Question 1

The strength of a think local,act local multidomestic strategy is that

Accepted Answer

A)  it matches a company's competitive approach to prevailing market and competitive conditions in each country market.
B)  each of a company's country strategies is almost totally different from and unrelated to its strategies in other countries.
C)  the plants located in different countries can be operated independently of one another,thus promoting greater achievement of scale economies.
D)  it avoids host-country ownership requirements,and import quotas.
E)  it eliminates the costs and burdens of trying to coordinate the strategic moves undertaken in one country with the moves undertaken in the other countries.F) A) and C)
G) C) and D)

Question 2

A think global,act global approach to strategy making is preferable to a think local,act local approach when

Accepted Answer

A)  a big majority of the company's rivals are pursuing localized multidomestic strategies.
B)  country-by-country differences are small enough to be accommodated within the framework of a mostly uniform global strategy.
C)  plants need to be scattered across many countries to avoid high shipping costs.
D)  market growth rates vary considerably from country to country.
E)  host governments enact regulations requiring that products sold locally meet strict manufacturing specifications or performance standards.F) None of the above
G) C) and D)

Question 3

Which of the following countries had the highest manufacturing labor wage rates in 2015?

Accepted Answer

A)  United States
B)  South Korea
C)  India
D)  China
E)  NorwayF) A) and E)
G) C) and D)

Question 4

Competing in the markets of foreign countries generally does not involve which of the following?

Accepted Answer

A)  Country-by-country differences in consumer buying habits,tastes,and preferences
B)  Country-by-country variations in host-government regulations,fluctuating exchange rates,and economic policies
C)  Choices to customize the company's offerings to each country market or to offer a primarily standardized product to all markets around the globe
D)  Choices to locate company operations on the basis of variations in wages rates,worker productivity,energy costs,tax rates,and distribution channels
E)  Crafting a multicountry strategy that can transform the world market into one big profit sanctuaryF) C) and D)
G) B) and C) E

Question 5

When is a global strategy superior to a multidomestic strategy?

Accepted Answer

Global strategy is superior to multidome...

Question 6

Which of the following is not a strategic option companies should consider in tailoring their strategy to fit circumstances of emerging country markets?

Accepted Answer

A)  Try to change the local market to better match the way the company does business elsewhere.
B)  Modify aspects of the company's business model to accommodate local circumstances.
C)  Prepare to compete on the basis of low price.
D)  Enter only those emerging markets that provide profit sanctuaries by offering opportunities for offensive strategies,such as preemptive strikes.
E)  Stay away from those emerging markets where it is impractical or uneconomic to modify the company's business model to accommodate local circumstances.F) None of the above
G) A) and B)

Question 7

Government host policies are not likely to increase a country's political and economic risks when

Accepted Answer

A)  the national government is unstable or weak.
B)  incentives such as reduced taxes,low-cost loans,and site-development assistance are provided to companies agreeing to construct or expand production and distribution facilities.
C)  there is distress in the country's monetary system.
D)  there are threats from piracy and lack of protection for the company's intellectual property.
E)  there is new onerous legislation or regulations on foreign-owned businesses.F) A) and B)
G) C) and D)

Question 8

Dispersing the performance of value chain activities to many different countries rather than concentrating them in a few country locations tends to be advantageous in all of the following situations except

Accepted Answer

A)  when high transportation costs make it expensive to operate from central locations.
B)  if resources retain their foreign contexts so there is competitive advantage over a broader domain.
C)  when it is desirable to hedge against (1) the risks of fluctuating exchange rates, (2) supply interruptions,or (3) adverse political developments.
D)  if diseconomies of large size exist,thereby making it more economical to perform an activity on a smaller scale in several different locations.
E)  whenever buyer-related activities are best performed in locations close to buyers.F) A) and E)
G) All of the above B

Question 9

Acquisition of an existing firm rather than via internal development may be the least risky and cost-efficient means of overcoming entry barriers such as

Accepted Answer

A)  rapidly building a strong market presence.
B)  moving directly to the task of transferring resources and personnel,and integrating and redirecting activities into the acquiring firm's operation.
C)  gaining access to local distribution networks,building supplier networks,and establishing working relationships with key government officials.
D)  fast-tracking exports into a foreign market by marketing indirectly through local rivals.
E)  putting the acquiring firm's strategy into place.F) C) and D)
G) B) and C)

Question 10

What circumstances call for use of a multidomestic strategy for competing in international markets?

