Question 1

Similarity of culture, laws, rules, and norms encourages

Accepted Answer

A)   regionalization.
B)   globalization.
C)   trans-nationalization.
D)   ethnocentric expansion.E) A) and C)
F) None of the above

Question 2

Countries with demanding consumers, like environmentally-concerned Denmark, drive ________ to meet the demand.

Accepted Answer

A)   worldwide innovation
B)   in-country innovation
C)   foreign manufacturing
D)   global exchangeE) All of the above
F) B) and C)

Question 3

A firm can establish a wholly owned subsidiary by

Accepted Answer

A)   acquiring an existing company in the home country.
B)   keeping all of the activity offshore.
C)   licensing intellectual property.
D)   entering into a franchising agreement.E) A) and B)
F) A) and C) A

Question 4

A U.S. firm expands into China and Canada at exactly the same sales volume. The physical distance is the only factor that affects the true distance between the countries.

Accepted Answer

A) True 
 B)False  False

Question 5

What agreement entails the creation of a third-party legal entity?

Accepted Answer

A)   strategic alliance
B)   joint venture
C)   licensing
D)   exportingE) C) and D)
F) A) and B)

Question 6

Which of these points on the Porter diamond of national advantage is the strongest indicator of global competitive success?

Accepted Answer

A)   foreign rivalry
B)   domestic rivalry
C)   global rivalry
D)   international rivalryE) B) and D)
F) A) and C)

Question 7

The creation of a third-party legal entity is required for___________, whereas for ________ it is not.

Accepted Answer

A)   licensing agreements; joint ventures
B)   strategic alliances; joint ventures
C)   joint ventures; strategic alliances
D)   franchising agreements; strategic alliancesE) A) and D)
F) None of the above

Question 8

When differentiating products and services to local markets, strategies and tactics are likely to ________ company costs.

Accepted Answer

A)   decrease
B)   increase
C)   obliterate
D)   decentralizeE) None of the above
F) C) and D)

Question 9

Which of the following is a source of economic risk in many countries?

Accepted Answer

A)   good intellectual property law
B)   counterfeiting
C)   good enforcement of property rights
D)   political unrestE) A) and D)
F) B) and C)

Question 10

Multinational firms are constantly faced with the decision of choosing between ________ adaptation and ________ integration.

Accepted Answer

A)   local; local
B)   local; global
C)   global; local
D)   global; globalE) B) and C)
F) All of the above B

Question 11

Which of the following is not a risk normally associated with bottom-of-the-pyramid strategies?

Accepted Answer

A)   A low-end version of a brand may detract from the overall brand attractiveness.
B)   The new low-cost products they develop may cannibalize the sales of their core products.
C)   Entrenched competitors can impact the ability of the new firm to enter the market successfully.
D)   New products may be perceived as exploiting the privileged customer with substandard products.E) C) and D)
F) A) and B)

Question 12

In the Kulshrestha article "Learning from Mistakes" that is presented at the beginning of the textbook chapter, only a few Indian malls built after 1990 have been successful over thelongterm. Why?

Accepted Answer

Multinational firms are constantly faced...

Question 13

Shared Arabic language and the Muslim religion is one reason that explains regionalism tendencies in

Accepted Answer

A)   South America.
B)   the Maghreb.
C)   European Union.
D)   North America.E) None of the above
F) A) and D)

Question 14

Wages in developing markets can be volatile and spike dramatically. The United States can be ________ on a wage basis if its average wages decline.

Accepted Answer

A)   less competitive
B)   more competitive
C)   more risky
D)   more volatileE) B) and C)
F) A) and D)

Question 15

What is international strategy? Discuss the risks and challenges associated with an international strategy.

Accepted Answer

International strategy is a strategy bas...

Question 16

Greeks reacted negatively to Coca-Cola advertising using Coke bottles as pillars for the Parthenon. This is a form of ________ risk.

