Question 1

Skills within a firm that competitors cannot easily match or imitate are referred to as _____.

Accepted Answer

A)   core competencies
B)   barriers to entry
C)   internalities
D)   externalities
E)   premium skillsF) A) and B)
G) B) and D)

Question 2

Which of the following functions creates a perception of superior value in the minds of consumers by solving consumer problems and by supporting them after they have purchased the product?

Accepted Answer

A)   Production
B)   Marketing and sales
C)   Human resources
D)   Customer service
E)   LogisticsF) A) and E)
G) A) and B)

Question 3

Cost reduction pressures tend to be particularly intense in industries that:

Accepted Answer

A)   create products that serve universal needs.
B)   create customized products.
C)   are not involved in international business.
D)   produce products that have inelastic demand.
E)   serve different customers with different needs.F) C) and D)
G) A) and B)

Question 4

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 fitF) None of the above
G) B) and D)

Question 5

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) D) and E)

Question 6

Profit growth is measured by:

Accepted Answer

A)   dividing the net profits of the firm by total invested capital.
B)   subtracting the previous years gross profit from the current year's gross profit.
C)   calculating the difference between the previous year's profitability and the current year's profitability.
D)   the percentage increase in net profits over time.
E)   adding the profitability of the last two fiscal years.F) B) and D)
G) A) and C)

Question 7

The appropriateness of the strategy that a firm chooses to use in an international market varies with the extent of pressures for _____ and _____.

Accepted Answer

A)   quality improvement; product standardization
B)   customer surplus; quality improvements
C)   customer surplus; product standardization
D)   cost reductions; local responsiveness
E)   product standardization; cost reductionsF) All of the above
G) C) and D)

Question 8

_____ refer to the reductions in unit cost achieved by producing a large volume of a product.

Accepted Answer

A)   Location economies
B)   Learning effects
C)   Standardization economies
D)   Core economies
E)   Economies of scaleF) A) and E)
G) B) and D)

Question 9

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) All of the above
G) A) and E)

Question 10

One of the principal risks associated with a strategic alliance is that:

Accepted Answer

A)   it brings together the complementary skills of alliance partners.
B)   it makes it difficult for the partner firms to enter into a foreign market.
C)   a firm can give away more than it receives.
D)   it does not allow firms to share fixed costs.
E)   it almost always fails.F) C) and D)
G) A) and B)

Question 11

In theory,which of the following advantages can be realized by a firm by implementing a global web of operations?

Accepted Answer

A)   It will be able to raise the perceived value of its goods and services.
B)   It will be able to decrease consumers' reservation price for its products.
C)   It will be able to decrease consumer surplus.
D)   It will be able to increase the cost of value creation.
E)   It will be able to sell its products at a price which is below its cost price in its home country.F) A) and B)
G) A) and C)

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Superior value creation relative to rivals requires that the gap between the value and cost of production achieved by a company be lesser than the gap attained by its competitors.

Accepted Answer

A) True 
 B)False

Question 14

Pursuing a(n) _____ strategy makes sense if a firm has a valuable core competence that indigenous competitors in foreign markets lack.

Accepted Answer

A)   global standardization
B)   international
C)   nationalization.
D)   transnational
E)   nationalizationF) A) and B)
G) All of the above

Question 15

Mayer Life Systems,a manufacturer of surgical and medical appliances,invented and patented a new dialysis machine that radically reduced maintenance and operational issues.Responding to a global demand,it decided to sell the machines manufactured at its plant in the U.S.to various markets across the globe.Since the product features provided by Mayer were not provided by any other competitor,Mayer did not feel any pressure for cost reductions.Which of the following strategies is most likely being pursued by Mayer?

Accepted Answer

A)   International strategy
B)   Localization strategy
C)   Global standardization strategy
D)   Transnational strategy
E)   Nationalization strategyF) A) and E)
G) A) and D)

Question 16

Which of the following is most likely to be the advantage of locating a value creation activity in the optimal location for that activity?

Accepted Answer

A)   It increases the costs of value creation.
B)   It decreases consumer surplus.
C)   It helps the firm to achieve a high-cost position.
D)   It nullifies all trade barriers.
E)   It enable a firm to differentiate its product offering from those of competitors.F) A) and B)
G) All of the above

Question 17

What are operations of a firm? How can operations be categorized?

Accepted Answer

The operations of a firm can be thought ...

Question 18

For services such as banking or health care,production typically occurs when the service is being designed by in-house professionals.

