MAN4720 Chapter 8 Quiz

Firms able to standardize the processes used to produce, sell, distribute, and service their products across country borders enhance their ability to: a) learn how to continuously reduce costs while increasing the value of their products b) .increase investment in research and development. c) access a low-cost labor force in the host market. d) mitigate cultural differences.

a

In order to work with various business functions in organizations, such as accounting, operations, and marketing, strategic managers need to: a) create integrative mechanisms, such as cross-functional teams. b) allow for specialization within functions. c) create functional silos. d) simply react to the environment.

a

One of these answers is a fundamental reason for a country to utilize advanced and specialized factors of production, which is it ? a) lack of basic resources. b) monetary wealth. c) small workforce. d) protective tariffs.

a

Terrorism creates an economic risk for firms, which: a) reduces the amount of investment foreign companies will make in a country perceived to be terror prone. b) is created by governmental bans on doing business with terrorist regimes. c) is offset by the above-average returns for firms that have learned how to operate in such an environment. d) is absorbed by firms that are highly geographically diversified and that operate in both secure and insecure locations.

a

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: a) licensing. b) exporting. c) a strategic alliance. d) a greenfield venture.

b

A global corporate-level strategy emphasizes: a) differentiated products. b) economies of scale. c) sensitivity to local product preferences. d) decentralizing control and limited monitoring.

b

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? a) The firm is not engaging in international trade. b) The firm is using a regional approach to international expansion. c) The firm will not be able understand the cultures, legal, and social norms of this market. d) Skaredykat is too afraid to implement an international strategy.

b

Which of the following strategies involving their domestic markets, is a reason a company would move into international markets? a) demand a differentiation strategy for success. b) are limited in opportunities for growth. c) have developed unfriendly business attitudes toward the industry. d) have too much regulation.

b

A licensing agreement: a) results in two firms agreeing to share the risks and the resources of a new venture. b) is the best way to protect proprietary technology from future competitors. c) allows a foreign firm to purchase the right to manufacture and sell a firm's products within a host country. d) can be greatly impacted by currency exchange rate fluctuations.

c

Associations such as the European Union, Organization of American States, and the North American Free Trade Agreement encourage: a) global strategies. b) domestication. c) regional strategies. d) nationalization.

c

Companies entering an international market have several choices to make. These include all the following except: a) exporting. b) licensing. c) leasing. d) acquisition.

c

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: a) effects of regionalization. b) risks of a multidomestic strategy. c) liability of foreignness. d) effect of demand conditions.

c

If conflict in a strategic alliance or joint venture is not manageable, a(n) __________ may be a better option. a) licensing strategy b) exporting strategy c) acquisition d) new wholly owned subsidiary

c

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) exporting b) strategic alliance c) a joint venture or wholly owned subsidiary d) licensing

c

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? a) success is not guaranteed as the firm implements its chosen international business-level strategy. b) the actual strategic choices made are most compelling reasons for success or failure. c) success is guaranteed as the firm implements its chosen international business-level strategy. d) the determinants of national competitive advantage provide a foundation for a firm's competitive advantages.

c

A global strategy: a) is easy to manage because of common operating decisions across borders. b) achieves efficient operations without sharing resources across country boundaries. c) increases risk because decision making is centralized at the home office. d) lacks responsiveness to local markets.

d

Effectively implementing the __________ international corporate-level strategy often produces higher performance than does implementing either the __________ or __________ strategies. a) multidomestic; global; transnational b) global; multidomestic; transnational c) cost leadership; differentiation; focus d) transnational; multidomestic; global

d

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. a) basic; advanced b) advanced; generalized c) basic; generalized d) advanced; specialized

d

Which pair of industries would NOT be considered as "related and supporting" under Porter's diamond model? a) Japanese cameras and copiers b) Italian leather processing and shoes c) U.S. computers and software d) Highway systems and the supply of debt capital

d

Three of the following are factors which pressure companies for local responsiveness, which is NOT? a) Differences in employment laws b) Customization due to cultural differences c) Government pressure for firms to use local sources for procurement d) Availability of low labor costs

d)