Question 1

A localization strategy is most appropriate when

Accepted Answer

A) there are relatively few differences from one location to another. 
B) consumer tastes and preferences are universally similar. 
C) consumer tastes and preferences differ substantially across nations. 
D) there is no need to customize products. 
E) local demand and national demand are equal. 
A) there are relatively few differences from one location to another. 
B) consumer tastes and preferences are universally similar. 
C) consumer tastes and preferences differ substantially across nations. 
D) there is no need to customize products. 
E) local demand and national demand are equal.

Question 2

Procter & Gamble grew rapidly in international markets because of its

Accepted Answer

A) skills in mass-marketing. 
B) patents on essential products. 
C) financial stamina. 
D) work force diversity. 
E) concentric diversification. 
A) skills in mass-marketing. 
B) patents on essential products. 
C) financial stamina. 
D) work force diversity. 
E) concentric diversification.

Question 3

Careful selection of the right partner is one key to the success of global strategic alliances.

Accepted Answer

A) True 
 B)False

Question 4

Foreign subsidiaries play a major role in shaping the future direction of a company pursuing a(n)

Accepted Answer

A) transnational strategy. 
B) international strategy. 
C) localization strategy. 
D) joint venture. 
E) global standardization strategy. 
A) transnational strategy. 
B) international strategy. 
C) localization strategy. 
D) joint venture. 
E) global standardization strategy.

Question 5

The ability to realize cost economies from global volume is greatest in the case of

Accepted Answer

A) products that need to be customized to local requirements. 
B) commodity-type products that serve universal needs. 
C) low-weight,high-value products that can be differentiated by global companies. 
D) products that can be economically manufactured in small batches. 
E) companies competing in industries where they face a large number of multinational competitors. 
A) products that need to be customized to local requirements. 
B) commodity-type products that serve universal needs. 
C) low-weight,high-value products that can be differentiated by global companies. 
D) products that can be economically manufactured in small batches. 
E) companies competing in industries where they face a large number of multinational competitors.

Question 6

A key to making a strategic alliance work is

Accepted Answer

A) having one partner handle daily operations. 
B) selecting the right partner. 
C) sharing all knowledge. 
D) enforcing one culture for both partners. 
E) reducing investment in the alliance to a minimum. 
A) having one partner handle daily operations. 
B) selecting the right partner. 
C) sharing all knowledge. 
D) enforcing one culture for both partners. 
E) reducing investment in the alliance to a minimum.

Question 7

Firms should choose likely countries for an international expansion effort based on all of the following except the

Accepted Answer

A) size of the market. 
B) existing wealth of consumers in that market. 
C) likely future wealth of consumers in that market. 
D) political stability of that market. 
E) age of the country. 
A) size of the market. 
B) existing wealth of consumers in that market. 
C) likely future wealth of consumers in that market. 
D) political stability of that market. 
E) age of the country.

Question 8

Which of the following is not an objective of a transnational company?

Accepted Answer

A) Local responsiveness 
B) Realization of experience-based economies 
C) Low cross-national integration 
D) Global learning 
E) Realization of location economies 
A) Local responsiveness 
B) Realization of experience-based economies 
C) Low cross-national integration 
D) Global learning 
E) Realization of location economies

Question 9

A company with a business-level strategy of cost leadership should pursue which of the following global expansion strategies?

Accepted Answer

A) Localization 
B) Simple 
C) International 
D) Transnational 
E) Global standardization 
A) Localization 
B) Simple 
C) International 
D) Transnational 
E) Global standardization

Question 10

Identify and discuss the general ways in which companies can increase their profitability and profit growth through global expansion.

Accepted Answer

Companies can increase their profitabili

Question 11

The globalization of production has allowed firms to

Accepted Answer

A) increase their market share. 
B) lower their cost structure. 
C) respond to individual market segments. 
D) avoid international competition. 
E) all of these choices. 
A) increase their market share. 
B) lower their cost structure. 
C) respond to individual market segments. 
D) avoid international competition. 
E) all of these choices.

Question 12

When a company expands its sales volume through international expansion,it can realize cost savings from economies of scale through all of the following except

Accepted Answer

A) spreading fixed costs over its global sales volume. 
B) utilizing its production facilities more intensely. 
C) increased bargaining power with its suppliers. 
D) learning effects associated with higher volume. 
E) improved responsiveness. 
A) spreading fixed costs over its global sales volume. 
B) utilizing its production facilities more intensely. 
C) increased bargaining power with its suppliers. 
D) learning effects associated with higher volume. 
E) improved responsiveness.

Question 13

When a company licenses its technology it can quickly lose control over it.

