Question 1

A global strategy

Accepted Answer

A)   is easy to manage because of common operating decisions across borders.
B)   achieves efficient operations without sharing resources across country boundaries.
C)   increases risk because decision-making is centralized at the home office.
D)   lacks responsiveness to local markets.E) A) and B)
F) B) and D)

Question 2

A licensing agreement

Accepted Answer

A)   results in two firms agreeing to share the risks and the resources of a new venture.
B)   is best way to protect proprietary technology from future competitors.
C)   allows a foreign firm to purchase the rights to manufacture and sell a firm's products within a host country.
D)   can be greatly impacted by currency exchange rate fluctuations.E) A) and D)
F) None of the above

Question 3

When a firm INITIALLY becomes internationally diversified, its returns

Accepted Answer

A)   remain stable.
B)   decrease.
C)   become more variable.
D)   increase.E) B) and C)
F) B) and D)

Question 4

Which of the following is NOT a typical disadvantage of licensing?

Accepted Answer

A)   little control over the marketing of the products
B)   licensees may develop a competitive product after the license expires
C)   lower potential returns than the use of exporting or strategic alliances
D)   incompatibility of the licensing partnersE) B) and D)
F) B) and C)

Question 5

In Porter's model, if a country has both ________ and __________ production factors, it is likely to serve an industry well by spawning strong home-country competitors that can also be successful global competitors.

Accepted Answer

A)   basic; advanced
B)   advanced; generalized
C)   basic; generalized
D)   advanced; specializedE) A) and C)
F) A) and D)

Question 6

Case Scenario: Heartsong LLC. Heartsong LLC is a designer and manufacturer of replacement heart valves based in Peoria, Illinois. While a relatively small company in the medical devices field, it has established a worldwide reputation as the provider of choice of high-quality, leading-edge artificial heart valves. Most of its products are sold to large regional hospital systems and research hospitals around the world, though primarily to customers in the U.S. and Europe. Specialty heart centers are another emerging, but fast-growing market for its valves. Heartsong has recently embarked on an expansion strategy that requires it to increase its volume, which in turn will demand more component parts than it can source domestically - both from an economic and volume standpoint. The firm has determined that such growth is only viable if it produces these parts itself overseas for a lower cost, or outsources the production entirely to a joint venture it establishes with a local manufacturer, which could both produce the parts more cheaply and in higher volumes. It is considering starting up an owned production facility in Luxembourg, or seeking a joint venture with a precision manufacturer in China.
-(Refer to the above Case Scenario) What opportunities and threats might Heartsong be exposing itself to via the China expansion proposal?

Accepted Answer

This solution fits well because it requi...

Question 7

All of the following are international corporate-level strategies EXCEPT the ____ strategy.

Accepted Answer

A)   multidomestic
B)   universal
C)   global
D)   transnationalE) A) and C)
F) B) and C)

Question 8

When a firm initially pursues an international business-level strategy, the resources and capabilities established in the home country frequently allow the firm to pursue the strategy into markets located in other countries.

Accepted Answer

A) True 
 B)False

Question 9

Japan, due to a lack of undeveloped land, would be an unusual choice of location for a U.S. cattle company to set up local grazing operations. This limiting factor would be identified in what part of Porter's determinants of national advantage?

Accepted Answer

A)   Factors of production
B)   Demand conditions
C)   Related and supporting industries
D)   Firm strategy, structure and rivalryE) None of the above
F) C) and D)

Question 10

U.S. cola companies entered the global market because of

Accepted Answer

A)   limited growth opportunities in their domestic market.
B)   lower labor costs in the emerging markets.
C)   economies of scale that offset research and development costs.
D)   an increase in the return on investment from their U.S. bottling plants.E) None of the above
F) All of the above

Question 11

In China, Starbucks (Chapter 8 Opening Case)  is standardizing its operations while simultaneously decentralizing some decision-making responsibility to local levels to meet customers tastes. Starbucks is following the __________ international corporate-level strategy.

Accepted Answer

A)   transnational
B)   global
C)   differentation
D)   multidomesticE) A) and B)
F) None of the above

Question 12

Because there are still several industrial and consumer markets in which only domestic firms compete, many firms do not have to be able to compete internationally.

Accepted Answer

A) True 
 B)False

Question 13

A transnational strategy is an international strategy in which the firm seeks to achieve both global efficiency and local responsiveness.

Accepted Answer

A) True 
 B)False

Question 14

Moving into international markets is a particularly attractive strategy to firms whose domestic markets

Accepted Answer

A)   demand a differentiation strategy for success.
B)   are limited in opportunities for growth.
C)   have developed unfriendly business attitudes toward the industry.
D)   have too much regulation.E) A) and B)
F) A) and D)

Question 15

Discuss the effect of international diversification on a firm's returns.

Accepted Answer

Research shows that returns vary as the ...

Question 16

The growing number of global competitors heightens the requirements to keep costs down and there is the desire for more specialized products to meet customer needs. These two pressures make transnational strategies increasingly necessary.

Accepted Answer

A) True 
 B)False

Question 17

The Haier Group concluded that its diversification strategy should be confined to countries in Asia where it had strengths in understanding cultures and institutions (Chapter 8 Strategic Focus).

Accepted Answer

A) True 
 B)False

Question 18

A large domestic market can provide the country's industries a chance at dominating the world market because

Accepted Answer

A)   they have been able to develop economies of scale at home.
B)   they have access to abundant and inexpensive factors of production.
C)   the related and supporting industries will have been developed.
D)   the nation's culture and educational system will be adapted to producing the labor force needed for the industry.E) A) and B)
F) None of the above

Question 19

Export, licensing, and the strategic alliance entry modes are all appropriate for early market development.

