Question 1

Pressures for cost reduction are intense in industries where

Accepted Answer

A)   major competitors are based in high-cost locations.
B)   consumers are weak and face high switching costs.
C)   there is persistent excess capacity.
D)   the company is located in a low-cost location.E) A) and B)
F) A) and C)

Question 2

Discuss how a firm's marketing strategies may have to address differences in distribution channels in other countries.

Accepted Answer

A firm's marketing strategies may have t...

Question 3

How can a firm increase its profitability?

Accepted Answer

The way to increase the profitability of...

Question 4

A multinational firm may need to delegate marketing functions to national subsidiaries to

Accepted Answer

A)   fully implement the firm's localization strategy.
B)   employ economies of scale.
C)   meet the requirements for a global standardization strategy.
D)   be responsive to local differences in distribution channels.E) B) and D)
F) C) and D)

Question 5

The strategy, operations, and organization of a firm must all be consistent with each other if the firm is to ________ and achieve superior profitability.

Accepted Answer

A)   exploit core competencies
B)   attain a comparative advantage
C)   experience a learning curve
D)   attain a competitive advantageE) B) and D)
F) B) and C)

Question 6

According to researchers Bartlett and Ghoshal, for transnational enterprises to be successful, they must focus on

Accepted Answer

A)   selling a product that serves universal needs.
B)   leveraging subsidiary skills.
C)   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.
D)   ensuring that the flow of skills from the home country to the foreign subsidiaries is one way and uninterrupted.E) B) and C)
F) A) and C)

Question 7

Learning effects tend to be

Accepted Answer

A)   the same regardless of whether a task is simple or complex.
B)   more significant when a technologically simple task is repeated.
C)   less significant when a technologically complex task is repeated.
D)   more significant when a technologically complex task is repeated.E) A) and C)
F) None of the above

Question 8

Universal needs exist when

Accepted Answer

A)   the tastes and preferences of consumers in different nations are similar if not identical.
B)   conventional commodity products requested in one country are different than those requested in another country.
C)   the tastes and preferences of consumers in the same nation are similar if not identical.
D)   consumers are willing to pay a high price for a product regardless of what country they reside in.E) A) and D)
F) A) and C)

Question 9

Michael Porter argues that

Accepted Answer

A)   those firms that create superior value will achieve superior profitability.
B)   standardization of product is a basic strategy for attaining a competitive advantage in an industry.
C)   it is necessary for a firm to have the lowest cost structure or create the most valuable product.
D)   it is important that the gap between value and the cost of production be smaller than that of competitors.E) None of the above
F) A) and B)

Question 10

Which of the following is an example of a primary activity in a firm's value chain?

Accepted Answer

A)   information systems
B)   research and development
C)   logistics
D)   human relationsE) None of the above
F) B) and D)

Question 11

Which of the following is one of the two types of competitive pressure that affects the ability of multinational enterprises to compete in the global marketplace?

Accepted Answer

A)   pressure for cost increases
B)   pressure for local responsiveness
C)   pressure for value creation
D)   pressure for increased profitabilityE) A) and B)
F) None of the above

Question 12

A firm facing low pressures for cost reductions and low pressures for local responsiveness is most likely to follow ________ strategy.

Accepted Answer

A)   a global standardization
B)   a localization
C)   an international
D)   a transnationalE) B) and C)
F) All of the above

Question 13

The basic strategy paradigm suggests that to maximize its profitability, a firm should do which of the following?

Accepted Answer

A)   Choose, according to strategy, any position on the efficiency frontier as all positions are viable.
B)   Pick a position on the efficiency frontier that is viable in the sense that there is a low product demand anticipated.
C)   Configure its external operations so that they support the position of diminishing returns.
D)   Make sure that the right organization structure is in place to execute its strategy.E) A) and B)
F) A) and C)

Question 14

When a firm has a strategic goal of pursuing a low-cost strategy on a worldwide scale, the firm should follow ________ strategy.

Accepted Answer

A)   a global standardization
B)   a localization
C)   an international
D)   a customizationE) A) and B)
F) A) and C)

Question 15

Firms usually respond to pressures for cost reduction by trying to

Accepted Answer

A)   lower the costs of value creation.
B)   be locally responsive.
C)   undertaking product differentiation.
D)   diversifying product lines.E) None of the above
F) A) and C)

Question 16

Which of the following statements is true?

Accepted Answer

A)   The way to increase the profitability of a firm is to create a greater number of products.
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 lower 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.E) C) and D)
F) B) and D)

Question 17

When the firm simultaneously faces both strong cost pressures and strong pressures for local responsiveness, the ideal strategy to follow is the ________ strategy.

