Question 1

A multidomestic strategy makes the most sense for companies that see high pressures for local responsiveness and low pressures for cost reductions.

Accepted Answer

A) True 
 B)False

Question 2

According to the integration-responsiveness (IR)grid,consumer electronics and corporate banking are two types of industries with ________ industry pressure for global integration and ________ industry pressure for local responsiveness.

Accepted Answer

A)  low; low 
B)  high; high 
C)  low; high 
D)  high; low

Question 3

A differentiation strategy works well in situations where there are many ways to differentiate a product or service and many buyers perceive these differences as having value.

Accepted Answer

A) True 
 B)False

Question 4

As a result of the global economic crisis,the potential for profitability in all sorts of industries has ________.

Accepted Answer

A)  decreased 
B)  increased 
C)  become less predictable 
D)  become more projectable

Question 5

A disadvantage of the ________ strategy is that firms that adopt this strategy can decentralize too much autonomy to national subsidiaries.

Accepted Answer

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

Question 6

Which of the following is LEAST likely to trigger the standardization of consumer preferences?

Accepted Answer

A)  intrinsic functions of money 
B)  global access to common media 
C)  increasing nationalism 
D)  improved communications technologies

Question 7

Dispersing value activities where and in how many places in the world is the issue of ________.

Accepted Answer

A)  logistics 
B)  clustering 
C)  coordination 
D)  configuration

Question 8

Which of the following statements about Zara is most likely FALSE?

Accepted Answer

A)  Zara puts fewer products on clearance racks than most of its competitors in the industry. 
B)  Zara's large advertising budget generates word-of-mouth and attracts new buyers. 
C)  New products and designs are delivered to Zara stores every three to four weeks. 
D)  Most of Zara's products move through the firm's distribution center in Spain.

Question 9

In the context of value chain analysis,the support activities of a firm include ________.

Accepted Answer

A)  outbound logistics, human resources, and information systems 
B)  production, marketing, and operations 
C)  shipping and customer service 
D)  research and development

Question 10

Digitization has altered location economics and established a new global model for service providers in the financial and legal industries.

Accepted Answer

A) True 
 B)False

Question 11

A useful way to understanding the purpose of strategy is to think of the firm as a(n)________,composed of a series of distinct activities,including production,marketing,materials management,R&D,human resources,information systems,and the firm infrastructure.

Accepted Answer

A)  activity network 
B)  value constellation 
C)  task succession 
D)  value chain

Question 12

Citibank decides to open a call center in Mumbai,India because a detailed analysis of the country-specific advantages suggests that India is the optimal place for responding to customers' calls.Citibank is exploiting ________ by running a call center in India.

Accepted Answer

A)  value configuration synergies 
B)  location economies 
C)  geographic arbitrage 
D)  value offshoring

Question 13

The fundamental outlook of the multidomestic strategy is standardization.

Accepted Answer

A) True 
 B)False

Question 14

Mobile Technology is a company that sees the world as a single market,assuming that consumer preferences and industry conditions do not vary much among countries.Mobile Technology is likely to adopt a global strategy.

Accepted Answer

A) True 
 B)False

Question 15

When the pressure for global integration is high and the pressure for local responsiveness is low,a company is most likely to pursue a(n)________ strategy.

Accepted Answer

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

Question 16

Johnson Enterprises manufactures computer chips used in cell phones.The MNE has long production runs that lower the per unit cost of each chip.The firm also purchases materials in bulk from its suppliers with whom Johnson has long-term contracts.Johnson is most likely benefiting from ________.

Accepted Answer

A)  economies of scale 
B)  the cluster effect 
C)  digitization 
D)  location economies

Question 17

Tel-Comm Tek is a company that believes it has core competencies that its competitors in foreign markets lack and that it faces relatively weak pressures for local responsiveness and cost reductions.Tel-Comm Tek is likely to adopt an international strategy.

Accepted Answer

A) True 
 B)False

Question 18

Host governments' growing demands for increasing operational transparency will most likely spur companies to make their value chains more ________.

Accepted Answer

A)  locally responsive 
B)  globally integrated 
C)  concise 
D)  complex

Question 19

Pressures for local responsiveness include cross-national differences in terms of consumer preferences,advances in technology,and government regulations.

Accepted Answer

A) True 
 B)False

Question 20

Political,legal,economic,monetary,and institutional forces comprise the ________ of international business and influence managers' actions.

Accepted Answer

A)  environment 
B)  competition 
C)  culture 
D)  threat

Exam 12: The Strategy of International Business

A multidomestic strategy makes the most sense for companies that see high pressures for local responsiveness and low pressures for cost reductions.

According to the integration-responsiveness (IR) grid,consumer electronics and corporate banking are two types of industries with industry pressure for global integration and industry pressure for local responsiveness.

A differentiation strategy works well in situations where there are many ways to differentiate a product or service and many buyers perceive these differences as having value.

As a result of the global economic crisis,the potential for profitability in all sorts of industries has ________.

A disadvantage of the ________ strategy is that firms that adopt this strategy can decentralize too much autonomy to national subsidiaries.

Which of the following is LEAST likely to trigger the standardization of consumer preferences?

Dispersing value activities where and in how many places in the world is the issue of ________.

Which of the following statements about Zara is most likely FALSE?

In the context of value chain analysis,the support activities of a firm include ________.

Digitization has altered location economics and established a new global model for service providers in the financial and legal industries.

A useful way to understanding the purpose of strategy is to think of the firm as a(n) ________,composed of a series of distinct activities,including production,marketing,materials management,R&D,human resources,information systems,and the firm infrastructure.

Citibank decides to open a call center in Mumbai,India because a detailed analysis of the country-specific advantages suggests that India is the optimal place for responding to customers' calls.Citibank is exploiting ________ by running a call center in India.

The fundamental outlook of the multidomestic strategy is standardization.

Mobile Technology is a company that sees the world as a single market,assuming that consumer preferences and industry conditions do not vary much among countries.Mobile Technology is likely to adopt a global strategy.

When the pressure for global integration is high and the pressure for local responsiveness is low,a company is most likely to pursue a(n) ________ strategy.

Johnson Enterprises manufactures computer chips used in cell phones.The MNE has long production runs that lower the per unit cost of each chip.The firm also purchases materials in bulk from its suppliers with whom Johnson has long-term contracts.Johnson is most likely benefiting from ________.

Tel-Comm Tek is a company that believes it has core competencies that its competitors in foreign markets lack and that it faces relatively weak pressures for local responsiveness and cost reductions.Tel-Comm Tek is likely to adopt an international strategy.

Host governments' growing demands for increasing operational transparency will most likely spur companies to make their value chains more ________.

Pressures for local responsiveness include cross-national differences in terms of consumer preferences,advances in technology,and government regulations.

Political,legal,economic,monetary,and institutional forces comprise the ________ of international business and influence managers' actions.

Exam 12: The Strategy of International Business

A multidomestic strategy makes the most sense for companies that see high pressures for local responsiveness and low pressures for cost reductions.

According to the integration-responsiveness (IR) grid,consumer electronics and corporate banking are two types of industries with ________ industry pressure for global integration and ________ industry pressure for local responsiveness.

A differentiation strategy works well in situations where there are many ways to differentiate a product or service and many buyers perceive these differences as having value.

As a result of the global economic crisis,the potential for profitability in all sorts of industries has ________.

A disadvantage of the ________ strategy is that firms that adopt this strategy can decentralize too much autonomy to national subsidiaries.

Which of the following is LEAST likely to trigger the standardization of consumer preferences?

Dispersing value activities where and in how many places in the world is the issue of ________.

Which of the following statements about Zara is most likely FALSE?

In the context of value chain analysis,the support activities of a firm include ________.

Digitization has altered location economics and established a new global model for service providers in the financial and legal industries.

A useful way to understanding the purpose of strategy is to think of the firm as a(n) ________,composed of a series of distinct activities,including production,marketing,materials management,R&D,human resources,information systems,and the firm infrastructure.

Citibank decides to open a call center in Mumbai,India because a detailed analysis of the country-specific advantages suggests that India is the optimal place for responding to customers' calls.Citibank is exploiting ________ by running a call center in India.

The fundamental outlook of the multidomestic strategy is standardization.

Mobile Technology is a company that sees the world as a single market,assuming that consumer preferences and industry conditions do not vary much among countries.Mobile Technology is likely to adopt a global strategy.

When the pressure for global integration is high and the pressure for local responsiveness is low,a company is most likely to pursue a(n) ________ strategy.

Johnson Enterprises manufactures computer chips used in cell phones.The MNE has long production runs that lower the per unit cost of each chip.The firm also purchases materials in bulk from its suppliers with whom Johnson has long-term contracts.Johnson is most likely benefiting from ________.

Tel-Comm Tek is a company that believes it has core competencies that its competitors in foreign markets lack and that it faces relatively weak pressures for local responsiveness and cost reductions.Tel-Comm Tek is likely to adopt an international strategy.

Host governments' growing demands for increasing operational transparency will most likely spur companies to make their value chains more ________.

Pressures for local responsiveness include cross-national differences in terms of consumer preferences,advances in technology,and government regulations.

Political,legal,economic,monetary,and institutional forces comprise the ________ of international business and influence managers' actions.

According to the integration-responsiveness (IR) grid,consumer electronics and corporate banking are two types of industries with industry pressure for global integration and industry pressure for local responsiveness.