Question 1

IMAX claims that every new theatre that opens somewhere in the world lowers the cost of production of its unique movies.

Accepted Answer

A) True 
 B)False

Question 2

Which one of the following is one of Theodore Levitt's 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)   If the world markets are treated as heterogeneous, substantial economies of scale are easily achieved.
D)   MNCs can compete with aggressive pricing on low cost products that meet the common needs of global consumers.E) A) and B)
F) A) and C)

Question 3

High pressure for local adaptation combined with low pressure for lower costs would suggest what type of international strategy?

Accepted Answer

A)   global
B)   multidomestic
C)   transnational
D)   overall cost leadershipE) B) and D)
F) A) and B)

Question 4

Explain how the two opposing forces facing MNC managers,cost reduction and local adaptation,create pressures to operate with a global or multidomestic strategy,respectively.

Accepted Answer

A global strategy involves standardized ...

Question 5

Discuss why international expansion is a viable diversification strategy that is being pursued by many firms.

Accepted Answer

The rise of globalization and market cap...

Question 6

When Dofasco approached the cultural differences of operating in Mexico,Dofasco's motto "our strength is people" was a problem because

Accepted Answer

A)   it did not translate into Spanish.
B)   Latin American customers wanted a focus on the product.
C)   Mexican workers typically expect more hierarchical structures and want managers to supervise.
D)   Mexican workers like a "flat organization" with no supervision.E) None of the above
F) All of the above

Question 7

Canadian steel company Dofasco looked at cultural challenges in expanding and decided to stick to its famous motto: "our strength is people."

Accepted Answer

A) True 
 B)False

Question 8

Multinational firms following a transnational strategy strive to optimize the trade-offs associated with efficiency,local adaptation,and learning.

Accepted Answer

A) True 
 B)False

Question 9

Corporations with multiple foreign operations that act very independently of one another are following a multidomestic strategy.

Accepted Answer

A) True 
 B)False

Question 10

Discuss how the global dispersion of value chains has influenced the traditional modes of international expansion.

Accepted Answer

Beyond the traditional entry modes of in...

Question 11

Explain Michael Porter's "diamond of national advantage."

Accepted Answer

Porter conducted a four-year study in wh...

Question 12

International expansion can extend the life cycle of a product that is in its maturity stage in a firm's home country.

Accepted Answer

A) True 
 B)False

Question 13

In a global strategy a firm operates all its businesses under a single common strategy regardless of location.

Accepted Answer

A) True 
 B)False

Question 14

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 15

Microsoft decided to establish a corporate research laboratory in Cambridge,England

Accepted Answer

A)   because England is an ally of the United States.
B)   because they could access technical and professional talent available in Cambridge.
C)   because the local language is English.
D)   because the company views the United States as a risky place to expand due to the actions of the U.S. Department of Justice.E) B) and C)
F) None of the above

Question 16

The difference between a franchise and licensing contract is that

Accepted Answer

A)   a franchise contract has a broader range of factors and is usually longer in duration.
B)   a franchise contract must include a foreign government.
C)   a licensing contract covers more aspects of operations.
D)   a franchise contract involves less control and less risk.E) None of the above
F) A) and B)

Question 17

Industries in which proportionally more value is added in upstream activities are more likely to benefit from a global strategy than those in which more value is added downstream (closer to the customer).

Accepted Answer

A) True 
 B)False

Question 18

What are some of the primary benefits of transnational strategies?

Accepted Answer

A multinational firm following a transna...

Question 19

The text mentions Canadian firms Lingo Media and Hydrogenics as having directed all their efforts to overseas markets with

Accepted Answer

A)   transfer prices.
B)   dividends.
C)   little local presence at home in Canada.
D)   intra-corporate inflows.E) None of the above
F) A) and C)

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 7: International Strategy: Creating Value in Global Markets

Discuss why international expansion is a viable diversification strategy that is being pursued by many firms.

Correct AnswerverifiedThe rise of globalization and market cap...View AnswerShow Answer

Canadian steel company Dofasco looked at cultural challenges in expanding and decided to stick to its famous motto: "our strength is people."

Correct AnswerverifiedShow Answer

Multinational firms following a transnational strategy strive to optimize the trade-offs associated with efficiency,local adaptation,and learning.

Correct AnswerverifiedShow Answer

Explain Michael Porter's "diamond of national advantage."

Correct AnswerverifiedPorter conducted a four-year study in wh...View AnswerShow Answer

Explain how the two opposing forces facing MNC managers,cost reduction and local adaptation,create pressures to operate with a global or multidomestic strategy,respectively.

Correct AnswerverifiedA global strategy involves standardized ...View AnswerShow Answer

High pressure for local adaptation combined with low pressure for lower costs would suggest what type of international strategy?

Correct AnswerverifiedShow Answer

Discuss how the global dispersion of value chains has influenced the traditional modes of international expansion.

Correct AnswerverifiedBeyond the traditional entry modes of in...View AnswerShow Answer

When Dofasco approached the cultural differences of operating in Mexico,Dofasco's motto "our strength is people" was a problem because

Correct AnswerverifiedShow Answer

The difference between a franchise and licensing contract is that

Correct AnswerverifiedShow Answer

The text mentions Canadian firms Lingo Media and Hydrogenics as having directed all their efforts to overseas markets with

Correct AnswerverifiedShow Answer

Corporations with multiple foreign operations that act very independently of one another are following a multidomestic strategy.

Correct AnswerverifiedShow Answer

What are some of the primary benefits of transnational strategies?

Correct AnswerverifiedA multinational firm following a transna...View AnswerShow 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

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

Correct AnswerverifiedShow Answer

Microsoft decided to establish a corporate research laboratory in Cambridge,England

Correct AnswerverifiedShow Answer

In a global strategy a firm operates all its businesses under a single common strategy regardless of location.

Correct AnswerverifiedShow Answer

International expansion can extend the life cycle of a product that is in its maturity stage in a firm's home country.

Correct AnswerverifiedShow Answer

IMAX claims that every new theatre that opens somewhere in the world lowers the cost of production of its unique movies.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Industries in which proportionally more value is added in upstream activities are more likely to benefit from a global strategy than those in which more value is added downstream (closer to the customer).

Correct AnswerverifiedShow Answer

Correct Answer
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The rise of globalization and market cap...
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Correct Answer
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Correct Answer
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Porter conducted a four-year study in wh...
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A global strategy involves standardized ...
View Answer

Correct Answer
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Correct Answer
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Beyond the traditional entry modes of in...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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A multinational firm following a transna...
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Correct Answer
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Correct Answer
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