Which of the following is an accurate statement regarding US companies with only domestic operations?

The reason the world economy is globalizing at an accelerated pace is because:

D) growth-minded companies are racing to build stronger competitive positions in the markets of more countries.

The reasons why a company opts to expand outside its home market include all of the following EXCEPT:

A) gaining access to new customers for the company’s products/services. B) spreading its business risk across a wider market base. C) achieving lower costs through economies of scale, experience, and increased purchasing power. D) exploiting its core competencies and capabilities. E) identifying resources and capabilities in the company’s home market.

Which of the following is NOT a typical reason for companies to expand into the markets of foreign countries?

A) To gain access to new customers, especially when a company encounters dwindling growth opportunities in its home market B) To strengthen its capability to employ vertical integration strategies, especially those that involve partial integration (building positions in selected stages of the industry’s value chain) C) To achieve lower costs and enhance the firm’s competitiveness D) To capitalize on company competencies and capabilities E) To spread business risk across a wider geographic market base

Why do companies decide to enter a market?

A) To capture economies of scale in product development, manufacturing, or marketing

Which one of the following is NOT a reason why a company decides to enter foreign markets?

A) To spread business risk across a wider geographic market base B) To capitalize on company competencies and capabilities C) To achieve lower costs through economies of scale, experience, and increased purchasing power D) To gain economic incentives offered by governments of developing countries wishing to expand industry and job creation E) To gain access to more buyers for the company’s products/services

Which of the following is NOT a reason why crafting a strategy to compete in one or more foreign markets is inherently complex?

A) Because factors that affect industry competitiveness vary from country to country B) Because of the potential for location-based advantages to conducting value chain activities in certain countries C) Because different government policies and economic conditions make the business climate more favorable in some countries than others D) Because of the risks for shifts in currency exchange rates E) Because similarities in buyer tastes and preferences creates challenges in standardizing products and services

Which of the following is NOT an accurate statement as concerns competing in the markets of foreign countries?

A) A multi-country strategy is generally superior to a global strategy. B) There are country-to-country differences in consumer buying habits and buyer tastes and preferences. C) A company must contend with fluctuating exchange rates and country-to-country variations in host government restrictions and requirements. D) Product designs suitable for one country are often inappropriate in another. E) Market growth rates vary from country to country.

Competing in the markets of foreign countries entails dealing with such factors as:

A) fluctuating exchange rates, country-to-country parallels in host government restrictions and requirements, and country-to-country variations in cultural, demographic, and market conditions. B) important country-to-country differences in consumer buying habits and buyer tastes and preferences. C) whether to customize the company’s offerings in each different country market or whether to offer a mostly standardized product worldwide. D) the fact that product designs suitable for one country are sometimes inappropriate in another. E) All of these.

Competing in the markets of foreign countries generally does NOT involve which of the following?

A) Country-to-country differences in consumer buying habits and buyer tastes and preferences B) Country-to-country variations in host government restrictions and requirements and fluctuating exchange rates C) Whether to customize the company’s offerings in each different country market or whether to offer a mostly standardized product worldwide D) In which countries to locate company operations for maximum locational advantage, given country-tocountry variations in wage rates, worker productivity, energy costs, tax rates, and the like E) Crafting a multidomestic strategy that works just as well in one country as in another and that also has the appeal of turning the world market into a mostly homogeneous market

One of the biggest strategic challenges to competing in the international arena includes:

D) whether to offer a standardized product worldwide or a customized product offering in each different country market.

What is the framework that comprises a set of major factors (that vary from country to country) that describe the nature of each country’s business environment?

B) Porter’s Diamond of National Competitive Advantage

Which of the following factors is NOT a factor analyzed and relied on by firms when developing competitive strength in a foreign market?

E) The level of industry-related support activities to foster customization of products and services

For a company to create a home country advantage and become competitively strong in a foreign market, it should base its strategy around which of the following factors?

