Question 1

When a firm focuses on increasing profitability by customizing the product or service so that they provide a good match to tastes and preferences in different national markets, the firm is following a(n)  _____ strategy.

Accepted Answer

A)   transnational
B)   localization
C)   international
D)   global standardizationE) B) and C)
F) A) and D)

Question 2

Consider the firm in terms of a value chain. What is the difference between primary activities and support activities? Provide examples of each.

Accepted Answer

The operations of a firm can be thought of as a value chain composed of a series of distinct value creation activities. Primary activities have to do with the design, creation, and delivery of the product; its marketing; and its after-sale-service. Normally, primary activities are divided into R&D, production, marketing and sales, and customer service. The support activities of the value chain provide inputs that allow the primary activities to occur. Support activities include information systems, company infrastructure, logistics, and human resources.

Question 3

A(n)  _____ strategy makes most sense when demands for local responsiveness are high, but cost pressures are moderate or low.

Accepted Answer

A)   global standardization
B)   transnational
C)   international
D)   localizationE) B) and C)
F) A) and B)

Question 4

It has been observed in the aircraft industry that, each time cumulative output of airframes was doubled, unit costs typically declined to 80 percent of their previous level. This is an example of the _____ curve.

Accepted Answer

A)   core performance
B)   location
C)   strategic
D)   experienceE) A) and B)
F) A) and C)

Question 5

Moving down the experience curve:

Accepted Answer

A)   increases the cost of a firm's raw material.
B)   allows a firm to reduce its cost of creating value.
C)   decreases a firm's profitability.
D)   increases the research and development expenditure of a firm.E) All of the above
F) None of the above

Question 6

Economies that arise from performing a value creation activity in the optimal location are known as _____.

Accepted Answer

A)   international strategies
B)   location economies
C)   localization strategies
D)   economies of scaleE) A) and C)
F) All of the above

Question 7

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) A) and C)
F) B) and D)

Question 8

Discuss the evolution of strategy. How does cost become important in the long term?

Accepted Answer

An international strategy is typically n...

Question 9

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

Accepted Answer

A)   Research and development
B)   Customer service
C)   Human resources
D)   Marketing and salesE) A) and D)
F) None of the above

Question 10

How can a firm increase its profitability?

Accepted Answer

The way to increase the profitability of...

Question 11

_____ allows a firm to reduce its cost of creating value and increase its profitability.

Accepted Answer

A)   Moving down the experience curve
B)   Moving up the experience curve
C)   Moving down the learning effect curve
D)   Moving up the learning effect curveE) B) and C)
F) None of the above A

Question 12

When individuals gain knowledge of the most efficient ways to perform particular tasks, they are saving costs through _____.

Accepted Answer

A)   location economies
B)   value creation effects
C)   experience curve effects
D)   learning effectsE) A) and C)
F) A) and B)

Question 13

The _____ refers to systematic reductions in production costs that have been observed to occur over the life of a product.

Accepted Answer

A)   economies of scale
B)   value creation
C)   location economies
D)   experience curveE) None of the above
F) A) and C) D

Question 14

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

Accepted Answer

There are several ways the marketing and...

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.E) B) and C)
F) A) and B)

Question 16

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 17

The skills within the firm that a competitor cannot easily match or imitate are known as core competence.

Accepted Answer

A) True 
 B)False

Question 18

According to Porter, the way to create superior value is to drive down the cost structure of the business and/or differentiate the product in some way so that consumers value it more.

Accepted Answer

A) True 
 B)False

Question 19

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) B) and D)
F) None of the above

Question 20

Learning effects:

Accepted Answer

A)   tend to be less significant when a technologically complex task is repeated.
B)   will be less significant in an assembly process involving 1,000 complex steps than in one of only 100 simple steps.
C)   typically disappear after a while, in spite of the complexity of the task.
D)   are more significant after two or three years of the introduction of a new process.E) A) and B)
F) A) and C)

Exam 13: The Strategy of International Business

When a firm focuses on increasing profitability by customizing the product or service so that they provide a good match to tastes and preferences in different national markets, the firm is following a(n) _____ strategy.

