Question 1

In which of the following tasks will the learning effects be most significant?

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)  sewing buttons onto shirts in a garment factory
E)  delivering letters to different recipients

Question 2

Netflix incurs a huge fixed cost to obtain streaming rights to movies and television programs.However,it is able to spread this cost over a large number of subscribers that 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)  location economies.

Question 3

The liberalization of the world trade and investment environment in recent decades,by facilitating greater international competition,has generally

Accepted Answer

A)  increased cost pressures.
B)  decreased the demand for local responsiveness.
C)  decreased pressures for cost reduction.
D)  increased consumer surplus.
E)  reduced the production of conventional commodity products.

Question 4

A global car manufacturer wants to start production in China.While catering to local responsiveness,what can the firm do to get scale economies?

Accepted Answer

A)  increase costs whenever possible
B)  use common vehicle platforms and components across many different models
C)  shorten the production runs for each component
D)  increase the duplication of functions required for each operation
E)  manufacture only one type of car and sell it in all the international markets

Question 5

What are core competencies? What are their advantages?

Accepted Answer

The term core competencies refers to ski...

Question 6

How do firms respond to low cost pressures and low pressures for local responsiveness?

Accepted Answer

Sometimes,multinational firms find thems...

Question 7

Mayer Life Systems,a manufacturer of surgical and medical appliances,invented and patented a new dialysis machine that radically reduced maintenance and operational issues.Responding to a global demand,it decided to sell the machines manufactured at its plant in the United States to various markets across the globe.Since the product features provided by Mayer were not provided by any other competitor,Mayer did not feel any pressure for cost reductions.Which of the following strategies is most likely being pursued by Mayer?

Accepted Answer

A)  international
B)  localization
C)  global standardization
D)  transnational
E)  nationalization

Question 8

A localization strategy involves some duplication of functions and smaller production runs.

Accepted Answer

A) True 
 B)False

Question 9

By producing its products in larger volume than its competitors,Omega is able to achieve substantial reductions in unit cost.Which of the following refers to Omega's advantage?

Accepted Answer

A)  location economies
B)  learning effects
C)  standardization economies
D)  core economies
E)  economies of scale

Question 10

According to Michael Porter,all positions on the efficiency frontier are viable.

Accepted Answer

A) True 
 B)False

Question 11

What are the different types of competitive pressures that firms competing in a global marketplace face? How can firms respond to such pressures?

Accepted Answer

Firms that compete in the global marketp...

Question 12

Which of the following is an observation made by researchers Bartlett and Ghoshal regarding modern multinational enterprises?

Accepted Answer

A)  Global logistics industry makes the concept of "location economies" redundant for international firms.
B)  Core competencies and skills can develop in any of the firm's worldwide operations.
C)  Flow of skills between a firm and its global subsidiaries should be unidirectional.
D)  Differentiating across geographic markets helps a firm in reducing costs.
E)  Customer demands for local customization are on the decline worldwide.

Question 13

The value of Omega's top selling fitness product to an average consumer is $150 and the average unit cost of producing that product is $65.In this scenario,$85 ($150-$65) represents

Accepted Answer

A)  customer surplus.
B)  value creation.
C)  cost curve.
D)  value efficiency.
E)  customer reservation.

Question 14

A global standardization strategy makes most sense when there are strong pressures for cost reductions and demands for local responsiveness are minimal.

Accepted Answer

A) True 
 B)False

Question 15

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 16

Joanna's assessment of the value of a handbag sold at $110 is $200.The $200 is referred to as the

Accepted Answer

A)  market price.
B)  customer's negotiated price.
C)  base value of the product.
D)  customer's reservation price.
E)  profit growth price.

Question 17

What is an experience curve? What is its strategic significance?

Accepted Answer

The experience curve refers to systemati...

Question 18

Which of the following is a support activity in the operations of a firm?

Accepted Answer

A)  research and development
B)  customer service
C)  marketing and sales
D)  creation and maintenance of information systems
E)  production

Question 19

Firms that pursue an international strategy focus on increasing profitability by reaping the cost reductions that come from economies of scale,learning effects,and location economies.

Accepted Answer

A) True 
 B)False

Question 20

Omega locates it global manufacturing in Mexico,its global distribution in Honduras,and its design in Germany.By dispersing different stages of its value chain to those locations around the world where the value added is maximized or where the costs of value creation are minimized,Omega has created a(n)

Accepted Answer

A)  integral circle.
B)  dispersal chain.
C)  global web.
D)  international mesh.
E)  worldwide circle.

Exam 12: The Strategy of International Business

Which of the following is a support activity in the operations of a firm?

Correct Answer
verified

Firms that pursue an international strategy focus on increasing profitability by reaping the cost reductions that come from economies of scale,learning effects,and location economies.

