Bus 321 Test 2 Part 2 – Flashcards
Unlock all answers in this set
Unlock answersquestion
Ikea attempts to capture global efficiencies while remaining responsive to local conditions. Ikea follows a
answer
transnational strategy
question
Hoffman Vacuums, experiences very little pressure either to respond to local needs or to integrate globally. Which strategy would most likely be best for Hoffman?
answer
home replication strategy
question
Kraft Foods is more concerned with meeting the specific needs of local customers than with reducing manufacturing costs. Which strategy is most likely used by Kraft Foods?
answer
multidomestic strategy
question
Sony designs its products with an international market in mind, so the firm most likely uses a
answer
global strategy
question
When pressures for global integration and local responsiveness are both high, firms usually adopt the
answer
transnational strategy
question
Which of the following situations does NOT correspond to a low need for global integration?
answer
weak brand name
question
Requires the transfer of information and experiences from the parent to each subsidiary, from each subsidiary to the parent, and among subsidiaries.
answer
Worldwide learning
question
Which strategy is likely the best for promoting global learning?
answer
transnational strategy
question
Which of the following is NOT one of the components of strategy development?
answer
differential advantage
question
Answers the question, "What do we do exceptionally well, especially as compared to our competitors?"
answer
distinctive competence
question
Disney's name, image, and portfolio of characters are examples of which component of international strategy?
answer
distinctive competence
question
Answers the questions, "Where are we going to conduct business?"
answer
scope of operations
question
Which of the following is LEAST likely a source of distinctive competence for a firm?
answer
narrow product niche
question
The compatibility of software programs with the Windows operating system is an example of Microsoft's
answer
distinctive competence
question
May be defined in terms of geographic regions, markets, or product niches
answer
scope of operations
question
Answers the question,"Given that we are going to compete in these markets, how will we allocate our resources to them?"
answer
resource deployment
question
Although DaimlerChrysler's newest plant is in Alabama, most Mercedes are still German built. This is an example of
answer
resource deployment
question
Answers the question,"How can different elements of our business benefit each other?"
answer
synergy
question
The goal of what is to create a situation where the whole is greater than the sum of the parts
answer
synergy
question
When managers develop, refine, and agree on which markets to enter or exit and how to best compete in each, the managers are engaged in the strategy
answer
formulation process
question
The firm develops the tactics for achieving the formulated international strategies
answer
strategy implementation
question
The first step in the strategic planning process is to
answer
develop a mission statement
question
Which of the following clarifies the organization's purpose, values, and direction?
answer
mission statement
question
Which of the following would most likely be initiated through an environmental scan?
answer
SWOT analysis
question
A systematic collection of data about all elements of the firm's external and internal environments
answer
environmental scan
question
Which term was developed by Michael Porter to describe the firm's important activities, such as production, marketing, and HR management?
answer
value chain
question
Which term refers to the major objectives that a firm wants to accomplish through pursuing a specific course of action?
answer
strategic goals
question
What is the final step of formulating an international business strategy?
answer
developing a control framework
question
Calls for a firm to rely on a single business, product, or service for all its revenue.
answer
single-business strategy
question
Calls for the firm to operate in several different but fundamentally related businesses, industries, or markets at the same time
answer
related diversification strategy
question
Firms using this strategy operate in several unrelated industries and markets
answer
unrelated diversification strategy
question
Which strategy calls for a firm to target specific types of products for certain customer groups or regions?
answer
focus strategy
question
Which of the following is NOT one of the three steps in increasing market share, revenue, and profits?
answer
perform a situation analysis
question
LVHM uses all of the following entry methods in its international operations except
answer
establishing franchises
question
What is the first step in selecting a foreign market?
answer
assessing market potential
question
Which of the following is NOT a critical factor in assessing new market opportunities?
answer
worldwide learning potential
question
Objective measures of the potential for growth in an economy include all of the following except
answer
impact of changes in political regime
question
Refer to expenses incurred by the firm as it enters a new foreign market
answer
direct costs
question
Gameware recently entered the German market. Gameware executives also wanted to enter the Canadian market but had to delay the entry because of limited resources. What type of costs will Gameware incur as a result of being unable to enter the Canadian market?
answer
opportunity costs
question
All of the following are potential benefits of entering a new market except
answer
eliminating synergy with other operations
question
Which theory listed below is useful in deciding which mode of entry to use when entering foreign markets?
answer
Eclectic theory
question
The informational, political, and cultural disadvantages that foreign firms face when trying to compete against local firms in the host country market are referred to as
answer
liability of foreignness
question
Which of the following is NOT a mode of entry into foreign markets?
