Question 1

_____ are the metrics used to measure the performance of subunits and make judgments about how well managers are running those subunits.

Accepted Answer

A)  Reports
B)  Controls
C)  Rewards
D)  IncentivesE) All of the above
F) None of the above

Question 2

Which of the following is an example of a primary activity in a firm?

Accepted Answer

A)  Materials management
B)  Research and development
C)  Information system
D)  Human relationsE) C) and D)
F) B) and D)

Question 3

Describe globalization strategy.

Accepted Answer

Firms that pursue a global standardizati...

Question 4

This function can create a perception of superior value in the minds of consumers by solving customer problems and supporting customers after they have purchased the product.

Accepted Answer

A)  Production
B)  Marketing and sales
C)  Human resources
D)  Customer serviceE) A) and C)
F) A) and B)

Question 5

Describe the concept of value creation.What are the two primary strategies used to attain competitive advantage by organizations?

Accepted Answer

Value creation is performing activities ...

Question 6

Managing an alliance successfully requires building interpersonal relationships between the firms' managers,or what is sometimes referred to as:

Accepted Answer

A)  relational capital.
B)  interorganizational synergy.
C)  power equilibrium.
D)  symbiotics.E) A) and C)
F) C) and D)

Question 7

The ability to spread fixed costs over a large volume results in a cost-savings phenomenon referred to as:

Accepted Answer

A)  volume synergies.
B)  economies of scale.
C)  captured savings.
D)  size effects.E) A) and B)
F) A) and C)

Question 8

Firms that compete in global markets often face pressures for local responsiveness.Describe what is meant by local responsiveness,and what a firm needs to do in order to respond to such pressures.

Accepted Answer

Pressures for local responsiveness arise...

Question 9

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 host country.
B)  it is a generic product that requires little differentiation.
C)  indigenous competitors in the host nations lack comparable products.
D)  there is a high inflation situation in the host country.E) None of the above
F) B) and C)

Question 10

Firms that pursue a transnational strategy 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) True 
 B)False

Question 11

The term organization structure can be used to refer to the totality of a firm's organization,including organizational architecture,control systems and incentives,organizational culture,processes,and people.

Accepted Answer

A) True 
 B)False

Question 12

A firm creates a(n) _____ by dispersing the stages of its value chain to those locations around the globe where the value added is maximized or where the costs of value creation are minimized.

Accepted Answer

A)  integral circle
B)  dispersal chain
C)  global web
D)  international meshE) A) and C)
F) B) and D)

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

What is the experience curve? How can an involvement in overseas markets help a firm capture experience curve advantages more rapidly?

Accepted Answer

The experience curve refers to systemati...

Question 15

Describe the concept of "core competence." What types of core competencies are the most valuable for penetrating foreign markets?

Accepted Answer

The term core competence refers to the s...

Question 16

Which of the following is a disadvantage of strategic alliances?

Accepted Answer

A)  Strategic alliances hinder entry into a foreign market.
B)  Fixed costs of developing new products tend to escalate.
C)  They give competitors a low-cost route to new technology and markets.
D)  The firms in an alliance are barred from establishing technological standards for the industry.E) All of the above
F) C) and D)

Question 17

Which of the following is an argument presented by commentators claiming that demands for local customization are on the decline worldwide?

Accepted Answer

A)  Local and indigenous industries are increasingly filling up available demand
B)  High costs of local customization are deterring companies from doing so
C)  Governments across the world are standardizing procedures
D)  Customer tastes have converged worldwideE) B) and C)
F) A) and D)

Question 18

Which function of a firm is concerned with the design of products and production processes?

Accepted Answer

A)  Human resources
B)  Research and development
C)  Marketing and sales
D)  Materials managementE) B) and D)
F) A) and C)

Question 19

List the advantages of strategic alliances.

Accepted Answer

First,strategic alliances may facilitate...

Question 20

A number of studies have observed that a product's production costs decline by some quantity about each time _____ doubles.

Accepted Answer

A)  annual output
B)  cumulative output
C)  workforce
D)  fixed investmentE) A) and B)
F) A) and C)

Exam 11: The Strategy of International Business

Firms that compete in global markets often face pressures for local responsiveness.Describe what is meant by local responsiveness,and what a firm needs to do in order to respond to such pressures.

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

List the advantages of strategic alliances.

Correct AnswerverifiedFirst,strategic alliances may facilitate...View AnswerShow Answer

This function can create a perception of superior value in the minds of consumers by solving customer problems and supporting customers after they have purchased the product.

Correct AnswerverifiedShow Answer

Describe the concept of value creation.What are the two primary strategies used to attain competitive advantage by organizations?

Correct AnswerverifiedValue creation is performing activities ...View AnswerShow Answer

_____ are the metrics used to measure the performance of subunits and make judgments about how well managers are running those subunits.

Correct AnswerverifiedShow Answer

Which of the following is a disadvantage of strategic alliances?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The ability to spread fixed costs over a large volume results in a cost-savings phenomenon referred to as:

Correct AnswerverifiedShow Answer

Firms that pursue a transnational strategy 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

Which of the following is an argument presented by commentators claiming that demands for local customization are on the decline worldwide?

Correct AnswerverifiedShow Answer

Describe globalization strategy.

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

What is the experience curve? How can an involvement in overseas markets help a firm capture experience curve advantages more rapidly?

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

Managing an alliance successfully requires building interpersonal relationships between the firms' managers,or what is sometimes referred to as:

Correct AnswerverifiedShow Answer

The term organization structure can be used to refer to the totality of a firm's organization,including organizational architecture,control systems and incentives,organizational culture,processes,and people.

Correct AnswerverifiedShow Answer

Describe the concept of "core competence." What types of core competencies are the most valuable for penetrating foreign markets?

Correct AnswerverifiedThe term core competence refers to the s...View AnswerShow Answer

A firm creates a(n) _____ by dispersing the stages of its value chain to those locations around the globe where the value added is maximized or where the costs of value creation are minimized.

Correct AnswerverifiedShow Answer

Which of the following is an example of a primary activity in a firm?

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

Which function of a firm is concerned with the design of products and production processes?

Correct AnswerverifiedShow Answer

A number of studies have observed that a product's production costs decline by some quantity about each time _____ doubles.

Correct AnswerverifiedShow Answer

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Pressures for local responsiveness arise...
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First,strategic alliances may facilitate...
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Value creation is performing activities ...
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Firms that pursue a global standardizati...
View Answer

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

Correct Answer
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Correct Answer
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Correct Answer
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The term core competence refers to the s...
View Answer

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