Correct Answer
verified

Correct Answer
verified

What are core competencies? What are their advantages?

Correct Answer
verified
The term core competencies refers to ski...
View Answer

The value of Omega's top selling fitness product to an average consumer is $150 and the average unit cost of producing that product is $65.In this scenario,$85 ($150-$65) represents

Correct Answer
verified

A global standardization strategy makes most sense when there are strong pressures for cost reductions and demands for local responsiveness are minimal.

Correct Answer
verified

According to Michael Porter,all positions on the efficiency frontier are viable.

Correct Answer
verified

Cost reduction pressures tend to be particularly intense in industries that

Correct Answer
verified

By producing its products in larger volume than its competitors,Omega is able to achieve substantial reductions in unit cost.Which of the following refers to Omega's advantage?

Correct Answer
verified

The liberalization of the world trade and investment environment in recent decades,by facilitating greater international competition,has generally

Correct Answer
verified

A localization strategy involves some duplication of functions and smaller production runs.

Correct Answer
verified

A global car manufacturer wants to start production in China.While catering to local responsiveness,what can the firm do to get scale economies?

Correct Answer
verified

Joanna's assessment of the value of a handbag sold at $110 is $200.The $200 is referred to as the

Correct Answer
verified

What are the different types of competitive pressures that firms competing in a global marketplace face? How can firms respond to such pressures?

Correct Answer
verified
Firms that compete in the global marketp...
View Answer

In which of the following tasks will the learning effects be most significant?

Correct Answer
verified

How do firms respond to low cost pressures and low pressures for local responsiveness?

Correct Answer
verified
Sometimes,multinational firms find thems...
View Answer

Netflix incurs a huge fixed cost to obtain streaming rights to movies and television programs.However,it is able to spread this cost over a large number of subscribers that results in a cost-savings phenomenon referred to as

Correct Answer
verified

Which of the following is an observation made by researchers Bartlett and Ghoshal regarding modern multinational enterprises?

Correct Answer
verified

What is an experience curve? What is its strategic significance?

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

Correct Answer
verified

Exam 12: The Strategy of International Business

Which of the following is a support activity in the operations of a firm?

Correct AnswerverifiedShow Answer

Firms that pursue an international strategy focus on increasing profitability by reaping the cost reductions that come from economies of scale,learning effects,and location economies.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What are core competencies? What are their advantages?

Correct AnswerverifiedThe term core competencies refers to ski...View AnswerShow Answer

The value of Omega's top selling fitness product to an average consumer is $150 and the average unit cost of producing that product is $65.In this scenario,$85 ($150-$65) represents

Correct AnswerverifiedShow Answer

A global standardization strategy makes most sense when there are strong pressures for cost reductions and demands for local responsiveness are minimal.

Correct AnswerverifiedShow Answer

According to Michael Porter,all positions on the efficiency frontier are viable.

Correct AnswerverifiedShow Answer

Cost reduction pressures tend to be particularly intense in industries that

Correct AnswerverifiedShow Answer

By producing its products in larger volume than its competitors,Omega is able to achieve substantial reductions in unit cost.Which of the following refers to Omega's advantage?

Correct AnswerverifiedShow Answer

The liberalization of the world trade and investment environment in recent decades,by facilitating greater international competition,has generally

Correct AnswerverifiedShow Answer

A localization strategy involves some duplication of functions and smaller production runs.

Correct AnswerverifiedShow Answer

A global car manufacturer wants to start production in China.While catering to local responsiveness,what can the firm do to get scale economies?

Correct AnswerverifiedShow Answer

Joanna's assessment of the value of a handbag sold at $110 is $200.The $200 is referred to as the

Correct AnswerverifiedShow Answer

What are the different types of competitive pressures that firms competing in a global marketplace face? How can firms respond to such pressures?

Correct AnswerverifiedFirms that compete in the global marketp...View AnswerShow Answer

In which of the following tasks will the learning effects be most significant?

Correct AnswerverifiedShow Answer

How do firms respond to low cost pressures and low pressures for local responsiveness?

Correct AnswerverifiedSometimes,multinational firms find thems...View AnswerShow Answer

Netflix incurs a huge fixed cost to obtain streaming rights to movies and television programs.However,it is able to spread this cost over a large number of subscribers that results in a cost-savings phenomenon referred to as

Correct AnswerverifiedShow Answer

Which of the following is an observation made by researchers Bartlett and Ghoshal regarding modern multinational enterprises?

Correct AnswerverifiedShow Answer

What is an experience curve? What is its strategic significance?

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

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The term core competencies refers to ski...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Firms that compete in the global marketp...
View Answer

Correct Answer
verified

Correct Answer
verified
Sometimes,multinational firms find thems...
View Answer

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified