Question 1

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.F) C) and D)
G) B) and D)

Question 2

For an international business,which of the following is most likely to be an outcome of protectionism and nationalism in a host-country?

Accepted Answer

A)  increase in the attractiveness of location economies
B)  pressure for localization of production
C)  requirement of standardization of products or services
D)  pressure for cost reduction
E)  decrease in the significance of local responsivenessF) A) and B)
G) None of the above

Question 3

Firms that pursue a(n) _____ strategy differentiate their product offering across geographic markets to account for local differences.

Accepted Answer

A)  international
B)  global standardization
C)  transnational
D)  multidomestic
E)  nationalizationF) B) and E)
G) B) and D)

Question 4

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 that is not viable.
D)  strips all the value out of its product offering.
E)  configures its internal operations to support the position selected by it on the efficiency frontier.F) A) and B)
G) C) and D)

Question 5

Which of the following is most likely to necessitate the delegation of marketing functions to national subsidiaries?

Accepted Answer

A)  differences in distribution channels
B)  pressures for decreasing consumer surplus
C)  lack of product customization
D)  pressures for increasing economies of scale
E)  pressures for increasing consumers' reservation priceF) B) and D)
G) None of the above

Question 6

What are the disadvantages of strategic alliances?

Accepted Answer

Some commentators have criticized strate...

Question 7

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

Accepted Answer

A)  logistics function
B)  research and development
C)  information systems
D)  human resource function
E)  company infrastructureF) C) and D)
G) A) and B)

Question 8

The amount of value a firm creates is measured by the difference between its costs of production and the value that consumers perceive in its products.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following terms best represents the requirements that are the same all over the world,such as steel,bulk chemicals,and industrial electronics?

Accepted Answer

A)  universal needs
B)  efficiency frontier
C)  global web
D)  lateral requirements
E)  supreme needsF) All of the above
G) A) and E)

Question 10

What are the sources of pressures for local responsiveness?

Accepted Answer

Pressures for local responsiveness arise...

Question 11

Which of the following is true of a localization strategy?

Accepted Answer

A)  It allows a firm to capture the cost reductions of mass-producing a standardized product.
B)  It reduces duplication of functions.
C)  It involves longer production runs.
D)  It makes sense if the value added by customization supports higher pricing.
E)  It substantially reduces local demand.F) B) and D)
G) A) and E)

Question 12

Johnson Food Products believes that as far as its products are concerned,tastes vary worldwide and so it has to customize its product offering,marketing strategy,and business strategy to differing national conditions.Johnson Food Products' ability to increase its profitability and profit growth by expanding globally is constrained

Accepted Answer

A)  by the imperative of localization.
B)  by the economies of scale.
C)  due to customer surplus.
D)  due to the leveraging of skills developed in foreign operations.
E)  due to the dispersion of individual value creation activities.F) All of the above
G) A) and E)

Question 13

Which of the following strategies is most likely to be pursued by a firm when there are strong pressures for cost reductions and demands for local responsiveness are minimal?

Accepted Answer

A)  domestic strategy
B)  global standardization strategy
C)  international strategy
D)  transnational strategy
E)  nationalization strategyF) C) and D)
G) A) and B)

Question 14

Of all the value creation activities in a firm,which of the following creates value by discovering consumer needs and communicating them back to the R&D function of the company,which can then design products that better match those needs?

Accepted Answer

A)  production
B)  marketing and sales
C)  human resources
D)  logistics
E)  information systemsF) B) and D)
G) A) and E)

Question 15

Ford believes that by producing its small cars in Mexico they can take advantage of lower wage rates in that country.By pursuing such a strategy,Ford is most likely 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.F) A) and B)
G) None of the above

Question 16

Firms that operate internationally are able to realize location economies by dispersing individual value creation activities to locations where they are performed most efficiently and effectively.

Accepted Answer

A) True 
 B)False

Question 17

Firms that pursue a(n) _____ strategy take products first produced for their domestic market and sell them across various markets with only minimal local customization.

Accepted Answer

A)  nationalization
B)  transnational
C)  global standardization
D)  international
E)  localizationF) C) and D)
G) C) and E)

Question 18

Which of the following supports the argument that customer demands for local customization are on the decline worldwide?

Accepted Answer

A)  Local and indigenous industries are increasingly filling up available demand.
B)  High costs of local customization are deterring companies from doing so.
C)  Governments across the world are standardizing their legal procedures.
D)  Customer tastes have converged worldwide.
E)  Managers worldwide ignore the differences in consumer tastes and preferences.F) C) and E)
G) B) and C)

Question 19

By using significant standardization in the use of aircrafts and by streamlining its operations,Southwest Airlines competes by offering its' flights at a lower price than the competition.According to Michael Porter,the strategy that Southwest Airlines is using is

Accepted Answer

A)  low- cost.
B)  differentiation.
C)  value transfer.
D)  efficiency frontier.
E)  diversification.F) C) and D)
G) A) and B)

Question 20

Typically,the price a firm charges for a good or service is

Accepted Answer

A)  less than the value placed on that good or service by the customer.
B)  more than what customers assume it would be.
C)  more than the market price for similar goods or services.
D)  the same as the value placed on that good or service by the customer.
E)  less than the lowest priced similar good or service in the market.F) A) and C)
G) B) and E)

Exam 12: The Strategy of International Business

Which of the following supports the argument that customer demands for local customization are on the decline worldwide?

