Question 1

Demanding domestic consumers tend to push firms to move ahead of companies in other countries where consumers are less demanding and more complacent.

Accepted Answer

A) True 
 B)False

Question 2

Elements of a multidomestic strategy may facilitate the competitive advantage of cost leadership by __________.

Accepted Answer

A)   flexibility in adjusting to local laws and customs
B)   decreased duplication of inventories which are often involved in having multiple plants producing similar products
C)   decreased shipping and transportation costs inherent in local production
D)   economies of scale gained through centralized production of standardized productsE) All of the above
F) B) and D)

Question 3

In order to realize the strongest competitive advantage,firms engaged in worldwide competition must ___________.

Accepted Answer

A)   require that all of their various business units follow the same strategy regardless of location
B)   ensure that all business units follow a strategy strictly tailored to their respective locations
C)   pursue a strategy that combines the uniformity of a global strategy and the specificity of a multidomestic strategy in order to achieve optimal results
D)   attempt to use the strategy that was most successful in their home countryE) B) and D)
F) A) and B)

Question 4

There are risks associated with the Bottom of the Pyramid strategy.One of them is that the new low-cost products that are developed may cannibalize the sales of the core products of the company using the strategy.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is not a limitation of a multidomestic strategy?

Accepted Answer

A)   less ability to realize cost savings through scale economies
B)   greater difficulty in transferring knowledge across countries
C)   single locations may lead to higher tariffs and transportation costs
D)   may lead to overadaptation as conditions changeE) B) and D)
F) B) and C)

Question 6

A multidomestic strategy is the most appropriate strategy for international operations,because it drives economies of scale as far as possible and provides a middle-of-the-road product that appeals to the largest number of consumers in every market.

Accepted Answer

A) True 
 B)False

Question 7

Typically,intense rivalry in domestic markets does not force firms to look outside their national boundaries for new markets.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following types of international firms are most likely to benefit from a global strategy as opposed to a multidomestic strategy?

Accepted Answer

A)   firms that compete in industries in which consumer preferences vary substantially in each country
B)   firms in industries that are expanding very rapidly
C)   firms in industries that have value added by sales and marketing departments
D)   firms in industries that have much value added in research and design or manufacturingE) B) and D)
F) B) and C)

Question 9

When the U.S.currency appreciates against other currencies,it becomes more expensive for American companies that have branch operations overseas,when they declare foreign profits in the United States.

Accepted Answer

A) True 
 B)False

Question 10

Exporting is an expensive way to enter foreign markets.

Accepted Answer

A) True 
 B)False

Question 11

According to studies by Rugman and Verbeke,most of the 500 largest companies in the world are global.

Accepted Answer

A) True 
 B)False

Question 12

__________ are most appropriate when a firm already has the appropriate knowledge and capabilities that it can leverage rather easily through multiple locations in many countries.

Accepted Answer

A)   Joint ventures
B)   Strategic alliances
C)   Licensing agreements
D)   Wholly owned subsidiariesE) All of the above
F) A) and B)

Question 13

When considering the exporting decision,companies should consider that the ability to tailor their products to meet local market needs typically is very limited.

Accepted Answer

A) True 
 B)False

Question 14

Among Theodore Levitt's assumptions that would favor a global strategy is that consumers around the world are becoming less price-sensitive.

Accepted Answer

A) True 
 B)False

Question 15

Multinational firms are constantly faced with the dilemma of choosing between _______ and __________.

Accepted Answer

A)   local adaptation; global integration
B)   local adaptation; local integration
C)   global adaptation; local integration
D)   global adaptation; global integrationE) A) and B)
F) B) and D)

Question 16

Multinational firms following a transnational strategy strive to optimize the trade-offs associated with efficiency,local adaptation,and learning.

Accepted Answer

A) True 
 B)False

Question 17

Typically,joint ventures involve less control and risk than franchising.

Accepted Answer

A) True 
 B)False

Question 18

Software Tech,Inc.,a company in the computer software industry,invests heavily in Research and Development,and product design.Thus,most of its value is added ________.

Accepted Answer

A)   upstream
B)   in its infrastructure
C)   downstream
D)   midstreamE) All of the above
F) C) and D)

Question 19

Emerging markets are growing slower than developed markets,thus shifting the structure of the global economy.

Accepted Answer

A) True 
 B)False

Question 20

According to Theodore Levitt,what are the three assumptions that favor the pursuit of a pure global strategy? Briefly provide counterarguments to each assumption.

Accepted Answer

The three assumptions that favor the pur...

Exam 7: International Strategy: Creating Valuein Global Markets

__________ are most appropriate when a firm already has the appropriate knowledge and capabilities that it can leverage rather easily through multiple locations in many countries.

Correct AnswerverifiedShow Answer

A multidomestic strategy is the most appropriate strategy for international operations,because it drives economies of scale as far as possible and provides a middle-of-the-road product that appeals to the largest number of consumers in every market.

Correct AnswerverifiedShow Answer

Elements of a multidomestic strategy may facilitate the competitive advantage of cost leadership by __________.

Correct AnswerverifiedShow Answer

In order to realize the strongest competitive advantage,firms engaged in worldwide competition must ___________.

Correct AnswerverifiedShow Answer

Multinational firms following a transnational strategy strive to optimize the trade-offs associated with efficiency,local adaptation,and learning.

Correct AnswerverifiedShow Answer

Multinational firms are constantly faced with the dilemma of choosing between _______ and __________.

Correct AnswerverifiedShow Answer

According to Theodore Levitt,what are the three assumptions that favor the pursuit of a pure global strategy? Briefly provide counterarguments to each assumption.

Correct AnswerAnswered by ExamLex AIThe three assumptions that favor the pur...View AnswerShow Answer

Among Theodore Levitt's assumptions that would favor a global strategy is that consumers around the world are becoming less price-sensitive.

Correct AnswerverifiedShow Answer

Typically,intense rivalry in domestic markets does not force firms to look outside their national boundaries for new markets.

Correct AnswerverifiedShow Answer

Typically,joint ventures involve less control and risk than franchising.

Correct AnswerverifiedShow Answer

According to studies by Rugman and Verbeke,most of the 500 largest companies in the world are global.

Correct AnswerverifiedShow Answer

Which of the following is not a limitation of a multidomestic strategy?

Correct AnswerverifiedShow Answer

Exporting is an expensive way to enter foreign markets.

Correct AnswerverifiedShow Answer

When the U.S.currency appreciates against other currencies,it becomes more expensive for American companies that have branch operations overseas,when they declare foreign profits in the United States.

Correct AnswerverifiedShow Answer

Which of the following types of international firms are most likely to benefit from a global strategy as opposed to a multidomestic strategy?

Correct AnswerverifiedShow Answer

There are risks associated with the Bottom of the Pyramid strategy.One of them is that the new low-cost products that are developed may cannibalize the sales of the core products of the company using the strategy.

Correct AnswerverifiedShow Answer

Emerging markets are growing slower than developed markets,thus shifting the structure of the global economy.

Correct AnswerverifiedShow Answer

When considering the exporting decision,companies should consider that the ability to tailor their products to meet local market needs typically is very limited.

Correct AnswerverifiedShow Answer

Software Tech,Inc.,a company in the computer software industry,invests heavily in Research and Development,and product design.Thus,most of its value is added ________.

Correct AnswerverifiedShow Answer

Demanding domestic consumers tend to push firms to move ahead of companies in other countries where consumers are less demanding and more complacent.

Correct AnswerverifiedShow Answer

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Multinational firms are constantly faced with the dilemma of choosing between _ and ____.

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Answered by ExamLex AI
The three assumptions that favor the pur...
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