Question 1

Which one of the following is not a limitation of a global strategy?

Accepted Answer

A)   limited ability to adapt to local markets
B)   the ability to locate activities in optimal locations
C)   the concentration of activities may increase dependence on a single facility
D)   single locations may lead to higher tariffs and transportation costsE) A) and B)
F) All of the above

Question 2

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 D)
F) B) and C)

Question 3

L'Oreal acquired two U.S.firms that developed and sold hair care products to African-American customers.This permitted it to build a new ethnic hair care division in Europe and Africa.This represents an advantage of international expansion using

Accepted Answer

A)   arbitrage.
B)   optimization of the location of value-chain activities.
C)   performance enhancement.
D)   learning opportunities.E) A) and B)
F) A) and C)

Question 4

In addition to responding to pressures to lower costs,managers must strive to be responsive to global pressures to tailor their products to the demand of the local market in which they do business.

Accepted Answer

A) True 
 B)False

Question 5

Canada and Mexico are the same distance from the United States,but trade is higher between the United States and Canada than with Mexico because

Accepted Answer

A)   true distance is smaller between the United States and Canada.
B)   all three countries share the same legal system.
C)   there are few immigration problems with Mexico.
D)   Americans prefer Canadian food to Mexican food.E) A) and B)
F) B) and C)

Question 6

In a world of instant communication,rapid transportation,and governments that are increasingly willing to open up their markets to trade and investment,why are there so few global firms?

Accepted Answer

Distance,in the final analysis,may be vi...

Question 7

A report issued by the World Trade Organization described the production of a particular U.S.car.The study showed that 30 percent of the car value goes to Korea for assembly,17.5 percent to Japan for components and advanced technology,7.5 percent to Germany for design,4 percent to Taiwan and Singapore for minor parts,2.5 percent to U.K.for advertising and marketing services,and 1.5 percent to Ireland and Barbados for data processing.This is an example of

Accepted Answer

A)   outsourcing and offshoring.
B)   outsourcing and on-shoring.
C)   insourcing and offshoring.
D)   insourcing and outsourcing.E) A) and B)
F) A) and C)

Question 8

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) A) and C)

Question 9

Typically,joint ventures involve less control and risk than franchising.

Accepted Answer

A) True 
 B)False

Question 10

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 lower costs,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; multidomestic
D)   international; transnationalE) B) and C)
F) All of the above

Question 11

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

Question 12

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

Question 13

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

Question 14

The difference between a franchise contract and a licensing contract is that a

Accepted Answer

A)   franchise contract is more specific and usually longer in duration.
B)   franchise contract must include a foreign government.
C)   licensing contract covers more aspects of operations.
D)   franchise contract involves less control and less risk.E) C) and D)
F) B) and C)

Question 15

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) All of the above
F) None of the above

Question 16

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) A) and C)

Question 17

In considering the decision to offshore,which of the following generally is not one of the hidden costs?

Accepted Answer

A)   total wage costs and indirect costs
B)   wage deflation
C)   reduction in intellectual property rights
D)   increased inventory and coordination costsE) B) and C)
F) A) and D)

Question 18

In Euromoney'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 highest country financial system risk?

Accepted Answer

A)   South Africa and Canada
B)   Singapore and China
C)   Argentina and Bahrain
D)   Kazakhstan and RussiaE) B) and C)
F) A) and B)

Question 19

The most expensive and risky entry mode is

Accepted Answer

A)   wholly owned subsidiaries.
B)   joint ventures.
C)   franchising.
D)   strategic alliances.E) None of the above
F) A) and B)

Question 20

A multidomestic strategy is the most appropriate strategy for international operations because it drives economies of scale as far as possible and provides a middle-of-the-road product that appeals to the largest number of consumers in every market.

Accepted Answer

A) True 
 B)False

Exam 7: International Strategy: Creating Value in Global Markets

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

Correct Answer
verified

In considering the decision to offshore,which of the following generally is not one of the hidden costs?

Correct Answer
verified

A multidomestic strategy is the most appropriate strategy for international operations because it drives economies of scale as far as possible and provides a middle-of-the-road product that appeals to the largest number of consumers in every market.

Correct Answer
verified

Typically,joint ventures involve less control and risk than franchising.

Correct Answer
verified

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

Correct Answer
verified

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 Answer
verified

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

Correct Answer
verified

Which one of the following is not a limitation of a global strategy?

Correct Answer
verified

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

Correct Answer
verified

In a world of instant communication,rapid transportation,and governments that are increasingly willing to open up their markets to trade and investment,why are there so few global firms?

Correct Answer
verified
Distance,in the final analysis,may be vi...
View Answer

The difference between a franchise contract and a licensing contract is that a

Correct Answer
verified

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

Canada and Mexico are the same distance from the United States,but trade is higher between the United States and Canada than with Mexico because

Correct Answer
verified

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 Answer
verified

L'Oreal acquired two U.S.firms that developed and sold hair care products to African-American customers.This permitted it to build a new ethnic hair care division in Europe and Africa.This represents an advantage of international expansion using

Correct Answer
verified

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 lower costs,companies should choose a(n) strategy or strategy in order to compete in the global marketplace.

Correct Answer
verified

In Euromoney'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 highest country financial system risk?

Correct Answer
verified

In addition to responding to pressures to lower costs,managers must strive to be responsive to global pressures to tailor their products to the demand of the local market in which they do business.

Correct Answer
verified

The most expensive and risky entry mode is

Correct Answer
verified

Exam 7: International Strategy: Creating Value in Global Markets

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

Correct AnswerverifiedShow Answer

In considering the decision to offshore,which of the following generally is not one of the hidden costs?

Correct AnswerverifiedShow Answer

A multidomestic strategy is the most appropriate strategy for international operations because it drives economies of scale as far as possible and provides a middle-of-the-road product that appeals to the largest number of consumers in every market.

Correct AnswerverifiedShow Answer

Typically,joint ventures involve less control and risk than franchising.

Correct AnswerverifiedShow Answer

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

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

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

Correct AnswerverifiedShow Answer

Which one of the following is not a limitation of a global strategy?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In a world of instant communication,rapid transportation,and governments that are increasingly willing to open up their markets to trade and investment,why are there so few global firms?

Correct AnswerverifiedDistance,in the final analysis,may be vi...View AnswerShow Answer

The difference between a franchise contract and a licensing contract is that a

Correct AnswerverifiedShow Answer

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 AnswerverifiedShow Answer

Canada and Mexico are the same distance from the United States,but trade is higher between the United States and Canada than with Mexico because

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

L'Oreal acquired two U.S.firms that developed and sold hair care products to African-American customers.This permitted it to build a new ethnic hair care division in Europe and Africa.This represents an advantage of international expansion using

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 lower costs,companies should choose a(n) ________ strategy or ________ strategy in order to compete in the global marketplace.

Correct AnswerverifiedShow Answer

In Euromoney'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 highest country financial system risk?

Correct AnswerverifiedShow Answer

In addition to responding to pressures to lower costs,managers must strive to be responsive to global pressures to tailor their products to the demand of the local market in which they do business.

Correct AnswerverifiedShow Answer

The most expensive and risky entry mode is

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified
Distance,in the final analysis,may be vi...
View Answer

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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 lower costs,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