Question 1

Serving a global market from a single location is consistent with

Accepted Answer

A)  establishing a high-cost position.
B)  taking advantage of location economies.
C)  moving down the experience curve.
D)  operating from a position which falls inside the efficiency frontier.
E)  going up the global web.F) A) and B)
G) A) and C)

Question 2

Which of the following terms best represents the norms and value systems that are shared among the employees of an organization?

Accepted Answer

A)  process scenario
B)  organizational structure
C)  business structure
D)  organizational culture
E)  management structureF) D) and E)
G) A) and B)

Question 3

The term organizational structure refers to the totality of a firm's organization,including organization architecture,control systems and incentives,organizational culture,processes,and people.

Accepted Answer

A) True 
 B)False

Question 4

Over the course of nearly a hundred years,Omega's labor productivity has increases over time as its employees understand the most efficient ways to perform particular tasks.This is a result of

Accepted Answer

A)  diminishing returns.
B)  location economies.
C)  economies of time.
D)  learning effects.
E)  an efficiency frontier.F) A) and B)
G) C) and D)

Question 5

What are the advantages of strategic alliances?

Accepted Answer

The advantages of strategic alliances ar...

Question 6

The efficiency frontier has a convex shape because of

Accepted Answer

A)  a high-cost structure.
B)  diminishing returns.
C)  a significantly low product value.
D)  low production costs.
E)  high profit growth.F) A) and E)
G) A) and D)

Question 7

For a firm to maximize its profitability,it is necessary that it

Accepted Answer

A)  creates products similar to the products of its competitors.
B)  does not configure its internal operations to reduce costs.
C)  minimizes the value of the consumer surplus.
D)  picks a position on the efficiency frontier that is viable.
E)  strips all the value out of its product offering.F) B) and E)
G) D) and E)

Question 8

Profit growth is measured by

Accepted Answer

A)  dividing the net profits of the firm by total invested capital.
B)  subtracting the previous year's gross profit from the current year's gross profit.
C)  calculating the difference between the previous year's profitability and the current year's profitability.
D)  the percentage increase in net profits over time.
E)  adding the profitability of the last two fiscal years.F) A) and E)
G) None of the above

Question 9

Strategic alliances allow firms to share the fixed costs of developing new products or processes.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Omega,Inc.sells its fitness wrist band for $100.It cost the company $62 to make the product.Customers value the wrist band at $110.One of the reasons why Omega typically charges for its wrist band less than the value placed on it by the customer is because

Accepted Answer

A)  the firm attempts to create value for the consumers by providing them a wide range of products.
B)  it is normally impossible to segment a market based on each customer's reservation price.
C)  the value creation results in a corresponding reduction in costs of production.
D)  the firm frequently modifies its products to compete with the products introduced by other firms.
E)  it is highly unlikely that the same good or service will be available to the customers from other firms.F) B) and C)
G) All of the above

Question 12

Omega,Inc.sells its fitness wrist band for $100.It cost the company $62 to make the product.Customers value the wrist band at $110.In this scenario,the consumer surplus is

Accepted Answer

A)  $38.
B)  $48.
C)  $10.
D)  $28.
E)  $272.F) A) and B)
G) A) and C)

Question 13

The two phenomena that help explain the experience curve are

Accepted Answer

A)  learning effects and economies of scale.
B)  technology inputs and wealth transfer.
C)  leveraging subsidiary and local responsiveness.
D)  standardized manufacturing and global web.
E)  efficiency frontier and location economies.F) A) and C)
G) C) and D)

Question 14

Which of the following is true about learning effects?

Accepted Answer

A)  They tend to be more significant in nonrepetitive tasks.
B)  They tend to be less significant when a task is technologically complex.
C)  They typically last a lifetime.
D)  They are important only during the start-up period of a new process.
E)  They do not have any effect on the cost of production.F) A) and C)
G) C) and D)

Question 15

Which of the following allows two or more firms to share the fixed costs (and associated risks) of developing new products or processes?

Accepted Answer

A)  franchising agreement
B)  global web
C)  free trade agreement
D)  strategic alliance
E)  dispersion linkageF) A) and E)
G) A) and D)

Question 16

Which of the following shows all of the different positions that a firm can adopt with regard to value creation and low cost assuming that its internal operations are configured adequately to support a particular position?

Accepted Answer

A)  demand-value model
B)  experience curve
C)  efficiency frontier
D)  optimal output model
E)  surplus curveF) C) and D)
G) A) and B)

Question 17

A number of studies have observed that a product's production costs decline by some quantity about each time

Accepted Answer

A)  annual output is halved.
B)  cumulative output doubles.
C)  the workforce is trimmed by 75 percent.
D)  fixed investment triples.
E)  foreign domestic investment doubles.F) B) and C)
G) None of the above

Question 18

Consumer surplus captures some of the value of a product thereby reducing the price a firm can charge for it.

Accepted Answer

A) True 
 B)False

Question 19

Strategies that increase profitability can also expand a firm's business and thus enable it to attain a higher rate of profit growth.

Accepted Answer

A) True 
 B)False

Question 20

Describe the global standardization strategy.

Accepted Answer

Firms that pursue a global standardizati...

Exam 12: The Strategy of International Business

Profit growth is measured by

Correct AnswerverifiedShow Answer

The efficiency frontier has a convex shape because of

Correct AnswerverifiedShow Answer

Strategies that increase profitability can also expand a firm's business and thus enable it to attain a higher rate of profit growth.

Correct AnswerverifiedShow Answer

Serving a global market from a single location is consistent with

Correct AnswerverifiedShow Answer

Describe the global standardization strategy.

Correct AnswerverifiedFirms that pursue a global standardizati...View AnswerShow Answer

A number of studies have observed that a product's production costs decline by some quantity about each time

Correct AnswerverifiedShow Answer

Which of the following terms best represents the norms and value systems that are shared among the employees of an organization?

Correct AnswerverifiedShow Answer

Omega,Inc.sells its fitness wrist band for $100.It cost the company $62 to make the product.Customers value the wrist band at $110.In this scenario,the consumer surplus is

Correct AnswerverifiedShow Answer

Strategic alliances allow firms to share the fixed costs of developing new products or processes.

Correct AnswerverifiedShow Answer

Which of the following is true about learning effects?

Correct AnswerverifiedShow Answer

Consumer surplus captures some of the value of a product thereby reducing the price a firm can charge for it.

Correct AnswerverifiedShow Answer

For a firm to maximize its profitability,it is necessary that it

Correct AnswerverifiedShow Answer

Omega,Inc.sells its fitness wrist band for $100.It cost the company $62 to make the product.Customers value the wrist band at $110.One of the reasons why Omega typically charges for its wrist band less than the value placed on it by the customer is because

Correct AnswerverifiedShow Answer

The two phenomena that help explain the experience curve are

Correct AnswerverifiedShow Answer

Which of the following allows two or more firms to share the fixed costs (and associated risks) of developing new products or processes?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The term organizational structure refers to the totality of a firm's organization,including organization architecture,control systems and incentives,organizational culture,processes,and people.

Correct AnswerverifiedShow Answer

What are the advantages of strategic alliances?

Correct AnswerverifiedThe advantages of strategic alliances ar...View AnswerShow Answer

Which of the following shows all of the different positions that a firm can adopt with regard to value creation and low cost assuming that its internal operations are configured adequately to support a particular position?

Correct AnswerverifiedShow Answer

Over the course of nearly a hundred years,Omega's labor productivity has increases over time as its employees understand the most efficient ways to perform particular tasks.This is a result of

Correct AnswerverifiedShow Answer

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Firms that pursue a global standardizati...
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The advantages of strategic alliances ar...
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