answer
importing
question
Are tangible or intangible resources owned by a firm which grant it a competitive advantage over its industry rivals
answer
Ownership advantages
question
Are those factors that affect the desirability of host country production relative to home country production
answer
location advantages
question
Are those that make it desirable for a firm to produce a good or service itself rather than contracting with another firm to produce it
answer
Internalization advantages
question
Toyota's efficient manufacturing techniques and reputation for producing high-quality automobiles are examples of
answer
ownership advantages
question
The most common form of international business activity
answer
exporting
question
Which of the following is NOT a characteristic of exporting?
answer
high financial exposure
question
Are those that pull a firm into foreign markets as a result of opportunities available there
answer
proactive motivations
question
for exporting are those that push a firm into foreign markets
answer
reactive motivations
question
Which mode of entry has the most potential to create a future competitor?
answer
licensing
question
Which of the following is a characteristic of foreign direct investment?
answer
high profit potential
question
Franklin Carpets engages in indirecting exporting, so the firm sells its carpets to
answer
domestic customer who then sells the carpets to a foreign customer
question
Occurs when a firm sells its products to a domestic customer, which in turn exports the product, in either its original form or a modified form
answer
indirect exporting
question
When Hewlett-Packard buys microchips from Intel to use in manufacturing computers and then exports the completed computers to Europe, what has occurred?
answer
indirect exporting of Intel's chips
question
Which term refers to sales made to either distributions or end-users located outside the firm's home country?
answer
direct exporting
question
Which term refers to the sale of goods by a firm in one country to an affiliated firm in another country?
answer
intracorporate transfers
question
Which form of exporting is used by firms in order to lower their production costs?
answer
intracorporate transfers
question
Which of the following would most likely discourage an international firm from relying on exports as an entry mode?
answer
tariffs
question
What are the third parties that specialize in facilitating imports and exports called?
answer
intermediaries
question
Offer services including export management companies, Webb-Pomerene associations, and international trading companies
answer
intermediaries
question
Is a firm that acts as its client's export department
answer
export management company
question
When an export management company acts as a commission agent for exporters, the EMC most likely
answer
handles shipping responsibilities
question
Is a group of US firms that operate within the same industry and are allowed by law to coordinate their export activities without fear of violating US antitrust laws
answer
Webb-Pomerene association
question
Is a firm directly engaged in importing and exporting a wide variety of goods for its own account
answer
international trading company
question
Unlike an export management company, an international trading company
answer
participates in exporting and importing activities
question
Where are the world's most important international trading companies located?
answer
Japan
question
A sogo sosha is best described as an
answer
international trading company
question
Which of the following best explains the success of the sogo sosha?
answer
access to information about global economic conditions
question
Which of the following solicits domestic orders for foreign manufacturers on a commission basis?
answer
manufacturers' agent
question
Acts as a foreign sales department for domestic producers by selling those firms' goods in foreign markets
answer
manufacturers' export agent
question
Can bring together international buyers and sellers of standardized commodities like coffee and grains
answer
an export and import broker
question
The Mitsubishi Corporation is a firm that is directly engaged in importing and exporting a wide variety of goods for its own account and is a part of a keirestu system. What type of export intermediary is it?
answer
sogo sosha
question
The firm that leases the right to use intellectual property is called the
answer
licensor
question
Which of the following is NOT an aspect of the licensing process?
answer
creating a strategic marketing plan
question
Which term refers to compensation under a licensing agreement?
answer
royalty
question
Burger King has established a franchise agreement with an individual in Tokyo. Burger King will most likely provide the Japanese franchisee with all of the following EXCEPT
answer
financial capital
question
In comparison to licensing, franchising offers a firm
answer
more control
question
International franchising is most likely to succeed when the franchisor has
answer
succeeded in the domestic market
question
Kodak focuses on developing photo editing software, and the firm has agreements with a Chinese manufacturer to assemble most Kodak cameras. Which entry mode for international business is used by Kodak?
answer
contract manufacturing
question
British Airways has an arrangement with a state-owned airline headquartered in Brazil. British Airways provides the Brazilian airline with advice on reservation services and scheduling. Which entry mode for international business is used by British Airways?
answer
management contract
question
Which of the following is typically critical to a turnkey project?
answer
home government financing
question
Which term refers to a firm building and operating a facility before transferring ownership of the facility to another party?
answer
BOT project
question
Which country is the market leader in providing international business process outsourcing?
answer
India
question
Which of the following is a method for foreign direct investment
answer
buying existing assets in a foreign country
question
Comtex, a US clock manufacturer, recently built a new production facility in Bangladesh. Which term best describes the activities of Comtex?
answer
Greenfield strategy
question
What is a common disadvantage of using a greenfield strategy?
answer
complying with local regulations
question
When two or more firms agree to work together and create a joint owned firm to promote mutual interesest, what has occurred?
answer
a joint venture
question
When two or more firms agree to work together and create a joint owned firm to promote mutual interesest, what has occurred?
answer
a joint venture
question
When two or more firms agree to work together and create a joint owned firm to promote mutual interesest, what has occurred?
answer
a joint venture
