Question 1

What are the advantages of strategic alliances?

Accepted Answer

The advantages of strategic alliances ar...

Question 2

What are the different types of competitive pressures that firms competing in a global marketplace face? How can firms respond to such pressures?

Accepted Answer

Firms that compete in the global marketp...

Question 3

As a result of consumer surplus,a firm typically charges less price for a good or service than the value placed on it by customers because:

Accepted Answer

A)   the value creation results in a corresponding reduction in costs of production.
B)   it is highly unlikely that the same good or service will be available to the customers from other firms.
C)   the firm is competing with other firms for the customer's business.
D)   the firm charges a price that reveals a consumer's assessment of the product's value.
E)   the firm creates value for the customer by producing a wide range of productsF) A) and E)
G) B) and E)

Question 4

For an international business,which of the following is most likely to be an outcome of protectionism and nationalism in a host-country?

Accepted Answer

A)   Increase in the attractiveness of location economies
B)   Pressure for localization of production
C)   Requirement of standardization of products or services
D)   Pressure for cost reduction
E)   Decrease in the significance of local responsivenessF) A) and E)
G) A) and C)

Question 5

Describe the global standardization strategy.

Accepted Answer

Firms that pursue a global standardizati...

Question 6

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.

Accepted Answer

A) True 
 B)False

Question 7

Universal needs exist when the tastes and preferences of consumers in different nations are different.

Accepted Answer

A) True 
 B)False

Question 8

What are the disadvantages of strategic alliances?

Accepted Answer

Some commentators have criticized strate...

Question 9

The experience curve refers to systematic increase in production costs that have been observed to occur over the life of a product.

Accepted Answer

A) True 
 B)False

Question 10

Why do companies find dealing with high pressures for both,cost reductions and local responsiveness,a difficult strategic challenge?

Accepted Answer

A)   Cost reductions are inversely proportional to standardization.
B)   Being locally responsive tends to raise costs.
C)   Cost reductions negatively impact maximization of single-plant utilization.
D)   As the quantity produced goes on increasing, it becomes more difficult for a company to achieve economies of scale.
E)   Customer tastes are usually identical across global markets.F) All of the above
G) B) and D)

Question 11

Firms that pursue a(n) _____ strategy differentiate their product offering across geographic markets to account for local differences.

Accepted Answer

A)   international
B)   global standardization
C)   transnational
D)   multidomestic
E)   nationalizationF) B) and D)
G) C) and E)

Question 12

The two phenomena that help explain the experience curve are:

Accepted Answer

A)   learning effects and economies of scale.
B)   technology inputs and wealth transfer.
C)   leveraging subsidiary and local responsiveness.
D)   standardized manufacturing and global web.
E)   efficiency frontier and location economiesF) B) and D)
G) All of the above

Question 13

Which of the following supports the argument that customer demands for local customization are on the decline worldwide?

Accepted Answer

A)   Local and indigenous industries are increasingly filling up available demand.
B)   High costs of local customization are deterring companies from doing so.
C)   Governments across the world are standardizing their legal procedures.
D)   Customer tastes have converged worldwide.
E)   Managers worldwide ignore the differences in consumer tastes and preferences.F) A) and B)
G) C) and E)

Question 14

_____ are considered a part of an organization architecture and are used to reward appropriate managerial behavior.

Accepted Answer

A)   Knowledge flows
B)   Reports
C)   Processes
D)   Incentives
E)   ControlsF) None of the above
G) All of the above

Question 15

The higher the firm's profit per unit sold is,the greater its profitability will be,all else being equal.

Accepted Answer

A) True 
 B)False

Question 16

The _____ shows all of the different positions that a firm can adopt with regard to value creation and low cost assuming that its internal operations are configured adequately to support a particular position.

Accepted Answer

A)   demand-value model
B)   experience curve
C)   efficiency frontier
D)   optimal output model
E)   surplus curveF) A) and E)
G) B) and E)

Question 17

Strategic alliances allow firms to share the fixed costs of developing new products or processes.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is a primary activity in the operations of a firm?

Accepted Answer

A)   Logistics function
B)   Research and development
C)   Information systems
D)   Human resource function
E)   Company infrastructureF) A) and B)
G) B) and C)

Question 19

Learning effects will be more significant in an assembly process which involves 100 simple steps than in an assembly process which involves 1,000 complex steps.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is most likely to require a firm to be locally responsive in a host-country?

Accepted Answer

A)   Similarity in distribution channels
B)   Identical traditional practices among countries
C)   Standard consumer tastes and preferences worldwide
D)   Declining demand for local customization
E)   Host-government demandsF) B) and E)
G) A) and B)

Exam 12: The Strategy of International Business

For an international business,which of the following is most likely to be an outcome of protectionism and nationalism in a host-country?

Correct AnswerverifiedShow Answer

What are the advantages of strategic alliances?

Correct AnswerverifiedThe advantages of strategic alliances ar...View AnswerShow Answer

Firms that pursue a(n) _____ strategy differentiate their product offering across geographic markets to account for local differences.

Correct AnswerverifiedShow Answer

Strategic alliances allow firms to share the fixed costs of developing new products or processes.

Correct AnswerverifiedShow Answer

Describe the global standardization strategy.

Correct AnswerverifiedFirms that pursue a global standardizati...View AnswerShow Answer

Why do companies find dealing with high pressures for both,cost reductions and local responsiveness,a difficult strategic challenge?

Correct AnswerverifiedShow Answer

Which of the following supports the argument that customer demands for local customization are on the decline worldwide?

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

_____ are considered a part of an organization architecture and are used to reward appropriate managerial behavior.

Correct AnswerverifiedShow Answer

The two phenomena that help explain the experience curve are:

Correct AnswerverifiedShow Answer

The _____ shows all of the different positions that a firm can adopt with regard to value creation and low cost assuming that its internal operations are configured adequately to support a particular position.

Correct AnswerverifiedShow Answer

Which of the following is most likely to require a firm to be locally responsive in a host-country?

Correct AnswerverifiedShow Answer

As a result of consumer surplus,a firm typically charges less price for a good or service than the value placed on it by customers because:

Correct AnswerverifiedShow Answer

What are the different types of competitive pressures that firms competing in a global marketplace face? How can firms respond to such pressures?

Correct AnswerverifiedFirms that compete in the global marketp...View AnswerShow Answer

Universal needs exist when the tastes and preferences of consumers in different nations are different.

Correct AnswerverifiedShow Answer

The higher the firm's profit per unit sold is,the greater its profitability will be,all else being equal.

Correct AnswerverifiedShow Answer

The experience curve refers to systematic increase in production costs that have been observed to occur over the life of a product.

Correct AnswerverifiedShow Answer

Learning effects will be more significant in an assembly process which involves 100 simple steps than in an assembly process which involves 1,000 complex steps.

Correct AnswerverifiedShow Answer

Which of the following is a primary activity in the operations of a firm?

Correct AnswerverifiedShow Answer

What are the disadvantages of strategic alliances?

Correct AnswerverifiedSome commentators have criticized strate...View AnswerShow Answer

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The advantages of strategic alliances ar...
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Firms that pursue a global standardizati...
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Firms that compete in the global marketp...
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Some commentators have criticized strate...
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