Question 1

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

Accepted Answer

A)  Experience curve 
B)  Economies of scale 
C)  Location economies 
D)  Production possibility 
A)  Experience curve 
B)  Economies of scale 
C)  Location economies 
D)  Production possibility

Question 2

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 3

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 4

Consider the firm in terms of a value chain.What is the difference between primary activities and support activities? Provide examples of each.

Accepted Answer

The operations of a firm can be thought

Question 5

Economies of scale arise from all of the following sources,EXCEPT:

Accepted Answer

A)  increasing fixed costs by limiting them to small volumes. 
B)  serving domestic and international markets from the same production facilities 
C)  serving global markets. 
D)  bargaining with suppliers to bring down the cost of key inputs. 
A)  increasing fixed costs by limiting them to small volumes. 
B)  serving domestic and international markets from the same production facilities 
C)  serving global markets. 
D)  bargaining with suppliers to bring down the cost of key inputs.

Question 6

Discuss the factors that lead to pressure for local responsiveness.

Accepted Answer

There are many factors that contribute t

Question 7

R&D,production,marketing and sales,and customer service are all examples of primary activities.

Accepted Answer

A) True 
 B)False

Question 8

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 9

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 10

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 11

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

Accepted Answer

A) True 
 B)False

Question 12

_____ 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 13

For a firm,all positions on the efficiency frontier are viable.

Accepted Answer

A) True 
 B)False

Question 14

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 15

Lenovo's ThinkPad laptop computers is designed in the United States,the case,keyboard,and hard drive are made in Thailand; the display screen and memory in South Korea; the built-in wireless card in Malaysia; and the microprocessor in the United States.In each case,these components are manufactured and sourced from the optimal location given current factor costs.In this example,Lenovo has:

Accepted Answer

A)  vertical integration advantages. 
B)  a global web of value creation activities. 
C)  learning effects. 
D)  high local responsiveness. 
A)  vertical integration advantages. 
B)  a global web of value creation activities. 
C)  learning effects. 
D)  high local responsiveness.

Question 16

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 17

Describe localization strategy.

Accepted Answer

A localization strategy focuses on incre

Question 18

Which of the following statements is NOT true?

Accepted Answer

A)  The way to increase the profitability of a firm is to create more value. 
B)  The amount of value a firm creates is measured by the difference between its costs of production and the value that consumers perceive in its products. 
C)  The more value customers place on a firm's products,the higher the price the firm is able to charge for those products. 
D)  The price a firm charges for a good or service is typically more than the value the customer places on that good or service. 
A)  The way to increase the profitability of a firm is to create more value. 
B)  The amount of value a firm creates is measured by the difference between its costs of production and the value that consumers perceive in its products. 
C)  The more value customers place on a firm's products,the higher the price the firm is able to charge for those products. 
D)  The price a firm charges for a good or service is typically more than the value the customer places on that good or service.

Question 19

Support activities are always less important than the primary activities in achieving a competitive advantage.

Accepted Answer

A) True 
 B)False

Question 20

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.

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

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

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

Consider the firm in terms of a value chain.What is the difference between primary activities and support activities? Provide examples of each.

Economies of scale arise from all of the following sources,EXCEPT:

Discuss the factors that lead to pressure for local responsiveness.

R&D,production,marketing and sales,and customer service are all examples of primary activities.

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

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

The efficiency frontier has a convex shape because of:

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

_____ 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.

For a firm,all positions on the efficiency frontier are viable.

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

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:

Describe localization strategy.

Which of the following statements is NOT true?

Support activities are always less important than the primary activities in achieving a competitive advantage.

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

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

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

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

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

Consider the firm in terms of a value chain.What is the difference between primary activities and support activities? Provide examples of each.

Economies of scale arise from all of the following sources,EXCEPT:

Discuss the factors that lead to pressure for local responsiveness.

R&D,production,marketing and sales,and customer service are all examples of primary activities.

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

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

The efficiency frontier has a convex shape because of:

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

_____ 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.

For a firm,all positions on the efficiency frontier are viable.

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

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:

Describe localization strategy.

Which of the following statements is NOT true?

Support activities are always less important than the primary activities in achieving a competitive advantage.

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

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