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1 | |
In Michael Porter's framework, which of the following factors does not affect a nation's competitiveness? |
| | A) | factor conditions |
| | B) | policies that protect the nation's domestic competitors |
| | C) | demand characteristics |
| | D) | related and supported industries |
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2 | |
The sale of Boeing's commercial aircraft and Microsoft's operating systems in many countries enable these companies to benefit from |
| | A) | higher prices in their domestic markets. |
| | B) | economies of scale. |
| | C) | optimizing the location for many activities in their value chain. |
| | D) | reducing their exposure to currency risks. |
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3 | |
Demands to "reduce costs" require that |
| | A) | the company needs to supplement the local foreign economy in a manner specified by the local government. |
| | B) | a company should not trade idiosyncratic preferences in product features for higher economic returns. |
| | C) | a company must pursue what is economically beneficial to the company including maximizing economies of scale and learning curve effects. |
| | D) | the manager should follow a multidomestic strategy to maximize the economic benefits to the company. |
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4 | |
High pressure for lower costs combined with high pressure for local adaptation would imply what type of international strategy: |
| | A) | global |
| | B) | multidomestic |
| | C) | differentiation |
| | D) | transnational |
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5 | |
All of the following are global strategy limitations except |
| | A) | ability to locate activities in optimal locations. |
| | B) | limited ability to adapt to local markets. |
| | C) | concentration of activities may increase dependence on a single facility. |
| | D) | single locations may lead to higher tariffs and transportation costs. |
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6 | |
Which of the following is not a limitation of a multidomestic strategy? |
| | A) | less ability to realize cost savings through scale economies |
| | B) | greater difficulty in transferring knowledge across countries |
| | C) | may lead to "overadaptation" as conditions change |
| | D) | single locations may lead to higher tariffs and transportation costs |
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7 | |
Which of the following describes the most standard order of entry into foreign markets? |
| | A) | franchising, licensing, exporting, joint venture, and wholly owned subsidiary |
| | B) | licensing, exporting, franchising, joint venture, and wholly owned subsidiary |
| | C) | exporting, licensing, franchising, joint venture, and wholly owned subsidiary |
| | D) | exporting, franchising, licensing, joint venture, and wholly owned subsidiary |
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8 | |
____________ involve the creation of a third-party legal entity, whereas __________ do not. |
| | A) | Licensing agreements, joint ventures |
| | B) | Franchising agreements; strategic alliances |
| | C) | Strategic alliances; joint ventures |
| | D) | Joint ventures; strategic alliances |
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2002 A McGraw-Hill Online Learning Centre