Correct Answer
verified

Consider the firm in terms of a value chain. What is the difference between primary activities and support activities? Provide examples of each.

A(n) _____ strategy makes most sense when demands for local responsiveness are high, but cost pressures are moderate or low.

Correct Answer
verified

It has been observed in the aircraft industry that, each time cumulative output of airframes was doubled, unit costs typically declined to 80 percent of their previous level. This is an example of the _____ curve.

Correct Answer
verified

Moving down the experience curve:

Correct Answer
verified

Economies that arise from performing a value creation activity in the optimal location are known as _____.

Correct Answer
verified

Which of the following statements is true?

Correct Answer
verified

Discuss the evolution of strategy. How does cost become important in the long term?

Correct Answer
verified
An international strategy is typically n...
View Answer

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

Correct Answer
verified

How can a firm increase its profitability?

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

_____ allows a firm to reduce its cost of creating value and increase its profitability.

Correct Answer
verified
A

When individuals gain knowledge of the most efficient ways to perform particular tasks, they are saving costs through _____.

Correct Answer
verified

The _____ refers to systematic reductions in production costs that have been observed to occur over the life of a product.

Correct Answer
verified
D

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

Correct Answer
verified
There are several ways the marketing and...
View Answer

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:

Correct Answer
verified

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

Correct Answer
verified

The skills within the firm that a competitor cannot easily match or imitate are known as core competence.

Correct Answer
verified

According to Porter, the way to create superior value is to drive down the cost structure of the business and/or differentiate the product in some way so that consumers value it more.

Correct Answer
verified

Universal needs exist when:

Correct Answer
verified

Learning effects:

Correct Answer
verified

Exam 13: The Strategy of International Business

When a firm focuses on increasing profitability by customizing the product or service so that they provide a good match to tastes and preferences in different national markets, the firm is following a(n) _____ strategy.

Correct AnswerverifiedShow Answer

Consider the firm in terms of a value chain. What is the difference between primary activities and support activities? Provide examples of each.

A(n) _____ strategy makes most sense when demands for local responsiveness are high, but cost pressures are moderate or low.

Correct AnswerverifiedShow Answer

It has been observed in the aircraft industry that, each time cumulative output of airframes was doubled, unit costs typically declined to 80 percent of their previous level. This is an example of the _____ curve.

Correct AnswerverifiedShow Answer

Moving down the experience curve:

Correct AnswerverifiedShow Answer

Economies that arise from performing a value creation activity in the optimal location are known as _____.

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

Discuss the evolution of strategy. How does cost become important in the long term?

Correct AnswerverifiedAn international strategy is typically n...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

How can a firm increase its profitability?

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

_____ allows a firm to reduce its cost of creating value and increase its profitability.

Correct AnswerverifiedA

When individuals gain knowledge of the most efficient ways to perform particular tasks, they are saving costs through _____.

Correct AnswerverifiedShow Answer

The _____ refers to systematic reductions in production costs that have been observed to occur over the life of a product.

Correct AnswerverifiedD

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

Correct AnswerverifiedThere are several ways the marketing and...View AnswerShow Answer

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:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The skills within the firm that a competitor cannot easily match or imitate are known as core competence.

Correct AnswerverifiedShow Answer

According to Porter, the way to create superior value is to drive down the cost structure of the business and/or differentiate the product in some way so that consumers value it more.

Correct AnswerverifiedShow Answer

Universal needs exist when:

Correct AnswerverifiedShow Answer

Learning effects:

Correct AnswerverifiedShow 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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Correct Answer
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An international strategy is typically n...
View Answer

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

Correct Answer
verified
A

Correct Answer
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Correct Answer
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D

Correct Answer
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There are several ways the marketing and...
View Answer

Correct Answer
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Correct Answer
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