E) The level of rivalry existing in the foreign market

The diamond framework can be used to reveal the answers to all of the following that are important for competing on an international basis EXCEPT:

A) where foreign entrants into an industry are most likely to come from. B) how to formulate an exit strategy to push foreign competitors out of the market on the basis of competing strengths. C) which countries’ foreign rivals are likely to be the weakest. D) how managers can decide which foreign markets to enter first. E) where to locate different value chain activities so they are the most beneficial.

The diamond framework is an aid in deciding/revealing:

A) the appropriate level of competition one can expect. B) the basis of the new rival’s strengths. C) the countries where rivals will be weakest. D) the advantages of conducting particular business activities in that country. E) All of these.

One important concern a company has in trying to compete successfully in foreign markets is:

C) how it can gain location-based competitive advantage in locating its various value chain activities.

When can companies gain competitive advantage over those rivals with plants in countries where costs are high?

C) When companies can build production facilities in low-cost countries (or source their products from contract manufacturers in these countries)

Cross-country variations in government policies and economic conditions affect:

B) the opportunities available to foreign entrants and the risks of operating within that country.

Which of the following is NOT a typical host government requirement that affects the operations of foreign companies?

D) Requiring foreign companies to use vertical integration to support operations of local companies

The difference between political risks and economic risks is that:

A) political risks stem from instability or weakness in national governments, while economic risks stem from the stability of a country’s monetary system, and its economic and regulatory policies.

A U.S. manufacturer that exports goods made at its U.S. plants for shipment to foreign markets:

D) becomes more competitive in foreign markets when the U.S. dollar declines in value against the currencies of the countries to which it is exporting.

A European manufacturer that exports goods made at its European plants to the United States:

C) becomes more competitive in the U.S. market when the euro declines in value against the U.S. dollar.

A U.S. company that makes all of its goods at a plant in Brazil and then exports the Brazilian-made goods to country markets across the world:

B) is competitively advantaged when the Brazilian real declines in value against the currencies of the countries to which the Brazilian-made goods are being exported.

A European-based company that makes all of its goods at a plant in Brazil and then exports the Brazilianmade goods to country markets in many different parts of the world:

C) becomes less competitive in foreign markets when the Brazilian real gains in value against the currencies of the countries to which the Brazilian-made goods are being exported.

One of the big risks of competing in foreign markets is:

E) the extent to which the advantages of manufacturing goods in a particular country can be wiped out when fluctuating exchange rates result in that country’s currency growing stronger relative to the currencies of the countries where the output is being sold.

The advantages of manufacturing goods in a particular country and exporting them to foreign markets:

D) are weakened when that country’s currency grows stronger relative to the currencies of the countries where the output is being sold.

Which of the following statements concerning the effects of fluctuating exchange rates on companies competing in foreign markets is NOT accurate?

B) The advantages of manufacturing goods in a particular country are largely unaffected by fluctuating exchange rates.

Which of the following statements concerning the effects of fluctuating exchange rates on companies competing in foreign markets is true?

D) Companies that are manufacturing goods in a particular country and are exporting much of what they produce are benefited when that country’s currency grows weaker relative to the currencies of the countries that the goods are being exported to.

Which of the following statements about fluctuating exchange rates and the related effects on companies competing in foreign markets is true?

A) Fluctuating exchange rates pose significant risks to a company’s competitiveness in foreign markets

A weaker U.S. dollar is an economically favorable exchange-rate shift for manufacturing plants based in the United States.

A) This is a true statement.

The competitiveness of any company’s facilities in any country is partly dependent upon:

A) whether exchange rate changes over time have a favorable or unfavorable cost impact. B) exchange rate movements, which are unpredictable, swinging, first one way and then another way. C) the government’s currency growing weaker in relation to the currencies of the countries where the lower-cost imports are being made. D) a weak currency. E) All of these

Companies operating in an international marketplace have to respond to:

A) whether to customize their offerings in each different country market to match the tastes and preferences of local buyers. B) whether to pursue a strategy of offering a mostly standardized product worldwide. C) how much to customize their offerings in each different country market to match the tastes and preferences of local buyers. D) the tensions between market pressures to localize a company’s product offerings country by country and the competitive pressures to lower costs through greater product customization. E) All of these.

