FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 7: International Strategy: Creating Value in Global Markets

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 31

Multiple Choice

Review LaterAdd Note

Review Later

The textbook's description of the international expansion of Edmonton-based engineering firm Stantec Inc. is a good example of expansion through

A) joint venture.
B) strategic alliance.
C) wholly owned subsidiary.
D) franchising operation.

E) B) and C)
F) None of the above

Correct Answer

verified

Show Answer

Question 32

Multiple Choice

Review LaterAdd Note

Review Later

All of the following are risks associated with a global strategy except

A) a firm with only one manufacturing location must export its product-some of which may be a great distance from the operation.
B) the geographic concentration of any activity may also tend to isolate that activity from the targeted markets.
C) concentrating an activity in a single location makes the rest of the firm dependent on that location.
D) the pressures for local adaptation may elevate the firm's cost structure.

E) C) and D)
F) B) and C)

Correct Answer

verified

Show Answer

Question 33

Multiple Choice

Review LaterAdd Note

Which of the following describes the most typical order of entry into foreign markets?

At the time Molson invested into the Brazilian beer market in 2002, the Brazilian market was

Typically, the best method of entry into a foreign market is the establishment of a wholly owned foreign subsidiary so that the parent organization can maintain a high level of control.

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

Which one of the following is one of Theodore Levitt's assumptions supporting a pure global strategy?

The text mentions Canadian firms Lingo Media and Hydrogenics as having directed all their efforts to overseas markets with

Differences in foreign markets such as culture, language, and customs can represent significant management risks when firms enter foreign markets.

IMAX claims that every new theatre that opens somewhere in the world lowers the cost of production of its unique movies.

Two opposing pressures that managers face when they compete in foreign markets are: cost reduction and adaptation to local markets.

A multidomestic strategy would likely include the use of high volume, centralized production facilities to maximize economies of scale.

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 appealing to the largest number of consumers in every market.

Explain how the two opposing forces facing MNC managers, cost reduction and local adaptation, create pressures to operate with a global or multidomestic strategy, respectively.

With regard to "factor conditions," the pool of resources that a firm (or nation) has is much more important than the speed and efficiency with which these resources are deployed.

An advantage of international expansion is that it can enable a firm to optimize the location of every activity in its value chain.

Many U.S. multinational companies set up maquiladora operations south of the US-Mexico border primarily

What are the six basic types of entry strategies for international expansion?

The form of entry strategy into international operations that offers the lowest level of control would be

Canadian steel company Dofasco looked at cultural challenges in expanding and decided to stick to its famous motto: "our strength is people."