Chapter 7 Quiz

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

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

the markets in various countries to be part of the world market and competitive conditions across country markets to be strongly linked.

A global strategy allows for

De Beers establishing greenfield operations in the mining region of South Africa.

A location-based advantage for competing on an international basis can best be exemplified by

reduced taxes, low-cost loans, site location and site development assistance, and government-sponsored training for workers to encourage companies to construct production and distribution facilities.

A typical host government requirement that encourages the entry of foreign companies to establish operations in that country is

This is a true statement

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

cross-border transfer activities and home country advantages

Among the factors that do not determine whether to employ entry strategy options are

of emerging countries.

Companies aspiring for global market leadership have to prioritize competing in the markets

different government policies and economic conditions make the business climate more favorable in some countries than in others.

Crafting a strategy to compete in one or more foreign markets can be considered complex because

if resources retain their foreign contexts so there is competitive advantage over a broader domain.

Dispersing the performance of value chain activities to many different countries rather than concentrating them in a few country locations tends to be advantageous in all of the following situations, except

a company desires to transfer competencies and resources across country boundaries and is striving to build a single, uniform competitive advantage worldwide.

Employing a "think-local, act-local" multidomestic strategy is highly questionable when

to gain access to low-cost inputs of production

ExxonMobil enters into a pact with Gazprom, the world's largest natural gas extractor, to set up a processing unit in Baku, Azerbaijan. Which of the following is most likely the reason for ExxonMobil to opt for this strategic alliance?

A "think-local, act-global approach."

Four Seasons Hotels uses which strategy to compete globally?

Latvia makes low-cost loans to U.S. vodka distillers to stimulate competition in its market.

Nikki, CEO of an aspiring multinational craft vodka company, is researching cross-country differences in demographic, cultural, and market conditions. She would not likely discover that

has the necessary scale and resource strengths to compete with rivals.

Sandi is considering conditions that make an internal start-up strategy appealing over an acquisition and has determined that she would ONLY choose an internal start-up strategy when an internal start-up

avoid the effects of fluctuations in exchange rates on the costs of manufacturing goods in a particular country.

The 2015 merger of Walgreens Boots Alliance, one of the world's largest pharmaceutical purchasers, is not likely to

being able to leverage the company's technical know-how, appealing brand, or patents without committing their resources or capabilities to foreign markets.

The advantages of using a licensing strategy to participate in foreign markets include

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

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

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 responsive to local market conditions.

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

utilizing understanding of local customer needs and preferences to create customized products or services, developing business models to exploit shortcoming in local infrastructure, and using acquisitions and rapid growth to defend against expansion-minded multinationals.

The basic strategy options for local companies in competing against global challengers include

growth-minded companies are racing to build stronger competitive positions in the markets of more countries.

The world economy is globalizing at an accelerated pace because

offer a way to test the value and viability of a cooperative arrangement with a foreign partner before making a more permanent commitment.

Tiffany and Zulema have asked you for advice about strategic partners in Canada and Mexico to launch a new food truck locator app. You explain to them that the major pitfalls associated with pursuing strategic alliances with foreign partners

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

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