MAN 4720 Chp 8

The two important environmental trends that influence a firm's choice and use of international corporate-level strategies are __________ and __________.

liability of foreignness; regionalization

U.S. soft drink companies entered the global market because of:

limited growth opportunities in their domestic market.

A global corporate-level strategy assumes:

more standardization of products across country markets.

Operating in multiple international markets can provide firms with __________ perhaps even in terms of __________.

new learning opportunities; research and development activities

All of the following are international corporate-level strategies EXCEPT the __________ strategy. multidomestic universal global transnational

universal

Why do U.S. companies moving into the international market need to be sensitive to the need for local country or regional responsiveness?

Consumer needs and desires, industry conditions, political and legal structures, and social norms vary by country.

Leeway Corp. wants to pursue a business-level international strategy to export to developed countries. Which of the following strategies would Leeway most likely select?

Cost leadership

Japan, which has a lack of undeveloped land, would be an unusual choice of location for a U.S. cattle company to set up local grazing operations. This limiting factor would be identified in what part of Porter's determinants of national advantage?

Factors of production

Which of the following is NOT a typical disadvantage of licensing? Little control over the marketing of products Licensees may develop a competitive product after the license expires Lower potential returns than the use of exporting or strategic alliances Incompatibility of the licensing partners

Incompatibility of the licensing partners

The choices that a firm has for entering the international market include all of the following EXCEPT: exporting. licensing. leasing. acquisition.

leasing.

Which of the following is NOT a disadvantage of international acquisitions? They are very expensive and often require debt financing. The acquiring firm has to deal with the regulatory requirements of a host country. Merging the acquired and acquiring firm is difficult. It is the slowest way to enter a new market.

It is the slowest way to enter a new market.

__________ is the set of costs associated with various issues firms face when entering foreign markets, including unfamiliar operating environments; economic, administrative, and cultural differences; and the challenges of coordination over distances.

Liability of foreignness

Which of the following is NOT a disadvantage associated with exporting? Potential loss of proprietary technologies High transportation costs Loss of control over distribution activities Tariffs imposed by local governments

Potential loss of proprietary technologies

Bunyan Heavy Equipment, a U.S. firm, is investigating expanding into Russia using a greenfield venture. The committee researching this project has delivered a negative report. The main concern of the committee is probably:

Russia's recent actions to gain state control of private firms' assets.

Which of the following is an advantage associated with greenfield ventures?

The level of control over the firm's operations

Firms with core competencies that can be exploited across international markets are able to:

achieve synergies and produce high-quality goods at lower costs.

Arkadelphia Polymers, Inc., earns 60 percent of its revenue from exports to Europe and Asia. The CEO of the company would be:

concerned if the value of the dollar strengthened.

Most firms enter international markets sequentially, introducing their __________ first.

largest and strongest lines of business

A global corporate-level strategy emphasizes:

economies of scale.

An international diversification strategy is one in which a firm:

expands into a potentially large number of geographic locations or markets.

Raymond Vernon states that the classic rationale for international diversification is to:

extend the product's life cycle.

The increased pressures for global integration of operations have been driven mostly by:

increasing demand for similar products.

The four determinants in Porter's model of international competitive advantage include all of the following EXCEPT: factors of production. demand conditions. political and economic institutions. related and supporting industries.

political and economic institutions.

In France, fine dressmaking and tailoring have been a tradition predating Queen Marie Antoinette. Cloth manufacturers, design schools, craft apprenticeship programs, modeling agencies, and so forth, all exist to supply the clothing industry. This is an example of the __________ in Porter's model.

related and supporting industries

A firm may narrow its focus to a specific region of the world:

so that it can better understand the cultures, legal and social norms, and other factors that are important for effective competition in those markets.

Factors of production in Porter's model of international competitive advantage include all of the following EXCEPT: labor. capital. infrastructure. supporting industries.

supporting industries.

One of the primary reasons for failure of cross-border strategic alliances is:

the incompatibility of the partners.

In China, Starbucks is standardizing its operations while simultaneously decentralizing some decision-making responsibility to local levels to meet customers' tastes. Starbucks is following the __________ international corporate-level strategy.

transnational

Effectively implementing the __________ international corporate-level strategy often produces higher performance than does implementing either the __________ or __________ strategies.

transnational; multidomestic; global

All of the following complicate the implementation of an international diversification strategy EXCEPT: widespread multilingualism. increased costs of coordination between business units. cultural diversity. logistical costs.

widespread multilingualism.

The decision of what entry mode to use is primarily based on all of the following factors EXCEPT the: industry's competitive conditions. country's situation and government policies. worldwide economic situation. firm's unique set of resources, capabilities, and core competencies.

worldwide economic situation.