Question 1

What are the potential benefits and risks of global strategic alliances? What actions can a firm take to minimize the risks and maximize the benefits?

Accepted Answer

Global strategic alliances share the risk of global expansion,bring together complementary skills,facilitate entry into a new market,and can set technological standards.However,the partners risk loss of control over proprietary know-how,they must learn to work together in a cooperative fashion,and they must share any profits they earn. To maximize the benefits and minimize the risks,firms should choose a partner wisely,ensuring that the partner is trustworthy,has a common vision,and has complementary skills.To reduce the potential for loss of control,the company should consider walling off the technology,writing contractual safeguards,use cross-licensing agreements to exchange skills,and ask for a credible commitment in advance.Finally,bringing the two firms together is a significant challenge and can be eased if managers are sensitive to cultural differences,if they build interpersonal relationships across company boundaries,and if they look for opportunities for mutual learning and benefit.

Question 2

If a company's competitive advantage derives from its control of proprietary technological know-how,it should either license its technology to others or pursue a joint venture.

Accepted Answer

A) True 
 B)False  False

Question 3

In which of the following circumstances does a global standardization strategy make the most sense?

Accepted Answer

A) Global market standardization is not possible,and there are no significant economies of scale to be realized from centralizing global manufacturing. 
B) Global market standardization is possible,but there are no significant economies of scale to be realized from centralizing global manufacturing. 
C) Global market standardization is not possible,but there are significant economies of scale to be realized from centralizing global manufacturing. 
D) Consumer tastes and preferences differ among national markets,and economies of scale are insubstantial. 
E) Global market standardization is possible,and there are significant economies of scale to be realized from centralizing global manufacturing. 
A) Global market standardization is not possible,and there are no significant economies of scale to be realized from centralizing global manufacturing. 
B) Global market standardization is possible,but there are no significant economies of scale to be realized from centralizing global manufacturing. 
C) Global market standardization is not possible,but there are significant economies of scale to be realized from centralizing global manufacturing. 
D) Consumer tastes and preferences differ among national markets,and economies of scale are insubstantial. 
E) Global market standardization is possible,and there are significant economies of scale to be realized from centralizing global manufacturing. E

Question 4

What is meant by the term national competitive advantage,and what are the attributes of a nation that affect the global competitiveness of companies located within that nation?

Accepted Answer

National competitive advantage refers to

Question 5

Nokia and IKEA are both German companies.

Accepted Answer

A) True 
 B)False

Question 6

Dell is expanding its market share in European countries because its direct-sales model is more effective than the business model used by its European rivals.Which of the following benefits of global expansion is Dell experiencing,relative to its competitors?

Accepted Answer

A) Lower costs for labor and raw materials 
B) Further exploitation of distinctive competencies 
C) Decreased political and economic risk 
D) Better realization of location economies 
E) More incentive for local subsidiaries to develop competencies 
A) Lower costs for labor and raw materials 
B) Further exploitation of distinctive competencies 
C) Decreased political and economic risk 
D) Better realization of location economies 
E) More incentive for local subsidiaries to develop competencies

Question 7

An important ingredient of success in a strategic alliance appears to be cultural sensitivity.

Accepted Answer

A) True 
 B)False

Question 8

When a company increases its growth rate by taking goods or services developed at home and selling them internationally,it is

Accepted Answer

A) leveraging its existing products. 
B) taking the path of least resistance. 
C) engaging in product positioning. 
D) realizing cost economies from global expansion. 
E) realizing location economies. 
A) leveraging its existing products. 
B) taking the path of least resistance. 
C) engaging in product positioning. 
D) realizing cost economies from global expansion. 
E) realizing location economies.

Question 9

Location economies refer to the economic benefits that arise from performing a value creation activity at central headquarters.

Accepted Answer

A) True 
 B)False

Question 10

Companies that pursue a transnational strategy are trying to develop

Accepted Answer

A) a business model that achieves low costs. 
B) a differentiation strategy across geographical markets. 
C) a flow of skills between different subsidiaries in the global network. 
D) all of these choices. 
E) none of these choices. 
A) a business model that achieves low costs. 
B) a differentiation strategy across geographical markets. 
C) a flow of skills between different subsidiaries in the global network. 
D) all of these choices. 
E) none of these choices.

