Question 1

A localization strategy is based on which of the following ideas?

Accepted Answer

A) There is a convergence in the tastes of consumers in different nations of the world. 
B) There are substantial economies of scale to be realized from centralizing global production. 
C) Consumer tastes and preferences differ among national markets. 
D) There are cost advantages associated with manufacturing a standard product for global consumption. 
E) Competitive strategy should be centralized at the world head office. 
A) There is a convergence in the tastes of consumers in different nations of the world. 
B) There are substantial economies of scale to be realized from centralizing global production. 
C) Consumer tastes and preferences differ among national markets. 
D) There are cost advantages associated with manufacturing a standard product for global consumption. 
E) Competitive strategy should be centralized at the world head office.

Question 2

Most manufacturing companies begin their global expansion by exporting.

Accepted Answer

A) True 
 B)False

Question 3

The most rapid growth rate for household TV ownership is in the United States.

Accepted Answer

A) True 
 B)False

Question 4

Companies that pursue a global standardization strategy are trying to develop a business model that simultaneously achieves low costs and differentiates the product offering across geographic markets.

Accepted Answer

A) True 
 B)False

Question 5

Which entry mode gives a multinational the tightest control over foreign operations?

Accepted Answer

A) Exporting from the home country and letting a foreign agent organize local marketing 
B) Licensing 
C) Franchising 
D) Entering into a joint venture with a foreign company to set up overseas operations 
E) Setting up a wholly owned subsidiary 
A) Exporting from the home country and letting a foreign agent organize local marketing 
B) Licensing 
C) Franchising 
D) Entering into a joint venture with a foreign company to set up overseas operations 
E) Setting up a wholly owned subsidiary

Question 6

Walmart's basic approach to overseas expansion has been to open retail outlets in each of the countries to which it exports.

Accepted Answer

A) True 
 B)False

Question 7

A telecommunications firm develops new wireless cellular phones,a technology in which foreign competition is low and the need for local responsiveness is high.What is the most appropriate short-term strategy for this firm?

Accepted Answer

A) Global standardization 
B) International 
C) Localization 
D) Transnational 
E) Joint venture 
A) Global standardization 
B) International 
C) Localization 
D) Transnational 
E) Joint venture

Question 8

For a hotel company whose competitive advantage is based on high brand-name recognition,which of the following ways of serving an overseas market makes the most sense?

Accepted Answer

A) Franchising 
B) Licensing 
C) Exporting 
D) Entering into a joint venture with a foreign company 
E) Setting up a wholly owned subsidiary 
A) Franchising 
B) Licensing 
C) Exporting 
D) Entering into a joint venture with a foreign company 
E) Setting up a wholly owned subsidiary

Question 9

An international strategy may not be viable in the long term and to survive,companies that can pursue it need to shift toward a global standardization strategy.

Accepted Answer

A) True 
 B)False

Question 10

A company can increase its growth rate by taking goods or services developed at home and selling them internationally.

Accepted Answer

A) True 
 B)False

Question 11

The majority of programming for MTV networks now takes place overseas.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following companies exemplifies the trend toward national markets merging into one large global marketplace?

Accepted Answer

A) McDonald's 
B) Starbucks 
C) Coca-Cola 
D) Nokia 
E) All of these choices 
A) McDonald's 
B) Starbucks 
C) Coca-Cola 
D) Nokia 
E) All of these choices

Question 13

The Achilles heel of international strategy is that

Accepted Answer

A) market demand inevitably dries up. 
B) costs cannot be sufficiently controlled over long periods of time. 
C) competitors inevitably emerge. 
D) prices eventually tumble drastically. 
E) all of these choices. 
A) market demand inevitably dries up. 
B) costs cannot be sufficiently controlled over long periods of time. 
C) competitors inevitably emerge. 
D) prices eventually tumble drastically. 
E) all of these choices.

Question 14

Global expansion

Accepted Answer

A) is feasible only for large companies. 
B) can enable companies to increase their profitability and grow their profits more rapidly. 
C) allows domestic companies in the mature stage of the industry life cycle to maintain profits but not to increase them. 
D) requires locating facilities in foreign countries. 
E) makes sense for manufacturing firms but not for service firms. 
A) is feasible only for large companies. 
B) can enable companies to increase their profitability and grow their profits more rapidly. 
C) allows domestic companies in the mature stage of the industry life cycle to maintain profits but not to increase them. 
D) requires locating facilities in foreign countries. 
E) makes sense for manufacturing firms but not for service firms.

Question 15

Relative to the United States,Mexico has more advanced factors of production.

