FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 7: International Strategy: Creating Value in Global Markets

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 71

True/False

Review LaterAdd Note

Review Later

A disadvantage of international expansion is that it can enable a firm to optimize the location of every activity in its value chain.

A) True
B) False

Correct Answer

verified

Show Answer

Question 72

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following is not a motivation for a company to pursue international expansion?

A) It wishes to increase the size of the potential markets for its products and services.
B) It wishes to take advantage of arbitrage opportunities in order to increase profit.
C) It wishes to optimize value-chain activities to enhance performance, reduce costs, and reduce risk.
D) It wishes to increase foreign market penetration by developing products for the home market.

E) A) and D)
F) A) and C)

Correct Answer

verified

Show Answer

Question 73

True/False

Review LaterAdd Note

Panasonic needed to change its strategy in the 1980s in order to respond to demographic and economic changes in China. As the Chinese middle class began to emerge, local companies responded with competitive products. Panasonic then changed its strategy from a transnational strategy to a global strategy.

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) __________ or __________ in order to compete in the global marketplace.

There are risks associated with the Bottom of the Pyramid strategy. One of them is that the new low-cost products that are developed may cannibalize the sales of the core products of the company using the strategy.

Sources of political risk do not include

Shared Arabic language and the Muslim religion is one reason that explains regionalism tendencies in

In international markets, a disadvantage of licensing is that the firm granting a license incurs little risk, since it does not have to invest any significant resources into the country itself.

Which of the factors below has not made the software services industry in India extremely competitive on a global scale?

When differentiating products and services to local markets, strategies and tactics are likely to __________ company costs.

The European Union is a trading bloc that eases trade restrictions, taxes, and tariffs for its members.

The U.S. and Australia have common language and culture and yet the true distance is great.

In a global strategy a firm operates all of its businesses under a single common strategy, regardless of location.

Recent 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

Statistics indicate that over half of the world output now comes from emerging markets. This is leading to a(n) ___________ of living standards across the globe and is changing the face of business.

The form of entry strategy into international operations that offers the lowest level of control for the domestic corporation would be

The trend towards worldwide markets makes it easier to predict where competitors will spring up.

When considering the exporting decision, companies should consider that the ability to tailor their products to meet local market needs typically is very limited.

In the Porter Diamond of National Advantage framework, which of the following factors does not affect nation competitiveness?

Which would be the appropriate strategy for companies to use to compete in the global marketplace if the marketplace pressure is for lower costs with little pressure for local adaptation?