Accepted Answer

A)   currency
B)   management
C)   economic
D)   environmentalE) B) and D)
F) All of the above

Question 17

When the GE wind energy business tapped into world-wide talent, it was able to expand using a(n)  ________ strategy.

Accepted Answer

A)   focus
B)   diversification
C)   unrelated
D)   genericE) A) and D)
F) B) and C)

Question 18

Explain the role of factor endowments in the rise of the software industry in India.

Accepted Answer

Factor endowments are conducive to the r...

Question 19

The trend towards worldwide markets makes it easier to predict where competitors will spring up.

Accepted Answer

A) True 
 B)False

Question 20

What is a beachhead strategy and how does it contribute to a company's decision to internationalize?

Accepted Answer

Multinationals often stumble onto a step...

Exam 7: International Strategy Creating Value in Global Markets

Similarity of culture, laws, rules, and norms encourages

Correct AnswerverifiedShow Answer

Countries with demanding consumers, like environmentally-concerned Denmark, drive ________ to meet the demand.

Correct AnswerverifiedShow Answer

A firm can establish a wholly owned subsidiary by

Correct AnswerverifiedA

A U.S. firm expands into China and Canada at exactly the same sales volume. The physical distance is the only factor that affects the true distance between the countries.

Correct AnswerverifiedFalse

What agreement entails the creation of a third-party legal entity?

Correct AnswerverifiedShow Answer

Which of these points on the Porter diamond of national advantage is the strongest indicator of global competitive success?

Correct AnswerverifiedShow Answer

The creation of a third-party legal entity is required for___________, whereas for ________ it is not.

Correct AnswerverifiedShow Answer

When differentiating products and services to local markets, strategies and tactics are likely to ________ company costs.

Correct AnswerverifiedShow Answer

Which of the following is a source of economic risk in many countries?

Correct AnswerverifiedShow Answer

Multinational firms are constantly faced with the decision of choosing between ________ adaptation and ________ integration.

Correct AnswerverifiedB

Which of the following is not a risk normally associated with bottom-of-the-pyramid strategies?

Correct AnswerverifiedShow Answer

In the Kulshrestha article "Learning from Mistakes" that is presented at the beginning of the textbook chapter, only a few Indian malls built after 1990 have been successful over thelongterm. Why?

Correct AnswerverifiedMultinational firms are constantly faced...View AnswerShow Answer

Shared Arabic language and the Muslim religion is one reason that explains regionalism tendencies in

Correct AnswerverifiedShow Answer

Wages in developing markets can be volatile and spike dramatically. The United States can be ________ on a wage basis if its average wages decline.

Correct AnswerverifiedShow Answer

What is international strategy? Discuss the risks and challenges associated with an international strategy.

Correct AnswerverifiedInternational strategy is a strategy bas...View AnswerShow Answer

Greeks reacted negatively to Coca-Cola advertising using Coke bottles as pillars for the Parthenon. This is a form of ________ risk.

Correct AnswerverifiedShow Answer

When the GE wind energy business tapped into world-wide talent, it was able to expand using a(n) ________ strategy.

Correct AnswerverifiedShow Answer

Explain the role of factor endowments in the rise of the software industry in India.

Correct AnswerverifiedFactor endowments are conducive to the r...View AnswerShow Answer

The trend towards worldwide markets makes it easier to predict where competitors will spring up.

Correct AnswerverifiedShow Answer

What is a beachhead strategy and how does it contribute to a company's decision to internationalize?

Correct AnswerverifiedMultinationals often stumble onto a step...View AnswerShow Answer

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A

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False

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The creation of a third-party legal entity is required for___, whereas for it is not.

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Multinational firms are constantly faced with the decision of choosing between adaptation and integration.

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B

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Multinational firms are constantly faced...
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International strategy is a strategy bas...
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Factor endowments are conducive to the r...
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Multinationals often stumble onto a step...
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