Question 1

Competing in the markets of foreign countries entails dealing with such factors as:

Accepted Answer

A)   fluctuating exchange rates,country-to-country parallels in host government restrictions and requirements,and country-to-country 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.F) B) and C)
G) A) and D)

Question 2

The advantages of using a licensing strategy to participate in foreign markets include:

Accepted Answer

A)   being especially well-suited to achieve scale economies.
B)   being able to charge lower prices than rivals.
C)   enabling a company to achieve first-mover advantages quickly and easily.
D)   being able to leverage the company's technical know-how,appealing brand,or patents without committing their resources or capabilities to foreign markets.
E)   being able to achieve higher product quality and better product performance than with an export strategy.F) A) and E)
G) B) and E)

Question 3

Which of the following is NOT an accurate statement as concerns competing in the markets of foreign countries?

Accepted Answer

A)   A multi-country strategy is generally superior to a global strategy.
B)   There are country-to-country differences in consumer buying habits and buyer tastes and preferences.
C)   A company must contend with fluctuating exchange rates and country-to-country variations in host government restrictions and requirements.
D)   Product designs suitable for one country are often inappropriate in another.
E)   Market growth rates vary from country to country.F) C) and D)
G) A) and B)

Question 4

A strategy that incorporates elements of both multidomestic and global strategies is termed a "transnational" strategy,but sometimes it is referred to as what?

Accepted Answer

A)   A glocalization strategy.
B)   An international strategy.
C)   A think-local,act-global strategy.
D)   A cross-border integrated strategy.
E)   A standardized integrated strategy.F) A) and B)
G) All of the above

Question 5

Compare and contrast the advantages for entering and competing in foreign markets for the strategic options of exporting,licensing,and franchising.

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The answer of Compare and contrast the advantages for entering...

Question 6

Dispersing particular value chain activities across many countries rather than concentrating them in a select few countries can be more advantageous except when

Accepted Answer

A)   buyer-related activities (such as sales,advertising,after-sale service and technical assistance) need to take place close to buyers.
B)   buyers demand short delivery times and/or high transportation costs make it uneconomical to operate from one or just a few locations.
C)   it helps hedge against the risks of exchange rate fluctuations,supply disruptions,and adverse political developments.
D)   there are diseconomies of scale in trying to operate from a single location.
E)   there are reasons to decouple buyer-related activities in favor of locational advantages.F) A) and E)
G) B) and E)

Question 7

The primary strategic options for entering foreign markets,depends on the firm's wherewithal to:

Accepted Answer

A)   rely on strategic alliances or joint ventures with foreign companies.
B)   maintain a national (one-country) production base and exporting goods to foreign markets.
C)   adopt a licensing approach with foreign firms to produce and distribute one's products or to use the company's technology.
D)   employ a franchising strategy.
E)   All of these.F) A) and D)
G) A) and E)

Question 8

Explain how exchange rate fluctuations pose a risk to manufacturing companies that rely upon an export strategy to compete in foreign markets

Accepted Answer

The answer of Explain how exchange rate fluctuations pose a...

Question 9

The advantages of using an export strategy to build a customer base in foreign markets include:

Accepted Answer

A)   being able to minimize shipping costs,avoiding tariffs,and curbing the effects of fluctuating exchange rates.
B)   minimizing its risk and direct investments requirements.
C)   being cheaper and more cost effective than licensing and franchising.
D)   being cheaper and more cost effective than a multicountry strategy.
E)   being more suited to accommodating local buyer tastes and host government regulations than a global strategy.F) C) and D)
G) A) and B)

Question 10

A European manufacturer that exports goods made at its European plants to the United States:

Accepted Answer

A)   is competitively disadvantaged when the euro declines in value against the U.S.dollar.
B)   is largely unaffected by fluctuating exchange rates between the euro and the U.S.dollar.It would,however,be affected if its plants were in the U.S.
C)   becomes more competitive in the U.S.market when the euro declines in value against the U.S.dollar.
D)   becomes more competitive in European markets when the euro declines in value against the U.S.dollar.
E)   has no interest in whether the euro grows stronger or weaker versus the U.S.dollar unless its chief competitors are other companies located in countries whose currency is also the euro.F) A) and C)
G) A) and E)

Question 11

A "think global,act global" approach to crafting a global strategy involves:

Accepted Answer

A)   pursuing the same basic competitive strategic theme (low cost,differentiation,best cost,and focused) in all countries where the firm does business.
B)   selling much the same products under the same brand names everywhere and expanding into most,if not all,nations where there is significant buyer demand.
C)   integrating and coordinating the company's strategic moves worldwide.
D)   utilizing the same competitive capabilities,distribution channels,and marketing approaches worldwide.
E)   All of these.F) A) and B)
G) C) and E)

Question 12

Briefly discuss why a domestic company desirous of entering foreign markets might see attractive advantages in forming strategic alliances with foreign companies.What are the risks and disadvantages of such alliances?

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A domestic company desirous of entering ...

Question 13

What are the key reasons (identify and briefly discuss)why a company may consider expanding outside its domestic market?

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There are several key reasons why a comp...