Accepted Answer

A) True 
 B)False

Question 16

When a company performs a value creation activity in the optimal location for that activity,wherever in the world that might be,it is trying to capitalize on

Accepted Answer

A) economies of scale. 
B) economies of scope. 
C) the transnational strategy. 
D) location economies. 
E) its localization strategy. 
A) economies of scale. 
B) economies of scope. 
C) the transnational strategy. 
D) location economies. 
E) its localization strategy.

Question 17

Which of the following factors increases pressures for cost reductions?

Accepted Answer

A) Differences in distribution channels 
B) Increasing national wealth 
C) Great transportation needs 
D) High switching costs 
E) Price as the main competitive weapon in a market 
A) Differences in distribution channels 
B) Increasing national wealth 
C) Great transportation needs 
D) High switching costs 
E) Price as the main competitive weapon in a market

Question 18

Factor endowments-the cost and quality of factors of production-are a prime determinant of the competitive advantage that certain countries have in certain industries.

Accepted Answer

A) True 
 B)False

Question 19

Whirlpool,a leading U.S.maker of household appliances,has a wholly owned subsidiary that is responsible for research and development (R&D),manufacturing,and sales in over two dozen European countries,from Norway to Greece.What are some of the potential advantages that Whirlpool may gain from its use of a wholly owned subsidiary for global expansion? What are some of the potential disadvantages?

Accepted Answer

Whirlpool stands to make high profits fr

Question 20

Which of the following companies increased company growth rates by developing products at home and then expanding sales of these products in international markets?

Accepted Answer

A) Procter & Gamble 
B) Ford 
C) Toyota 
D) All of these choices 
E) None of these choices 
A) Procter & Gamble 
B) Ford 
C) Toyota 
D) All of these choices 
E) None of these choices

A localization strategy is based on which of the following ideas?

Most manufacturing companies begin their global expansion by exporting.

The most rapid growth rate for household TV ownership is in the United States.

Companies that pursue a global standardization strategy are trying to develop a business model that simultaneously achieves low costs and differentiates the product offering across geographic markets.

Which entry mode gives a multinational the tightest control over foreign operations?

Walmart's basic approach to overseas expansion has been to open retail outlets in each of the countries to which it exports.

A telecommunications firm develops new wireless cellular phones,a technology in which foreign competition is low and the need for local responsiveness is high.What is the most appropriate short-term strategy for this firm?

For a hotel company whose competitive advantage is based on high brand-name recognition,which of the following ways of serving an overseas market makes the most sense?

An international strategy may not be viable in the long term and to survive,companies that can pursue it need to shift toward a global standardization strategy.

A company can increase its growth rate by taking goods or services developed at home and selling them internationally.

The majority of programming for MTV networks now takes place overseas.

Which of the following companies exemplifies the trend toward national markets merging into one large global marketplace?

The Achilles heel of international strategy is that

Global expansion

Relative to the United States,Mexico has more advanced factors of production.

When a company performs a value creation activity in the optimal location for that activity,wherever in the world that might be,it is trying to capitalize on

Which of the following factors increases pressures for cost reductions?

Factor endowments-the cost and quality of factors of production-are a prime determinant of the competitive advantage that certain countries have in certain industries.

Which of the following companies increased company growth rates by developing products at home and then expanding sales of these products in international markets?

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 based on which of the following ideas?

Most manufacturing companies begin their global expansion by exporting.

The most rapid growth rate for household TV ownership is in the United States.

Companies that pursue a global standardization strategy are trying to develop a business model that simultaneously achieves low costs and differentiates the product offering across geographic markets.

Which entry mode gives a multinational the tightest control over foreign operations?

Walmart's basic approach to overseas expansion has been to open retail outlets in each of the countries to which it exports.

A telecommunications firm develops new wireless cellular phones,a technology in which foreign competition is low and the need for local responsiveness is high.What is the most appropriate short-term strategy for this firm?

For a hotel company whose competitive advantage is based on high brand-name recognition,which of the following ways of serving an overseas market makes the most sense?

An international strategy may not be viable in the long term and to survive,companies that can pursue it need to shift toward a global standardization strategy.

A company can increase its growth rate by taking goods or services developed at home and selling them internationally.

The majority of programming for MTV networks now takes place overseas.

Which of the following companies exemplifies the trend toward national markets merging into one large global marketplace?

The Achilles heel of international strategy is that

Global expansion

Relative to the United States,Mexico has more advanced factors of production.

When a company performs a value creation activity in the optimal location for that activity,wherever in the world that might be,it is trying to capitalize on

Which of the following factors increases pressures for cost reductions?

Factor endowments-the cost and quality of factors of production-are a prime determinant of the competitive advantage that certain countries have in certain industries.

Which of the following companies increased company growth rates by developing products at home and then expanding sales of these products in international markets?

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