Question 11

The globalization of production has been increasing as companies take advantage of lower barriers to international trade and location economies.

Accepted Answer

A) True 
 B)False

Question 12

A nation's companies gain competitive advantage if their domestic customers are

Accepted Answer

A) nondemanding purchasers. 
B) able to obtain products or services in other countries. 
C) sophisticated and demanding. 
D) willing to spend money on novelties. 
E) not willing to accept low-priced products. 
A) nondemanding purchasers. 
B) able to obtain products or services in other countries. 
C) sophisticated and demanding. 
D) willing to spend money on novelties. 
E) not willing to accept low-priced products.

Question 13

Consider the case of a family-owned furniture-making business,headquartered in the United States,with fewer than fifty employees,that is contemplating exporting its products for the first time.What market do you recommend it enter,and when and how should it enter? Explain your answers.

Accepted Answer

A furniture maker must find a country th

Question 14

Which of the following is not a risk of exporting?

Accepted Answer

A) Tariff barriers 
B) Transportation costs 
C) Location diseconomies 
D) Prime interest rates 
E) Delegation of marketing activities to a local agent 
A) Tariff barriers 
B) Transportation costs 
C) Location diseconomies 
D) Prime interest rates 
E) Delegation of marketing activities to a local agent

Question 15

Disadvantages of a global strategy include

Accepted Answer

A) lack of local responsiveness. 
B) inability to engage in global strategic coordination. 
C) failure to exploit experience curve effects. 
D) lack of control over quality. 
E) inability to realize location economies. 
A) lack of local responsiveness. 
B) inability to engage in global strategic coordination. 
C) failure to exploit experience curve effects. 
D) lack of control over quality. 
E) inability to realize location economies.

Question 16

Managers of a multinational enterprise must recognize that skills

Accepted Answer

A) need to be transferred from headquarters to the firm's overseas operations. 
B) may arise from anywhere within the firm's global network. 
C) developed overseas usually do not rise to the level of domestic skills. 
D) should not deviate from their domestic level. 
E) must be tightly controlled to assume global similarity. 
A) need to be transferred from headquarters to the firm's overseas operations. 
B) may arise from anywhere within the firm's global network. 
C) developed overseas usually do not rise to the level of domestic skills. 
D) should not deviate from their domestic level. 
E) must be tightly controlled to assume global similarity.

Question 17

A transnational strategy makes the most sense when there are strong pressures for cost reductions and when demand for local responsiveness is minimal.

Accepted Answer

A) True 
 B)False

Question 18

Differences in tastes and preferences

Accepted Answer

A) increase pressures for cost reductions. 
B) reduce profit potential. 
C) increase pressures for local responsiveness. 
D) reduce pressures from the host government. 
E) prevent a company from pursuing a licensing strategy. 
A) increase pressures for cost reductions. 
B) reduce profit potential. 
C) increase pressures for local responsiveness. 
D) reduce pressures from the host government. 
E) prevent a company from pursuing a licensing strategy.

Question 19

Which of the following has occurred in international trade over the past half-century?

Accepted Answer

A) There has been a dramatic lowering of barriers to international trade. 
B) Tariff rates on manufactured goods traded by advanced nations have fallen. 
C) Regulations prohibiting foreign companies from entering domestic markets and establishing production facilities have been removed. 
D) The volume of world trade has increased dramatically. 
E) All of these choices. 
A) There has been a dramatic lowering of barriers to international trade. 
B) Tariff rates on manufactured goods traded by advanced nations have fallen. 
C) Regulations prohibiting foreign companies from entering domestic markets and establishing production facilities have been removed. 
D) The volume of world trade has increased dramatically. 
E) All of these choices.

Question 20

Clear Vision's decision to own a manufacturing facility overseas was not influenced by which of the following factors?

Accepted Answer

A) Low labor costs 
B) Availability of a skilled work force 
C) Geographical proximity to India 
D) Tax breaks given by the Hong Kong government 
E) Ability to find a Chinese partner 
A) Low labor costs 
B) Availability of a skilled work force 
C) Geographical proximity to India 
D) Tax breaks given by the Hong Kong government 
E) Ability to find a Chinese partner

What are the potential benefits and risks of global strategic alliances? What actions can a firm take to minimize the risks and maximize the benefits?

