Question 1

Describe the global standardization strategy.

Accepted Answer

Firms that pursue a global standardizati...

Question 2

Processes are the:

Accepted Answer

A)  manner in which decisions are made and work is performed within the organization.
B)  metrics used to measure the performance of subunits.
C)  devices used to reward appropriate managerial behavior.
D)  metrics used to make judgments about how well managers are running the subunits.
E)  norms and value systems that are shared among the employees of an organization.F) A) and B)
G) A) and C)

Question 3

Which of the following shows all of the different positions that a firm can adopt with regard to value creation and low cost assuming that its internal operations are configured adequately to support a particular position?

Accepted Answer

A)  Demand-value model
B)  Experience curve
C)  Efficiency frontier
D)  Optimal output model
E)  Surplus curveF) None of the above
G) B) and D)

Question 4

Which of the following strategies is a firm most likely to pursue when it simultaneously faces both strong cost pressures and strong pressures for local responsiveness?

Accepted Answer

A)  Global standardization strategy
B)  Localization strategy
C)  International strategy
D)  Transnational strategy
E)  Nationalization strategyF) None of the above
G) B) and D)

Question 5

What is an experience curve? What is its strategic significance?

Accepted Answer

The experience curve refers to systemati...

Question 6

The two phenomena that help explain the experience curve are:

Accepted Answer

A)  learning effects and economies of scale.
B)  technology inputs and wealth transfer.
C)  leveraging subsidiary and local responsiveness.
D)  standardized manufacturing and global web.
E)  efficiency frontier and location economies.F) C) and E)
G) A) and E)

Question 7

What are the advantages of strategic alliances?

Accepted Answer

The advantages of strategic alliances are as follows:
1. Strategic alliances may facilitate entry into a foreign market.
2. Strategic alliances also allow firms to share the fixed costs (and associated risks) of developing new products or processes.
3. An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own.
4. It can make sense to form an alliance that will help the firm establish technological standards for the industry that will benefit the firm.

Question 8

In which of the following tasks will the learning effects be most significant?

Accepted Answer

A)  Pizza delivery for a fast-food major
B)  Data entry for a loan recovery center
C)  Assembly process involving 1,000 complex steps
D)  Sewing buttons onto shirts in a garment factory
E)  Delivering letters to different recipientsF) A) and D)
G) C) and D)

Question 9

Which of the following conditions is most favorable to reap gains from global scale economies?

Accepted Answer

A)  Low demand for local responsiveness
B)  High pressures for cost reduction
C)  Lack of universal needs
D)  National differences in accepted business practices
E)  High pressure to delegate production to domestic subsidiariesF) D) and E)
G) C) and D) A

Question 10

Which of the following caveats is most likely to discourage global expansion of businesses?

Accepted Answer

A)  Economies of scale
B)  High consumers' reservation prices
C)  Trade barriers
D)  Mass customization
E)  Low transportation costsF) A) and B)
G) A) and C)

Question 11

What are the sources of pressures for local responsiveness?

Accepted Answer

Pressures for local responsiveness arise...

Question 12

The efficiency frontier has a convex shape because of:

Accepted Answer

A)  a high-cost structure.
B)  diminishing returns.
C)  a significantly low product value.
D)  low production costs.
E)  high profit growth.F) A) and D)
G) All of the above

Question 13

A localization strategy involves some duplication of functions and smaller production runs.

Accepted Answer

A) True 
 B)False  True

Question 14

Labor productivity increases over time as individuals understand the most efficient ways to perform particular tasks. This is a result of:

Accepted Answer

A)  diminishing returns.
B)  location economies.
C)  economies of time.
D)  learning effects.
E)  an efficiency frontier.F) A) and B)
G) B) and C)

Question 15

Which of the following is a value creation activity that falls into the category of primary activities?

Accepted Answer

A)  Creation and maintenance of information systems
B)  Customer service
C)  Human resources
D)  Logistics
E)  Company infrastructure maintenanceF) C) and E)
G) B) and D)

Question 16

A company can increase its growth rate by taking goods or services developed at home and selling them internationally. The returns from such a strategy are likely to be greater if:

Accepted Answer

A)  the product is already being offered by local companies in the nations that the company enters.
B)  the product is a generic product that requires little differentiation.
C)  indigenous competitors in the nations that the company enters lack comparable products.
D)  there is a high inflation in the nations that the company enters.
E)  the product is perceived to be very costly in the home country of the company.F) C) and D)
G) A) and B)

Question 17

The rate of return that a firm makes on its invested capital is referred to as:

Accepted Answer

A)  stakeholder return.
B)  profitability.
C)  profit growth.
D)  process value.
E)  strategic fit.F) A) and E)
G) B) and C)

Question 18

The ability to spread fixed costs over a large volume is one of the sources of economies of scale.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is the function of a value chain that controls the transmission of physical materials through the value chain, from procurement through production and into distribution?

Accepted Answer

A)  Human resource
B)  Finance
C)  Marketing
D)  Logistics
E)  Research and developmentF) A) and E)
G) All of the above

Question 20

Firms that pursue which of the following strategies focus on increasing profitability and profit growth by reaping the cost reductions that come from economies of scale, learning effects, and location economies?

