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Exam 7: International Strategy: Creating Value in Global Markets

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Question 51

Multiple Choice

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

A) social
B) multinational
C) market
D) democratic

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Question 52

Multiple Choice

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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.

A) widely differentiated
B) more expensive local
C) internationally differentiated
D) standardized

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Question 53

Multiple Choice

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

According to Exhibit 7.1 in the textbook, the country experiencing the lowest rate of growth in GDP from 2001-2011 was

Arbitrage opportunities in global financial markets are more attractive to global companies than local corporations, because they enable them to buy in huge volume and therefore increase their bargaining power with suppliers.

Which of the following types of international firms are most likely to benefit from a global strategy as opposed to a multidomestic strategy?

The U.S. and Mexico are close geographically and so is the true distance.

Licensing is a contractual arrangement that involves a long period of time and includes factors such as monitoring of operations, training, and advertising.

In reviewing the Indian Software industry and the diamond of national advantage, which of the following is a growing detractor to the national competitive advantage in this industry?

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

Wholly owned subsidiaries are typically the most expensive and risky entry mode. The risk is shared, however, with the company partners.

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

Which of these points on the Porter diamond of national advantage is the strongest indicator of global competitive success?

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 appeal to the largest number of consumers in every market.

A limitation of a multidomestic strategy is that it may lead to over-adaptation as conditions change.

The shift in the global automobile market over the past several years, in which China supplanted the U.S. at the largest market for automobiles in 2009, is an example of how the structure of the global economy is unchanging.

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

__________ occurs when a firm decides to utilize other firms to perform value-creating activities that were previously performed in-house.

A franchise generally expires after a few years, whereas a license is designed to last into perpetuity.

The Indian software industry has become one of the leading global markets for software. The industry has grown to over 60 billion USD, and Indian IT firms provide software and services to over half the Fortune 500 firms. This success is being driven by related and supporting industries such as a large network of public and private educational institutions.