If a company's competitive advantage derives from its control of proprietary technological know-how,it should either license its technology to others or pursue a joint venture.

In which of the following circumstances does a global standardization strategy make the most sense?

What is meant by the term national competitive advantage,and what are the attributes of a nation that affect the global competitiveness of companies located within that nation?

Nokia and IKEA are both German companies.

Dell is expanding its market share in European countries because its direct-sales model is more effective than the business model used by its European rivals.Which of the following benefits of global expansion is Dell experiencing,relative to its competitors?

An important ingredient of success in a strategic alliance appears to be cultural sensitivity.

When a company increases its growth rate by taking goods or services developed at home and selling them internationally,it is

Location economies refer to the economic benefits that arise from performing a value creation activity at central headquarters.

Companies that pursue a transnational strategy are trying to develop

The globalization of production has been increasing as companies take advantage of lower barriers to international trade and location economies.

A nation's companies gain competitive advantage if their domestic customers are

Consider the case of a family-owned furniture-making business,headquartered in the United States,with fewer than fifty employees,that is contemplating exporting its products for the first time.What market do you recommend it enter,and when and how should it enter? Explain your answers.

Which of the following is not a risk of exporting?

Disadvantages of a global strategy include

Managers of a multinational enterprise must recognize that skills

A transnational strategy makes the most sense when there are strong pressures for cost reductions and when demand for local responsiveness is minimal.

Differences in tastes and preferences

Which of the following has occurred in international trade over the past half-century?

Clear Vision's decision to own a manufacturing facility overseas was not influenced by which of the following factors?

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Distinctive Competencies, Competitive Advantage, and Profitability

Building Competitive Advantage Through Functional-Level Strategy

Building Competitive Advantage Through Business-Level Strategy

Business-Level Strategy and the Industry Environment

Strategy and Technology

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy in Companies That Compete in a Single Industry

Implementing Strategy in Companies That Compete Across Industries and Countries

Filters

Exam 8: Strategy in the Global Environment

What are the potential benefits and risks of global strategic alliances? What actions can a firm take to minimize the risks and maximize the benefits?

If a company's competitive advantage derives from its control of proprietary technological know-how,it should either license its technology to others or pursue a joint venture.

In which of the following circumstances does a global standardization strategy make the most sense?

What is meant by the term national competitive advantage,and what are the attributes of a nation that affect the global competitiveness of companies located within that nation?

Nokia and IKEA are both German companies.

Dell is expanding its market share in European countries because its direct-sales model is more effective than the business model used by its European rivals.Which of the following benefits of global expansion is Dell experiencing,relative to its competitors?

An important ingredient of success in a strategic alliance appears to be cultural sensitivity.

When a company increases its growth rate by taking goods or services developed at home and selling them internationally,it is

Location economies refer to the economic benefits that arise from performing a value creation activity at central headquarters.

Companies that pursue a transnational strategy are trying to develop

The globalization of production has been increasing as companies take advantage of lower barriers to international trade and location economies.

A nation's companies gain competitive advantage if their domestic customers are

Consider the case of a family-owned furniture-making business,headquartered in the United States,with fewer than fifty employees,that is contemplating exporting its products for the first time.What market do you recommend it enter,and when and how should it enter? Explain your answers.

Which of the following is not a risk of exporting?

Disadvantages of a global strategy include

Managers of a multinational enterprise must recognize that skills

A transnational strategy makes the most sense when there are strong pressures for cost reductions and when demand for local responsiveness is minimal.

Differences in tastes and preferences

Which of the following has occurred in international trade over the past half-century?

Clear Vision's decision to own a manufacturing facility overseas was not influenced by which of the following factors?

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Distinctive Competencies, Competitive Advantage, and Profitability

Building Competitive Advantage Through Functional-Level Strategy

Building Competitive Advantage Through Business-Level Strategy

Business-Level Strategy and the Industry Environment

Strategy and Technology

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy in Companies That Compete in a Single Industry

Implementing Strategy in Companies That Compete Across Industries and Countries

Filters