Question 1

Globalization opens the doors for companies to attract new customers.One of the challenges is to determine how to meet the needs of these customers who have

Accepted Answer

A)  different income levels.
B)  low income levels.
C)  high income levels.
D)  steady income levels.E) None of the above
F) A) and D)

Question 2

Which of the following types of international firms are most likely to benefit from a global strategy as opposed to a multidomestic strategy?

Accepted Answer

A)  firms that compete in industries in which consumer preferences vary substantially in each country
B)  firms in industries that are expanding very rapidly
C)  firms in industries that have value added by sales and marketing departments
D)  firms in industries that have much value added in research and design or manufacturingE) C) and D)
F) B) and D)

Question 3

Which one of the following is one of the Theodore Levitt assumptions supporting a pure global strategy?

Accepted Answer

A)  Consumers are willing to pay more for specific product features.
B)  Customer needs and interests are becoming more dissimilar.
C)  MNCs can successfully compete globally by aggressively pricing products at the sacrifice of product features.
D)  If the world markets are treated as heterogeneous,substantial economies of scale are easily achieved.E) B) and D)
F) A) and B)

Question 4

When firms expand into global markets,they are faced with the choice of reducing costs and/or adapting to the local market.When high pressures exist to adapt locally,companies should choose a(n) ________ strategy or ________ strategy in order to compete in the global marketplace.

Accepted Answer

A)  global;transnational
B)  global;multidomestic
C)  international;global
D)  transnational;multidomesticE) B) and D)
F) B) and C)

Question 5

Trading blocs and free trade zones erode the rise of international expansion.

Accepted Answer

A) True 
 B)False

Question 6

Which one of the following is not a limitation of a global strategy?

Accepted Answer

A)  limited ability to adapt to local markets
B)  the ability to locate activities in optimal locations
C)  the concentration of activities may increase dependence on a single facility
D)  single locations may lead to higher tariffs and transportation costsE) C) and D)
F) B) and D)

Question 7

Exemplifying the phenomenon of ________,companies like GE have committed significant resources to developing products that meet the needs of developing nations,products that deliver adequate functionality at a fraction of the cost.Interestingly,these products have subsequently found considerable success in value segments in wealthy countries as well.

Accepted Answer

A)  total wage costs and indirect costs
B)  risk reduction
C)  reverse innovation
D)  the optimization of value-chain activity locationsE) None of the above
F) A) and B)

Question 8

Typically,joint ventures involve less control and risk than franchising.

Accepted Answer

A) True 
 B)False

Question 9

In considering the transnational strategy,Nestle evaluates the limits of decentralization.The closer they are to the consumer in activities such as branding and pricing,the more they tend to decentralize.The more they deal with production and logistics,the more they centralize decision-making.The production and logistics decisions involve ________ activities.

Accepted Answer

A)  upstream
B)  in its infrastructure
C)  downstream
D)  midstreamE) None of the above
F) A) and D)

Question 10

In Fortune's annual list of the 500 biggest companies in the world,156 firms were from emerging markets in 2015 compared to 18 in 1996,owing to

Accepted Answer

A)  the lower living standards throughout the world.
B)  traditional purchasing habits.
C)  a rapid rise in global capitalism.
D)  a divergence in world living standards.E) All of the above
F) A) and B)

Question 11

Which would be the appropriate strategy for companies to use to compete in the global marketplace if both the pressures to lower costs and adapt locally are low?

Accepted Answer

A)  international strategy
B)  global strategy
C)  multidomestic strategy
D)  transnational strategyE) None of the above
F) B) and D)

Question 12

The factor endowments of a country are inherited and cannot be created.

Accepted Answer

A) True 
 B)False

Question 13

According to the textbook,________ economic integration has progressed at a faster pace than ________ economic integration.

Accepted Answer

A)  global;international
B)  international;regional
C)  regional;global
D)  regional;inter-regionalE) All of the above
F) A) and B)

Question 14

The most expensive and risky entry mode is

Accepted Answer

A)  wholly owned subsidiaries.
B)  joint ventures.
C)  franchising.
D)  strategic alliances.E) C) and D)
F) B) and D)

Question 15

If the U.S.dollar appreciates relative to foreign currency,what is likely to be the result for the U.S.company that has branches abroad?

Accepted Answer

A)  Profits will increase,when measured in U.S.dollars.
B)  Profits will decrease,when measured in U.S.dollars.
C)  Foreign exports to the United States will decrease.
D)  Foreign demand for U.S.goods and services will decrease.E) All of the above
F) B) and C)

Question 16

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 D)
F) None of the above

Question 17

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

Question 18

Trends that might lead managers of multinational corporations (MNCs) to adopt a more decentralized strategy for their operations would include all of the following except

Accepted Answer

A)  customer needs,interests,and tastes becoming increasingly homogenized.
B)  consumers around the world increasingly willing to trade preferences in product features for lower price.
C)  manufacturing trends allowing a decline in the minimum volume required to reach acceptable levels of production efficiency.
D)  fluctuating exchange rates.E) A) and C)
F) C) and D)

Question 19

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

Question 20

Discuss the role of market size in motivating a company to pursue international expansion.Use statistics to illustrate your explanation.