The primary strategic options for entering foreign markets, depends on the firm’s wherewithal to:

A) rely on strategic alliances or joint ventures with foreign companies. B) maintain a national (one-country) production base and exporting goods to foreign markets. C) adopt a licensing approach with foreign firms to produce and distribute one’s products or to use the company’s technology. D) employ a franchising strategy. E) All of these.

Which of the following is not a generic strategy option for entering into foreign markets?

A) Maintaining a national (one-country) production base and exporting goods to foreign markets B) Establishing a subsidiary via acquisition or opt for a de nova approach C) Franchising and licensing strategies D) Alliances or joint ventures strategies E) An enterprise-wide strategy to take over local competition

Which of the following factors does not determine whether to employ the entry strategy options?

A) Cross-border transfer activities and home country advantages

Using domestic plants as a production base for exporting goods to selected foreign country markets:

A) can be an excellent initial strategy to test the international waters and learn if attractive market positions can be established in foreign markets.

The advantages of using an export strategy to build a customer base in foreign markets include:

B) minimizing its risk and direct investments requirements.

Which of the following is false as concerns use of an export strategy to compete in foreign markets?

A) One advantage of an export strategy is the ability to test the international waters before having to commit substantial sums to establishing operations in foreign countries—the amount of capital required to begin exporting is frequently quite minimal. B) Exporting carries the risk of being vulnerable to adverse shifts in currency exchange rates. C) An export strategy is especially well suited to accommodating the different needs and preferences of buyers in different countries. D) An export strategy may allow a company to gain additional scale economies from centralizing production in one or several giant plants. E) An export strategy is disadvantageous when costs in the country where the goods are being manufactured for export are higher than the costs in those locations where rivals have their plants.

An export strategy is vulnerable except when an exporter is:

C) affected by adverse shifts occurring in currency exchange rates.

The advantages of using a licensing strategy to participate in foreign markets include:

D) being able to leverage the company’s technical know-how, appealing brand, or patents without committing their resources or capabilities to foreign markets.

A primary disadvantage of a licensing strategy is the need to:

D) lose some degree of control over their competitive offering.

The advantages of using a franchising strategy to pursue opportunities in foreign markets include:

A) having franchisees bear most of the costs and risks of establishing foreign locations and requiring the franchisor to expend only the resources to recruit, train, and support and monitor franchisees.

The big problem a franchisor faces is:

B) maintaining quality control due to a lack of commitment to consistency and standardization

The advantages of using an acquisition strategy to pursue opportunities in foreign markets include:

A) having a high level of control and speed as an entry strategy to overcome trade barriers.

The big issue an acquisition-minded firm must consider is whether strategically:

C) to pay a premium price for a successful local company or to buy a struggling firm at a discount price.

A Greenfield venture in a foreign market is one:

A) where the company creates a wholly owned subsidiary business by setting up all aspects of the operation upon entering the market from the ground up.

Greenfield ventures, like all market entry strategies can pose serious problems to achieving foreign market entry success. What is not deemed a barrier to success?

A) Such ventures can require costly capital investments and are the slowest entry route for building the business. B) Such ventures can have a tendency to divert valuable resources from current business. C) Such ventures really need well-functioning strong markets as well as well established institutions to ensure protection of foreign investor rights. D) Such ventures require managerial talent experienced in getting new subsidiaries up and running. E) Such ventures can be costlier than making an acquisition.

Which of the following is one of the four conditions that make an internal startup strategy appealing over an acquisition?

D) When the internal startup will have the necessary scale and resource strengths to compete with rivals

Strategic alliances, joint ventures, and cooperative agreements between domestic and foreign firms are a potentially fruitful means for the partners to:

A) enter additional country markets and compete on a more global scale while still preserving their independence. B) gain better access to scale economies in production and/or marketing. C) fill competitively important gaps in their technical expertise and/or knowledge of local markets. D) share distribution facilities and dealer networks, thus mutually strengthening their access to buyers. E) All of these.

Which of the following is NOT a potential benefit of cross-border strategic alliances or other cooperative arrangements between foreign and domestic companies?

A) Gaining wider geographic coverage and access to attractive country markets through the foreign partner’s familiarity with the market. B) Gaining better access to scale economies in production and/or marketing. C) Filling competitively important gaps in their technical expertise and/or knowledge of local markets. D) A greater ability to employ a global strategy (as opposed to a multicountry strategy). E) Sharing distribution facilities and dealer networks, thus mutually strengthening their access to buyers.

Which of the following is NOT one of the problems and risks of cross-border alliances between domestic and foreign firms?

A) Overcoming language and cultural barriers B) The amount of time required to build trust, effective communication, and coordination between allies C) Developing mutually agreeable ways of dealing with key issues or differences D) Making it harder to pursue a multidomestic strategy as compared to a global strategy E) Suspicions about whether allies are being forthright in exchanging information and expertise

Which of the following is the role played by local managers within experienced multinational companies?

A) To contribute needed understanding of local market conditions, local buying habits, and local ways of doing business B) To run the local operations for the company C) To understand how “the system” works to detour the hazards of collaborative alliances with local companies D) To serve as conduits for the flow of information between the corporate office and local operations E) All of the above.

What makes cross-border alliances an attractive strategic means of gaining a foothold in foreign markets?

A) Alliances provide the flexibility to readily disengage when the purpose has been served or the benefits prove elusive and also provide the firm with some degree of autonomy and operating control, as well as independence.

The risks of strategic alliances often include partners discovering they have:

A) conflicting objectives and strategies. B) deep differences of opinion about how to proceed operationally and strategically. C) important differences in corporate values. D) misunderstandings about appropriate ethical standards. E) All of these.

Cross-border alliances between domestic and foreign firms are more effective in:

C) helping establish a new beachhead of opportunity rather than in achieving and sustaining global market leadership.

What is the foremost strategic issue that must be addressed by firms when operating in two or more foreign markets?

A) Deciding on the degree to vary its competitive approach to fit the specific market conditions and buyer preferences in each host country

Which of the following is NOT one of the strategy options for competing in the markets of foreign countries?

A) A profit sanctuary strategy B) An international strategy C) A global strategy D) A multicountry strategy E) A transnational strategy

Which of the following are NOT generic strategy options for competing in foreign markets?

A) A multidomestic strategy B) Global strategies keyed either to low-cost or differentiation C) Cross-border transfer strategies and home-field advantage strategies D) Using strategic alliances and joint ventures with foreign competitors as the primary vehicles for entering and competing in foreign markets E) A transnational strategy

Which of the following statements regarding multidomestic competition is false?

B) With multidomestic competition, the power and strength of a company’s strategy and resource capabilities in one country significantly enhance its competitiveness in other country markets.

Multidomestic competition refers to situations where:

B) competition in one national market is independent of competition in other national markets, and as a consequence, there is—strictly speaking—no “international or world market.”

Multidomestic competition is best characterized as a situation where:

E) there is no international or global market, just a collection of mostly self-contained country markets.

A multidomestic strategy represents:

A) a think-local, act-local approach to international strategy.

When is a think-local, act-local approach to strategy making appropriate?

D) When the need for local responsiveness is high due to significant cross-country differences in demographic, cultural, and market conditions and where benefits from standardization is limited

Which of the following statements regarding global competition is false?

A) In global competition, rivals vie for worldwide market leadership. B) In globally competitive industries, the power and strength of a company’s strategy and resource capabilities in one country significantly enhance its competitiveness in other country markets. C) In global competition, a firm’s overall competitive advantage (or disadvantage) grows out of its entire worldwide operations. D) In global competition, there’s more cross-country variation in industry conditions and competitive forces than there is in industries where multidomestic competition prevails. E) In global competition, many of the same rival companies compete against each other in many different countries, but especially so in countries where sales volumes are large and where having a competitive presence is strategically important to building a strong global position in the industry.

Which of the following statements regarding multidomestic and global competition is false?

A) In global competition, rivals vie for worldwide market leadership and the leading competitors compete head to head in the markets of many different countries. B) In globally competitive industries, a company’s competitive position in one country both affects and is affected by its position in other countries. C) One of the features of multidomestic competition is there is greater cross-country variation in market conditions and the nature of the competitive contest among rivals than tends to be the case in globally competitive markets. D) With multidomestic competition, the competitive contest is localized, with rivals battling for national market leadership; moreover, winning in one country market does not necessarily signal that a company has the ability to fare well in the markets of other countries. E) In global competition, the size of a firm’s worldwide competitive advantage (or disadvantage) equals the sum of the competitive advantages (or disadvantages) it has in each country market where it competes.

The characteristics of a world market where global competition prevails include:

A) a market situation where competitive conditions across national markets are linked strongly enough to form a true world market and where leading competitors typically compete head to head in many different countries.

Which of the following is the most unlikely element of a localized multidomestic strategy?

E) Selling direct to buyers (perhaps via the company’s website) to avoid having to establish networks of wholesale/retail dealers in each country market

When a company operates in the markets of two or more different countries, its foremost strategic issue is:

B) whether to vary the company’s competitive approach to fit specific market conditions and buyer preferences in each host country or whether to employ essentially the same strategy in all countries.

A “think local, act local” multidomestic type of strategy:

C) becomes more appealing the bigger the country-to-country differences in buyer tastes, cultural traditions, and market conditions.

The strength of a “think local, act local” multidomestic strategy is that:

A) it matches a company’s competitive approach to prevailing market and competitive conditions in each country market, country by country.

A “think local, act local” multidomestic strategy works particularly well when:

A) host governments enact regulations requiring that products sold locally meet strictly defined manufacturing specifications or performance standards. B) there are significant country-to-country differences in customer preferences and buying habits. C) diverse and complicated trade restrictions of host governments preclude the use of a uniform strategy from country to country. D) there are significant country to country differences in distribution channels and marketing methods. E) All of these.

A “think-local, act local” multidomestic strategy entails:

B) giving local managers considerable strategy-making latitude and often producing different product versions for different countries.

In which of the following situations is employing a “think local, act local” multidomestic strategy highly questionable?

A) When a company desires to transfer competencies and resources across country boundaries and is striving to build a single, uniform competitive advantage worldwide

What is a primary drawback of a localized multidomestic strategy?

D) It hinders the transfer of a company’s competencies and resources across country boundaries and hinders the pursuit of a single, uniform competitive advantage in all country markets where a company operates.

What are two drawbacks of a “think local, act local” multidomestic strategy?

C) The hindering of a company’s transfer of competencies and resources across country boundaries (since somewhat different competencies and capabilities are likely to be employed in different host countries) and that it does not promote the building of a single unified competitive advantage in all country markets where a company competes

A global strategy allows for:

B) the markets in various countries to be part of the world market and competitive conditions across country markets to be strongly linked.

A global strategy is one in which a company:

A) employs the same basic competitive approach in all countries where it operates. B) sells much of the same products everywhere. C) strives to build global brands. D) coordinates its actions worldwide with strong headquarters control represents a think-global, act-global approach. E) All of these.

A think-global, act-global strategic theme puts emphasis on:

C) building a global brand name and aggressively pursuing opportunities to transfer ideas, products, and capabilities from one country to another.

What is the best way to achieving the efficiency potential of a global strategy?

B) It requires that resources and best practices be shared, value chain activities be integrated, and capabilities be transferred from one location to another as they are developed.

A “think global, act global” approach to strategy-making is preferable to a “think local, act local” approach when:

B) country-to-country differences are small enough to be accommodated with the framework of a mostly uniform global strategy.

Which of the following does NOT accurately characterize the differences between a localized multidomestic strategy and a global strategy?

A) A global strategy entails extensive strategy coordination across countries and a multidomestic strategy entails little or no strategy coordination across countries. B) A global strategy often entails use of the best suppliers from anywhere in the world, whereas a multidomestic strategy may entail fairly extensive use of local suppliers (especially where use of local sources is required by host governments). C) A global strategy tends to involve use of similar distribution and marketing approaches worldwide, whereas a multidomestic strategy often entails adapting distribution and marketing to local customs and the culture of each country. D) A global strategy involves striving to be the global low-cost provider by economically producing and marketing a mostly standardized product worldwide, whereas a multidomestic strategy entails pursuing broad differentiation and striving to strongly differentiate its products in one country from the products it sells in other countries. E) A global strategy relies upon the same technologies, competencies, and capabilities worldwide, whereas a multidomestic strategy often entails the use of somewhat different technologies, competencies, and capabilities as may be needed to accommodate local buyer tastes, cultural traditions, and market conditions.

A “think global, act global” approach to crafting a global strategy involves:

A) pursuing the same basic competitive strategic theme (low cost, differentiation, best cost, and focused) in all countries where the firm does business. B) selling much the same products under the same brand names everywhere and expanding into most, if not all, nations where there is significant buyer demand. C) integrating and coordinating the company’s strategic moves worldwide. D) utilizing the same competitive capabilities, distribution channels, and marketing approaches worldwide. E) All of these.

Which of the following is the most unlikely element of a “think global, act global” approach to crafting a global strategy?

A) Minimal responsiveness to buyer tastes, cultural traditions, and market conditions in each country market B) Scattering plants across many countries, with each plant producing product versions for local area markets C) Utilizing the same competitive capabilities, distribution channels, and marketing approaches worldwide D) Requiring local managers in host countries to stick close to the chosen global strategy E) Selling much the same products under the same brand names worldwide

The approach of a firm using a “think global, act local” version of a global strategy entails:

C) pursuing the same basic competitive strategy theme (low cost, differentiation, best cost, focused) in all countries where the firm does business but giving local managers some latitude to adjust product attributes to better satisfy local buyers and to adjust production, distribution, and marketing to be responsive to local market conditions.

The competitive strategy of a firm pursuing a “think global, act local” approach to strategy-making:

D) is essentially the same in all country markets where it competes but it may nonetheless give local managers room to make minor variations where necessary to better satisfy local buyers and to better match local market conditions.

The essential difference between a “think global, act global” and a “think global, act local” approach to strategy-making is that:

C) the “think global, act local” approach gives local managers more latitude to make minor strategy variations where necessary to better satisfy local buyers and to better match local market conditions.

There are a number of advantages to executing a global strategy, but there are also drawbacks that can make the strategy difficult to execute. A primary drawback of a global strategy is that it:

D) involves higher coordination costs due to more complex tasks of managing a globally integrated enterprise.

A strategy that incorporates elements of both multidomestic and global strategies is termed a “transnational” strategy, but sometimes it is referred to as what?

A) A glocalization strategy

Companies often implement a transnational strategy because:

C) it is conducive to mass customization techniques that enable companies to address local preferences in an efficient semi-standard manner.

What strategy is considered more conducive to transferring and leveraging subsidiary skills and capabilities across borders?

A) A transnational strategy

Companies that compete internationally can pursue competitive advantage in world markets (or offset domestic disadvantages) by:

D) locating value chain activities in whatever nations prove most advantageous in a manner that uses location to lower costs or achieve greater product differentiation, allow for the transfer of competitively valuable competencies and capabilities from one country to another, and allow for cross-border coordination.

In expanding into foreign markets, a company can strive to gain competitive advantage (or offset domestic disadvantages) by:

D) dispersing its activities among various countries in a manner that lowers costs or else helps achieve greater product differentiation and transferring competitively valuable competencies and capabilities from its domestic operations to its operations in foreign markets.

Which one of the following is NOT one of the ways a company can strive to gain competitive advantage (or offset domestic disadvantages) by expanding into foreign markets?

A) By competing in both developed and emerging country markets and/or by selling direct to foreign buyers via the company’s website B) By dispersing its activities among various countries in a manner that lowers costs C) By transferring competitively valuable competencies and capabilities from its domestic operations to its operations in foreign markets D) By dispersing its activities among various countries in a manner that helps achieve greater product differentiation and/or working to deepen/broaden its resource strengths and capabilities E) By using cross-border coordination of its strategic moves in ways that a domestic-only competitor cannot

To use location to build competitive advantage, a company that operates transnationally or globally must:

C) consider whether to concentrate each activity it performs in a few select countries or disperse performance of the activity to many nations and consider in which countries to locate particular activities.

To use location to build competitive advantage when competing in both domestic and foreign markets, a company must:

B) consider (1) whether to concentrate each activity it performs in a few select countries or to disperse performance of the activity to many nations, and (2) in which countries to locate particular activities.

In competing in foreign markets, companies find it advantageous to concentrate their activities in a limited number of locations when:

A) there are significant scale economies in performing an activity. B) the costs of manufacturing or other activities are significantly lower in some geographic locations than in others. C) when there is a steep learning or experience curve associated with performing an activity in a single location (thus making it economical to serve the whole world market from just one or maybe a few locations). D) certain locations have superior resources, allow better coordination of related activities, or offer other valuable advantages. E) All of these.

In which of the following circumstances is it advantageous for a multinational competitor to concentrate its activities in a limited number of locations in order to build competitive advantage?

B) When a company has competitively superior patented technology that it can license to foreign partners.

Dispersing the performance of value chain activities to many different countries rather than concentrating them in a few country locations tends to be advantageous

A) when high transportation costs make it expensive to operate from central locations. B) whenever buyer-related activities are best performed in locations close to buyers. C) if diseconomies of large size exist, thereby making it more economical to perform an activity on a smaller scale in several different locations. D) when it is desirable to hedge against (1) the risks of fluctuating exchange rates, (2) supply interruptions or (3) adverse political developments. E) All of these.

The competitive advantage opportunities that a global competitor can gain by dispersing performance of its activities across many nations include all of the following Except:

A) being able to shift production from one country to another to take advantage of exchange rate fluctuations, differing wage rates, differing energy costs, or differing trade restrictions. B) being in better position to choose where and how to challenge rivals. C) shortening delivery times to customers by having geographically scattered distribution facilities. D) locating buyer-related activities (such as sales, advertising, after-sale service and technical assistance) close to buyers. E) centralizing value chain activities to foster just-in-time inventory activities.

Dispersing particular value chain activities across many countries rather than concentrating them in a select few countries can be more advantageous except when

E) there are reasons to decouple buyer-related activities in favor of locational advantages.

Transferring core competencies and resource strengths from one country market to another is

A) a good way for companies to develop broader or deeper competencies and competitive capabilities that can become a strong basis for sustainable competitive advantage.

A key approach for a company to grow sales and profits in several country markets is to

A) transfer its valuable competencies and resource strengths among these markets to aid in the development of broader competencies and capabilities.

Companies that compete on an international basis have a competitive advantage over their purely domestic rivals

B) to benefit from coordinating activities across different countries’ domains.

Sharing and transferring resources and capabilities across borders may also contribute to the development of broader or deeper competencies and capabilities thereby helping a company achieve

B) dominating depth in some competitively valuable area

Companies that compete internationally are able to benefit from coordinating activities across different countries domains by:

B) redirecting shipments to higher sales demand areas.

Profit sanctuaries are country markets or geographic regions where:

C) a company derives substantial profits because of its protected market position or unassailable competitive advantage.

Profit sanctuaries are found to differ by a company’s strategy, such that:

B) An international competitor usually has a profit sanctuary in its home market and may have other sanctuaries in countries where it has a strong position and market share.

What supports competitive offensives in one market with resources and profits diverted from operations in another market?

A) Cross-market subsidization

What does the World trade Organization (WTO) do primarily?

A) Promotes fair trade practices B) Actively polices dumping C) Deals with the rules of trade between nations D) Helps producers, exporters, and importers conduct business E) All of these.

What is it called when a company sells its goods in foreign markets at prices that are below the prices at which it normally sells in its home market or well below its full costs per unit?

What can happen when international rivals compete against one another in multiple-country markets?

D) It could initiate a deterrence effect that encourages mutual restraint in taking aggressive action against one another due to the fear of a retaliatory response that might escalate the battle into a cross-border competitive war.

Companies racing for global market leadership:

A) generally have to consider establishing competitive positions in the markets of emerging countries.

Which of the following is NOT a typical option that companies have to consider to tailor their strategy to fit the circumstances of emerging country markets?

A) Prepare to compete on the basis of low price. B) Be prepared to modify aspects of the company’s business model to accommodate local circumstances (but not so much that the company loses the advantage of global scale and global branding). C) Try to change the local market to better match the way the company does business elsewhere. D) Develop a strategy for the short-term and forget about a long-term strategy because conditions in emerging country markets change so rapidly. E) Stay away from those emerging markets where it is impractical or uneconomic to modify the company’s business model to accommodate local circumstances.

One of the most viable strategic options companies should consider in tailoring their strategy to fit circumstances of emerging country markets includes:

A) Trying to change the local market to better match the way the company does business elsewhere. B) Being prepared to modify aspects of the company’s business model to accommodate local circumstances. C) Preparing to compete on the basis of low price. D) Staying away from those emerging markets where it is impractical to modify the company’s business model to accommodate local circumstances. E) All of these.

Which of the following is an option for tailoring a company’s strategy to fit unusual circumstances presented in developing-country markets?

A) Prepare to compete on the basis of low price. B) Modify aspects of a company’s business model and/or strategy to accommodate local customs. C) Attempt to modify the local market to do business in the manner that the company uses elsewhere. D) Avoid markets where it is impractical or uneconomic to do business in such a way as to accommodate local circumstances. E) All of the above.

The basic strategy options for local companies in competing against global challengers include:

C) utilizing understanding of local customer needs and preferences to create customized products or services, developing business models to exploit shortcoming in local infrastructure, and using acquisitions and rapid growth to defend against expansion-minded multinationals.

The best strategy options for a local company in competing against global challengers include:

D) using an understanding of local customer preferences to create customized products or services, transferring the company’s expertise to cross-border markets, and/or using acquisitions and rapid growth strategies to defend against expansion-minded multinationals

Which of the following is NOT a viable strategy option for a local company in competing against global challengers?

A) Using cross-market transfer strategies to hedge against the risks of exchange rate fluctuations and adverse political developments B) Developing business models to exploit shortcomings in local distribution networks or infrastructures C) Taking advantage of low-cost labor and other competitively important local workforce qualities D) Transferring a company’s expertise to cross-border markets and initiating actions to contend on a global scale E) Using acquisitions and rapid growth strategies to defend against expansion-minded multinationals

Which of the following is true of almost all American businesses today?

What is the fundamental difference between domestic marketing and international marketing?

Which of the following elements in international marketing are uncontrollable elements of the domestic environment?

What makes US companies doing business in foreign countries attractive as targets for terrorism?