Accepted Answer

A)  International
B)  Transnational
C)  Localization
D)  Global standardization
E)  NationalizationF) C) and D)
G) B) and D)

Exam 12: The Strategy of International Business

Describe the global standardization strategy.

Correct Answer
verified
Firms that pursue a global standardizati...
View Answer

Processes are the:

Correct Answer
verified

Which of the following shows all of the different positions that a firm can adopt with regard to value creation and low cost assuming that its internal operations are configured adequately to support a particular position?

Correct Answer
verified

Which of the following strategies is a firm most likely to pursue when it simultaneously faces both strong cost pressures and strong pressures for local responsiveness?

Correct Answer
verified

What is an experience curve? What is its strategic significance?

Correct Answer
verified
The experience curve refers to systemati...
View Answer

The two phenomena that help explain the experience curve are:

Correct Answer
verified

What are the advantages of strategic alliances?

In which of the following tasks will the learning effects be most significant?

Correct Answer
verified

Which of the following conditions is most favorable to reap gains from global scale economies?

Correct Answer
verified
A

Which of the following caveats is most likely to discourage global expansion of businesses?

Correct Answer
verified

What are the sources of pressures for local responsiveness?

Correct Answer
verified
Pressures for local responsiveness arise...
View Answer

The efficiency frontier has a convex shape because of:

Correct Answer
verified

A localization strategy involves some duplication of functions and smaller production runs.

Correct Answer
verified
True

Labor productivity increases over time as individuals understand the most efficient ways to perform particular tasks. This is a result of:

Correct Answer
verified

Which of the following is a value creation activity that falls into the category of primary activities?

Correct Answer
verified

A company can increase its growth rate by taking goods or services developed at home and selling them internationally. The returns from such a strategy are likely to be greater if:

Correct Answer
verified

The rate of return that a firm makes on its invested capital is referred to as:

Correct Answer
verified

The ability to spread fixed costs over a large volume is one of the sources of economies of scale.

Correct Answer
verified

Which of the following is the function of a value chain that controls the transmission of physical materials through the value chain, from procurement through production and into distribution?

Correct Answer
verified

Firms that pursue which of the following strategies focus on increasing profitability and profit growth by reaping the cost reductions that come from economies of scale, learning effects, and location economies?

Correct Answer
verified

Exam 12: The Strategy of International Business

Describe the global standardization strategy.

Correct AnswerverifiedFirms that pursue a global standardizati...View AnswerShow Answer

Processes are the:

Correct AnswerverifiedShow Answer

Which of the following shows all of the different positions that a firm can adopt with regard to value creation and low cost assuming that its internal operations are configured adequately to support a particular position?

Correct AnswerverifiedShow Answer

Which of the following strategies is a firm most likely to pursue when it simultaneously faces both strong cost pressures and strong pressures for local responsiveness?

Correct AnswerverifiedShow Answer

What is an experience curve? What is its strategic significance?

Correct AnswerverifiedThe experience curve refers to systemati...View AnswerShow Answer

The two phenomena that help explain the experience curve are:

Correct AnswerverifiedShow Answer

What are the advantages of strategic alliances?

In which of the following tasks will the learning effects be most significant?

Correct AnswerverifiedShow Answer

Which of the following conditions is most favorable to reap gains from global scale economies?

Correct AnswerverifiedA

Which of the following caveats is most likely to discourage global expansion of businesses?

Correct AnswerverifiedShow Answer

What are the sources of pressures for local responsiveness?

Correct AnswerverifiedPressures for local responsiveness arise...View AnswerShow Answer

The efficiency frontier has a convex shape because of:

Correct AnswerverifiedShow Answer

A localization strategy involves some duplication of functions and smaller production runs.

Correct AnswerverifiedTrue

Labor productivity increases over time as individuals understand the most efficient ways to perform particular tasks. This is a result of:

Correct AnswerverifiedShow Answer

Which of the following is a value creation activity that falls into the category of primary activities?

Correct AnswerverifiedShow Answer

A company can increase its growth rate by taking goods or services developed at home and selling them internationally. The returns from such a strategy are likely to be greater if:

Correct AnswerverifiedShow Answer

The rate of return that a firm makes on its invested capital is referred to as:

Correct AnswerverifiedShow Answer

The ability to spread fixed costs over a large volume is one of the sources of economies of scale.

Correct AnswerverifiedShow Answer

Which of the following is the function of a value chain that controls the transmission of physical materials through the value chain, from procurement through production and into distribution?

Correct AnswerverifiedShow Answer

Firms that pursue which of the following strategies focus on increasing profitability and profit growth by reaping the cost reductions that come from economies of scale, learning effects, and location economies?

Correct AnswerverifiedShow Answer

Correct Answer
verified
Firms that pursue a global standardizati...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
The experience curve refers to systemati...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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A

Correct Answer
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Correct Answer
verified
Pressures for local responsiveness arise...
View Answer

Correct Answer
verified

Correct Answer
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True

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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