Question 14

A "think global,act global" approach to strategy-making is preferable to a "think local,act local" approach when:

Accepted Answer

A)   a big majority of the company's rivals are pursuing localized multidomestic strategies.
B)   country-to-country differences are small enough to be accommodated with the framework of a mostly uniform global strategy.
C)   plants need to be scattered across many countries to avoid high shipping costs.
D)   market growth rates vary considerably from country to country.
E)   host governments enact regulations requiring that products sold locally meet strict manufacturing specifications or performance standards.F) B) and E)
G) A) and D)

Question 15

The big issue an acquisition-minded firm must consider is whether strategically:

Accepted Answer

A)   to acquire the firm at a price that is prohibitive-in other words,a price that cannot recapture the investment.
B)   to require the acquired firm's resources and management capability to sustain the on-going struggling operation.
C)   to pay a premium price for a successful local company or to buy a struggling firm at a discount price.
D)   to pay a price that builds in all the synergistic advantages to the acquired firm.
E)   to pay a very high premium price that sends a signal to the market that the new firm has arrived.F) D) and E)
G) A) and D)

Question 16

Companies that compete internationally can pursue competitive advantage in world markets (or offset domestic disadvantages) by:

Accepted Answer

A)   using a differentiation-based competitive strategy in those country markets with superior resources.
B)   deliberately choosing not to compete in countries with high tariffs and high taxes (which then have to be passed along to buyers in the form of higher prices) ,thus keeping costs and prices lower than rivals.
C)   using an export strategy to circumvent the risks of adverse exchange rate fluctuations.
D)   locating value chain activities in whatever nations prove most advantageous in a manner that uses location to lower costs or achieve greater product differentiation,allow for the transfer of competitively valuable competencies and capabilities from one country to another,and allow for cross-border coordination.
E)   employing a multidomestic strategy instead of a global strategy.F) A) and B)
G) All of the above

Question 17

The strength of a "think local,act local" multidomestic strategy is that:

Accepted Answer

A)   it matches a company's competitive approach to prevailing market and competitive conditions in each country market,country by country.
B)   each of a company's country strategies is almost totally different from and also unrelated to its strategies in other countries.
C)   the plants located in different countries can be operated independent of one another,thus promoting greater achievement of scale economies.
D)   it avoids host country ownership requirements and import quotas.
E)   it eliminates the costs and burdens of trying to coordinate the strategic moves undertaken in one country with the moves undertaken in the other countries.F) A) and B)
G) B) and D)

Question 18

What circumstances call for use of a multidomestic strategy for competing in international markets?

Accepted Answer

The answer of What circumstances call for use of a...

Question 19

Cross-country variations in government policies and economic conditions affect:

Accepted Answer

A)   the formation of investment priorities and the steering of corporate resources.
B)   the opportunities available to foreign entrants and the risks of operating within that country.
C)   the ability of foreign markets to remain competitive.
D)   the ability of weak-performing businesses to stage a narrow base for business operations.
E)   cross-business opportunities such as transferring skills or technology to the new market.F) A) and D)
G) All of the above

Question 20

Cross-border alliances between domestic and foreign firms are more effective in:

Accepted Answer

A)   building multiple profit sanctuaries than in forging a mutually supportive global strategy.
B)   reducing supply chain costs than in reducing distribution costs.
C)   helping establish a new beachhead of opportunity rather than in achieving and sustaining global market leadership.
D)   helping the partners pursue a multidomestic strategy as compared to a global strategy.
E)   helping the partners pursue a global strategy as compared to a multidomestic strategy.F) C) and E)
G) A) and D)

Exam 7: Strategies for Competing in International Markets

Explain how exchange rate fluctuations pose a risk to manufacturing companies that rely upon an export strategy to compete in foreign markets

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A European manufacturer that exports goods made at its European plants to the United States:

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Cross-border alliances between domestic and foreign firms are more effective in:

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Companies that compete internationally can pursue competitive advantage in world markets (or offset domestic disadvantages) by:

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What circumstances call for use of a multidomestic strategy for competing in international markets?

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The strength of a "think local,act local" multidomestic strategy is that:

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The primary strategic options for entering foreign markets,depends on the firm's wherewithal to:

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Briefly discuss why a domestic company desirous of entering foreign markets might see attractive advantages in forming strategic alliances with foreign companies.What are the risks and disadvantages of such alliances?

Correct AnswerAnswered by ExamLex AIA domestic company desirous of entering ...View AnswerShow Answer

Which of the following is NOT an accurate statement as concerns competing in the markets of foreign countries?

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A strategy that incorporates elements of both multidomestic and global strategies is termed a "transnational" strategy,but sometimes it is referred to as what?

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What are the key reasons (identify and briefly discuss)why a company may consider expanding outside its domestic market?

Correct AnswerAnswered by ExamLex AIThere are several key reasons why a comp...View AnswerShow Answer

Compare and contrast the advantages for entering and competing in foreign markets for the strategic options of exporting,licensing,and franchising.

Correct AnswerverifiedShow Answer

The advantages of using a licensing strategy to participate in foreign markets include:

Correct AnswerverifiedShow Answer

Cross-country variations in government policies and economic conditions affect:

Correct AnswerverifiedShow Answer

A "think global,act global" approach to crafting a global strategy involves:

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Competing in the markets of foreign countries entails dealing with such factors as:

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The big issue an acquisition-minded firm must consider is whether strategically:

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The advantages of using an export strategy to build a customer base in foreign markets include:

Correct AnswerverifiedShow Answer

A "think global,act global" approach to strategy-making is preferable to a "think local,act local" approach when:

Correct AnswerverifiedShow Answer

Dispersing particular value chain activities across many countries rather than concentrating them in a select few countries can be more advantageous except when

Correct AnswerverifiedShow Answer

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A domestic company desirous of entering ...
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Answered by ExamLex AI
There are several key reasons why a comp...
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