Exam 7: International Strategy: Creating Value in Global Markets

Trends that might lead managers of multinational corporations (MNCs)to adopt a more decentralized strategy for their operations would include all of the following except

Canada and Mexico are the same distance from the United States,but trade is higher between the United States and Canada than with Mexico because

L'Oreal acquired two U.S.firms that developed and sold hair care products to African-American customers.This permitted it to build a new ethnic hair care division in Europe and Africa.This represents an advantage of international expansion using

A multidomestic strategy is the most appropriate strategy for international operations because it drives economies of scale as far as possible and provides a middle-of-the-road product that appeals to the largest number of consumers in every market.

In Euromoney's 2017 semi-annual "Country Risk Rating" evaluating political,economic,and other risks that entrants to international markets potentially face,which of the following countries have the next to the highest country financial system risk?

The most expensive and risky entry mode is

Which one of the following is not a limitation of a global strategy?

Which of the following is a source of economic risk in many countries?

A report issued by the World Trade Organization described the production of a particular U.S.car.The study showed that 30 percent of the car value goes to Korea for assembly,17.5 percent to Japan for components and advanced technology,7.5 percent to Germany for design,4 percent to Taiwan and Singapore for minor parts,2.5 percent to U.K.for advertising and marketing services,and 1.5 percent to Ireland and Barbados for data processing.This is an example of

In Fortune's annual list of the 500 biggest companies in the world,156 firms were from emerging markets in 2015 compared to 18 in 1996,owing to

According to Michael Porter,firms that have experienced intense domestic competition are

In considering the decision to offshore,which of the following generally is not one of the hidden costs?

The difference between a franchise contract and a licensing contract is that a

Typically,joint ventures involve less control and risk than franchising.

When firms expand into global markets,they are faced with the choice of reducing costs and/or adapting to the local market.When high pressures exist to lower costs,companies should choose a(n)________ strategy or ________ strategy in order to compete in the global marketplace.

When the GE wind energy business tapped into world-wide talent,it was able to expand using a(n)________ strategy.

In a world of instant communication,rapid transportation,and governments that are increasingly willing to open up their markets to trade and investment,why are there so few global firms?

The creation of a third-party legal entity is required for___________,whereas for ________ it is not.

When the U.S.dollar appreciates against other currencies,U.S.goods can be ________ to consumers in foreign countries but can have ________ implications for American companies with branch operations overseas.

In addition to responding to pressures to lower costs,managers must strive to be responsive to global pressures to tailor their products to the demand of the local market in which they do business.