Accepted Answer

There are many motivations for a company...

Exam 7: International Strategy: Creating Value in Global Markets

When firms expand into global markets,they are faced with the choice of reducing costs and/or adapting to the local market.When high pressures exist to adapt locally,companies should choose a(n) strategy or strategy in order to compete in the global marketplace.

Correct Answer
verified

The most expensive and risky entry mode is

Correct Answer
verified

Trading blocs and free trade zones erode the rise of international expansion.

Correct Answer
verified

Correct Answer
verified

Discuss the role of market size in motivating a company to pursue international expansion.Use statistics to illustrate your explanation.

Correct Answer
verified
There are many motivations for a company...
View Answer

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

Correct Answer
verified

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 Answer
verified

Typically,joint ventures involve less control and risk than franchising.

Correct Answer
verified

According to the textbook, economic integration has progressed at a faster pace than economic integration.

Correct Answer
verified

If the U.S.dollar appreciates relative to foreign currency,what is likely to be the result for the U.S.company that has branches abroad?

Correct Answer
verified

Trends that might lead managers of multinational corporations (MNCs) to adopt a more decentralized strategy for their operations would include all of the following except

Correct Answer
verified

Globalization opens the doors for companies to attract new customers.One of the challenges is to determine how to meet the needs of these customers who have

Correct Answer
verified

Which one of the following is one of the Theodore Levitt assumptions supporting a pure global strategy?

Correct Answer
verified

In Fortune's annual list of the 500 biggest companies in the world,156 firms were from emerging markets in 2015 compared to 18 in 1996,owing to

Correct Answer
verified

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

Correct Answer
verified

Which one of the following is not a limitation of a global strategy?

Correct Answer
verified

Which would be the appropriate strategy for companies to use to compete in the global marketplace if both the pressures to lower costs and adapt locally are low?

Correct Answer
verified

The factor endowments of a country are inherited and cannot be created.

Correct Answer
verified

Which of the following types of international firms are most likely to benefit from a global strategy as opposed to a multidomestic strategy?

Correct Answer
verified

Correct Answer
verified

Exam 7: International Strategy: Creating Value in Global Markets

When firms expand into global markets,they are faced with the choice of reducing costs and/or adapting to the local market.When high pressures exist to adapt locally,companies should choose a(n) ________ strategy or ________ strategy in order to compete in the global marketplace.

Correct AnswerverifiedShow Answer

The most expensive and risky entry mode is

Correct AnswerverifiedShow Answer

Trading blocs and free trade zones erode the rise of international expansion.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Discuss the role of market size in motivating a company to pursue international expansion.Use statistics to illustrate your explanation.

Correct AnswerverifiedThere are many motivations for a company...View AnswerShow Answer

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

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

Typically,joint ventures involve less control and risk than franchising.

Correct AnswerverifiedShow Answer

According to the textbook,________ economic integration has progressed at a faster pace than ________ economic integration.

Correct AnswerverifiedShow Answer

If the U.S.dollar appreciates relative to foreign currency,what is likely to be the result for the U.S.company that has branches abroad?

Correct AnswerverifiedShow Answer

Trends that might lead managers of multinational corporations (MNCs) to adopt a more decentralized strategy for their operations would include all of the following except

Correct AnswerverifiedShow Answer

Globalization opens the doors for companies to attract new customers.One of the challenges is to determine how to meet the needs of these customers who have

Correct AnswerverifiedShow Answer

Which one of the following is one of the Theodore Levitt assumptions supporting a pure global strategy?

Correct AnswerverifiedShow Answer

In Fortune's annual list of the 500 biggest companies in the world,156 firms were from emerging markets in 2015 compared to 18 in 1996,owing to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which one of the following is not a limitation of a global strategy?

Correct AnswerverifiedShow Answer

Which would be the appropriate strategy for companies to use to compete in the global marketplace if both the pressures to lower costs and adapt locally are low?

Correct AnswerverifiedShow Answer

The factor endowments of a country are inherited and cannot be created.

Correct AnswerverifiedShow Answer

Which of the following types of international firms are most likely to benefit from a global strategy as opposed to a multidomestic strategy?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When firms expand into global markets,they are faced with the choice of reducing costs and/or adapting to the local market.When high pressures exist to adapt locally,companies should choose a(n) strategy or strategy in order to compete in the global marketplace.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
There are many motivations for a company...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

According to the textbook, economic integration has progressed at a faster pace than economic integration.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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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