Question 1

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

Accepted Answer

A) True 
 B)False  False

Question 2

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 3

Which of the following is not a risk associated with a global strategy?

Accepted Answer

A)   A firm with only one manufacturing location must export its product, sometimes at great distance from the operation.
B)   The geographic concentration of any activity may also tend to isolate that activity from the targeted markets.
C)   Concentrating an activity in a single location makes the rest of the firm dependent on that location.
D)   The pressures for local adaptation may elevate the cost structure of the firm.E) A) and C)
F) B) and C)

Question 4

Which of the following is not a risk normally associated with bottom-of-the-pyramid strategies?

Accepted Answer

A)   A low-end version of a brand may detract from the overall brand attractiveness.
B)   The new low-cost products they develop may cannibalize the sales of their core products.
C)   Entrenched competitors can impact the ability of the new firm to enter the market successfully.
D)   New products may be perceived as exploiting the privileged customer with substandard products.E) All of the above
F) B) and C)

Question 5

________ are fees that a multinational receives from a foreign licensee in return for its use of intellectual property (trademark,patent,trade secret,technology) .

Accepted Answer

A)   Transfer prices
B)   Dividends
C)   Royalties
D)   Intra-corporate inflowsE) A) and B)
F) A) and C) C

Question 6

Rivalry is intense in nations with conditions of ________ consumer demand,________ supplier bases,and ________ new entrant potential from related industries.

Accepted Answer

A)   weak; weak; high
B)   strong; strong; low
C)   weak; weak; low
D)   strong; strong; highE) A) and D)
F) A) and C)

Question 7

________ are most appropriate when a firm already has the appropriate knowledge and capabilities that it can leverage rather easily through multiple locations in many countries.

Accepted Answer

A)   Joint ventures
B)   Strategic alliances
C)   Licensing agreements
D)   Wholly owned subsidiariesE) A) and B)
F) A) and C)

Question 8

Renault paid 1 billion USD to acquire a 25 percent ownership stake in the Russian automaker AvtoVAZ in 2008.Just one year later,Russian Prime Minister Vladimir Putin threatened to dilute the Renault ownership stake unless it contributed more money to prop up AvtoVAZ,which was then experiencing a significant slide in sales.This is an example of ________ risk.

Accepted Answer

A)   currency
B)   economic
C)   political
D)   managementE) A) and B)
F) B) and C)

Question 9

What is a beachhead strategy and how does it contribute to a company's decision to internationalize?

Accepted Answer

Multinationals often stumble onto a step...

Question 10

Industries in which proportionally more value is added in ________ activities are more likely to benefit from a global strategy.

Accepted Answer

A)   downstream
B)   upstream
C)   marketing
D)   salesE) C) and D)
F) A) and B)

Question 11

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

Accepted Answer

A)   global strategy
B)   multidomestic strategy
C)   transnational strategy
D)   overall cost leadership strategyE) A) and B)
F) None of the above

Question 12

If the U.S.dollar appreciates relative to foreign currency,what is likely to be the result for the U.S.company that has branches abroad?

Accepted Answer

A)   Profits will increase, when measured in U.S. dollars.
B)   Profits will decrease, when measured in U.S. dollars.
C)   Foreign exports to the United States will decrease.
D)   Foreign demand for U.S. goods and services will decrease.E) A) and D)
F) A) and B)

Question 13

Limitations of transnational strategies include all the following except

Accepted Answer

A)   unique challenges in determining optimal locations of activities to ensure cost .
B)   unique managerial challenges in fostering knowledge transfer.
C)   unique ability to adapt to local markets.
D)   unique challenges in determining optimal locations of activities to ensure quality.E) A) and B)
F) A) and C)

Question 14

Which of these points on the Porter diamond of national advantage is the strongest indicator of global competitive success?

Accepted Answer

A)   foreign rivalry
B)   domestic rivalry
C)   global rivalry
D)   international rivalryE) B) and C)
F) All of the above

Question 15

Countries with demanding consumers,like environmentally-concerned Denmark,drive ________ to meet the demand.

Accepted Answer

A)   worldwide innovation
B)   in-country innovation
C)   foreign manufacturing
D)   global exchangeE) None of the above
F) All of the above

Question 16

According to the textbook,globalization involves international exchange.Included in this exchange is trade in goods and services as well as the exchange of ________,________,and ________ across countries.

Accepted Answer

A)   habits; values; ideas
B)   traditions; legal systems; history
C)   money; ideas; information
D)   statistics; personnel; purchasing powerE) A) and C)
F) All of the above

Question 17

According to Euromoney's 2017 semi-annual "Country Risk Rating," which one of the following countries has the highest economic risk?

Accepted Answer

A)   South Korea
B)   China
C)   Colombia
D)   ArgentinaE) All of the above
F) A) and C)

Question 18

What is international strategy? Discuss the risks and challenges associated with an international strategy.

Accepted Answer

International strategy is a strategy bas...

Question 19

Shared Spanish colonialism is one reason that explains regionalism tendencies in

Accepted Answer

A)   Asia.
B)   South America.
C)   the United States.
D)   Africa.E) C) and D)
F) A) and D) B

Question 20

Multinational firms are constantly faced with the decision of choosing between ________ adaptation and ________ integration.

Accepted Answer

A)   local; local
B)   local; global
C)   global; local
D)   global; globalE) All of the above
F) A) and B)

Exam 7: International Strategy: Creating Value in Global Markets

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

Correct Answer
verified
False

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 Answer
verified

Which of the following is not a risk associated with a global strategy?

Correct Answer
verified

Which of the following is not a risk normally associated with bottom-of-the-pyramid strategies?

Correct Answer
verified

________ are fees that a multinational receives from a foreign licensee in return for its use of intellectual property (trademark,patent,trade secret,technology) .

Correct Answer
verified
C

Rivalry is intense in nations with conditions of consumer demand, supplier bases,and new entrant potential from related industries.

Correct Answer
verified

________ are most appropriate when a firm already has the appropriate knowledge and capabilities that it can leverage rather easily through multiple locations in many countries.

Correct Answer
verified

Correct Answer
verified

What is a beachhead strategy and how does it contribute to a company's decision to internationalize?

Correct Answer
verified
Multinationals often stumble onto a step...
View Answer

Industries in which proportionally more value is added in ________ activities are more likely to benefit from a global strategy.

Correct Answer
verified

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

Correct Answer
verified

If the U.S.dollar appreciates relative to foreign currency,what is likely to be the result for the U.S.company that has branches abroad?

Correct Answer
verified

Limitations of transnational strategies include all the following except

Correct Answer
verified

Which of these points on the Porter diamond of national advantage is the strongest indicator of global competitive success?

Correct Answer
verified

Countries with demanding consumers,like environmentally-concerned Denmark,drive ________ to meet the demand.

Correct Answer
verified

According to the textbook,globalization involves international exchange.Included in this exchange is trade in goods and services as well as the exchange of ,,and across countries.

Correct Answer
verified

According to Euromoney's 2017 semi-annual "Country Risk Rating," which one of the following countries has the highest economic risk?

Correct Answer
verified

What is international strategy? Discuss the risks and challenges associated with an international strategy.

Correct Answer
verified
International strategy is a strategy bas...
View Answer

Shared Spanish colonialism is one reason that explains regionalism tendencies in

Correct Answer
verified
B

Multinational firms are constantly faced with the decision of choosing between adaptation and integration.

Correct Answer
verified

Exam 7: International Strategy: Creating Value in Global Markets

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

Correct AnswerverifiedFalse

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 not a risk associated with a global strategy?

Correct AnswerverifiedShow Answer

Which of the following is not a risk normally associated with bottom-of-the-pyramid strategies?

Correct AnswerverifiedShow Answer

________ are fees that a multinational receives from a foreign licensee in return for its use of intellectual property (trademark,patent,trade secret,technology) .

Correct AnswerverifiedC

Rivalry is intense in nations with conditions of ________ consumer demand,________ supplier bases,and ________ new entrant potential from related industries.

Correct AnswerverifiedShow Answer

________ are most appropriate when a firm already has the appropriate knowledge and capabilities that it can leverage rather easily through multiple locations in many countries.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What is a beachhead strategy and how does it contribute to a company's decision to internationalize?

Correct AnswerverifiedMultinationals often stumble onto a step...View AnswerShow Answer

Industries in which proportionally more value is added in ________ activities are more likely to benefit from a global strategy.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If the U.S.dollar appreciates relative to foreign currency,what is likely to be the result for the U.S.company that has branches abroad?

Correct AnswerverifiedShow Answer

Limitations of transnational strategies include all the following except

Correct AnswerverifiedShow Answer

Which of these points on the Porter diamond of national advantage is the strongest indicator of global competitive success?

Correct AnswerverifiedShow Answer

Countries with demanding consumers,like environmentally-concerned Denmark,drive ________ to meet the demand.

Correct AnswerverifiedShow Answer

According to the textbook,globalization involves international exchange.Included in this exchange is trade in goods and services as well as the exchange of ________,________,and ________ across countries.

Correct AnswerverifiedShow Answer

According to Euromoney's 2017 semi-annual "Country Risk Rating," which one of the following countries has the highest economic risk?

Correct AnswerverifiedShow Answer

What is international strategy? Discuss the risks and challenges associated with an international strategy.

Correct AnswerverifiedInternational strategy is a strategy bas...View AnswerShow Answer

Shared Spanish colonialism is one reason that explains regionalism tendencies in

Correct AnswerverifiedB

Multinational firms are constantly faced with the decision of choosing between ________ adaptation and ________ integration.

Correct AnswerverifiedShow Answer

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False

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C

Rivalry is intense in nations with conditions of consumer demand, supplier bases,and new entrant potential from related industries.

Correct Answer
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Multinationals often stumble onto a step...
View Answer

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According to the textbook,globalization involves international exchange.Included in this exchange is trade in goods and services as well as the exchange of ,,and across countries.

Correct Answer
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Correct Answer
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Correct Answer
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International strategy is a strategy bas...
View Answer

Correct Answer
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B

Multinational firms are constantly faced with the decision of choosing between adaptation and integration.

Correct Answer
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