Question 1

Advantages of following a strategy of local responsiveness include the ________.

Accepted Answer

A)  improved ability to transfer skills to employees in different locations 
B)  opportunity to adopt a global advertising program 
C)  ease in standardizing manufacturing methods across countries 
D)  flexibility to apply location-specific skills to local opportunities 
A)  improved ability to transfer skills to employees in different locations 
B)  opportunity to adopt a global advertising program 
C)  ease in standardizing manufacturing methods across countries 
D)  flexibility to apply location-specific skills to local opportunities

Question 2

The Industry Organization (IO)paradigm assumes which of the following?

Accepted Answer

A)  stable political and cultural trends 
B)  shifting foreign-exchange rates 
C)  perfect competition 
D)  unequal value 
A)  stable political and cultural trends 
B)  shifting foreign-exchange rates 
C)  perfect competition 
D)  unequal value

Question 3

A ________ is a special outlook,skill,capability,or technology that runs through the firm's operations,weaving together all value activities into an integrated value chain.

Accepted Answer

A)  core competency 
B)  value proposition 
C)  mission statement 
D)  learning curve 
A)  core competency 
B)  value proposition 
C)  mission statement 
D)  learning curve

Question 4

The industry organization (IO)paradigm reports that,on average,the best predictor of firm strategy is the ________.

Accepted Answer

A)  company's stockpile of assets, skills, and capabilities 
B)  aggressiveness of a company's marketing objectives 
C)  link between a company's products and processes 
D)  structure of the industry in which it competes 
A)  company's stockpile of assets, skills, and capabilities 
B)  aggressiveness of a company's marketing objectives 
C)  link between a company's products and processes 
D)  structure of the industry in which it competes

Question 5

A global strategy tends to be more successful when ________.

Accepted Answer

A)  buyers are looking for customized products at bargain prices 
B)  the industry's product is a commodity 
C)  entry barriers are low for new firms 
D)  suppliers have little bargaining power 
A)  buyers are looking for customized products at bargain prices 
B)  the industry's product is a commodity 
C)  entry barriers are low for new firms 
D)  suppliers have little bargaining power

Question 6

Which of the following is NOT a factor driving local responsiveness among global firms?

Accepted Answer

A)  cross-national differences in distribution channels 
B)  diverging consumer tastes and preferences 
C)  cross-national differences in product standards 
D)  host government support of freer international trade 
A)  cross-national differences in distribution channels 
B)  diverging consumer tastes and preferences 
C)  cross-national differences in product standards 
D)  host government support of freer international trade

Question 7

In a brief essay,discuss the strategy used by Zara,the firm described in the opening case.Also discuss the features of Zara's value chain.

Accepted Answer

Zara realized that offering standardized

Question 8

Support activities define the infrastructure of the firm and serve as the basis for the daily implementation of primary activities in the value chain.

Accepted Answer

A) True 
 B)False

Question 9

Improving explanatory power of the IO paradigm can be done by considering the potential for ________ to lead to a company's sustained competitive advantage.

Accepted Answer

A)  bright, motivated managers 
B)  political trends and events 
C)  cultural institutions 
D)  new markets 
A)  bright, motivated managers 
B)  political trends and events 
C)  cultural institutions 
D)  new markets

Question 10

Which of the following is NOT a disadvantage of the international strategy?

Accepted Answer

A)  Headquarters can misread foreign-market opportunities and threats. 
B)  The transfer of core competencies to foreign markets is complicated by the need to adapt to local needs. 
C)  Local subsidiaries are not given the opportunity to adapt value activities and share what they have learned with headquarters. 
D)  The company can be blindsided by an unexpectedly innovative rival in a foreign market. 
A)  Headquarters can misread foreign-market opportunities and threats. 
B)  The transfer of core competencies to foreign markets is complicated by the need to adapt to local needs. 
C)  Local subsidiaries are not given the opportunity to adapt value activities and share what they have learned with headquarters. 
D)  The company can be blindsided by an unexpectedly innovative rival in a foreign market.

Question 11

Preston Electronics is an MNE with facilities located in Taiwan,Singapore,and Germany.Preston gives its local operations the authority to adapt value activities to prevailing local economic,political,legal,and cultural conditions.Preston is most likely using a(n)________ strategy.

Accepted Answer

A)  global 
B)  multidomestic 
C)  international 
D)  continental 
A)  global 
B)  multidomestic 
C)  international 
D)  continental

Question 12

A differentiation strategy works well when ________.

Accepted Answer

A)  a company designs a universal product for a broad market 
B)  buyers believe minor product differences are irrelevant to price 
C)  buyers are highly sensitive to price shifts and quality control 
D)  a company can continually develop products that have unique features 
A)  a company designs a universal product for a broad market 
B)  buyers believe minor product differences are irrelevant to price 
C)  buyers are highly sensitive to price shifts and quality control 
D)  a company can continually develop products that have unique features

Question 13

Organizational challenges are comparatively more difficult for the firm pursuing a transnational strategy than for the firm pursuing an international strategy.

Accepted Answer

A) True 
 B)False

Question 14

In the demand-pull versus supply-push views of the market,which of the following is best classified as a push dynamic that drives supply in the global market?

Accepted Answer

A)  digitization 
B)  media access 
C)  standardization 
D)  market globalization 
A)  digitization 
B)  media access 
C)  standardization 
D)  market globalization

Question 15

Which strategy champions worldwide consistency and standardization to support the firm's goal to become the low-cost leader?

