Question 1

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) B) and D) B

Question 2

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 3

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

Question 4

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 C)
F) A) and D)

Question 5

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

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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) A) and B)

Question 8

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

Question 9

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

Accepted Answer

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

Question 10

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 11

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

Question 12

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 B)
F) B) and D)

Question 13

Similarity of culture, laws, rules, and norms encourages

Accepted Answer

A)   regionalization.
B)   globalization.
C)   trans-nationalization.
D)   ethnocentric expansion.E) B) and C)
F) A) and B)

Question 14

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

Question 15

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

Question 16

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

Accepted Answer

International strategy is a strategy bas...

Question 17

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

Question 18

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...

Question 19

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 20

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

Exam 7: International Strategy Creating Value in Global Markets

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

Correct AnswerverifiedB

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

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

Correct AnswerverifiedShow 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

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

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

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

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

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

A firm can establish a wholly owned subsidiary by

Correct AnswerverifiedA

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

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

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

Correct AnswerverifiedShow Answer

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

Correct Answer
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Multinational firms are constantly faced...
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The creation of a third-party legal entity is required for___, whereas for it is not.

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False

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International strategy is a strategy bas...
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A

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Multinationals often stumble onto a step...
View Answer

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Factor endowments are conducive to the r...
View Answer

Correct Answer
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