Chapter 11, International Business

Taking advantage of universal needs and common consumer trends

A computer corporation produces and sells computer chips that are in high demand. The firm is able to sell the chips worldwide due to standardization. This best demonstrates which of the following pressures that compel companies to integrate their activities​ globally? A. Profiting from traditional and social media to attract buyers worldwide B.Increasing costs through economies of scale C. Taking advantage of universal needs and common consumer trends D. Offering International customers uniform service. E. Keeping a watch on global competitors and responding to them

transnational

A coordinated approach to internationalization in which the firm strives to be relatively responsive to local needs while retaining sufficient central control of operations is a​ ________ strategy

economies of scale

A firm most likely opts for global integration in order to take advantage of which of the following​ factors? A. responsiveness to local competitors B. Adaptation to different distribution channels C. Customized products D. Leverage natural resources E. Economies of scale

functional structure

A(n) ________ is an arrangement in which management of the​ firm's international operations is organized by functional activity such as production and marketing

efficiency; flexibility

According to the​ author, the success of multinational firms has been based upon​ ________ and​ ________, which have become especially relevant during the worldwide recession.

product structure

An international cellular phone corporation sells mobile​ devices, tablets, various​ networks, and connected home solutions overseas. The corporation separates its company according to each of these separate areas. Which organizational structure does this example​ describe? A. Export department structure B. International division structure C. Geographic area structure D. Product structure E. Functional structure

new product development

In a decentralized organizational​ structure, a​ firm's subsidiary carries out all of the following activities EXCEPT​ ________. A. Human resource management B. New product development C. Local market research D. Sales E. Marketing

centralized approach

In​ a(n) ________, the headquarters of a company has significant authority and control over the​ company's global activities

born global firms

Most firms prefer to internationalize in​ stages, but​ ________ are an exception to the stages approach because they internationalize a few years after being founded

learning

Procter​ & Gamble​ (P&G) has a research center in Belgium that instituted​ water-softening technology to address the hard water problems in Europe. In​ Japan, P&G developed a laundry detergent for use in cold water because Japanese customers prefer washing their clothes in cold water. These are examples of​ ________ A. Learning B. Strategy C. Diversity D. Flexibility E. Efficiency

global strategy

Samsung Electronics is based in South​ Korea, where the firm manages global activities from company headquarters.​ Samsung's expertise is shared among the​ firm's business units worldwide. Global teams of​ R&D personnel from​ Asia, Europe, and the Americas develop electronics with little variation. This is an example of a​ ________. A. Global strategy B. Home replication strategy C. Multidomestic strategy D. Transnational strategy

multidomestic strategy

Sharon manages a large international computer corporation that has branches in many countries. For each country in which the corporation is​ located, Sharon allows the local manager to make decisions on product choice and distribution. Based on the​ integration-responsiveness framework, which of the following strategies does this practice best​ demonstrate? A. Vision strategy B. Global strategy C. Multidomestic strategy D. Transnational strategy.

organizational culture

The Korean automobile firm Hyundai emphasizes the importance of science and technology throughout its organization and allocates funds for the research and development of innovative automobile features. Which of the following dimensions of a successful international firm is best demonstrated by​ Hyundai? A. Organizational structure. B. Organizational processes C. Organizational culture D. Strategy E. Visionary leadership

home replication strategy

The​ ________ refers to an approach in which a firm views international business as separate​ from, and secondary​ to, its domestic business.

They both make decisions on a​ country-to-country basis.

What does a multidomestic industry have in common with local​ responsiveness? A. They both utilized centralized decision making B. They both incorporate all of the elements of a firm's value-chain activities C. They both deal with product competition D. They both focus solely on domestic sales E. They both make decisions on a country-to-country basis.

The coordination of global operations is centralized

Which of the following characterizes the international division​ structure? A. a unit has the task of managing exports B. Decision making is organized according to functional activity, such as marketing C. The coordination of global operations is centralized D. Local managers handle operations in their geographic regions E. Operations are organized according to product line.

efficiency

Which of the following refers to reducing the cost of a​ firm's global​ activities? A. Transnational strategy B Strategy C. Visionary leadership D. Functional structure E. Efficiency

exporting

Which of the following represents a​ low-control strategy? A. Franchising B. Foreign direct investment C. Licensing D. Exporting E. Equity going ventures

Firms prefer to pay for many product variations for individual markets despite the sharp increase in costs.

Which of the following statements about local responsiveness is​ FALSE? A. Businesses take the local culture into consideration for the transactions B. Firms adjust to the local competitive environment C. Firms adjust their practices to meet the specific needs of each country D. Companies adhere to local customer preferences E. Firms prefer to pay for many product variations for individual market despite the shark increase in costs

Managers keep their focus on a company's day-to-day operations

Which of the following statements is​ true? A. Managers are visionary and hold a long-term perspective. B. Leaders have a short-term perspective for the firm C. Leaders control and administer specific activities in the company D. Managers keep the focus on a company's day-to-day operations E. Managers see the big picture and set long-term goals

visionary leadership

________ is a quality of executive management that provides inspirational guidance and motivation to​ personnel, leading the firm to a better future.

global integration

________ is defined as the coordination of a​ firm's worldwide​ value-chain activities to obtain​ synergy, efficiency, and​ cross-fertilization.

strategic global teams

​________ identify or implement initiatives that enhance the​ long-term direction of a firm in its global industry.

Strategy

​________ is a planned set of actions that managers employ to make best use of the​ firm's resources and core competencies to gain competitive advantage.

countertrade

​________ refers to an international business transaction in which full or partial payments are made in kind rather than in cash.