Accepted Answer

A) True 
 B)False

Question 20

One of the primary reasons for failure of cross-border strategic alliances is

Accepted Answer

A)   the incompatibility of the partners.
B)   conflict between legal and business systems.
C)   security concerns and terrorism.
D)   high debt financing.E) B) and C)
F) A) and D)

Exam 8: International Strategy

When a firm initially pursues an international business-level strategy, the resources and capabilities established in the home country frequently allow the firm to pursue the strategy into markets located in other countries.

Correct Answer
verified

Correct Answer
verified
This solution fits well because it requi...
View Answer

One of the primary reasons for failure of cross-border strategic alliances is

Correct Answer
verified

Export, licensing, and the strategic alliance entry modes are all appropriate for early market development.

Correct Answer
verified

When a firm INITIALLY becomes internationally diversified, its returns

Correct Answer
verified

Japan, due to a lack of undeveloped land, would be an unusual choice of location for a U.S. cattle company to set up local grazing operations. This limiting factor would be identified in what part of Porter's determinants of national advantage?

Correct Answer
verified

Which of the following is NOT a typical disadvantage of licensing?

Correct Answer
verified

A licensing agreement

Correct Answer
verified

Discuss the effect of international diversification on a firm's returns.

Correct Answer
verified
Research shows that returns vary as the ...
View Answer

Because there are still several industrial and consumer markets in which only domestic firms compete, many firms do not have to be able to compete internationally.

Correct Answer
verified

Moving into international markets is a particularly attractive strategy to firms whose domestic markets

Correct Answer
verified

The Haier Group concluded that its diversification strategy should be confined to countries in Asia where it had strengths in understanding cultures and institutions (Chapter 8 Strategic Focus).

Correct Answer
verified

A transnational strategy is an international strategy in which the firm seeks to achieve both global efficiency and local responsiveness.

Correct Answer
verified

In Porter's model, if a country has both and __ production factors, it is likely to serve an industry well by spawning strong home-country competitors that can also be successful global competitors.

Correct Answer
verified

All of the following are international corporate-level strategies EXCEPT the ____ strategy.

Correct Answer
verified

U.S. cola companies entered the global market because of

Correct Answer
verified

In China, Starbucks (Chapter 8 Opening Case) is standardizing its operations while simultaneously decentralizing some decision-making responsibility to local levels to meet customers tastes. Starbucks is following the __________ international corporate-level strategy.

Correct Answer
verified

A global strategy

Correct Answer
verified

A large domestic market can provide the country's industries a chance at dominating the world market because

Correct Answer
verified

The growing number of global competitors heightens the requirements to keep costs down and there is the desire for more specialized products to meet customer needs. These two pressures make transnational strategies increasingly necessary.

Correct Answer
verified

Exam 8: International Strategy

When a firm initially pursues an international business-level strategy, the resources and capabilities established in the home country frequently allow the firm to pursue the strategy into markets located in other countries.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThis solution fits well because it requi...View AnswerShow Answer

One of the primary reasons for failure of cross-border strategic alliances is

Correct AnswerverifiedShow Answer

Export, licensing, and the strategic alliance entry modes are all appropriate for early market development.

Correct AnswerverifiedShow Answer

When a firm INITIALLY becomes internationally diversified, its returns

Correct AnswerverifiedShow Answer

Japan, due to a lack of undeveloped land, would be an unusual choice of location for a U.S. cattle company to set up local grazing operations. This limiting factor would be identified in what part of Porter's determinants of national advantage?

Correct AnswerverifiedShow Answer

Which of the following is NOT a typical disadvantage of licensing?

Correct AnswerverifiedShow Answer

A licensing agreement

Correct AnswerverifiedShow Answer

Discuss the effect of international diversification on a firm's returns.

Correct AnswerverifiedResearch shows that returns vary as the ...View AnswerShow Answer

Because there are still several industrial and consumer markets in which only domestic firms compete, many firms do not have to be able to compete internationally.

Correct AnswerverifiedShow Answer

Moving into international markets is a particularly attractive strategy to firms whose domestic markets

Correct AnswerverifiedShow Answer

The Haier Group concluded that its diversification strategy should be confined to countries in Asia where it had strengths in understanding cultures and institutions (Chapter 8 Strategic Focus).

Correct AnswerverifiedShow Answer

A transnational strategy is an international strategy in which the firm seeks to achieve both global efficiency and local responsiveness.

Correct AnswerverifiedShow Answer

In Porter's model, if a country has both ________ and __________ production factors, it is likely to serve an industry well by spawning strong home-country competitors that can also be successful global competitors.

Correct AnswerverifiedShow Answer

All of the following are international corporate-level strategies EXCEPT the ____ strategy.

Correct AnswerverifiedShow Answer

U.S. cola companies entered the global market because of

Correct AnswerverifiedShow Answer

In China, Starbucks (Chapter 8 Opening Case) is standardizing its operations while simultaneously decentralizing some decision-making responsibility to local levels to meet customers tastes. Starbucks is following the __________ international corporate-level strategy.

Correct AnswerverifiedShow Answer

A global strategy

Correct AnswerverifiedShow Answer

A large domestic market can provide the country's industries a chance at dominating the world market because

Correct AnswerverifiedShow Answer

The growing number of global competitors heightens the requirements to keep costs down and there is the desire for more specialized products to meet customer needs. These two pressures make transnational strategies increasingly necessary.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
This solution fits well because it requi...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Research shows that returns vary as the ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

In Porter's model, if a country has both and __ production factors, it is likely to serve an industry well by spawning strong home-country competitors that can also be successful global competitors.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified