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

What are learning effects? When are learning effects most significant?

Accepted Answer

The answer of What are learning effects? When are learning...

Question 3

Once a firm has established a low-cost position,it can act as a barrier to new competition.

Accepted Answer

A) True 
 B)False

Question 4

Core competencies enable a firm to reduce the costs of value creation and/or to create perceived value in such a way that premium pricing is possible.

Accepted Answer

A) True 
 B)False

Question 5

When consumer tastes and preferences differ significantly between countries,there is low pressure for local responsiveness.

Accepted Answer

A) True 
 B)False

Question 6

_____ 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 7

Discuss Michael Porter's interpretation of value creation and competitive advantage.

Accepted Answer

The answer of Discuss Michael Porter's interpretation of value creation...

Question 8

For a firm,all positions on the efficiency frontier are viable.

Accepted Answer

A) True 
 B)False

Question 9

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 10

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 11

Which strategy focuses on increasing profitability by customizing the firm's goods or services so they provide a good match to tastes and preferences in different national markets?

Accepted Answer

A)  Global standardization strategy 
B)  Transnational strategy 
C)  Localization strategy 
D)  International strategy

Question 12

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 13

A consumer surplus can be best described as:

Accepted Answer

A)  what the consumer has "left-over" after a purchase. 
B)  how much extra a consumer has to pay for a product. 
C)  value for the money. 
D)  the premium charged for a quality product.

Question 14

_____ refer(s)to systematic reductions in production costs that have been observed to occur over the life of a product.

Accepted Answer

A)  Experience curve 
B)  Economies of scale 
C)  Location economies 
D)  Production possibility

Question 15

It has been suggested that learning effects are important only during the start-up period of a new process and that they cease after two or three years.Any decline in the experience curve after such a point is due to:

Accepted Answer

A)  reduction in fixed costs. 
B)  higher depreciation costs. 
C)  economies of scale. 
D)  obsolescence.

Question 16

Discuss efficiency frontier.How does strategic positioning relate to the efficiency frontier?

Accepted Answer

The answer of Discuss efficiency frontier.How does strategic positioning relate...

Question 17

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 18

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 19

Describe the benefits of global expansion for firms.

Accepted Answer

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

Question 20

A strategy that focuses on increasing the attractiveness of a product is referred to as a(n):

Accepted Answer

A)  differentiation strategy. 
B)  low cost strategy. 
C)  effectiveness strategy. 
D)  efficiency strategy.

Exam 13: The Strategy of International Business

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

What are learning effects? When are learning effects most significant?

Once a firm has established a low-cost position,it can act as a barrier to new competition.

Core competencies enable a firm to reduce the costs of value creation and/or to create perceived value in such a way that premium pricing is possible.

When consumer tastes and preferences differ significantly between countries,there is low pressure for local responsiveness.

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

Discuss Michael Porter's interpretation of value creation and competitive advantage.

For a firm,all positions on the efficiency frontier are viable.

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.

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.

Which strategy focuses on increasing profitability by customizing the firm's goods or services so they provide a good match to tastes and preferences in different national markets?

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

A consumer surplus can be best described as:

_____ refer(s) to systematic reductions in production costs that have been observed to occur over the life of a product.

It has been suggested that learning effects are important only during the start-up period of a new process and that they cease after two or three years.Any decline in the experience curve after such a point is due to:

Discuss efficiency frontier.How does strategic positioning relate to the efficiency frontier?

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.

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

Describe the benefits of global expansion for firms.

A strategy that focuses on increasing the attractiveness of a product is referred to as a(n) :