Question 1

Pressures for _____ imply that it may not be possible for a firm to realize the full benefits from economies of scale, learning effects, and location economies.

Accepted Answer

A)  local responsiveness 
B)  profitability 
C)  value creation 
D)  global standardization

Question 2

Firms usually respond to pressures for cost reduction by trying to:

Accepted Answer

A)  lower the costs of value creation. 
B)  be locally responsive. 
C)  undertaking product differentiation. 
D)  diversifying product lines.

Question 3

Enterprises that pursue an international strategy tend to decentralize control over marketing and product strategies.

Accepted Answer

A) True 
 B)False

Question 4

It has been observed that a product's production costs decline by some quantity about each time cumulative output _____.

Accepted Answer

A)  increases by twenty five percent 
B)  quadruples 
C)  doubles 
D)  triples

Question 5

Top management should be viewed as part of the firm's _____.

Accepted Answer

A)  primary activities 
B)  experience curve 
C)  infrastructure 
D)  universal strategy

Question 6

The _____ all of the different positions that a firm can adopt with regard to adding value to the product and low cost assuming that its internal operations are configured efficiently to support a particular position.

Accepted Answer

A)  economies of scale are 
B)  diminishing returns are 
C)  efficiency frontier shows 
D)  value creation scale shows

Question 7

The amount of value a firm creates is measured by the:

Accepted Answer

A)  economies of scale they are able to achieve. 
B)  difference between its costs of production and the value that consumers perceive in its products. 
C)  profitability the firm achieves. 
D)  difference between its costs of production and the price that it charges for its products.

Question 8

_____ activities of the value chain provide inputs that allow the primary activities to occur.

Accepted Answer

A)  Complementary 
B)  Basic 
C)  Core 
D)  Support

Question 9

Cost savings that come from learning by doing are known as _____.

Accepted Answer

A)  learning curves 
B)  economies of scale 
C)  learning effects 
D)  experience curves

Question 10

The success of many multinational corporations is based not just upon the goods or services that they sell in foreign nations, but also upon the core competencies that underlie the development, production, and marketing of those goods or services.

Accepted Answer

A) True 
 B)False

Question 11

A multinational firm may need to delegate marketing functions to national subsidiaries to:

Accepted Answer

A)  fully implement the firm's localization strategy. 
B)  employ economies of scale. 
C)  meet the requirements for a global standardization strategy. 
D)  be responsive to local differences in distribution channels.

Question 12

Location economies are the economies that arise from performing a _____ activity in the optimal location for that activity.

Accepted Answer

A)  universal need 
B)  core competence 
C)  value creation 
D)  localization strategy

Question 13

Learning effects tend to be:

Accepted Answer

A)  the same regardless of whether a task is simple or complex. 
B)  more significant when a technologically simple task is repeated. 
C)  less significant when a technologically complex task is repeated. 
D)  more significant when a technologically complex task is repeated.

Question 14

Describe the benefits of global expansion for firms.

Accepted Answer

The answer of Describe the benefits of global expansion for...

Question 15

Threats of protectionism, economic nationalism, and local content rules dictate that international businesses manufacture locally.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is true of the international strategy?

Accepted Answer

A)  Product development tends to be highly decentralized. 
B)  Manufacturing and marketing are typically located in the headquarters location. 
C)  Extensive production customization is common. 
D)  The strategy is not viable in the long-run.

Question 17

The price a firm charges for a good or service is typically less than the value placed on that good or service by the customer. This is because:

Accepted Answer

A)  the customer's disposable income is significantly higher than what the market demands. 
B)  the customer captures some of that value in the form of a consumer surplus. 
C)  regulatory mechanisms ensure that the customer is not overcharged for products/services. 
D)  marketers implement psychological pricing tactics to ensure that customers perceive the prices to be low.

Question 18

Michael Porter argues that:

Accepted Answer

A)  those firms that create superior value will achieve superior profitability. 
B)  standardization of product is a basic strategy for attaining a competitive advantage in an industry. 
C)  it is necessary for a firm to have the lowest cost structure or create the most valuable product. 
D)  it is important that the gap between value and the cost of production be smaller than that of competitors.

Question 19

Systematic increases in sales that have been observed to occur over the life of the product are referred to as the experience curve.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is an example of a primary activity in a firm's value chain?

Accepted Answer

A)  Information systems 
B)  Research and development 
C)  Logistics 
D)  Human relations

Exam 13: The Strategy of International Business

Pressures for _____ imply that it may not be possible for a firm to realize the full benefits from economies of scale, learning effects, and location economies.

Firms usually respond to pressures for cost reduction by trying to:

Enterprises that pursue an international strategy tend to decentralize control over marketing and product strategies.

It has been observed that a product's production costs decline by some quantity about each time cumulative output _____.

Top management should be viewed as part of the firm's _____.

The _____ all of the different positions that a firm can adopt with regard to adding value to the product and low cost assuming that its internal operations are configured efficiently to support a particular position.

The amount of value a firm creates is measured by the:

_____ activities of the value chain provide inputs that allow the primary activities to occur.

Cost savings that come from learning by doing are known as _____.

The success of many multinational corporations is based not just upon the goods or services that they sell in foreign nations, but also upon the core competencies that underlie the development, production, and marketing of those goods or services.

A multinational firm may need to delegate marketing functions to national subsidiaries to:

Location economies are the economies that arise from performing a _____ activity in the optimal location for that activity.

Learning effects tend to be:

Describe the benefits of global expansion for firms.

Threats of protectionism, economic nationalism, and local content rules dictate that international businesses manufacture locally.

Which of the following is true of the international strategy?

The price a firm charges for a good or service is typically less than the value placed on that good or service by the customer. This is because:

Michael Porter argues that:

Systematic increases in sales that have been observed to occur over the life of the product are referred to as the experience curve.

Which of the following is an example of a primary activity in a firm's value chain?