Accepted Answer

Multidomestic strategies are best suited...

Question 11

Which of the following statements concerning the effects of fluctuating exchange rates on companies competing in foreign markets is true?

Accepted Answer

A)  Fluctuating exchange rates pose no significant risks to a company's competitiveness in foreign markets.
B)  Competitive advantages of manufacturing goods in a particular country are largely unaffected by fluctuating exchange rates.
C)  Exporters are advantaged when the currency of the country where goods are being manufactured grows stronger.
D)  Exporters always gain in cost/price competitiveness when the currency of the country in which the goods are manufactured is weak.
E)  Exporters always lose in cost/price competitiveness when the currency of the country in which the goods are manufactured is weak.F) C) and D)
G) A) and E) D

Question 12

Which of the following is not a reason why the world economy is globalizing at an accelerated pace?

Accepted Answer

A)  Growth-minded companies are racing to build stronger competitive positions in the markets of more countries.
B)  Information technology is shrinking the importance of geographic distance.
C)  Countries that previously had planned economies now embrace mixed or market economies.
D)  Countries previously closed to foreign companies have opened their markets.
E)  Countries opposed to market or mixed economies have stringent trade barriers in place.F) A) and B)
G) C) and D)

Question 13

Which of the following is not one of the strategy options for expanding into markets of foreign countries?

Accepted Answer

A)  A profit sanctuary strategy
B)  An export strategy
C)  A licensing strategy
D)  Establishment of a subsidiary in a foreign market strategy
E)  A franchising strategyF) A) and D)
G) B) and D)

Question 14

The advantages of using an export strategy to build a customer base in foreign markets include

Accepted Answer

A)  being able to minimize shipping costs,avoid tariffs,and curb the effects of fluctuating exchange rates.
B)  minimizing capital requirements and involvement in foreign markets.
C)  being cheaper and more cost effective than licensing and franchising.
D)  being cheaper and more cost effective than a multicountry strategy.
E)  facilitating the establishment of profit sanctuaries in foreign countries and being more suited to accommodating local buyer tastes than a global strategy.F) C) and D)
G) A) and C)

Question 15

Which of the following is not an accurate statement as concerns competing in the markets of foreign countries?

Accepted Answer

A)  Localizing Apple's product offerings country-by-country leads to low-cost advantage.
B)  Starbucks must contend with fluctuating exchange rates and country-to-country variations in host government restrictions and requirements.
C)  There are country-to-country differences in Round Table Pizza's customers' buying habits and buyer tastes and preferences.
D)  Market growth rates vary from country to country,impacting John Deere's international sales.
E)  Avon's cosmetic products suitable for China are often inappropriate in Singapore and Malaysia.F) B) and C)
G) A) and E)

Question 16

Which of the following statements is false?

Accepted Answer

A)  Tiffany entered the mining industry in Canada to access diamonds that could be certified as "conflict free" and not associated with either the funding of African wars or unethical mining conditions.
B)  Many U.S.airlines locate call centers in countries such as India and Ireland.
C)  The advantage to Italian companies like Ducati,Ferrari,and Maserati,which have developed as part of a related-automotive technology industry cluster,comes from the close collaboration with key suppliers and the greater knowledge sharing throughout the cluster,resulting in greater efficiency and innovativeness.
D)  Companies like Samsung that export goods to foreign countries always gain in competitiveness when the currency of South Korea,in which the goods are manufactured,is strong.
E)  Venezuela's 2017 nationalization of a General Motors plant in Valencia that employs nearly 2,700 workers is an example of political risk.F) A) and C)
G) C) and E)

Question 17

Explain and provide examples as to why the strategies of firms that expand internationally are usually grounded in home-country advantages or core competencies.

Accepted Answer

A company may be able to extend a market...