Accepted Answer

A) True 
 B)False

Question 14

Host government demands generally

Accepted Answer

A) increase pressures for local responsiveness. 
B) increase pressures for cost reductions. 
C) discourage foreign companies from operating in the home country. 
D) impede a company's ability to minimize its transaction costs. 
E) impede a company's ability to differentiate its product offering across national borders. 
A) increase pressures for local responsiveness. 
B) increase pressures for cost reductions. 
C) discourage foreign companies from operating in the home country. 
D) impede a company's ability to minimize its transaction costs. 
E) impede a company's ability to differentiate its product offering across national borders.

Question 15

In which of the following circumstances does a localization 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) Global market standardization is possible,and there are significant economies of scale to be realized from centralizing global manufacturing. 
E) Consumer tastes and preferences differ among national markets,and economies of scale are substantial. 
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) Global market standardization is possible,and there are significant economies of scale to be realized from centralizing global manufacturing. 
E) Consumer tastes and preferences differ among national markets,and economies of scale are substantial.

Question 16

International licensing is an arrangement whereby a foreign licensee buys the rights to produce a company's product in the licensee's country for a negotiated fee.

Accepted Answer

A) True 
 B)False

Question 17

Many experts believe that the world's economic system is moving toward a system in which national markets are merging into one huge global marketplace.

Accepted Answer

A) True 
 B)False

Question 18

One advantage of a joint venture is that a company may benefit from a local partner's knowledge of the many dimensions of a host country.

Accepted Answer

A) True 
 B)False

Question 19

Pressure for cost reductions encourages a firm to pursue a cost-leadership strategy,while pressure for local responsiveness encourages a firm to pursue differentiation.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following factors increases pressures for local responsiveness?

Accepted Answer

A) Powerful buyers 
B) Persistent excess capacity 
C) Low-cost competitors 
D) Differences in customer tastes and preferences 
E) Trade barriers 
A) Powerful buyers 
B) Persistent excess capacity 
C) Low-cost competitors 
D) Differences in customer tastes and preferences 
E) Trade barriers

A localization strategy is most appropriate when

Procter & Gamble grew rapidly in international markets because of its

Careful selection of the right partner is one key to the success of global strategic alliances.

Foreign subsidiaries play a major role in shaping the future direction of a company pursuing a(n)

The ability to realize cost economies from global volume is greatest in the case of

A key to making a strategic alliance work is

Firms should choose likely countries for an international expansion effort based on all of the following except the

Which of the following is not an objective of a transnational company?

A company with a business-level strategy of cost leadership should pursue which of the following global expansion strategies?

Identify and discuss the general ways in which companies can increase their profitability and profit growth through global expansion.

The globalization of production has allowed firms to

When a company expands its sales volume through international expansion,it can realize cost savings from economies of scale through all of the following except

When a company licenses its technology it can quickly lose control over it.

Host government demands generally

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

International licensing is an arrangement whereby a foreign licensee buys the rights to produce a company's product in the licensee's country for a negotiated fee.

Many experts believe that the world's economic system is moving toward a system in which national markets are merging into one huge global marketplace.

One advantage of a joint venture is that a company may benefit from a local partner's knowledge of the many dimensions of a host country.

Pressure for cost reductions encourages a firm to pursue a cost-leadership strategy,while pressure for local responsiveness encourages a firm to pursue differentiation.

Which of the following factors increases pressures for local responsiveness?

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

A localization strategy is most appropriate when

Procter & Gamble grew rapidly in international markets because of its

Careful selection of the right partner is one key to the success of global strategic alliances.

Foreign subsidiaries play a major role in shaping the future direction of a company pursuing a(n)

The ability to realize cost economies from global volume is greatest in the case of

A key to making a strategic alliance work is

Firms should choose likely countries for an international expansion effort based on all of the following except the

Which of the following is not an objective of a transnational company?

A company with a business-level strategy of cost leadership should pursue which of the following global expansion strategies?

Identify and discuss the general ways in which companies can increase their profitability and profit growth through global expansion.

The globalization of production has allowed firms to

When a company expands its sales volume through international expansion,it can realize cost savings from economies of scale through all of the following except

When a company licenses its technology it can quickly lose control over it.

Host government demands generally

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

International licensing is an arrangement whereby a foreign licensee buys the rights to produce a company's product in the licensee's country for a negotiated fee.

Many experts believe that the world's economic system is moving toward a system in which national markets are merging into one huge global marketplace.

One advantage of a joint venture is that a company may benefit from a local partner's knowledge of the many dimensions of a host country.

Pressure for cost reductions encourages a firm to pursue a cost-leadership strategy,while pressure for local responsiveness encourages a firm to pursue differentiation.

Which of the following factors increases pressures for local responsiveness?

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