MAN 4720 CH 7

Three of the following are factors which pressure companies for local responsiveness, which is NOT?

Availability of low labor costs

Which pair of industries would NOT be considered as "related and supporting" under Porter's diamond model?

Highway systems and the supply of debt capital

Skaredykat Inc. is considering initial expansion beyond its home market. The firm has decided not to enter markets that differ greatly from its home market, instead expanding within the twelve-nation region that includes its home country. Which of the following statements is true?

The firm is using a regional approach to international expansion.

Three of the following are incentives for a company to become multinational, which is NOT an incentive?

To avoid high domestic taxation on corporate income

If intellectual property rights in an emerging economy are not well protected, the number of firms in the industry is rapidly growing, and the need for global integration is high, __________ is the preferred entry mode.

a joint venture or wholly owned subsidiary

If conflict in a strategic alliance or joint venture is not manageable, a(n) __________ may be a better option.

acquisition

In Porter's model, if a country has both __________ and __________ production factors, it is likely to serve an industry well by spawning strong home-country competitors that can also be successful global competitors.

advanced; specialized

A licensing agreement:

allows a foreign firm to purchase the right to manufacture and sell a firm's products within a host country.

Which of the following strategies involving their domestic markets, is a reason a company would move into international markets?

are limited in opportunities for growth.

How are a companies returns affected when it initially becomes internationally diversified?

decrease.

Internationally diversified firms:

earn greater returns on their innovations through larger or more numerous markets.

A global corporate-level strategy emphasizes:

economies of scale.

A U.S. manufacturer of adaptive devices for persons with disabilities is considering expanding internationally. It is a fairly small company, but it is looking for growth opportunities. This company should primarily consider the option of:

exporting.

Which of the following offers the largest amount of control when entering an international market?

greenfield ventures.

The transnational strategy is becoming increasingly necessary to compete in international markets for all of the following reasons EXCEPT:

it is easy to use.

One of these answers is a fundamental reason for a country to utilize advanced and specialized factors of production, which is it ?

lack of basic resources.

A global strategy:

lacks responsiveness to local markets.

Firms able to standardize the processes used to produce, sell, distribute, and service their products across country borders enhance their ability to:

learn how to continuously reduce costs while increasing the value of their products.

Companies entering an international market have several choices to make. These include all the following except:

leasing.

The positive results associated with increasing international diversification have been shown to:

level off and become negative as diversification increases past some point.

Disney suffered lawsuits in France, at Disneyland Paris, because of the lack of fit between its transferred personnel policies and the French employees charged to enact them. This is an example of the:

liability of foreignness.

Terrorism creates an economic risk for firms, which:

reduces the amount of investment foreign companies will make in a country perceived to be terror prone.

Associations such as the European Union, Organization of American States, and the North American Free Trade Agreement encourage:

regional strategies.

All of the following are reasons why firms use international strategic alliances EXCEPT:

strategic alliances are easy to manage.

Which of the following best refers to an international strategy?

strategy through which the firm sells its goods or services outside its domestic market.

There are certain items managers should know about companies based in countries with a national competitive advantage, which of the following is not one of those items?

success is guaranteed as the firm implements its chosen international business-level strategy.

International corporate-level strategy focuses on:

the scope of a firm's operations through geographic diversification.

Increasingly, customers worldwide are demanding emphasis on local requirements and companies require efficiency as global competition increases. This has triggered an increase in the number of firms using the __________ strategy.

transnational

Effectively implementing the __________ international corporate-level strategy often produces higher performance than does implementing either the __________ or __________ strategies.

transnational; multidomestic; global