Quiz 19 Global strategic options and national competitiveness

transnational strategy

A(n) _____ arises out of the combination of high pressure for local responsiveness and high pressure for cost reductions.

multidomestic strategy

A(n) _____ arises out of the combination of high pressure for local responsiveness and low pressure for cost reductions.

The company's exposure to exchange rate fluctuations will decrease.

After testing its products in foreign markets by pursuing an international strategy, GR Foods Inc. wants to expand by pursuing a multidomestic strategy. How will this most likely affect the company?

Demand conditions

Due to dense urban living conditions, hot and humid summers, and high energy costs, it is not surprising that Japanese customers want small, quiet, and energy-efficient air conditioners. Which feature of Porter's diamond framework does this scenario best exemplify?

manufacturing products on international platforms and slightly modifying them to meet local tastes and standards.

For a multinational enterprise (MNE), applying the globalization hypothesis would mean:

For luxury goods that can be shipped across the globe

For which of the following products is an international strategy most suitable?

Food industries

For which of the following types of industries is a multidomestic strategy most common?

Global-standardization strategy

Garnet Mobiles Inc., a cell phone manufacturing company, has its product development centers located in the U.S. and South Korea. The manufacturing units are located in China and Philippines to benefit from low-labor costs and access to original equipment manufacturers. This allows the company to competitively price its cell phones. Also, the various phone models sold by the company are uniform in all the foreign markets it operates in. In this scenario, which of the following strategies does Garnet Mobiles Inc. most likely pursue?

Globalization 3.0

In which of the following stages of globalization did firms organize as networks to pursue a global-standardization strategy?

Multidomestic strategy

McDonald's uses mutton instead of beef in India and offers teriyaki burgers in Japan. Which of the following strategies is the fast food chain likely pursuing?

they offer the same products or services in all their stores throughout the world.

Multinational enterprises (MNEs) like Harley-Davidson, Rolex, and Starbucks are said to be following an international strategy because:

An international strategy

Onico Inc., a luxury car company, sells the same cars and offers the same superior services in both its home country and foreign markets. The market it operates in faces low pressures for both local responsiveness and cost reductions. Which of the following strategies within the integration-responsiveness framework does Onico Inc. most likely pursue?

national competitive advantage

Some of the best engineering and car companies are in Germany. Thus, it can be concluded that Germany has a _____ in the automobile industry.

A global-standardization strategy

To keep track of the latest developments in computing, Lenovo's research centers are located in China, U.S.A., and Japan. Also, to benefit from low-cost labor and reduced shipping costs, the company's manufacturing facilities are in Mexico, India, and China. Which of the following strategies would require Lenovo to organize its operations worldwide in order to develop uniform products for its domestic and foreign markets?

is a world leader in the pharmaceutical industry.

United Borova Laboratories Inc. has a national competitive advantage in the pharmaceutical industry. This means that the country:

international strategy

When a firm pursues a(n) _____, it sells the same products or services in both domestic and foreign markets.

The huge demand for high-quality wireless services in Finland

Which of the following factors pertaining to national competitive advantage enabled Nokia, a multinational company from Finland, to become an early leader in cell phones?

Transnational strategy

Which of the following globalization strategies requires managers working in multinational enterprises (MNEs) to remember to think globally, but act locally?

The firm reaps significant economies of scale and location economies.

Which of the following is a benefit of a multinational enterprise (MNE) pursuing a global-standardization strategy?

Its business-level strategy tends to be cost leadership.

Which of the following is a feature of a multinational company pursuing a global-standardization strategy?

It is characterized by limited local responsiveness.

Which of the following is one of the features of an international strategy?

Commodity products like computer hardware

Which of the following products are generally manufactured by multinational enterprises (MNEs) pursuing a global-standardization strategy?

It increases the value of the focal firm's offering from a customer's perspective.

Which of the following statements best explains how the presence of top-notch complementors within a firm's industry affects the focal firm's business?

It enables firms to leverage their home-based core competencies in foreign markets.

Which of the following statements is true of an international strategy?