FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 13: The Strategy of International Business

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 41

Multiple Choice

Review LaterAdd Note

Review Later

When a firm has a strategic goal of pursuing a low-cost strategy on a worldwide scale, the firm should follow a(n) _____ strategy.

A) global standardization
B) localization
C) international
D) customization

Correct Answer

verified

Show Answer

Question 42

Multiple Choice

Review LaterAdd Note

Review Later

A consumer surplus can be best described as:

A) what the consumer has "left-over" after a purchase.
B) how much extra a consumer has to pay for a product.
C) value for the money.
D) the premium charged for a quality product.

Correct Answer

verified

Show Answer

Question 43

True/False

Review LaterAdd Note

To leverage subsidiary skills, companies should establish incentive systems that encourage local employees to acquire new skills.

Moving up the experience curve allows a firm to reduce its cost of creating value and increase its profitability.

When individuals gain knowledge of the most efficient ways to perform particular tasks, they are saving costs through:

Firms usually respond to pressures for cost reduction by trying to:

_____ strategy is most appropriate when there are substantial differences across nations with regard to consumer tastes and preferences, and where cost pressures are not too intense.

Which of the following is an example of a primary activity in a firm's value chain?

Discuss the factors that lead to pressure for local responsiveness.

Support activities include the design, creation, and delivery of a product.

What is a core competence? Why is it essential to the success of the firm?

Profit growth is measured by the percentage increase in net profits over time.

What are learning effects? When are learning effects most significant?

Because differentiation across countries can involve significant duplication and a lack of product standardization, it may reduce costs.

_____ activities of the value chain provide inputs that allow the primary activities to occur.

Economies that arise from performing a value creation activity in the optimal location are known as location economies.

Economies of scale arise from all of the following sources, EXCEPT:

The amount of value a firm creates is measured by the difference between its costs of production and the price that it charges for its products.

Cost savings that come from learning by doing are known as economies of scale.

What is an experience curve?