Exam 7: Strategies for Competing in International Markets

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Among the benefits of using strategic al...

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A) hindering the use of cross-market subsidization techniques and increasing company vulnerability to adverse shifts in currency exchange rates.
B) the difficulty in taking into account significant country-to-country differences in distribution channels and marketing methods.
C) the difficulty in and costs of being responsive to country-to-country differences in customer needs,buying habits,cultural traditions,and market conditions.
D) hindering the transfer of a company's competencies and resources across country boundaries and hindering the pursuit of a single,uniform competitive advantage in all country markets where a company operates.
E) being unsuitable for competing in the markets of emerging countries and posing added difficulty in building multiple profit sanctuaries.

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A) Spreading business risk across a wider geographic market base
B) Capitalizing on company competencies and capabilities
C) Achieving lower costs and enhance the firm's competitiveness
D) Building the profit sanctuary necessary to wage guerrilla offensives against global challengers endeavoring to invade its home market
E) Gaining access to new customers

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A) scatter its production plants across many different country markets so as to minimize the costs of shipping to its own distribution centers and/or wholesalers/retail dealers.
B) consider (1) whether to concentrate each activity it performs in a few select countries or to disperse performance of the activity to many nations and (2) in which countries to locate particular activities.
C) concentrate buyer-related activities in a few well-chosen locations so as to maximize the capture of distribution-related economies of scale.
D) disperse both production and distribution activities across many nations in order to hedge against fluctuating exchange rates and lessen the risks of adverse political developments.
E) avoid selling in countries where there are high trade barriers or where buyers purchase in small quantities.

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A) a profit sanctuary.
B) cross-border coordination.
C) an international strategic alliance.
D) cross-market subsidization.
E) cross-market differences in cultural,demographic,and market conditions.

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Among the strategy options for tailoring...

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A) Overcoming language and cultural barriers,and the sometimes-extensive managerial time required for trust-building,communication,and coordination
B) The trouble allies can have reaching mutually agreeable ways to deal with key issues
C) Becoming overly dependent on another company for essential expertise and competitive capabilities
D) Making it harder to pursue a multidomestic strategy as compared to a global strategy
E) Suspicions about whether allies are being forthright in exchanging information and expertise

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Multidomestic strategies (think local,ac...

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A) To impart technical knowledge to high-cost human resources in developing nations
B) To capitalize on company competencies and capabilities
C) To spread business risk across a wider geographic market base
D) To capture economies of scale in product development,manufacturing,or marketing
E) To achieve lower costs through economies of scale,experience,and increased purchasing power

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A) that it is especially vulnerable to fluctuating exchange rates and can usually be defeated by companies employing cross-market subsidization tactics.
B) excessive vulnerability to fluctuating exchange rates and having to craft a separate strategy for each country market in which the company competes.
C) hindering a company's transfer of competencies and resources across country boundaries (since somewhat different competencies and capabilities are likely to be employed in different host countries) and not promoting the building of a single,unified competitive advantage in all country markets where a company competes.
D) greater exposure to both increases in tariffs and restrictive trade barriers,and added difficulty in accommodating the diverse trade restrictions and regulatory requirements of host governments.
E) not being able to export products manufactured in one country to markets in other countries and being largely unsuitable for competing in the markets of emerging countries.

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A) To better compete with Gazprom
B) To scale back its core competencies
C) To gain access to low-cost inputs of production
D) To gain access to new customers in new markets
E) To restrict its factors of production

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A) comparatively lower exchange rate and political risks
B) potential location advantages in wages,inflation rates,and tax rates that reduce costs
C) global standardization of mobile phone technology
D) growth potential of India's emerging market
E) franchising opportunities in India

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A) employing a franchising strategy.
B) maintaining a national (one-country) production base and exporting goods to foreign markets.
C) licensing foreign firms to produce and distribute one's products.
D) establishing a subsidiary in a foreign market.
E) creating products and services that are not subject to tariffs and local regulations.

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A) maintaining quality control.
B) having to decide whether to allow foreign franchisees to modify the franchisor's product offering to better satisfy the tastes and expectations of local buyers.
C) foreign franchisees that do not always exhibit strong commitment to consistency and standardization.
D) franchisees bearing most of the costs and risks of establishing foreign locations,so a franchisor has to expend only the resources to recruit,train,support,and monitor franchisees.
E) the ability to build multiple profit sanctuaries.

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A) fluctuating exchange rates,country-to-country variations in host-government restrictions and requirements,and variations in cultural,demographic,and market conditions.
B) important country-to-country differences in consumer buying habits and buyer tastes and preferences.
C) whether to customize the company's offerings in each different country market or whether to offer a mostly standardized product worldwide.
D) the fact that product designs suitable for one country are sometimes inappropriate in another.
E) the prevalence of global brands.

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A multidomestic strategy calls for varyi...

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A) is generally preferable to a global strategy in situations where buyers are price sensitive because a "think local,act local" type of multidomestic strategy is better suited to achieving low unit costs than a global strategy.
B) involves much less adherence to using the same basic competitive strategy theme (low-cost,differentiation,best-cost,or focused) in all country markets.
C) is generally best suited for globally standardized industries,in which small country-by-country differences can be accommodated.
D) is generally inferior to a global strategy when it comes to pursuing product differentiation.
E) has two big drawbacks: (1) it hinders the transfer of a company's competencies and resources across country boundaries because the strategies in different host countries can be grounded in varying competencies and capabilities,and (2) it does not promote building a single,unified competitive advantage,especially one based on low cost.

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A) host governments relax regulations requiring that products sold locally meet strictly defined manufacturing specifications or performance standards.
B) there are few country-to-country differences in customer preferences and buying habits.
C) diverse and complicated trade restrictions of host governments preclude the use of a uniform strategy from country to country.
D) there are few country-to-country differences in distribution channels and marketing methods.
E) companies centralize strategy making in global headquarters.

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