Question 1

A firm is most likely to pursue a global standardization strategy when

Accepted Answer

A)   it wants to implement a high-cost strategy on a global scale.
B)   it wants to reduce consumer surplus.
C)   there are no universal needs to be served.
D)   there are strong demands for local responsiveness.
E)   there are strong pressures for cost reduction.

Question 2

A firm's core competencies refers to those activities that are easily matched by competitors.

Accepted Answer

A) True 
 B)False

Question 3

Kitchen-Rite believes that by producing its small appliances in Canada, they can take advantage of lower wage rates in that country. By pursuing such a strategy, Kitchen-Rite hopes to realize

Accepted Answer

A)   a position inside the efficiency frontier.
B)   the experience curve.
C)   economies of scale.
D)   location economies.
E)   demographic advantages.

Question 4

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.

Question 5

Acquiring an existing company in a foreign nation is an example of a strategic alliance.

Accepted Answer

A) True 
 B)False

Question 6

In today's global marketplace, ________ companies successfully use a transnational strategy.

Accepted Answer

A)   the majority of
B)   only service
C)   only agricultural
D)   more and more
E)   very few

Question 7

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.

Question 8

The ________ 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)   purchasing power parity
B)   experience curve
C)   efficiency frontier
D)   optimal output model
E)   supply-and-demand curve

Question 9

In terms of attaining a competitive advantage, support activities can be as important as the primary activities of the firm.

Accepted Answer

A) True 
 B)False

Question 10

Learning effects will be most significant in which of these tasks?

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)   switchboard operator at an automobile dealer
E)   delivering letters to different recipients

Question 11

Consumer surplus results when companies charge a lower price for products than the value placed on them by customers. This occurs because

Accepted Answer

A)   the value creation results in a corresponding reduction in costs of production.
B)   it is highly unlikely that the same good or service will be available to the customers from other firms.
C)   the firm is competing with other firms for the customer's business.
D)   the firm charges a price that reveals a consumer's assessment of the product's value.
E)   the firm creates value for the customer by producing a wide range of products.

Question 12

The value creation activities of a firm are categorized as

Accepted Answer

A)   primary activities and support activities.
B)   strategic activities and functional activities.
C)   ancillary functions and tertiary functions.
D)   primary activities and core activities.
E)   goal-oriented activities and organizational activities.

Question 13

According to the basic strategy paradigm, a firm maximizes its profitability when it

Accepted Answer

A)   creates products similar to the products of its competitors.
B)   minimizes the value provided by its products.
C)   picks a position on the efficiency frontier in which there is little support for their choice.
D)   strips all the value out of its product offering.
E)   configures internal operations to support the position selected by it on the efficiency frontier.

Question 14

Discuss how core competencies help a firm develop a competitive advantage.

Accepted Answer

The success of many multinational compan...

Question 15

GreenFresh Food Products believes that as far as its products are concerned, tastes vary worldwide and so it has to customize its products, marketing strategy, and business strategy to allow for differing national conditions. What is affecting the company's ability to increase its profitability and profit growth by expanding globally?

Accepted Answer

A)   the imperative of localization
B)   economies of scale
C)   customer surplus.
D)   the leveraging of skills developed in foreign operations
E)   the dispersion of individual value creation activities

Exam 12: The Strategy of International Business

A firm is most likely to pursue a global standardization strategy when

Correct Answer
verified

Kitchen-Rite believes that by producing its small appliances in Canada, they can take advantage of lower wage rates in that country. By pursuing such a strategy, Kitchen-Rite hopes to realize

Correct Answer
verified

The ________ 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

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

Correct Answer
verified

Learning effects will be most significant in which of these tasks?

Correct Answer
verified

A firm's core competencies refers to those activities that are easily matched by competitors.

Correct Answer
verified

Consumer surplus results when companies charge a lower price for products than the value placed on them by customers. This occurs because

Correct Answer
verified

Acquiring an existing company in a foreign nation is an example of a strategic alliance.

Correct Answer
verified

According to the basic strategy paradigm, a firm maximizes its profitability when it

Correct Answer
verified

Correct Answer
verified

The value creation activities of a firm are categorized as

Correct Answer
verified

In today's global marketplace, ________ companies successfully use a transnational strategy.

Correct Answer
verified

Discuss how core competencies help a firm develop a competitive advantage.

Correct Answer
verified
The success of many multinational compan...
View Answer

Cost reduction pressures tend to be particularly intense in industries that

Correct Answer
verified

In terms of attaining a competitive advantage, support activities can be as important as the primary activities of the firm.

Correct Answer
verified

Exam 12: The Strategy of International Business

A firm is most likely to pursue a global standardization strategy when

Correct AnswerverifiedShow Answer

Kitchen-Rite believes that by producing its small appliances in Canada, they can take advantage of lower wage rates in that country. By pursuing such a strategy, Kitchen-Rite hopes to realize

Correct AnswerverifiedShow Answer

The ________ 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

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

Correct AnswerverifiedShow Answer

Learning effects will be most significant in which of these tasks?

Correct AnswerverifiedShow Answer

A firm's core competencies refers to those activities that are easily matched by competitors.

Correct AnswerverifiedShow Answer

Consumer surplus results when companies charge a lower price for products than the value placed on them by customers. This occurs because

Correct AnswerverifiedShow Answer

Acquiring an existing company in a foreign nation is an example of a strategic alliance.

Correct AnswerverifiedShow Answer

According to the basic strategy paradigm, a firm maximizes its profitability when it

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The value creation activities of a firm are categorized as

Correct AnswerverifiedShow Answer

In today's global marketplace, ________ companies successfully use a transnational strategy.

Correct AnswerverifiedShow Answer

Discuss how core competencies help a firm develop a competitive advantage.

Correct AnswerverifiedThe success of many multinational compan...View AnswerShow Answer

Cost reduction pressures tend to be particularly intense in industries that

Correct AnswerverifiedShow Answer

In terms of attaining a competitive advantage, support activities can be as important as the primary activities of the firm.

Correct AnswerverifiedShow Answer

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The success of many multinational compan...
View Answer

Correct Answer
verified

Correct Answer
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