Question 1

A limitation of a multidomestic strategy is that it may lead to overadaptation as conditions change.

Accepted Answer

A) True 
 B)False

Question 2

Trading blocs and free trade zones promote the rise of international expansion.

Accepted Answer

A) True 
 B)False

Question 3

Arbitrage opportunities in global financial markets are more attractive to local companies than global corporations,because they enable them to buy in huge volume and therefore increase their bargaining power with suppliers.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Explain the differences between strategic alliances and joint ventures,providing an example of each.

Accepted Answer

Strategic alliances and joint ventures a...

Question 6

A domestic corporation considering international expansion for the first time typically will follow which of these paths?

Accepted Answer

A)   It will start off by implementing a wholly owned foreign subsidiary in order to maintain standards identical to those at home.
B)   It will license or franchise its operations.
C)   It will implement a low risk-low control strategy such as exporting.
D)   It will form a joint venture with a reputable foreign producer.E) A) and D)
F) None of the above

Question 7

Industries in which proportionally more value is added in upstream activities are more likely to benefit from a global strategy than those in which more value is added downstream (closer to the customer).

Accepted Answer

A) True 
 B)False  True

Question 8

Which of the factors below has not made the software services industry in India extremely competitive on a global scale?

Accepted Answer

A)   large pool of skilled workers
B)   large network of public and private educational institutions
C)   tax and antitrust legislation that protects the dominant players in the industry
D)   large, growing market and sophisticated customersE) B) and D)
F) None of the above

Question 9

Which of the following is not a risk normally associated with Bottom of the Pyramid strategies?

Accepted Answer

A)   A low-end version of a brand may detract from the overall brand attractiveness.
B)   The new low-cost products they develop may cannibalize the sales of their core products.
C)   Entrenched competitors can impact the ability of the new firm to enter the market successfully.
D)   New products may be perceived as exploiting the privileged customer with substandard products.E) None of the above
F) B) and C)

Question 10

Fees that a multinational receives from a foreign licensee in return for its use of intellectual property (trademark,patent,trade secret,technology) are usually called _____________.

Accepted Answer

A)   transfer prices
B)   dividends
C)   royalties
D)   intra-corporate inflowsE) All of the above
F) A) and B)

Question 11

By 2015,it is predicted that trade within nations will exceed trade across nations.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is a reason for the rise in regional expansion?

Accepted Answer

A)   increase in the number of trading blocs and free trade zones
B)   decrease in the number of trading blocs and free trade zones
C)   increasing national trade restrictions
D)   increasing local taxes and tariffsE) C) and D)
F) A) and D)

Question 13

If the U.S.dollar appreciates relative to foreign currency,what is likely to be the result for the U.S.company that has company branches abroad?

Accepted Answer

A)   Profits will increase, when measured in U.S. dollars.
B)   Profits will decrease, when measured in U.S. dollars.
C)   Foreign exports to the United States will decrease.
D)   Foreign demand for U.S. goods and services will decrease.E) B) and C)
F) B) and D)

Question 14

Which one of the following is not a limitation of a global strategy?

Accepted Answer

A)   limited ability to adapt to local markets
B)   the ability to locate activities in optimal locations
C)   the concentration of activities may increase dependence on a single facility
D)   single locations may lead to higher tariffs and transportation costsE) None of the above
F) All of the above

Question 15

When firms expand into global markets,they are faced with the choice of reducing costs and/or adapting to the local market.When high pressures exist to lower costs,companies should choose a __________ or __________ in order to compete in the global marketplace.

Accepted Answer

A)   global strategy; transnational strategy
B)   global strategy: multidomestic strategy
C)   international strategy; multidomestic strategy
D)   international strategy; transnational strategyE) B) and C)
F) A) and D) A

Question 16

When considering the export decision,firms should not partner with local distributors because many foreign markets are nationally regulated.

Accepted Answer

A) True 
 B)False

Question 17

Recent trends that might lead managers of multinational corporations (MNCs) to adopt a more decentralized strategy for their operations would include all of the following EXCEPT ______.

