BUS-475 Ch 7 (Quiz 8.2) Review

A think-global, act-global strategic theme puts an emphasis on

Building a global brand name and aggressively pursuing opportunities to transfer ideas, products, and capabilities from one country to another

What is the foremost strategic issue that must be addressed by firms when operating in two or more foreign markets?

Deciding on the degree to vary its competitive approach to fit the specific market conditions and buyer preferences in each host country

Profit sanctuaries are country markets or geographic regions where a company

Derives substantial profits because of its protected market position or unassailable competitive advantage

The primary reasons that companies opt to expand into foreign markets are to

Gain access to new customers, achieve lower costs, enhance the company's competitiveness, capitalize on core competencies, and spread business risk across a wider market base

The advantages of using an acquisition strategy to pursue opportunities in foreign markets include

Having a high level of control and speed as an entry strategy to overcome trade barriers

A "think-local, act-local" multidomestic type of strategy

Is more appealing when the country-to-country differences in buyer tastes, cultural traditions, and market conditions are diverse

The difference between political risks and economic risks is that

Political risks stem from instability or weakness in national governments, while economic risks stem from the stability of a country's monetary system, and its economic and regulatory policies

The transnational approach of a firm using a "think-global, act-local" version of a global strategy entails

Pursuing the same basic competitive strategy theme (low-cost, differentiation, best-cost, focused) in all countries where the firm does business but giving local managers some latitude to adjust product attributes to better satisfy local buyers and to adjust production, distribution, and marketing to be responsible to local market conditions

A weaker U.S. dollar is an economically favorable exchange-rate shift for manufacturing plants based in the United States.

This is a true statement

One of the biggest strategic challenges to competing in the international arena includes

Whether to offer a standardized product worldwide or a customized product offering in each different country market