Accepted Answer

A)   global standardization
B)   localization
C)   transnational
D)   internationalE) A) and B)
F) A) and C)

Question 18

Lenovo's ThinkPad laptop computers are designed in the United States; the case, keyboard, and hard drive are made in Thailand; the display screen and memory in South Korea; the built-in wireless card in Malaysia; and the microprocessor in the United States. In each case, these components are manufactured and sourced from the optimal location given current factor costs. In this example, Lenovo has

Accepted Answer

A)   vertical integration advantages.
B)   a global web of value creation activities.
C)   learning effects.
D)   high local responsiveness.E) A) and B)
F) B) and D)

Question 19

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

Accepted Answer

Leveraging the skills created within sub...

Question 20

________ 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 possibilityE) All of the above
F) B) and C)

Exam 13: The Strategy of International Business

The basic strategy paradigm suggests that to maximize its profitability, a firm should do which of the following?

Correct Answer
verified

Universal needs exist when

Correct Answer
verified

Michael Porter argues that

Correct Answer
verified

Correct Answer
verified

When the firm simultaneously faces both strong cost pressures and strong pressures for local responsiveness, the ideal strategy to follow is the ________ strategy.

Correct Answer
verified

Which of the following is an example of a primary activity in a firm's value chain?

Correct Answer
verified

The strategy, operations, and organization of a firm must all be consistent with each other if the firm is to ________ and achieve superior profitability.

Correct Answer
verified

A firm facing low pressures for cost reductions and low pressures for local responsiveness is most likely to follow ________ strategy.

Correct Answer
verified

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

Correct Answer
verified

According to researchers Bartlett and Ghoshal, for transnational enterprises to be successful, they must focus on

Correct Answer
verified

Which of the following is one of the two types of competitive pressure that affects the ability of multinational enterprises to compete in the global marketplace?

Correct Answer
verified

Learning effects tend to be

Correct Answer
verified

Firms usually respond to pressures for cost reduction by trying to

Correct Answer
verified

Discuss how a firm's marketing strategies may have to address differences in distribution channels in other countries.

Correct Answer
verified
A firm's marketing strategies may have t...
View Answer

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

Correct Answer
verified
Leveraging the skills created within sub...
View Answer

Pressures for cost reduction are intense in industries where

Correct Answer
verified

A multinational firm may need to delegate marketing functions to national subsidiaries to

Correct Answer
verified

Which of the following statements is true?

Correct Answer
verified

How can a firm increase its profitability?

Correct Answer
verified
The way to increase the profitability of...
View Answer

When a firm has a strategic goal of pursuing a low-cost strategy on a worldwide scale, the firm should follow ________ strategy.

Correct Answer
verified

Exam 13: The Strategy of International Business

The basic strategy paradigm suggests that to maximize its profitability, a firm should do which of the following?

Correct AnswerverifiedShow Answer

Universal needs exist when

Correct AnswerverifiedShow Answer

Michael Porter argues that

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When the firm simultaneously faces both strong cost pressures and strong pressures for local responsiveness, the ideal strategy to follow is the ________ strategy.

Correct AnswerverifiedShow Answer

Which of the following is an example of a primary activity in a firm's value chain?

Correct AnswerverifiedShow Answer

The strategy, operations, and organization of a firm must all be consistent with each other if the firm is to ________ and achieve superior profitability.

Correct AnswerverifiedShow Answer

A firm facing low pressures for cost reductions and low pressures for local responsiveness is most likely to follow ________ strategy.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

According to researchers Bartlett and Ghoshal, for transnational enterprises to be successful, they must focus on

Correct AnswerverifiedShow Answer

Which of the following is one of the two types of competitive pressure that affects the ability of multinational enterprises to compete in the global marketplace?

Correct AnswerverifiedShow Answer

Learning effects tend to be

Correct AnswerverifiedShow Answer

Firms usually respond to pressures for cost reduction by trying to

Correct AnswerverifiedShow Answer

Discuss how a firm's marketing strategies may have to address differences in distribution channels in other countries.

Correct AnswerverifiedA firm's marketing strategies may have t...View AnswerShow Answer

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

Correct AnswerverifiedLeveraging the skills created within sub...View AnswerShow Answer

Pressures for cost reduction are intense in industries where

Correct AnswerverifiedShow Answer

A multinational firm may need to delegate marketing functions to national subsidiaries to

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

How can a firm increase its profitability?

Correct AnswerverifiedThe way to increase the profitability of...View AnswerShow Answer

When a firm has a strategic goal of pursuing a low-cost strategy on a worldwide scale, the firm should follow ________ strategy.

Correct AnswerverifiedShow Answer

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A firm's marketing strategies may have t...
View Answer

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verified
Leveraging the skills created within sub...
View Answer

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Correct Answer
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Correct Answer
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The way to increase the profitability of...
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Correct Answer
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