Question 1

Which of the following is not a risk associated with a global strategy?

Accepted Answer

A)  A firm with only one manufacturing location must export its product,sometimes at great distance from the operation.
B)  The geographic concentration of any activity may also tend to isolate that activity from the targeted markets.
C)  Concentrating an activity in a single location makes the rest of the firm dependent on that location.
D)  The pressures for local adaptation may elevate the cost structure of the firm.E) A) and C)
F) B) and C)

Question 2

Industries in which proportionally more value is added in upstream activities are more likely to benefit from a global strategy than those in which more value is added downstream (closer to the customer).

Accepted Answer

A) True 
 B)False

Question 3

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 4

The Michael Porter Diamond of National Advantage is a framework that explains why countries foster successful multinational corporations based on factor endowments and demand conditions only.

Accepted Answer

A) True 
 B)False

Question 5

________ are most appropriate when a firm already has the appropriate knowledge and capabilities that it can leverage rather easily through multiple locations in many countries.

Accepted Answer

A)  Joint ventures
B)  Strategic alliances
C)  Licensing agreements
D)  Wholly owned subsidiariesE) A) and D)
F) B) and C)

Question 6

When the U.S.dollar appreciates against other currencies,U.S.goods can be ________ to consumers in foreign countries but can have ________ implications for American companies with branch operations overseas.

Accepted Answer

A)  less expensive,positive
B)  more expensive,negative
C)  less expensive,negative
D)  more expensive,positiveE) A) and B)
F) B) and C) B

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

In Euromoney magazine's 2017 semi-annual "Country Risk Rating" evaluating political,economic,and other risks that entrants to international markets potentially face,which of the following countries has the highest overall country rating for risk?

Accepted Answer

A)  Norway
B)  Hong Kong
C)  Bahrain
D)  ArgentinaE) B) and C)
F) A) and B)

Question 9

Similarity of culture,laws,rules,and norms encourages

Accepted Answer

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

Question 10

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) A) and C)

Question 11

In the quest to achieve competitive advantage in global markets,competitive pressures require that firms do what they can to ________ unit costs so that consumers will not perceive their product and service offerings as too expensive.

Accepted Answer

A)  raise
B)  decentralize
C)  define
D)  lowerE) A) and B)
F) B) and C)

Question 12

According to Michael Porter,firms that have experienced intense domestic competition are

Accepted Answer

A)  unlikely to have the time or resources to compete abroad.
B)  more likely to demand protection from their governments.
C)  most likely to design strategies aimed primarily at the domestic market.
D)  more likely to design strategies that will allow them to successfully compete abroad.E) A) and B)
F) B) and C) D

Question 13

Renault paid 1 billion USD to acquire a 25 percent ownership stake in the Russian automaker AvtoVAZ in 2008.Just one year later,Russian Prime Minister Vladimir Putin threatened to dilute the Renault ownership stake unless it contributed more money to prop up AvtoVAZ,which was then experiencing a significant slide in sales.This is an example of ________ risk.

Accepted Answer

A)  currency
B)  economic
C)  political
D)  managementE) A) and C)
F) A) and B)

Question 14

Increasing international exchange in goods and services can run into the difficulty of one offering that meets the needs of customers at differing income levels.

Accepted Answer

A) True 
 B)False

Question 15

Firms following a global strategy strive to offer ________ products and services as well as locate manufacturing,research and development,and marketing activities in a limited number of locations.

Accepted Answer

A)  widely differentiated
B)  more expensive local
C)  internationally differentiated
D)  standardizedE) A) and B)
F) A) and C) D

Question 16

Which of the following is not a motivation for a company to pursue international expansion?

Accepted Answer

A)  It wishes to increase the size of the potential markets for its products and services.
B)  It wishes to take advantage of arbitrage opportunities to increase profit.
C)  It wishes to optimize value-chain activities to enhance performance,reduce costs,and reduce risk.
D)  It wishes to increase foreign market penetration by developing products for the home market.E) A) and B)
F) A) and C)

Question 17

To be responsive to local pressures,companies must ________ their offerings and strategies from country to country to reflect local consumer preferences.

Accepted Answer

A)  internationalize
B)  globalize
C)  differentiate
D)  standardizeE) C) and D)
F) All of the above

Question 18

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) All of the above
F) A) and B)

Question 19

________ are groups of countries that agree to increase trade among them by lowering trade barriers.

Accepted Answer

A)  Black zones
B)  Trading blocs
C)  Exchange partners
D)  Open zonesE) None of the above
F) A) and D)

Question 20

Regions represent the outcomes of centuries of political and cultural history that results in not only ________ but also mutual ________.

Accepted Answer

A)  differences;expectations
B)  similarities;expectations
C)  commonalities;losses
D)  commonalities;affinitiesE) All of the above
F) C) and D)

Exam 7: International Strategy: Creating Value in Global Markets

Which of the following is not a risk associated with a global strategy?

Correct Answer
verified

Industries in which proportionally more value is added in upstream activities are more likely to benefit from a global strategy than those in which more value is added downstream (closer to the customer).

