Question 1

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 chain.E) B) and C)
F) A) and B)

Question 2

Explain the role of factor endowments in the rise of the software industry in India.

Accepted Answer

Factor endowments are conducive to the r...

Question 3

In Euromoney magazine's 2017 semi-annual "Country Risk Rating" evaluating political,economic,and other risks that entrants to international markets potentially face,which of the following countries have the next to the lowest country political risk?

Accepted Answer

A)   Libya and Argentina
B)   Singapore and Hong Kong
C)   Norway and Canada
D)   China and BahrainE) B) and C)
F) A) and D)

Question 4

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) None of the above
F) All of the above

Question 5

Which of the following types of international firms are most likely to benefit from a global strategy as opposed to a multidomestic strategy?

Accepted Answer

A)   firms that compete in industries in which consumer preferences vary substantially in each country
B)   firms in industries that are expanding very rapidly
C)   firms in industries that have value added by sales and marketing departments
D)   firms in industries that have much value added in research and design or manufacturingE) A) and D)
F) A) and C)

Question 6

Regionalization is most important because it permits companies to organize their activities based upon

Accepted Answer

A)   physical distance between the home country and the foreign country.
B)   the extrinsic distance between the home country and the foreign country.
C)   the true distance between the home country office and the foreign country.
D)   shareholder expectations.E) None of the above
F) B) and C)

Question 7

Globalization opens the doors for companies to attract new customers.One of the challenges is to determine how to meet the needs of these customers who have

Accepted Answer

A)   different income levels.
B)   low income levels.
C)   high income levels.
D)   steady income levels.E) A) and B)
F) None of the above

Question 8

Which of the following is not a source of political risk in many countries?

Accepted Answer

A)   the presence of social unrest
B)   the presence of the rule of law
C)   the presence of military turmoil
D)   the presence of violent conflictE) A) and D)
F) B) and D)

Question 9

Because many countries are investing in countries other than their own,each country is becoming more autonomous and independent.

Accepted Answer

A) True 
 B)False

Question 10

Panasonic entered the market in China and found that it needed to balance global integration with local adaptation.It set up a Lifestyle Research Center in China to interpret data on customer wants and needs.This is an example of a company using ________ strategy.

Accepted Answer

A)   an international
B)   a multidomestic
C)   a single country
D)   a transnationalE) C) and D)
F) B) and D)

Question 11

As in the case of Siebel Systems (now part of Oracle) ,elements of a global strategy may facilitate the competitive advantage of differentiation by

Accepted Answer

A)   increased freedom of individual business units to adapt to local tastes.
B)   the creation of a worldwide network to achieve consistent service regardless of location.
C)   flexibility in applying research and development to meet country-specific needs.
D)   tailoring products to meet country-specific needs.E) All of the above
F) None of the above

Question 12

Which one of the following is not a Western hemisphere trade bloc?

Accepted Answer

A)   NAFTA
B)   MERCOSUR
C)   ASEAN
D)   Latin American Integration AssociationE) None of the above
F) A) and C)

Question 13

In Euromoney magazine's 2017 semi-annual "Country Risk Rating" evaluating political,economic,and other risks that entrants to international markets potentially face,which of the following countries have the next to the highest country economic risk?

Accepted Answer

A)   South Africa and Russia
B)   Singapore and China
C)   Argentina and Bahrain
D)   Kazakhstan and ColombiaE) All of the above
F) None of the above

Question 14

A ________ is a business in which a multinational company owns 100 percent of the stock.

Accepted Answer

A)   wholly owned subsidiary
B)   strategic alliance
C)   joint venture
D)   franchising operationE) A) and B)
F) A) and C)

Question 15

With regard to factor conditions,the pool of resources that a firm (or nation)has is much more important than the speed and efficiency with which these resources are deployed.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is not a motivation for a company to pursue international expansion?

Accepted Answer

A)   It wishes to increase the size of the potential markets for its products and services.
B)   It wishes to take advantage of arbitrage opportunities to increase profit.
C)   It wishes to optimize value-chain activities to enhance performance, reduce costs, and reduce risk.
D)   It wishes to increase foreign market penetration by developing products for the home market.E) B) and D)
F) A) and B)

Question 17

A U.S.firm expands into China and Canada at exactly the same sales volume.The physical distance is the only factor that affects the true distance between the countries.

Accepted Answer

A) True 
 B)False

Question 18

The rise of ________ capitalism around the world creates tremendous business opportunities for multinational corporations.

Accepted Answer

A)   social
B)   multinational
C)   market
D)   democraticE) A) and B)
F) B) and C)

Question 19

According to the textbook,________ economic integration has progressed at a faster pace than ________ economic integration.

Accepted Answer

A)   global; international
B)   international; regional
C)   regional; global
D)   regional; inter-regionalE) None of the above
F) B) and D)

Question 20

Similarity of culture,laws,rules,and norms encourages

Accepted Answer

A)   regionalization.
B)   globalization.
C)   trans-nationalization.
D)   ethnocentric expansion.E) B) and C)
F) None of the above

Exam 7: International Strategy: Creating Value in Global Markets

Regionalization is most important because it permits companies to organize their activities based upon

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 of the following types of international firms are most likely to benefit from a global strategy as opposed to a multidomestic strategy?

Correct AnswerverifiedShow Answer

Which of the following is not a motivation for a company to pursue international expansion?

Correct AnswerverifiedShow Answer

Which of the following is not a source of political risk in many countries?

Correct AnswerverifiedShow Answer

Which one of the following is not a Western hemisphere trade bloc?

Correct AnswerverifiedShow Answer

Similarity of culture,laws,rules,and norms encourages

Correct AnswerverifiedShow Answer

In Euromoney magazine's 2017 semi-annual "Country Risk Rating" evaluating political,economic,and other risks that entrants to international markets potentially face,which of the following countries have the next to the lowest country political risk?

Correct AnswerverifiedShow Answer

A U.S.firm expands into China and Canada at exactly the same sales volume.The physical distance is the only factor that affects the true distance between the countries.

Correct AnswerverifiedShow Answer

Because many countries are investing in countries other than their own,each country is becoming more autonomous and independent.

Correct AnswerverifiedShow Answer

Panasonic entered the market in China and found that it needed to balance global integration with local adaptation.It set up a Lifestyle Research Center in China to interpret data on customer wants and needs.This is an example of a company using ________ strategy.

Correct AnswerverifiedShow Answer

As in the case of Siebel Systems (now part of Oracle) ,elements of a global strategy may facilitate the competitive advantage of differentiation by

Correct AnswerverifiedShow Answer

The rise of ________ capitalism around the world creates tremendous business opportunities for multinational corporations.

Correct AnswerverifiedShow Answer

A ________ is a business in which a multinational company owns 100 percent of the stock.

Correct AnswerverifiedShow Answer

Globalization opens the doors for companies to attract new customers.One of the challenges is to determine how to meet the needs of these customers who have

Correct AnswerverifiedShow Answer

In Euromoney magazine's 2017 semi-annual "Country Risk Rating" evaluating political,economic,and other risks that entrants to international markets potentially face,which of the following countries have the next to the highest country economic risk?

Correct AnswerverifiedShow Answer

Explain the role of factor endowments in the rise of the software industry in India.

Correct AnswerverifiedFactor endowments are conducive to the r...View AnswerShow Answer

With regard to factor conditions,the pool of resources that a firm (or nation)has is much more important than the speed and efficiency with which these resources are deployed.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

According to the textbook,________ economic integration has progressed at a faster pace than ________ economic integration.

Correct AnswerverifiedShow Answer

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Factor endowments are conducive to the r...
View Answer

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According to the textbook, economic integration has progressed at a faster pace than economic integration.

Correct Answer
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