Exam 7: Strategies for Competing in International Markets

A) generally have to consider establishing competitive positions in the markets of emerging countries.
B) are well advised to avoid all the risks and problems of competing in emerging country markets.
C) seldom have the resource capabilities it takes to be effective in competing in emerging country markets and usually are at a strong competitive disadvantage compared to the domestic market leaders.
D) can usually be expected to earn sizable profits quickly in emerging country markets.
E) usually encounter very low barriers in entering the markets of emerging countries.

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A) that it is especially vulnerable to fluctuating exchange rates and can usually be defeated by companies employing cross-market subsidization tactics.
B) excessive vulnerability to fluctuating exchange rates and having to craft a separate strategy for each country market in which the company competes.
C) hindering a company's transfer of competencies and resources across country boundaries (since somewhat different competencies and capabilities are likely to be employed in different host countries) and not promoting the building of a single,unified competitive advantage in all country markets where a company competes.
D) greater exposure to both increases in tariffs and restrictive trade barriers,and added difficulty in accommodating the diverse trade restrictions and regulatory requirements of host governments.
E) not being able to export products manufactured in one country to markets in other countries and being largely unsuitable for competing in the markets of emerging countries.

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A) are largely unaffected by fluctuating exchange rates.
B) are greatest when local distributors and dealers in that country can be convinced not to carry products that are made outside the country's borders.
C) can be wiped out when that country's currency grows weaker relative to the currencies of the countries where the output is being sold.
D) are eroded when the manufacturing country's home currency strengthens relative to the currencies of the foreign countries where the output is being sold.
E) are seriously compromised by the potential for local government officials to raise tariffs on the imports of foreign-made goods into their country.

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A) gaining access to local distribution networks,building supplier networks,and establishing working relationships with key government officials.
B) moving directly to the task of transferring resources and personnel,and integrating and redirecting activities into the acquiring firm's operation.
C) putting the acquiring firm's strategy into place.
D) accelerating efforts to build a strong market presence.
E) All of these choices are correct.

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A

A) enter additional country markets.
B) gain better access to scale economies in production and/or marketing.
C) fill competitively important gaps in their technical expertise and/or knowledge of local markets.
D) share distribution facilities and dealer networks,thus mutually strengthening their access to buyers.
E) All of these choices are correct.

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A) gaining access to new customers for the company's products/services.
B) spreading its business risk across a wider market base.
C) achieving lower costs and enhancing the company's competitiveness.
D) a desire to capitalize on its core competencies and capabilities.
E) All of these choices are correct.

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A) spreading business risk across a wider geographic market base
B) capitalizing on company competencies and capabilities
C) achieving lower costs and enhance the firm's competitiveness
D) building the profit sanctuary necessary to wage guerrilla offensives against global challengers endeavoring to invade its home market
E) gaining access to new customers

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A) country-by-country differences in consumer buying habits,tastes,and preferences
B) country-by-country variations in host-government regulations,fluctuating exchange rates,and economic policies
C) choices to customize the company's offerings to each country market or to offer a primarily standardized product to all markets around the globe
D) choices to locate company operations on the basis of variations in wages rates,worker productivity,energy costs,tax rates,and distribution channels
E) crafting a multicountry strategy that can transform the world market into one big profit sanctuary

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A) employing a franchising strategy.
B) maintaining a national (one-country) production base and exporting goods to foreign markets.
C) licensing foreign firms to produce and distribute one's products.
D) establishing a subsidiary in a foreign market.
E) All of these choices are correct.

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E

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A) market growth rates that vary from country to country.
B) country-by-country differences in consumer tastes and buying habits.
C) fluctuating exchange rates and country-by-country variations in host-government restrictions and requirements.
D) product designs that may be suitable for one country but inappropriate for another.
E) None of these choices are correct.

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A) fluctuating exchange rates,country-to-country variations in host-government restrictions and requirements,and variations in cultural,demographic,and market conditions.
B) important country-to-country differences in consumer buying habits and buyer tastes and preferences.
C) whether to customize the company's offerings in each different country market or whether to offer a mostly standardized product worldwide.
D) the fact that product designs suitable for one country are sometimes inappropriate in another.
E) All of these choices are correct.

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E

A) population sizes,income levels and cultural influences,the current state of the infrastructure,and distribution and retail networks available.
B) the ability of management to tailor a strategy to take into consideration country differences.
C) the large size of emerging markets such as China and India.
D) competitive rivalry that is only moderate in some countries.
E) All of these choices are correct.

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A) entails little or no strategy coordination across countries.
B) usually involves cross-subsidizing the prices in those markets where there are significant country-to-country differences in the product attributes that customers are most interested in.
C) involves selling a mostly standardized product worldwide but varying a company's use of distribution channels and marketing approaches to accommodate local market conditions.
D) is essentially the same in all country markets where it competes,but it may nonetheless give local managers room to make minor variations where necessary to better satisfy local buyers and to better match local market conditions.
E) involves having strongly differentiated product versions for different countries and selling them under distinctly different brand names (one for each country or group of neighboring countries) so that there will be no doubt in customers' minds that the product is more local than global.

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A) gaining access to new customers
B) strengthening its capability to employ offensive strategies,especially those that involve preemptive strikes
C) achieving lower costs and enhance the firm's competitiveness
D) capitalizing on company competencies and capabilities
E) spreading business risk across a wider geographic market base

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A) being able to minimize shipping costs,avoid tariffs,and curb the effects of fluctuating exchange rates.
B) minimizing capital requirements and involvement in foreign markets.
C) being cheaper and more cost effective than licensing and franchising.
D) being cheaper and more cost effective than a multicountry strategy.
E) facilitating the establishment of profit sanctuaries in foreign countries and being more suited to accommodating local buyer tastes than a global strategy.

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A) Obtaining wider access to attractive country markets
B) Gaining better access to scale economies in production and/or marketing
C) Filling competitively important gaps in technical expertise and/or knowledge of local markets
D) Safeguarding the company's dependence,allowing for positive engagement once the purpose has been served and ensuring products of important technical standardization requirements are not developed
E) Sharing distribution facilities and dealer networks,thus mutually strengthening access to buyers

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