Question 1

How can the marketing and sales functions of a firm create value?

Accepted Answer

The answer of How can the marketing and sales functions...

Question 2

Which of the following is NOT associated with firms following the global standardization strategy?

Accepted Answer

A)  Low pressures for local responsiveness 
B)  Use cost advantage to support aggressive pricing in world markets 
C)  High pressures for cost reductions 
D)  Customize product offering and marketing strategy to local conditions

Question 3

Consider a transnational strategy. Why would a firm choose this strategic alternative? What are the disadvantages of this strategy?

Accepted Answer

The answer of Consider a transnational strategy. Why would a...

Question 4

Universal needs exist when the tastes and preferences of consumers in different nations are similar if not identical.

Accepted Answer

A) True 
 B)False

Question 5

Discuss the creation of a global web of value creation activities.

Accepted Answer

The answer of Discuss the creation of a global web...

Question 6

One of the sources of economies of scale is the ability to spread fixed costs over a large volume.

Accepted Answer

A) True 
 B)False

Question 7

Describe the benefits of global expansion for firms.

Accepted Answer

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Question 8

Responding to pressure for _____ requires that a firm differentiate its product offering and marketing strategy from country to country.

Accepted Answer

A)  cost reductions 
B)  experience effects 
C)  lowering the costs of value creation 
D)  being locally responsive

Question 9

What is the difference between profitability and profit growth?

Accepted Answer

The answer of What is the difference between profitability and...

Question 10

Discuss the evolution of strategy. How does cost become important in the long term?

Accepted Answer

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Question 11

The distinguishing feature of many firms that pursue an international strategy is that they are selling a product that serves local needs, but they do not face significant competitors.

Accepted Answer

A) True 
 B)False

Question 12

Two types of competitive pressure that affect the ability of multinational enterprises to compete in the global marketplace are pressure for cost reductions and pressure for local responsiveness.

Accepted Answer

A) True 
 B)False

Question 13

According to Porter, the way to create superior value is to drive down the cost structure of the business and/or differentiate the product in some way so that consumers value it more.

Accepted Answer

A) True 
 B)False

Question 14

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 15

Economies that arise from performing a value creation activity in the optimal place for that activity are referred to as:

Accepted Answer

A)  factor economies. 
B)  production economies. 
C)  location economies. 
D)  value creation economies.

Question 16

Describe localization strategy.

Accepted Answer

The answer of Describe localization strategy....

Question 17

Which of the following statements is NOT true?

Accepted Answer

A)  The way to increase the profitability of a firm is to create more value. 
B)  The amount of value a firm creates is measured by the difference between its costs of production and the value that consumers perceive in its products. 
C)  The more value customers place on a firm's products, the higher the price the firm is able to charge for those products. 
D)  The price a firm charges for a good or service is typically more than the value the customer places on that good or service.

Question 18

How can firms successfully leverage the skills developed at the subsidiary level?

Accepted Answer

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Question 19

Pressures for cost reduction are minimal in industries where major competitors are based in low-cost locations, where there is persistent excess capacity, and where consumers are powerful and face low switching costs.

Accepted Answer

A) True 
 B)False

Question 20

What are the four basic strategies that firms use to compete in international markets?

Accepted Answer

The answer of What are the four basic strategies that...

Exam 13: The Strategy of International Business

How can the marketing and sales functions of a firm create value?

Which of the following is NOT associated with firms following the global standardization strategy?

Consider a transnational strategy. Why would a firm choose this strategic alternative? What are the disadvantages of this strategy?

Universal needs exist when the tastes and preferences of consumers in different nations are similar if not identical.

Discuss the creation of a global web of value creation activities.

One of the sources of economies of scale is the ability to spread fixed costs over a large volume.

Describe the benefits of global expansion for firms.

Responding to pressure for _____ requires that a firm differentiate its product offering and marketing strategy from country to country.

What is the difference between profitability and profit growth?

Discuss the evolution of strategy. How does cost become important in the long term?

The distinguishing feature of many firms that pursue an international strategy is that they are selling a product that serves local needs, but they do not face significant competitors.

Two types of competitive pressure that affect the ability of multinational enterprises to compete in the global marketplace are pressure for cost reductions and pressure for local responsiveness.

According to Porter, the way to create superior value is to drive down the cost structure of the business and/or differentiate the product in some way so that consumers value it more.

Which of the following is true of the international strategy?

Economies that arise from performing a value creation activity in the optimal place for that activity are referred to as:

Describe localization strategy.

Which of the following statements is NOT true?

How can firms successfully leverage the skills developed at the subsidiary level?

Pressures for cost reduction are minimal in industries where major competitors are based in low-cost locations, where there is persistent excess capacity, and where consumers are powerful and face low switching costs.

What are the four basic strategies that firms use to compete in international markets?