Question 1

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 2

What is an experience curve?

Accepted Answer

The experience curve refers to systemati

Question 3

Which of the following is NOT associated with firms following the global standardization strategy?

Accepted Answer

A)  Low pressures for local responsiveness 
B)  Use cost advantage to support aggressive pricing in world markets 
C)  High pressures for cost reductions 
D)  Customize product offering and marketing strategy to local conditions 
A)  Low pressures for local responsiveness 
B)  Use cost advantage to support aggressive pricing in world markets 
C)  High pressures for cost reductions 
D)  Customize product offering and marketing strategy to local conditions

Question 4

The amount of value a firm creates is measured by the difference between its costs of production and the price that it charges for its products.

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

To leverage subsidiary skills,companies should establish incentive systems that encourage local employees to acquire new skills.

Accepted Answer

A) True 
 B)False

Question 7

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 8

Discuss the factors that lead to pressure for local responsiveness.

Accepted Answer

There are many factors that contribute t

Question 9

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 10

A localization strategy makes most sense when demands for local responsiveness are high,but cost pressures are moderate or low.

Accepted Answer

A) True 
 B)False

Question 11

What is the difference between profitability and profit growth?

Accepted Answer

Profitability can be defined as the rate

Question 12

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 13

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 14

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

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A)  Information systems 
B)  Research and development 
C)  Logistics 
D)  Human relations 
A)  Information systems 
B)  Research and development 
C)  Logistics 
D)  Human relations

Question 16

Because differentiation across countries can involve significant duplication and a lack of product standardization,it may reduce costs.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A)  Universal needs 
B)  Homogenous needs 
C)  Basic needs 
D)  Bundled needs 
A)  Universal needs 
B)  Homogenous needs 
C)  Basic needs 
D)  Bundled needs

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Describe localization strategy.

Accepted Answer

A localization strategy focuses on incre

Learning effects:

What is an experience curve?

Which of the following is NOT associated with firms following the global standardization strategy?

The amount of value a firm creates is measured by the difference between its costs of production and the price that it charges for its products.

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

To leverage subsidiary skills,companies should establish incentive systems that encourage local employees to acquire new skills.

The percentage increase in net profits over time measures:

Discuss the factors that lead to pressure for local responsiveness.

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

A localization strategy makes most sense when demands for local responsiveness are high,but cost pressures are moderate or low.

What is the difference between profitability and profit growth?

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

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

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

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

Because differentiation across countries can involve significant duplication and a lack of product standardization,it may reduce costs.

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

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

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

Describe localization strategy.

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

Learning effects:

What is an experience curve?

Which of the following is NOT associated with firms following the global standardization strategy?

The amount of value a firm creates is measured by the difference between its costs of production and the price that it charges for its products.

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

To leverage subsidiary skills,companies should establish incentive systems that encourage local employees to acquire new skills.

The percentage increase in net profits over time measures:

Discuss the factors that lead to pressure for local responsiveness.

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

A localization strategy makes most sense when demands for local responsiveness are high,but cost pressures are moderate or low.

What is the difference between profitability and profit growth?

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

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

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

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

Because differentiation across countries can involve significant duplication and a lack of product standardization,it may reduce costs.

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

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

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

Describe localization strategy.

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