Question 1

Economies that arise from performing a value creation activity in the optimal location are known as location economies.

Accepted Answer

A) True 
 B)False

Question 2

Explain the concept of location economies.

Accepted Answer

Location economies are the economies tha

Question 3

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 4

Support activities include the design,creation,and delivery of a product.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A)  lower the costs of value creation. 
B)  be locally responsive. 
C)  undertaking product differentiation. 
D)  diversifying product lines. 
A)  lower the costs of value creation. 
B)  be locally responsive. 
C)  undertaking product differentiation. 
D)  diversifying product lines.

Question 6

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

Accepted Answer

The creation of a global web of value cr

Question 7

Pressures for local responsiveness imply that it may not be possible to leverage skills and products associated with a firm's core competencies wholesale from one nation to another.

Accepted Answer

A) True 
 B)False

Question 8

Universal needs exist when the tastes and preferences of consumers in different nations are similar if not identical.

Accepted Answer

A) True 
 B)False

Question 9

The efficiency frontier has a convex shape because of:

Accepted Answer

A)  consumer surplus. 
B)  diminishing returns. 
C)  profitability. 
D)  differentiation strategy. 
A)  consumer surplus. 
B)  diminishing returns. 
C)  profitability. 
D)  differentiation strategy.

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

_____ can be defined as the rate of return that the firm makes on its invested capital,which is calculated by dividing the net profits of the firm by total invested capital.

Accepted Answer

A)  Profitability 
B)  Performance 
C)  Cash flow 
D)  Efficiency 
A)  Profitability 
B)  Performance 
C)  Cash flow 
D)  Efficiency

Question 12

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 13

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 14

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

Accepted Answer

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

Question 15

_____ 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 16

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

Accepted Answer

A)  National differences in consumer tastes and preferences 
B)  Differences in infrastructure and traditional practices 
C)  Switching costs for consumers 
D)  Host-government demands 
A)  National differences in consumer tastes and preferences 
B)  Differences in infrastructure and traditional practices 
C)  Switching costs for consumers 
D)  Host-government demands

Question 17

Moving down the experience curve:

Accepted Answer

A)  increases the cost of a firm's raw material. 
B)  allows a firm to reduce its cost of creating value. 
C)  decreases a firm's profitability. 
D)  increases the R & D expenditure of a firm. 
A)  increases the cost of a firm's raw material. 
B)  allows a firm to reduce its cost of creating value. 
C)  decreases a firm's profitability. 
D)  increases the R & D expenditure of a firm.

Question 18

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

Accepted Answer

A firm's strategy can be defined as the

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

How can firms successfully leverage the skills developed at the subsidiary level?

Accepted Answer

Firms can successfully leverage skills d

Economies that arise from performing a value creation activity in the optimal location are known as location economies.

Explain the concept of location economies.

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.

Support activities include the design,creation,and delivery of a product.

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

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

Pressures for local responsiveness imply that it may not be possible to leverage skills and products associated with a firm's core competencies wholesale from one nation to another.

Universal needs exist when the tastes and preferences of consumers in different nations are similar if not identical.

The efficiency frontier has a convex shape because of:

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

_____ can be defined as the rate of return that the firm makes on its invested capital,which is calculated by dividing the net profits of the firm by total invested capital.

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.

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.

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

_____ 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.

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

Moving down the experience curve:

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

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

How can firms successfully leverage the skills developed at the subsidiary level?

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

Economies that arise from performing a value creation activity in the optimal location are known as location economies.

Explain the concept of location economies.

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.

Support activities include the design,creation,and delivery of a product.

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

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

Pressures for local responsiveness imply that it may not be possible to leverage skills and products associated with a firm's core competencies wholesale from one nation to another.

Universal needs exist when the tastes and preferences of consumers in different nations are similar if not identical.

The efficiency frontier has a convex shape because of:

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

_____ can be defined as the rate of return that the firm makes on its invested capital,which is calculated by dividing the net profits of the firm by total invested capital.

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.

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.

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

_____ 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.

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

Moving down the experience curve:

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

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

How can firms successfully leverage the skills developed at the subsidiary level?

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