Accepted Answer

A)   customer needs, interests, and tastes becoming increasingly homogenized
B)   consumers around the world increasingly willing to tradeoff idiosyncratic preferences in product features for lower price
C)   flexible manufacturing trends allowing a decline in the minimum volume required to reach acceptable levels of production efficiency
D)   fluctuating exchange ratesE) B) and C)
F) B) and D)

Question 18

What are the major advantages and disadvantages of the four types of entry strategies for international expansion?

Accepted Answer

The four major types of entry strategies...

Question 19

What are some of the primary benefits and risks of transnational strategies?

Accepted Answer

Transnational strategies offer several b...

Question 20

Which would be the appropriate strategy for companies to use to compete in the global marketplace if the marketplace pressure is for lower costs with little pressure for local adaptation?

Accepted Answer

A)   international strategy
B)   global strategy
C)   multidomestic strategy
D)   transnational strategyE) None of the above
F) All of the above A

Exam 7: International Strategy: Creating Valuein Global Markets

A limitation of a multidomestic strategy is that it may lead to overadaptation as conditions change.

Correct AnswerverifiedShow Answer

Trading blocs and free trade zones promote the rise of international expansion.

Correct AnswerverifiedShow Answer

Arbitrage opportunities in global financial markets are more attractive to local companies than global corporations,because they enable them to buy in huge volume and therefore increase their bargaining power with suppliers.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Explain the differences between strategic alliances and joint ventures,providing an example of each.

Correct AnswerAnswered by ExamLex AIStrategic alliances and joint ventures a...View AnswerShow Answer

A domestic corporation considering international expansion for the first time typically will follow which of these paths?

Correct AnswerverifiedShow Answer

Industries in which proportionally more value is added in upstream activities are more likely to benefit from a global strategy than those in which more value is added downstream (closer to the customer).

Correct AnswerverifiedTrue

Which of the factors below has not made the software services industry in India extremely competitive on a global scale?

Correct AnswerverifiedShow Answer

Which of the following is not a risk normally associated with Bottom of the Pyramid strategies?

Correct AnswerverifiedShow Answer

Fees that a multinational receives from a foreign licensee in return for its use of intellectual property (trademark,patent,trade secret,technology) are usually called _____________.

Correct AnswerverifiedShow Answer

By 2015,it is predicted that trade within nations will exceed trade across nations.

Correct AnswerverifiedShow Answer

Which of the following is a reason for the rise in regional expansion?

Correct AnswerverifiedShow Answer

If the U.S.dollar appreciates relative to foreign currency,what is likely to be the result for the U.S.company that has company branches abroad?

Correct AnswerverifiedShow Answer

Which one of the following is not a limitation of a global strategy?

Correct AnswerverifiedShow Answer

When firms expand into global markets,they are faced with the choice of reducing costs and/or adapting to the local market.When high pressures exist to lower costs,companies should choose a __________ or __________ in order to compete in the global marketplace.

Correct AnswerverifiedA

When considering the export decision,firms should not partner with local distributors because many foreign markets are nationally regulated.

Correct AnswerverifiedShow Answer

Recent trends that might lead managers of multinational corporations (MNCs) to adopt a more decentralized strategy for their operations would include all of the following EXCEPT ______.

Correct AnswerverifiedShow Answer

What are the major advantages and disadvantages of the four types of entry strategies for international expansion?

Correct AnswerAnswered by ExamLex AIThe four major types of entry strategies...View AnswerShow Answer

What are some of the primary benefits and risks of transnational strategies?

Correct AnswerAnswered by ExamLex AITransnational strategies offer several b...View AnswerShow Answer

Which would be the appropriate strategy for companies to use to compete in the global marketplace if the marketplace pressure is for lower costs with little pressure for local adaptation?

Correct AnswerverifiedA

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Answered by ExamLex AI
Strategic alliances and joint ventures a...
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Correct Answer
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True

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When firms expand into global markets,they are faced with the choice of reducing costs and/or adapting to the local market.When high pressures exist to lower costs,companies should choose a or in order to compete in the global marketplace.

Correct Answer
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A

Correct Answer
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Correct Answer
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Correct Answer
Answered by ExamLex AI
The four major types of entry strategies...
View Answer

Correct Answer
Answered by ExamLex AI
Transnational strategies offer several b...
View Answer

Correct Answer
verified
A