Correct Answer
verified

Ford believes that by producing its small cars in Mexico they can take advantage of lower wage rates in that country.By pursuing such a strategy,Ford is most likely to realize

Correct Answer
verified

Correct Answer
verified

Which of the following terms best represents the requirements that are the same all over the world,such as steel,bulk chemicals,and industrial electronics?

Correct Answer
verified

Firms that operate internationally are able to realize location economies by dispersing individual value creation activities to locations where they are performed most efficiently and effectively.

Correct Answer
verified

For an international business,which of the following is most likely to be an outcome of protectionism and nationalism in a host-country?

Correct Answer
verified

Which of the following strategies is most likely to be pursued by a firm when there are strong pressures for cost reductions and demands for local responsiveness are minimal?

Correct Answer
verified

Which of the following is true of a localization strategy?

Correct Answer
verified

Firms that pursue a(n) _____ strategy take products first produced for their domestic market and sell them across various markets with only minimal local customization.

Correct Answer
verified

By using significant standardization in the use of aircrafts and by streamlining its operations,Southwest Airlines competes by offering its' flights at a lower price than the competition.According to Michael Porter,the strategy that Southwest Airlines is using is

Correct Answer
verified

The amount of value a firm creates is measured by the difference between its costs of production and the value that consumers perceive in its products.

Correct Answer
verified

Typically,the price a firm charges for a good or service is

Correct Answer
verified

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

Correct Answer
verified

Which of the following is most likely to necessitate the delegation of marketing functions to national subsidiaries?

Correct Answer
verified

What are the disadvantages of strategic alliances?

Correct Answer
verified
Some commentators have criticized strate...
View Answer

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

Correct Answer
verified

A firm maximizes its profitability when it

Correct Answer
verified

Firms that pursue a(n) _____ strategy differentiate their product offering across geographic markets to account for local differences.

Correct Answer
verified

Of all the value creation activities in a firm,which of the following creates value by discovering consumer needs and communicating them back to the R&D function of the company,which can then design products that better match those needs?

Correct Answer
verified

What are the sources of pressures for local responsiveness?

Correct Answer
verified
Pressures for local responsiveness arise...
View Answer

Exam 12: The Strategy of International Business

Which of the following supports the argument that customer demands for local customization are on the decline worldwide?

Correct AnswerverifiedShow Answer

Ford believes that by producing its small cars in Mexico they can take advantage of lower wage rates in that country.By pursuing such a strategy,Ford is most likely to realize

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following terms best represents the requirements that are the same all over the world,such as steel,bulk chemicals,and industrial electronics?

Correct AnswerverifiedShow Answer

Firms that operate internationally are able to realize location economies by dispersing individual value creation activities to locations where they are performed most efficiently and effectively.

Correct AnswerverifiedShow Answer

For an international business,which of the following is most likely to be an outcome of protectionism and nationalism in a host-country?

Correct AnswerverifiedShow Answer

Which of the following strategies is most likely to be pursued by a firm when there are strong pressures for cost reductions and demands for local responsiveness are minimal?

Correct AnswerverifiedShow Answer

Which of the following is true of a localization strategy?

Correct AnswerverifiedShow Answer

Firms that pursue a(n) _____ strategy take products first produced for their domestic market and sell them across various markets with only minimal local customization.

Correct AnswerverifiedShow Answer

By using significant standardization in the use of aircrafts and by streamlining its operations,Southwest Airlines competes by offering its' flights at a lower price than the competition.According to Michael Porter,the strategy that Southwest Airlines is using is

Correct AnswerverifiedShow Answer

The amount of value a firm creates is measured by the difference between its costs of production and the value that consumers perceive in its products.

Correct AnswerverifiedShow Answer

Typically,the price a firm charges for a good or service is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is most likely to necessitate the delegation of marketing functions to national subsidiaries?

Correct AnswerverifiedShow Answer

What are the disadvantages of strategic alliances?

Correct AnswerverifiedSome commentators have criticized strate...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

A firm maximizes its profitability when it

Correct AnswerverifiedShow Answer

Firms that pursue a(n) _____ strategy differentiate their product offering across geographic markets to account for local differences.

Correct AnswerverifiedShow Answer

Of all the value creation activities in a firm,which of the following creates value by discovering consumer needs and communicating them back to the R&D function of the company,which can then design products that better match those needs?

Correct AnswerverifiedShow Answer

What are the sources of pressures for local responsiveness?

Correct AnswerverifiedPressures for local responsiveness arise...View AnswerShow 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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Some commentators have criticized strate...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Pressures for local responsiveness arise...
View Answer