Question 1

Which of the following strategies is apt when the firm simultaneously faces both strong cost pressures and strong pressures for local responsiveness?

Accepted Answer

A)  Global standardization strategy
B)  Localization strategy
C)  International strategy
D)  Transnational strategy

Question 2

Describe four ways in which a firm can profit from global expansion.

Accepted Answer

Firms that operate internationally are a...

Question 3

Devices used to reward appropriate managerial behavior are called _____.

Accepted Answer

A)  loyalties
B)  reports
C)  processes
D)  incentives

Question 4

Pressures for cost reduction can be particularly intense in many industrial and consumer products like handheld calculators,semiconductor chips,personal computers,and liquid crystal display screens.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is one of the ways in which a company can create more value for a product?

Accepted Answer

A)  By charging a higher price for the product
B)  By raising production costs
C)  By generating more profits
D)  By making the product more attractive

Question 6

Superior value creation relative to rivals requires a firm to:

Accepted Answer

A)  differentiate their products so that consumers do not have to pay a premium for it.
B)  have the lowest cost structure in the industry.
C)  create the most valuable product in the eyes of consumers.
D)  ensure that the gap between value and cost of production be greater than the gap attained by competitors.

Question 7

Adding value to the firm's products enables the firm to lower prices.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is one of the reasons that consumers are able to capture consumer surpluses?

Accepted Answer

A)  Because the firm is a monopoly supplier
B)  Because it is difficult to segment a market to reflect reservation prices of all customers
C)  Because value creation results in a corresponding reduction in costs of production
D)  Because firms can charge consumers a price that reveals a consumer's assessment of the product's value

Question 9

What are the sources of economies of scales?

Accepted Answer

Economies of scale have a number of sour...

Question 10

In terms of organizational architecture,"people" include:

Accepted Answer

A)  the suppliers to the firm.
B)  the employees of the organization.
C)  the firm's customers.
D)  the shareholders of the firm.

Question 11

One of the principal risks with strategic alliances is:

Accepted Answer

A)  they bring together the complementary skills of alliance partners.
B)  alliances may facilitate entry into foreign markets.
C)  a firm can give away more than it receives.
D)  they allow firms to share fixed costs.

Question 12

The company infrastructure is a support activity.

Accepted Answer

A) True 
 B)False

Question 13

The shift from a global strategy to a localization strategy is a response to the increasing localization of markets.

Accepted Answer

A) True 
 B)False

Question 14

Profit growth is measured by the percentage increase in net profits over time.

Accepted Answer

A) True 
 B)False

Question 15

_____ comprises three things: the formal division of the organization into subunits,the location of decision-making responsibilities within these,and the establishment of integrating mechanisms to coordinate the activities of subunits.

Accepted Answer

A)  Organizational structure
B)  Organizational model
C)  Corporate ladder
D)  Corporate culture

Question 16

_____ are the bedrock of a firm's competitive advantage.

Accepted Answer

A)  Internalities
B)  Generic skills
C)  Core competencies
D)  Standard competencies

Question 17

For a service organization,at which stage does production typically occur?

Accepted Answer

A)  When the service involves production of tangibles
B)  When the service is paid for by the customer
C)  When the service is designed in-house
D)  When the service is delivered to the customer

Question 18

The _____ activities of a firm have to do with the design,creation,and delivery of the product;its marketing;and its support and after-sale service.

Accepted Answer

A)  support
B)  tertiary
C)  ancillary
D)  primary

Question 19

In North America,consumer electrical systems are based on 110 volts while in some European countries 240-volt systems are standard.This is an example of:

Accepted Answer

A)  differences in consumer tastes and preferences.
B)  differences in distribution channels.
C)  differences in infrastructure and traditional practices.
D)  differences in governmental demands.

Question 20

A localization strategy involves some duplication of functions and smaller production runs.

Accepted Answer

A) True 
 B)False

Exam 11: The Strategy of International Business

The shift from a global strategy to a localization strategy is a response to the increasing localization of markets.

Correct AnswerverifiedShow Answer

Describe four ways in which a firm can profit from global expansion.

Correct AnswerverifiedFirms that operate internationally are a...View AnswerShow Answer

Which of the following strategies is apt when the firm simultaneously faces both strong cost pressures and strong pressures for local responsiveness?

Correct AnswerverifiedShow Answer

The company infrastructure is a support activity.

Correct AnswerverifiedShow Answer

Adding value to the firm's products enables the firm to lower prices.

Correct AnswerverifiedShow Answer

Pressures for cost reduction can be particularly intense in many industrial and consumer products like handheld calculators,semiconductor chips,personal computers,and liquid crystal display screens.

Correct AnswerverifiedShow Answer

In terms of organizational architecture,"people" include:

Correct AnswerverifiedShow Answer

The _____ activities of a firm have to do with the design,creation,and delivery of the product;its marketing;and its support and after-sale service.

Correct AnswerverifiedShow Answer

_____ comprises three things: the formal division of the organization into subunits,the location of decision-making responsibilities within these,and the establishment of integrating mechanisms to coordinate the activities of subunits.

Correct AnswerverifiedShow Answer

_____ are the bedrock of a firm's competitive advantage.

Correct AnswerverifiedShow Answer

In North America,consumer electrical systems are based on 110 volts while in some European countries 240-volt systems are standard.This is an example of:

Correct AnswerverifiedShow Answer

Which of the following is one of the ways in which a company can create more value for a product?

Correct AnswerverifiedShow Answer

Superior value creation relative to rivals requires a firm to:

Correct AnswerverifiedShow Answer

Devices used to reward appropriate managerial behavior are called _____.

Correct AnswerverifiedShow Answer

What are the sources of economies of scales?

Correct AnswerverifiedEconomies of scale have a number of sour...View AnswerShow Answer

A localization strategy involves some duplication of functions and smaller production runs.

Correct AnswerverifiedShow Answer

Profit growth is measured by the percentage increase in net profits over time.

Correct AnswerverifiedShow Answer

One of the principal risks with strategic alliances is:

Correct AnswerverifiedShow Answer

For a service organization,at which stage does production typically occur?

Correct AnswerverifiedShow Answer

Which of the following is one of the reasons that consumers are able to capture consumer surpluses?

Correct AnswerverifiedShow Answer

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Firms that operate internationally are a...
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Economies of scale have a number of sour...
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