Exam 13: The Strategy of International Business

The skills within the firm that a competitor cannot easily match or imitate are known as core competence.

A firm's strategy can be defined as the actions that managers take to attain the goals of the firm.

The value of a product to an average consumer is V; and the average price that the firm can charge a consumer for that product is P. Here, V - P can be termed as:

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

A firm that is pursuing a(n) _____ strategy is simultaneously trying to achieve low costs through location economies, economies of scale, and learning effects, and trying to differentiate its product offering across geographic markets.

A global standardization strategy is appropriate when a firm is facing low pressures for cost reduction but high pressure for local responsiveness.

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

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

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

_____ refer(s) to systematic reductions in production costs that have been observed to occur over the life of a product.

_____ activities are basically concerned with creating the product, marketing and delivering the product to buyers, and providing support and after-sales service.

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

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

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

When companies disperse different stages of the value chain to those locations around the world where perceived value is maximized or where the costs of value creation are minimized, companies create:

Which of the following is less likely to add to the pressure for a firm to be locally responsive?

Once a firm has established a low-cost position, it can act as a barrier to new competition.

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?

_____ 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.

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