Accepted Answer

A) True 
 B)False

Question 19

The human resource function controls the transmission of physical materials through the value chain.

Accepted Answer

A) True 
 B)False

Question 20

The value creation activities of a firm are categorized as _____ and _____.

Accepted Answer

A)   primary activities; support activities
B)   strategic activities; functional activities
C)   ancillary functions; tertiary functions
D)   primary activities; core activities
E)   goal-oriented activities; organizational activitiesF) None of the above
G) D) and E)

Exam 12: The Strategy of International Business

_____ refer to the reductions in unit cost achieved by producing a large volume of a product.

Correct Answer
verified

Superior value creation relative to rivals requires that the gap between the value and cost of production achieved by a company be lesser than the gap attained by its competitors.

Correct Answer
verified

One of the principal risks associated with a strategic alliance is that:

Correct Answer
verified

What are operations of a firm? How can operations be categorized?

Correct Answer
verified
The operations of a firm can be thought ...
View Answer

Cost reduction pressures tend to be particularly intense in industries that:

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

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

Correct Answer
verified

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

Correct Answer
verified

In theory,which of the following advantages can be realized by a firm by implementing a global web of operations?

Correct Answer
verified

Skills within a firm that competitors cannot easily match or imitate are referred to as _____.

Correct Answer
verified

Correct Answer
verified

The efficiency frontier has a convex shape because of:

Correct Answer
verified

The appropriateness of the strategy that a firm chooses to use in an international market varies with the extent of pressures for _ and _.

Correct Answer
verified

The human resource function controls the transmission of physical materials through the value chain.

Correct Answer
verified

Which of the following functions creates a perception of superior value in the minds of consumers by solving consumer problems and by supporting them after they have purchased the product?

Correct Answer
verified

Pursuing a(n) _____ strategy makes sense if a firm has a valuable core competence that indigenous competitors in foreign markets lack.

Correct Answer
verified

Which of the following is most likely to be the advantage of locating a value creation activity in the optimal location for that activity?

Correct Answer
verified

Profit growth is measured by:

Correct Answer
verified

For services such as banking or health care,production typically occurs when the service is being designed by in-house professionals.

Correct Answer
verified

The value creation activities of a firm are categorized as _ and _.

Correct Answer
verified

Exam 12: The Strategy of International Business

_____ refer to the reductions in unit cost achieved by producing a large volume of a product.

Correct AnswerverifiedShow Answer

Superior value creation relative to rivals requires that the gap between the value and cost of production achieved by a company be lesser than the gap attained by its competitors.

Correct AnswerverifiedShow Answer

One of the principal risks associated with a strategic alliance is that:

Correct AnswerverifiedShow Answer

What are operations of a firm? How can operations be categorized?

Correct AnswerverifiedThe operations of a firm can be thought ...View AnswerShow Answer

Cost reduction pressures tend to be particularly intense in industries that:

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

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In theory,which of the following advantages can be realized by a firm by implementing a global web of operations?

Correct AnswerverifiedShow Answer

Skills within a firm that competitors cannot easily match or imitate are referred to as _____.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The efficiency frontier has a convex shape because of:

Correct AnswerverifiedShow Answer

The appropriateness of the strategy that a firm chooses to use in an international market varies with the extent of pressures for _____ and _____.

Correct AnswerverifiedShow Answer

The human resource function controls the transmission of physical materials through the value chain.

Correct AnswerverifiedShow Answer

Which of the following functions creates a perception of superior value in the minds of consumers by solving consumer problems and by supporting them after they have purchased the product?

Correct AnswerverifiedShow Answer

Pursuing a(n) _____ strategy makes sense if a firm has a valuable core competence that indigenous competitors in foreign markets lack.

Correct AnswerverifiedShow Answer

Which of the following is most likely to be the advantage of locating a value creation activity in the optimal location for that activity?

Correct AnswerverifiedShow Answer

Profit growth is measured by:

Correct AnswerverifiedShow Answer

For services such as banking or health care,production typically occurs when the service is being designed by in-house professionals.

Correct AnswerverifiedShow Answer

The value creation activities of a firm are categorized as _____ and _____.

Correct AnswerverifiedShow Answer

Correct Answer
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The operations of a firm can be thought ...
View Answer

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Correct Answer
verified

The appropriateness of the strategy that a firm chooses to use in an international market varies with the extent of pressures for _ and _.

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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The value creation activities of a firm are categorized as _ and _.

Correct Answer
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