Correct Answer
verified

What is a beachhead strategy and how does it contribute to a company's decision to internationalize?

Correct Answer
verified
Multinationals often stumble onto a step...
View Answer

The Michael Porter Diamond of National Advantage is a framework that explains why countries foster successful multinational corporations based on factor endowments and demand conditions only.

Correct Answer
verified

________ are most appropriate when a firm already has the appropriate knowledge and capabilities that it can leverage rather easily through multiple locations in many countries.

Correct Answer
verified

When the U.S.dollar appreciates against other currencies,U.S.goods can be to consumers in foreign countries but can have implications for American companies with branch operations overseas.

Correct Answer
verified
B

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

Correct Answer
verified

In Euromoney magazine's 2017 semi-annual "Country Risk Rating" evaluating political,economic,and other risks that entrants to international markets potentially face,which of the following countries has the highest overall country rating for risk?

Correct Answer
verified

Similarity of culture,laws,rules,and norms encourages

Correct Answer
verified

When the GE wind energy business tapped into world-wide talent,it was able to expand using a(n) ________ strategy.

Correct Answer
verified

In the quest to achieve competitive advantage in global markets,competitive pressures require that firms do what they can to ________ unit costs so that consumers will not perceive their product and service offerings as too expensive.

Correct Answer
verified

According to Michael Porter,firms that have experienced intense domestic competition are

Correct Answer
verified
D

Correct Answer
verified

Increasing international exchange in goods and services can run into the difficulty of one offering that meets the needs of customers at differing income levels.

Correct Answer
verified

Firms following a global strategy strive to offer ________ products and services as well as locate manufacturing,research and development,and marketing activities in a limited number of locations.

Correct Answer
verified
D

Which of the following is not a motivation for a company to pursue international expansion?

Correct Answer
verified

To be responsive to local pressures,companies must ________ their offerings and strategies from country to country to reflect local consumer preferences.

Correct Answer
verified

A firm can establish a wholly owned subsidiary by

Correct Answer
verified

________ are groups of countries that agree to increase trade among them by lowering trade barriers.

Correct Answer
verified

Regions represent the outcomes of centuries of political and cultural history that results in not only but also mutual .

Correct Answer
verified

Exam 7: International Strategy: Creating Value in Global Markets

Which of the following is not a risk associated with a global strategy?

Correct AnswerverifiedShow Answer

Industries in which proportionally more value is added in upstream activities are more likely to benefit from a global strategy than those in which more value is added downstream (closer to the customer).

Correct AnswerverifiedShow Answer

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

The Michael Porter Diamond of National Advantage is a framework that explains why countries foster successful multinational corporations based on factor endowments and demand conditions only.

Correct AnswerverifiedShow Answer

________ are most appropriate when a firm already has the appropriate knowledge and capabilities that it can leverage rather easily through multiple locations in many countries.

Correct AnswerverifiedShow Answer

When the U.S.dollar appreciates against other currencies,U.S.goods can be ________ to consumers in foreign countries but can have ________ implications for American companies with branch operations overseas.

Correct AnswerverifiedB

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

Correct AnswerverifiedShow Answer

In Euromoney magazine's 2017 semi-annual "Country Risk Rating" evaluating political,economic,and other risks that entrants to international markets potentially face,which of the following countries has the highest overall country rating for risk?

Correct AnswerverifiedShow Answer

Similarity of culture,laws,rules,and norms encourages

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

In the quest to achieve competitive advantage in global markets,competitive pressures require that firms do what they can to ________ unit costs so that consumers will not perceive their product and service offerings as too expensive.

Correct AnswerverifiedShow Answer

According to Michael Porter,firms that have experienced intense domestic competition are

Correct AnswerverifiedD

Correct AnswerverifiedShow Answer

Increasing international exchange in goods and services can run into the difficulty of one offering that meets the needs of customers at differing income levels.

Correct AnswerverifiedShow Answer

Firms following a global strategy strive to offer ________ products and services as well as locate manufacturing,research and development,and marketing activities in a limited number of locations.

Correct AnswerverifiedD

Which of the following is not a motivation for a company to pursue international expansion?

Correct AnswerverifiedShow Answer

To be responsive to local pressures,companies must ________ their offerings and strategies from country to country to reflect local consumer preferences.

Correct AnswerverifiedShow Answer

A firm can establish a wholly owned subsidiary by

Correct AnswerverifiedShow Answer

________ are groups of countries that agree to increase trade among them by lowering trade barriers.

Correct AnswerverifiedShow Answer

Regions represent the outcomes of centuries of political and cultural history that results in not only ________ but also mutual ________.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
verified
Multinationals often stumble onto a step...
View Answer

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When the U.S.dollar appreciates against other currencies,U.S.goods can be to consumers in foreign countries but can have implications for American companies with branch operations overseas.

Correct Answer
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B

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D

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D

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Correct Answer
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Regions represent the outcomes of centuries of political and cultural history that results in not only but also mutual .

Correct Answer
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