Question 1

PepsiCo leads Coca-Cola in the Indian market.Why?

Accepted Answer

A)   PepsiCo entered the market before Coca-Cola.
B)   PepsiCo formed a joint venture with two Indian companies to introduce its products under their label.
C)   Coca-Cola promoted too many products.
D)   Coca-Cola created too much direct employment in the beginning of its operation.E) None of the above
F) C) and D)

Question 2

A franchise generally expires after a few years,whereas a license is designed to last into perpetuity.

Accepted Answer

A) True 
 B)False

Question 3

The sale of Boeing commercial aircraft and Microsoft operating systems in many countries enables these companies to benefit from ____________.

Accepted Answer

A)   higher prices in their domestic markets
B)   reducing their exposure to currency risks
C)   economies of scale
D)   optimizing the location for many activities in their value chainE) None of the above
F) A) and B)

Question 4

Differences in foreign markets such as culture,language,and customs can represent significant management risks when firms enter foreign markets.

Accepted Answer

A) True 
 B)False

Question 5

Reverse innovation occurs when a company develops a product that meets the needs of a developed country and then adapts it to the needs of the developing country.

Accepted Answer

A) True 
 B)False

Question 6

A key tenet of a transnational strategy is improved adaptation to all competitive situations as well as flexibility by capitalizing on communication and knowledge flows throughout the organization.

Accepted Answer

A) True 
 B)False

Question 7

An advantage of international expansion is that it can enable a firm to optimize the location of every activity in its value chain.

Accepted Answer

A) True 
 B)False

Question 8

If a company is considering optimizing the physical location for every activity in the value chain,which of the following is not a possible strategic advantage for that decision?

Accepted Answer

A)   Performance enhancement
B)   Cost reduction
C)   Political risk reduction
D)   Life-cycle enhancementE) B) and C)
F) C) and D)

Question 9

Within a worldwide market,the most effective strategies are neither purely multidomestic nor purely global.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is a disadvantage of a transnational strategy?

Accepted Answer

A)   less ability to realize cost savings through scale economies
B)   limited ability to adapt to local markets
C)   unique managerial challenges in fostering knowledge transfer
D)   single locations may lead to higher tariffs and transportation costsE) A) and B)
F) B) and C)

Question 11

What are the main benefits of offshoring and outsourcing?

Accepted Answer

Offshoring and outsourcing offer several...

Question 12

A multidomestic strategy would likely include the use of high volume,centralized production facilities to maximize economies of scale.

Accepted Answer

A) True 
 B)False

Question 13

The factor endowments of a country are inherited and cannot be created.

Accepted Answer

A) True 
 B)False

Question 14

The need to attain economies of scale encourages multinational firms to operate under a multidomestic strategy.

Accepted Answer

A) True 
 B)False

Question 15

Countries with a strong supplier base benefit by adding efficiency to downstream activities.

Accepted Answer

A) True 
 B)False

Question 16

Which one of the following is one of the Theodore Levitt assumptions supporting a pure global strategy?

Accepted Answer

A)   Consumers are willing to pay more for specific product features.
B)   Customer needs and interests are becoming more dissimilar.
C)   MNCs can successfully compete globally by aggressively pricing products at the sacrifice of product features.
D)   If the world markets are treated as heterogeneous, substantial economies of scale are easily achieved.E) C) and D)
F) A) and B)

Question 17

Explain the Porter Diamond of National Advantage framework and provide an example to illustrate your discussion.

Accepted Answer

The Porter Diamond of National Advantage...

Question 18

Firms can eliminate political instability and adverse government actions risks by: competing in a range of geographic markets,developing stakeholder coalitions,cultivating relationships with key influences,and including key public/private stakeholders in their boards.

Accepted Answer

A) True 
 B)False

Question 19

According to Michael Porter,firms that have experienced intense domestic competition are _________________________________.

Accepted Answer

A)   unlikely to have the time or resources to compete abroad
B)   more likely to demand protection from their governments
C)   most likely to design strategies aimed primarily at the domestic market
D)   more likely to design strategies and structures that allow them to successfully compete abroadE) All of the above
F) B) and D)

Question 20

When U.S.currency appreciates against other currencies,U.S.goods can be less expensive to consumers in foreign countries.

Accepted Answer

A) True 
 B)False

Exam 7: International Strategy: Creating Valuein Global Markets

Countries with a strong supplier base benefit by adding efficiency to downstream activities.

Correct AnswerverifiedShow Answer

If a company is considering optimizing the physical location for every activity in the value chain,which of the following is not a possible strategic advantage for that decision?

Correct AnswerverifiedShow Answer

Which one of the following is one of the Theodore Levitt assumptions supporting a pure global strategy?

Correct AnswerverifiedShow Answer

Firms can eliminate political instability and adverse government actions risks by: competing in a range of geographic markets,developing stakeholder coalitions,cultivating relationships with key influences,and including key public/private stakeholders in their boards.

Correct AnswerverifiedShow Answer

A multidomestic strategy would likely include the use of high volume,centralized production facilities to maximize economies of scale.

Correct AnswerverifiedShow Answer

The need to attain economies of scale encourages multinational firms to operate under a multidomestic strategy.

Correct AnswerverifiedShow Answer

Within a worldwide market,the most effective strategies are neither purely multidomestic nor purely global.

Correct AnswerverifiedShow Answer

When U.S.currency appreciates against other currencies,U.S.goods can be less expensive to consumers in foreign countries.

Correct AnswerverifiedShow Answer

An advantage of international expansion is that it can enable a firm to optimize the location of every activity in its value chain.

Correct AnswerverifiedShow Answer

What are the main benefits of offshoring and outsourcing?

Correct AnswerAnswered by ExamLex AIOffshoring and outsourcing offer several...View AnswerShow Answer

The sale of Boeing commercial aircraft and Microsoft operating systems in many countries enables these companies to benefit from ____________.

Correct AnswerverifiedShow Answer

Explain the Porter Diamond of National Advantage framework and provide an example to illustrate your discussion.

Correct AnswerAnswered by ExamLex AIThe Porter Diamond of National Advantage...View AnswerShow Answer

According to Michael Porter,firms that have experienced intense domestic competition are _________________________________.

Correct AnswerverifiedShow Answer

Reverse innovation occurs when a company develops a product that meets the needs of a developed country and then adapts it to the needs of the developing country.

Correct AnswerverifiedShow Answer

Which of the following is a disadvantage of a transnational strategy?

Correct AnswerverifiedShow Answer

PepsiCo leads Coca-Cola in the Indian market.Why?

Correct AnswerverifiedShow Answer

Differences in foreign markets such as culture,language,and customs can represent significant management risks when firms enter foreign markets.

Correct AnswerverifiedShow Answer

The factor endowments of a country are inherited and cannot be created.

Correct AnswerverifiedShow Answer

A franchise generally expires after a few years,whereas a license is designed to last into perpetuity.

Correct AnswerverifiedShow Answer

A key tenet of a transnational strategy is improved adaptation to all competitive situations as well as flexibility by capitalizing on communication and knowledge flows throughout the organization.

Correct AnswerverifiedShow 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
Answered by ExamLex AI
Offshoring and outsourcing offer several...
View Answer

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
The Porter Diamond of National Advantage...
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