Question 18

The competitive strategy of a firm pursuing a think global,act local approach to strategy making

Accepted Answer

A)  entails little or no strategy coordination across countries.
B)  usually involves cross-subsidizing the prices in those markets where there are significant country-to-country differences in the product attributes that customers are most interested in.
C)  involves selling a mostly standardized product worldwide but varying a company's use of distribution channels and marketing approaches to accommodate local market conditions.
D)  is essentially the same in all country markets where it competes,but it may nonetheless give local managers room to make minor variations where necessary to better satisfy local buyers and to better match local market conditions.
E)  involves having strongly differentiated product versions for different countries and selling them under distinctly different brand names (one for each country or group of neighboring countries) so that there will be no doubt in customers' minds that the product is more local than global.F) A) and E)
G) A) and C)

Question 19

The advantages of using a licensing strategy to participate in foreign markets include

Accepted Answer

A)  being especially well suited to the use of cross-market subsidization.
B)  being able to charge lower prices than rivals.
C)  enabling a company to achieve competitive advantage quickly and easily.
D)  being able to leverage the company's technical know-how or patents without committing significant additional resources to markets that are unfamiliar,politically volatile,economically uncertain,or otherwise risky.
E)  being able to achieve higher product quality and better product performance than with an export strategy.F) C) and E)
G) A) and C)

Question 20

Which of the following is not a possible reason why Uber opted to expand its on-demand transportation services into foreign markets?

Accepted Answer

A)  To build the profit sanctuary necessary to wage guerrilla offensives against global challengers endeavoring to invade its home market
B)  To achieve lower costs and enhance the firm's competitiveness
C)  To capitalize on company competencies and capabilities
D)  To gain access to new customers in new markets
E)  To spread its business risk across a wider geographic market baseF) A) and D)
G) A) and E)

Exam 7: Strategies for Competing in International Markets

The strength of a think local,act local multidomestic strategy is that

Correct AnswerverifiedShow Answer

A think global,act global approach to strategy making is preferable to a think local,act local approach when

Correct AnswerverifiedShow Answer

Which of the following countries had the highest manufacturing labor wage rates in 2015?

Correct AnswerverifiedShow Answer

Competing in the markets of foreign countries generally does not involve which of the following?

Correct AnswerverifiedE

When is a global strategy superior to a multidomestic strategy?

Correct AnswerverifiedGlobal strategy is superior to multidome...View AnswerShow Answer

Which of the following is not a strategic option companies should consider in tailoring their strategy to fit circumstances of emerging country markets?

Correct AnswerverifiedShow Answer

Government host policies are not likely to increase a country's political and economic risks when

Correct AnswerverifiedShow Answer

Dispersing the performance of value chain activities to many different countries rather than concentrating them in a few country locations tends to be advantageous in all of the following situations except

Correct AnswerverifiedB

Acquisition of an existing firm rather than via internal development may be the least risky and cost-efficient means of overcoming entry barriers such as

Correct AnswerverifiedShow Answer

What circumstances call for use of a multidomestic strategy for competing in international markets?

Correct AnswerverifiedMultidomestic strategies are best suited...View AnswerShow Answer

Which of the following statements concerning the effects of fluctuating exchange rates on companies competing in foreign markets is true?

Correct AnswerverifiedD

Which of the following is not a reason why the world economy is globalizing at an accelerated pace?

Correct AnswerverifiedShow Answer

Which of the following is not one of the strategy options for expanding into markets of foreign countries?

Correct AnswerverifiedShow Answer

The advantages of using an export strategy to build a customer base in foreign markets include

Correct AnswerverifiedShow Answer

Which of the following is not an accurate statement as concerns competing in the markets of foreign countries?

Correct AnswerverifiedShow Answer

Which of the following statements is false?

Correct AnswerverifiedShow Answer

Explain and provide examples as to why the strategies of firms that expand internationally are usually grounded in home-country advantages or core competencies.

Correct AnswerverifiedA company may be able to extend a market...View AnswerShow Answer

The competitive strategy of a firm pursuing a think global,act local approach to strategy making

Correct AnswerverifiedShow Answer

The advantages of using a licensing strategy to participate in foreign markets include

Correct AnswerverifiedShow Answer

Which of the following is not a possible reason why Uber opted to expand its on-demand transportation services into foreign markets?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
E

Correct Answer
verified
Global strategy is superior to multidome...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
B

Correct Answer
verified

Correct Answer
verified
Multidomestic strategies are best suited...
View Answer

Correct Answer
verified
D

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A company may be able to extend a market...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified