Strategic Management Chapter 10

Which of the following best defines national competitive advantage? Multiple choice question. It is the degree to which global consumer needs are becoming more and more homogeneous. It refers to the efforts companies put into meeting local consumer preferences. It is the extent to which a country can compete in international markets. It involves national economies but has no effect on firm-level competitive advantage.

It is the extent to which a country can compete in international markets.

A country's natural, human, and other resources can be expressed in terms of ______. Multiple choice question. competitive intensity related industries demand conditions factor conditions

factor conditions

A(n) ______ strategy focuses on integration at the business level by attempting to reconcile product differentiations at low cost. Multiple choice question. transnational international globalization mass customization

transnational

If an MNE wishes to be responsive to the needs of its local consumers but also wants to attain a lowest-cost position, it should follow a(n) ______ strategy. Multiple choice question. transnational international multidomestic global-standardization

transnational

A company should only expand abroad if ______. Multiple choice question. the costs equal the benefits the economic value creation is negative the loss of reputation outweighs the value added the benefits outweigh the costs

the benefits outweigh the costs

True or false: The benefits of local responsiveness always outweigh the costs. True false question. True False

False

Which of the following statements about pursuing international expansion is true? Multiple choice question. A major benefit is gaining access to high-cost, exclusive input factors. It can enhance a firm's competitive advantage. It is a good option for a firm struggling in a domestic market. It ensures a firm's success as a low-cost competitor.

It can enhance a firm's competitive advantage.

Which of the following statements about the CAGE distance framework is true? Multiple choice question. It instructs MNEs how to avoid the liability of foreignness. It is designed to aid MNEs in deciding where to compete in the world. It helps MNEs restore their reputations after suffering from loss of reputation following international expansion. Its purpose is to help MNEs determine whether or not they should expand internationally.

It is designed to aid MNEs in deciding where to compete in the world.

For a U.S. company doing business internationally, which of the following would be examples of local responsiveness? (Check all that apply.) Multiple select question. McDonald's selling teriyaki burgers in Japan Walmart selling live animals for food preparation in China Ford selling the same car models in the United States and Mozambique Ikea selling metal chopsticks in South Korea

McDonald's selling teriyaki burgers in Japan Walmart selling live animals for food preparation in China Ikea selling metal chopsticks in South Korea

Which of the following have helped make globalization possible? (Check all that apply.) Multiple select question. Reductions in transportation costs Advances in telecommunications Nationalist trade policies Falling trade barriers

Reductions in transportation costs Advances in telecommunications Falling trade barriers

A multidomestic strategy is appropriate when which of the following conditions exist? (Check all that apply.) Multiple select question. The firm feels little need to reduce costs. Markets in the host country are idiosyncratic. The firm faces high demand for local responsiveness. Markets in the host country strongly resemble those of the home country.

The firm feels little need to reduce costs. Markets in the host country are idiosyncratic. The firm faces high demand for local responsiveness.

During the first stage of globalization, business functions that took place abroad were limited to which of the following? (Check all that apply.) Multiple select question. research distribution sales strategic management

distribution sales

The oldest form of internationalization is ______, which involves producing goods in one country to sell in another country. Multiple choice question. exporting franchising importing licensing

exporting

When looking at the modes of foreign-market entry, one could conclude that ______. Multiple choice question. exporting might be the earliest stage of commitment because it allows the firm to test whether a foreign market is ready for its products an early entry strategy is a greenfield venture because it requires the firm to invest heavily and allows for a high level of control licensing or franchising should only be considered after many years of experience in the foreign market as the investment required is very high a joint venture is a recommended early option even when joint ventures with local companies are not required by the host country

exporting might be the earliest stage of commitment because it allows the firm to test whether a foreign market is ready for its products

Before World War II, business strategy, implementation, and knowledge typically flowed ______. Multiple choice question. chaotically, due to a lack of organizational complexity from domestic headquarters to outposts abroad along a multidirectional pathway from international outposts back to domestic headquarters

from domestic headquarters to outposts abroad

Multinational enterprises that manufacture commodity products that focus on cost leadership tend to use a(n) ______ strategy. Multiple choice question. global-standardization international mass-customization local-responsiveness

global-standardization

As the standard of living rises in emerging economies, MNEs are hoping that ______. Multiple choice question. increased purchasing power will enable workers to purchase the products previously made only for export more companies engage in strategic actions that allow them to compete globally they can reduce their presence in foreign countries and let new businesses take their place more people will like them and have the means to become shareholders

increased purchasing power will enable workers to purchase the products previously made only for export

Companies seek to access international markets as a means of ______. Multiple choice question. increasing their economic value creation developing transnationalism and ethnocentrism avoiding competition participating in a uniform market

increasing their economic value creation

Due to globalization, the world's market economies are becoming more ______. Multiple choice question. diversified and unique advanced and independent export-led and undeveloped integrated and interdependent

integrated and interdependent

If a firm's goal is to leverage home-based core competencies in foreign markets, it should pursue a(n) ______ strategy. Multiple choice question. political distance international liability of foreignness local responsiveness

international

MNEs pursuing a multidomestic strategy hope that ______. Multiple choice question. competitors will be overwhelmed by the financial means of the firm local consumers will perceive them to be a foreign company the firm can save money due to lower international tax rates local consumers will perceive them to be a domestic company

local consumers will perceive them to be a domestic company

The benefits to be accrued from locating value chain activities in the world's optimal geographies for a specific activity are known as ____________________ economies.

location

Which of the following risks do companies face when expanding internationally? (Check all that apply.) Multiple select question. loss of intellectual property disruptive innovation loss of reputation the liability of foreignness

loss of intellectual property loss of reputation the liability of foreignness

Rising wages and other costs are likely to negate any benefits MNEs have of access to ______. Multiple choice question. low-cost outputs low-cost inputs high-cost inputs well-educated workers

low-cost inputs

The Japanese market is very particular, and MNEs tend to have a challenging time breaking into the market successfully. To provide the most local responsiveness and to influence Japanese consumers in believing that the products are local, an MNE should follow a(n) ______ strategy. Multiple choice question. multidomestic transnational international global-standardization

multidomestic

Despite a growing belief in the death-of-distance hypothesis, there remains evidence that certain countries remain leaders in specific industries and maintain a kind of ______ advantage. Multiple choice question. national competitive natural resources exchange-rate locally responsive

national competitive

When multinationals draw on multiple innovation hubs that all have equal status, they pursue a ______. Multiple choice question. domestic expansion project polycentric innovation strategy multi-ethnic growth policy location economy

polycentric innovation strategy

When pursuing an international strategy, a company ______. Multiple choice question. sells locally customized products in each market sells the same product in both domestic and foreign markets sells only low-cost options of their core product in foreign markets does not sell domestically

sells the same product in both domestic and foreign markets

When pursuing an international strategy, a company ______. Multiple choice question. sells only low-cost options of their core product in foreign markets sells locally customized products in each market sells the same product in both domestic and foreign markets does not sell domestically

sells the same product in both domestic and foreign markets

As MNEs compete internationally, a focus on local responsiveness allows them to do which of the following? Multiple choice question. independently convert foreign currency into domestic currency open new production facilities quickly and without political interference tailor product offerings to fit local preferences and requirements deliver the same standardized product to all markets throughout the world

tailor product offerings to fit local preferences and requirements

A multinational enterprise would likely be motivated to pursue a global-standardization strategy in order to ______. (Check all that apply.) Multiple select question. be locally responsive increase product differentiation take advantage of location economies take advantage of economies of scale

take advantage of location economies take advantage of economies of scale

Despite a growing belief in the death-of-distance hypothesis, there remains evidence that certain countries remain leaders in specific industries and maintain a kind of ______ advantage. Multiple choice question. locally responsive exchange-rate natural resources national competitive

national competitive

The process of closer integration and exchange between different countries and peoples worldwide, made possible by falling trade and investment barriers, advances in telecommunications, and reductions in transportation costs, is known as ______. Multiple choice question. unification direct aid globalization barriers to entry

globalization

Which of the following statements regarding factor conditions in Porter's diamond framework is true? Multiple choice question. Factor conditions must be taken into consideration only with the multidomestic strategy. Natural resources are not necessarily needed to generate world-leading companies. Natural resources are more important than such factor endowments as human capital and know-how. Factor conditions are the least important factor in Porter's diamond framework.

Natural resources are not necessarily needed to generate world-leading companies.

Which of the following dimensions are considered in the CAGE distance framework? (Check all that apply.) Multiple select question. architectural distance economic distance cultural distance geographic distance

economic distance cultural distance geographic distance

The Finnish company Nokia was an early industry leader in cell phones. This is an example of ______. Multiple choice question. lack of local responsiveness an international strategy increased differentiation national competitive advantage

national competitive advantage