Accepted Answer

A)  international strategy 
B)  multidomestic strategy 
C)  global strategy 
D)  transnational strategy 
A)  international strategy 
B)  multidomestic strategy 
C)  global strategy 
D)  transnational strategy

Question 16

What is configuration? Briefly list and discuss the factors that influence value chain configuration.

Accepted Answer

Configuration is the way that managers a

Question 17

The strategy of a firm using an international strategy is likely to entail producing and marketing mostly standardized products worldwide,with some customization where and when necessary.

Accepted Answer

A) True 
 B)False

Question 18

Firms that pursue a(n)________ strategy create value by transferring core competencies from the home market to foreign markets in which local rivals lack a competitive alternative.

Accepted Answer

A)  transnational 
B)  multidomestic 
C)  global 
D)  international 
A)  transnational 
B)  multidomestic 
C)  global 
D)  international

Question 19

A global strategy drives performance by making standardized products that are marketed with minimum adaptation to local conditions.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is the primary limitation of the transnational strategy?

Accepted Answer

A)  poor local adaptation 
B)  cross-unit coordination difficulties 
C)  duplication of subsidiary activities 
D)  inability to leverage core competencies 
A)  poor local adaptation 
B)  cross-unit coordination difficulties 
C)  duplication of subsidiary activities 
D)  inability to leverage core competencies

Advantages of following a strategy of local responsiveness include the ________.

The Industry Organization (IO)paradigm assumes which of the following?

A ________ is a special outlook,skill,capability,or technology that runs through the firm's operations,weaving together all value activities into an integrated value chain.

The industry organization (IO)paradigm reports that,on average,the best predictor of firm strategy is the ________.

A global strategy tends to be more successful when ________.

Which of the following is NOT a factor driving local responsiveness among global firms?

In a brief essay,discuss the strategy used by Zara,the firm described in the opening case.Also discuss the features of Zara's value chain.

Support activities define the infrastructure of the firm and serve as the basis for the daily implementation of primary activities in the value chain.

Improving explanatory power of the IO paradigm can be done by considering the potential for ________ to lead to a company's sustained competitive advantage.

Which of the following is NOT a disadvantage of the international strategy?

Preston Electronics is an MNE with facilities located in Taiwan,Singapore,and Germany.Preston gives its local operations the authority to adapt value activities to prevailing local economic,political,legal,and cultural conditions.Preston is most likely using a(n)________ strategy.

A differentiation strategy works well when ________.

Organizational challenges are comparatively more difficult for the firm pursuing a transnational strategy than for the firm pursuing an international strategy.

In the demand-pull versus supply-push views of the market,which of the following is best classified as a push dynamic that drives supply in the global market?

Which strategy champions worldwide consistency and standardization to support the firm's goal to become the low-cost leader?

What is configuration? Briefly list and discuss the factors that influence value chain configuration.

The strategy of a firm using an international strategy is likely to entail producing and marketing mostly standardized products worldwide,with some customization where and when necessary.

Firms that pursue a(n)________ strategy create value by transferring core competencies from the home market to foreign markets in which local rivals lack a competitive alternative.

A global strategy drives performance by making standardized products that are marketed with minimum adaptation to local conditions.

Which of the following is the primary limitation of the transnational strategy?

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

International Trade and Factor-Mobility Theory

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

Global Capital Markets

Globalization and Society

Country Evaluation and Selection

Export and Import

Direct Investment and Collaborative Strategies

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply-Chain Management

International Accounting and Finance Issues

International Human Resource Management

Filters

Exam 12: The Strategy of International Business

Advantages of following a strategy of local responsiveness include the ________.

The Industry Organization (IO)paradigm assumes which of the following?

A ________ is a special outlook,skill,capability,or technology that runs through the firm's operations,weaving together all value activities into an integrated value chain.

The industry organization (IO)paradigm reports that,on average,the best predictor of firm strategy is the ________.

A global strategy tends to be more successful when ________.

Which of the following is NOT a factor driving local responsiveness among global firms?

In a brief essay,discuss the strategy used by Zara,the firm described in the opening case.Also discuss the features of Zara's value chain.

Support activities define the infrastructure of the firm and serve as the basis for the daily implementation of primary activities in the value chain.

Improving explanatory power of the IO paradigm can be done by considering the potential for ________ to lead to a company's sustained competitive advantage.

Which of the following is NOT a disadvantage of the international strategy?

Preston Electronics is an MNE with facilities located in Taiwan,Singapore,and Germany.Preston gives its local operations the authority to adapt value activities to prevailing local economic,political,legal,and cultural conditions.Preston is most likely using a(n)________ strategy.

A differentiation strategy works well when ________.

Organizational challenges are comparatively more difficult for the firm pursuing a transnational strategy than for the firm pursuing an international strategy.

In the demand-pull versus supply-push views of the market,which of the following is best classified as a push dynamic that drives supply in the global market?

Which strategy champions worldwide consistency and standardization to support the firm's goal to become the low-cost leader?

What is configuration? Briefly list and discuss the factors that influence value chain configuration.

The strategy of a firm using an international strategy is likely to entail producing and marketing mostly standardized products worldwide,with some customization where and when necessary.

Firms that pursue a(n)________ strategy create value by transferring core competencies from the home market to foreign markets in which local rivals lack a competitive alternative.

A global strategy drives performance by making standardized products that are marketed with minimum adaptation to local conditions.

Which of the following is the primary limitation of the transnational strategy?

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

International Trade and Factor-Mobility Theory

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

Global Capital Markets

Globalization and Society

Country Evaluation and Selection

Export and Import

Direct Investment and Collaborative Strategies

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply-Chain Management

International Accounting and Finance Issues

International Human Resource Management

Filters