Strategic Management: Strategic Managment

Gregory G. Dess, University of Texas at Dallas
G.T. Lumpkin, University of Illinois--Chicago

International Strategy: Creating Value in Global Markets

True or False


1	In Michael Porter's "diamond of competitive advantage," there are three broad attributes that, as a system, constitute a nation's competitiveness in an industry.
		A)	TRUE
		B)	FALSE


2	Intense rivalry in domestic markets does not typically force firms to look outside their national boundaries for new markets.
		A)	TRUE
		B)	FALSE


3	Variations in foreign markets such as culture, language and customs can represent major management risks when firms enter foreign markets.
		A)	TRUE
		B)	FALSE


4	Because it drives economies of scale as far as possible and offers a middle of the road product appealing to the largest number of consumers in every market, a global strategy is the most suitable strategy for international operations.
		A)	TRUE
		B)	FALSE


5	Corporations with multiple foreign operations that act very dependently on one another are following a multidomestic strategy.
		A)	TRUE
		B)	FALSE


6	Improved adaptation to all competitive situations is a key tenet of a transnational strategy, as well as flexibility by capitalizing on communication and knowledge flowing throughout the organization.
		A)	TRUE
		B)	FALSE


7	The top method of entry into a foreign market is characteristically the establishment of a wholly owned foreign subsidiary so that the parent organization can maintain a high level of control.
		A)	TRUE
		B)	FALSE

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