or to create perceived value in such a way that premium pricing is possible.

The percentage increase in net profits over time measures:

Learning effects:

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

Diminishing returns 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.

What is strategy? How does strategy relate to a firm's profitability?

A firm benefits by basing each value creation activity it performs at that location where economic, political, and cultural conditions, including relative factor costs, are most conducive to the performance of that activity. Firms that pursue such a strategy can realize:

Explain the concept of universal needs and in which type of industry it is most likely to occur.

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

When a firm focuses on increasing profitability by customizing the product or service so that they provide a good match to tastes and preferences in different national markets, the firm is following a transnational strategy.

Explain the concept of location economies.

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

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

How can a firm increase its profitability?

Globalization

National Differences in Political Economy

Political Economy and Economic Development

Differences in Culture

Ethics in International Business

International Trade Theory

The Political Economy of International Trade

Foreign Direct Investment

Regional Economic Integration

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, Outsourcing, and Logistics

Global Marketing and RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters

Exam 13: The Strategy of International Business

Learning effects tend to be more significant when a technologically simple task is repeated.

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:

The basic strategy paradigm suggests that to maximize its profitability, a firm should do all of the following, EXCEPT:

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

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

A multinational firm may need to delegate marketing functions to national subsidiaries to be responsive to local differences in distribution channels.

Core competencies enable a firm to reduce the costs of value creation and/or to create perceived value in such a way that premium pricing is possible.

The percentage increase in net profits over time measures:

Learning effects:

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

Diminishing returns 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.

What is strategy? How does strategy relate to a firm's profitability?

A firm benefits by basing each value creation activity it performs at that location where economic, political, and cultural conditions, including relative factor costs, are most conducive to the performance of that activity. Firms that pursue such a strategy can realize:

Explain the concept of universal needs and in which type of industry it is most likely to occur.

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

When a firm focuses on increasing profitability by customizing the product or service so that they provide a good match to tastes and preferences in different national markets, the firm is following a transnational strategy.

Explain the concept of location economies.

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

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

How can a firm increase its profitability?

Globalization

National Differences in Political Economy

Political Economy and Economic Development

Differences in Culture

Ethics in International Business

International Trade Theory

The Political Economy of International Trade

Foreign Direct Investment

Regional Economic Integration

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, Outsourcing, and Logistics

Global Marketing and RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters