Question 1

Strategies that increase profitability can also expand a firm's business and thus enable it to attain a higher rate of profit growth.

Accepted Answer

A) True 
 B)False

Question 2

AR Supply locates its global manufacturing in Mexico, its global distribution in Indonesia, and its design in Italy. By dispersing different stages of its value chain to those locations around the world where the value added is maximized or where the costs of value creation are minimized, AR Supply has created a(n)

Accepted Answer

A)   factor endowment.
B)   dispersal chain.
C)   global web.
D)   exchange rate.
E)   home country advantage.F) A) and D)
G) A) and E)

Question 3

The 2,500 people working in Saturn Inc.'s corporate office deal with the organizational structure, control systems, and culture of the firm. These three things comprise which support function of Saturn Inc.?

Accepted Answer

A)   human resources
B)   logistics
C)   information systems
D)   company infrastructure
E)   inventory managementF) A) and E)
G) All of the above

Question 4

Moving down the experience curve means higher costs of increasing value and lower levels of profitability for a firm.

Accepted Answer

A) True 
 B)False

Question 5

One disadvantage of a strategic alliance is

Accepted Answer

A)   it is difficult for a firm to enter into a foreign market.
B)   the fixed costs of developing new products tend to increase.
C)   competitors gain a low-cost route to new technology and markets.
D)   a foreign firm tends to face higher trade barriers.
E)   it always leads to a loss for either of the firms involved.F) A) and E)
G) A) and D)

Question 6

According to Michael Porter, one way to create superior value is to differentiate the product so that consumers are willing to pay a premium price.

Accepted Answer

A) True 
 B)False

Question 7

The ability to spread fixed costs over a large volume is a source of economies of scale.

Accepted Answer

A) True 
 B)False

Question 8

Firms that pursue a(n)  ________ strategy differentiate their product offering across geographic markets to account for local differences.

Accepted Answer

A)   international
B)   global standardization
C)   transnational
D)   multidomestic
E)   nationalizationF) All of the above
G) B) and C)

Question 9

Name four sources of pressures for local responsiveness and explain why they create pressure.

Accepted Answer

Pressures for local responsiveness arise...

Question 10

Describe the difference between support activities and primary activities within a firm.

Accepted Answer

The operations of a firm can be thought ...

Question 11

Discuss a transnational strategy and explain its role in the global market today.

Accepted Answer

In essence, firms that pursue a transnat...

Question 12

A ________ is most favorable to reap gains from global scale economies.

Accepted Answer

A)   low demand for local responsiveness
B)   high pressure for cost reduction
C)   lack of universal needs
D)   national difference in accepted business practices
E)   high pressure to delegate production to domestic subsidiariesF) A) and B)
G) A) and E)

Question 13

Learning effects tend to be more significant when

Accepted Answer

A)   a task involves a few simple steps.
B)   a task is repeated for a period of over five years.
C)   the workforce consists of unskilled labor.
D)   the cumulative output becomes half of what it was originally.
E)   a technologically complex task is repeated.F) C) and E)
G) B) and C)

Question 14

Namaste Inc. sells its yoga mats for $50. It costs the company $35 to make the product. Customers value the mats at $60. In this scenario, the consumer surplus is

Accepted Answer

A)   $38.
B)   $50.
C)   $10.
D)   $28.
E)   $15.F) D) and E)
G) A) and E)

Question 15

Describe a global standardization strategy.

Accepted Answer

Firms that pursue a global standardizati...

Question 16

Explain the three characteristics necessary in a good ally when considering a strategic alliance.

Accepted Answer

One key to making a strategic alliance w...

Question 17

A global motor vehicle parts manufacturer wants to start production in China. While catering to local responsiveness, what can the firm do to get scale economies?

Accepted Answer

A)   increase costs whenever possible
B)   use common components across many different models
C)   shorten the production runs for each component
D)   increase the duplication of functions required for each operation
E)   manufacture only one type of car and sell it in all the international marketsF) All of the above
G) D) and E)

Question 18

Midwest Sports produces in-house all the products that it sells through its network of stores. It has a function in its value chain that controls sending the physical materials through the value chain, from procurement through production and into distribution. This function is called

Accepted Answer

A)   human resources.
B)   finance.
C)   marketing.
D)   logistics.
E)   research and development.F) A) and D)
G) C) and D)

Question 19

A(n)  ________ focuses on increasing profitability by customizing the firm's goods or services so that they provide a good match to tastes and preferences in different national markets.

Accepted Answer

A)   international strategy
B)   global standardization strategy
C)   localization strategy
D)   transnational strategy
E)   nationalization strategyF) B) and E)
G) A) and B)

Question 20

A company can increase its growth rate by taking goods or services developed at home and selling them internationally. The returns from such a strategy are likely to be greater if

Accepted Answer

A)   the product is already being offered by local companies in the nations that the company enters.
B)   the product is a generic product that requires little differentiation.
C)   indigenous competitors in the nations that the company enters lack comparable products.
D)   there is a high inflation in the nations that the company enters.
E)   the product is perceived to be very costly in the home country of the company.F) C) and D)
G) A) and B)

Exam 12: The Strategy of International Business

Midwest Sports produces in-house all the products that it sells through its network of stores. It has a function in its value chain that controls sending the physical materials through the value chain, from procurement through production and into distribution. This function is called

Correct Answer
verified

Namaste Inc. sells its yoga mats for $50. It costs the company $35 to make the product. Customers value the mats at $60. In this scenario, the consumer surplus is

Correct Answer
verified

According to Michael Porter, one way to create superior value is to differentiate the product so that consumers are willing to pay a premium price.

Correct Answer
verified

Correct Answer
verified

Name four sources of pressures for local responsiveness and explain why they create pressure.

Correct Answer
verified
Pressures for local responsiveness arise...
View Answer

A global motor vehicle parts manufacturer wants to start production in China. While catering to local responsiveness, what can the firm do to get scale economies?

Correct Answer
verified

Moving down the experience curve means higher costs of increasing value and lower levels of profitability for a firm.

Correct Answer
verified

A ________ is most favorable to reap gains from global scale economies.

Correct Answer
verified

Describe the difference between support activities and primary activities within a firm.

Correct Answer
verified
The operations of a firm can be thought ...
View Answer

Discuss a transnational strategy and explain its role in the global market today.

Correct Answer
verified
In essence, firms that pursue a transnat...
View Answer

The 2,500 people working in Saturn Inc.'s corporate office deal with the organizational structure, control systems, and culture of the firm. These three things comprise which support function of Saturn Inc.?

Correct Answer
verified

A company can increase its growth rate by taking goods or services developed at home and selling them internationally. The returns from such a strategy are likely to be greater if

Correct Answer
verified

Explain the three characteristics necessary in a good ally when considering a strategic alliance.

Correct Answer
verified
One key to making a strategic alliance w...
View Answer

One disadvantage of a strategic alliance is

Correct Answer
verified

Describe a global standardization strategy.

Correct Answer
verified
Firms that pursue a global standardizati...
View Answer

A(n) ________ focuses on increasing profitability by customizing the firm's goods or services so that they provide a good match to tastes and preferences in different national markets.

Correct Answer
verified

Strategies that increase profitability can also expand a firm's business and thus enable it to attain a higher rate of profit growth.

Correct Answer
verified

The ability to spread fixed costs over a large volume is a source of economies of scale.

Correct Answer
verified

Learning effects tend to be more significant when

Correct Answer
verified

Firms that pursue a(n) ________ strategy differentiate their product offering across geographic markets to account for local differences.

Correct Answer
verified

Exam 12: The Strategy of International Business

Midwest Sports produces in-house all the products that it sells through its network of stores. It has a function in its value chain that controls sending the physical materials through the value chain, from procurement through production and into distribution. This function is called

Correct AnswerverifiedShow Answer

Namaste Inc. sells its yoga mats for $50. It costs the company $35 to make the product. Customers value the mats at $60. In this scenario, the consumer surplus is

Correct AnswerverifiedShow Answer

According to Michael Porter, one way to create superior value is to differentiate the product so that consumers are willing to pay a premium price.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Name four sources of pressures for local responsiveness and explain why they create pressure.

Correct AnswerverifiedPressures for local responsiveness arise...View AnswerShow Answer

A global motor vehicle parts manufacturer wants to start production in China. While catering to local responsiveness, what can the firm do to get scale economies?

Correct AnswerverifiedShow Answer

Moving down the experience curve means higher costs of increasing value and lower levels of profitability for a firm.

Correct AnswerverifiedShow Answer

A ________ is most favorable to reap gains from global scale economies.

Correct AnswerverifiedShow Answer

Describe the difference between support activities and primary activities within a firm.

Correct AnswerverifiedThe operations of a firm can be thought ...View AnswerShow Answer

Discuss a transnational strategy and explain its role in the global market today.

Correct AnswerverifiedIn essence, firms that pursue a transnat...View AnswerShow Answer

The 2,500 people working in Saturn Inc.'s corporate office deal with the organizational structure, control systems, and culture of the firm. These three things comprise which support function of Saturn Inc.?

Correct AnswerverifiedShow Answer

A company can increase its growth rate by taking goods or services developed at home and selling them internationally. The returns from such a strategy are likely to be greater if

Correct AnswerverifiedShow Answer

Explain the three characteristics necessary in a good ally when considering a strategic alliance.

Correct AnswerverifiedOne key to making a strategic alliance w...View AnswerShow Answer

One disadvantage of a strategic alliance is

Correct AnswerverifiedShow Answer

Describe a global standardization strategy.

Correct AnswerverifiedFirms that pursue a global standardizati...View AnswerShow Answer

A(n) ________ focuses on increasing profitability by customizing the firm's goods or services so that they provide a good match to tastes and preferences in different national markets.

Correct AnswerverifiedShow Answer

Strategies that increase profitability can also expand a firm's business and thus enable it to attain a higher rate of profit growth.

Correct AnswerverifiedShow Answer

The ability to spread fixed costs over a large volume is a source of economies of scale.

Correct AnswerverifiedShow Answer

Learning effects tend to be more significant when

Correct AnswerverifiedShow Answer

Firms that pursue a(n) ________ strategy differentiate their product offering across geographic markets to account for local differences.

Correct AnswerverifiedShow Answer

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Correct Answer
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Pressures for local responsiveness arise...
View Answer

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Correct Answer
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Correct Answer
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Correct Answer
verified
The operations of a firm can be thought ...
View Answer

Correct Answer
verified
In essence, firms that pursue a transnat...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
verified
One key to making a strategic alliance w...
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Correct Answer
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Correct Answer
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Firms that pursue a global standardizati...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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