Question 1

With regard to factor conditions, the pool of resources that a firm (or nation) has is much more important than the speed and efficiency with which these resources are deployed.

Accepted Answer

A) True 
 B)False

Question 2

To meet market needs companies sometimes change product names so that the name in the local language is culturally meaningful. This is an example of a company using ________ strategy.

Accepted Answer

A)   an international
B)   amultidomestic
C)   a single country
D)   a transnationalE) A) and B)
F) A) and C)

Question 3

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

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 conditionsonly.

Accepted Answer

A) True 
 B)False

Question 5

In the Porter diamond-of-national-advantage framework, which of the following factors does not affect competitiveness of a nation?

Accepted Answer

A)   the position of the nation in factors of production necessary to compete in a given industry
B)   the presence or absence in the nation of internationally competitive supplier industries
C)   the conditions in the nation governing the nature of foreign rivalry
D)   the nature of home-market demand of the products or services of the industryE) C) and D)
F) A) and B)

Question 6

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) None of the above

Question 7

In reviewing the Indian software industry and the diamond of national advantage, which of the following is a relatively weak set of factors in the national competitive advantage in this industry?

Accepted Answer

A)   U.S. demand conditions
B)   factor endowments
C)   domestic rivalry
D)   domestic demand conditionsE) B) and D)
F) None of the above

Question 8

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

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

A ________ is a business in which a multinational company owns 100 percent of the stock.

Accepted Answer

A)   wholly owned subsidiary
B)   strategic alliance
C)   joint venture
D)   franchising operationE) B) and C)
F) A) and D)

Question 11

The rise of ________ capitalism around the world creates tremendous business opportunities for multinational corporations.

Accepted Answer

A)   social
B)   multinational
C)   market
D)   democraticE) C) and D)
F) None of the above

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

Question 13

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 have the next to the lowest country political risk?

Accepted Answer

A)   Libya and Argentina
B)   Singapore and Hong Kong
C)   Norway and Canada
D)   China and BahrainE) None of the above
F) A) and B)

Question 14

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 C)
F) B) and C)

Question 15

Regionalization is most important because it permits companies to organize their activities based upon

Accepted Answer

A)   physical distance between the home country and the foreign country.
B)   the extrinsic distance between the home country and the foreign country.
C)   the true distance between the home country office and the foreign country.
D)   shareholder expectations.E) A) and B)
F) All of the above

Question 16

Limitations of transnational strategies include all the following except

Accepted Answer

A)   unique challenges in determining optimal locations of activities to ensure cost .
B)   unique managerial challenges in fostering knowledge transfer.
C)   unique ability to adapt to local markets.
D)   unique challenges in determining optimal locations of activities to ensure quality.E) A) and C)
F) A) and D)

Question 17

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 18

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) All of the above

Question 19

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

Question 20

The form of entry strategy into international operations that offers the lowest level of control for the domestic corporation would be

Accepted Answer

A)   franchising.
B)   licensing.
C)   joint venture.
D)   exporting.E) C) and D)
F) B) and D)

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

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

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

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

Limitations of transnational strategies include all the following except

Correct AnswerverifiedShow Answer

Regionalization is most important because it permits companies to organize their activities based upon

Correct AnswerverifiedShow Answer

A ________ is a business in which a multinational company owns 100 percent of the stock.

Correct AnswerverifiedShow Answer

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

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 have the next to the lowest country political risk?

Correct AnswerverifiedShow Answer

With regard to factor conditions, the pool of resources that a firm (or nation) has is much more important than the speed and efficiency with which these resources are deployed.

Correct AnswerverifiedShow Answer

In the Porter diamond-of-national-advantage framework, which of the following factors does not affect competitiveness of a nation?

Correct AnswerverifiedShow Answer

The rise of ________ capitalism around the world creates tremendous business opportunities for multinational corporations.

Correct AnswerverifiedShow 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 conditionsonly.

Correct AnswerverifiedShow Answer

In reviewing the Indian software industry and the diamond of national advantage, which of the following is a relatively weak set of factors in the national competitive advantage in this industry?

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 not a risk associated with a global strategy?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The form of entry strategy into international operations that offers the lowest level of control for the domestic corporation would be

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

To meet market needs companies sometimes change product names so that the name in the local language is culturally meaningful. This is an example of a company using ________ strategy.

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified