Question 1

Ikea attempts to capture global efficiencies while remaining responsive to local conditions. Ikea follows a

Accepted Answer

transnational strategy

Question 2

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?

Accepted Answer

home replication strategy

Question 3

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?

Accepted Answer

multidomestic strategy

Question 4

Sony designs its products with an international market in mind, so the firm most likely uses a

Accepted Answer

global strategy

Question 5

When pressures for global integration and local responsiveness are both high, firms usually adopt the

Accepted Answer

transnational strategy

Question 6

Which of the following situations does NOT correspond to a low need for global integration?

Accepted Answer

weak brand name

Question 7

Requires the transfer of information and experiences from the parent to each subsidiary, from each subsidiary to the parent, and among subsidiaries.

Accepted Answer

Worldwide learning

Question 8

Which strategy is likely the best for promoting global learning?

Accepted Answer

transnational strategy

Question 9

Which of the following is NOT one of the components of strategy development?

Accepted Answer

differential advantage

Question 10

Answers the question, \"What do we do exceptionally well, especially as compared to our competitors?\"

Accepted Answer

distinctive competence

Question 11

Disney\'s name, image, and portfolio of characters are examples of which component of international strategy?

Accepted Answer

distinctive competence

Question 12

Answers the questions, \"Where are we going to conduct business?\"

Accepted Answer

scope of operations

Question 13

Which of the following is LEAST likely a source of distinctive competence for a firm?

Accepted Answer

narrow product niche

Question 14

The compatibility of software programs with the Windows operating system is an example of Microsoft\'s

Accepted Answer

distinctive competence

Question 15

May be defined in terms of geographic regions, markets, or product niches

Accepted Answer

scope of operations

Question 16

Answers the question,\"Given that we are going to compete in these markets, how will we allocate our resources to them?\"

Accepted Answer

resource deployment

Question 17

Although DaimlerChrysler\'s newest plant is in Alabama, most Mercedes are still German built. This is an example of

Accepted Answer

resource deployment

Question 18

Answers the question,\"How can different elements of our business benefit each other?\"

Accepted Answer

synergy

Question 19

The goal of what is to create a situation where the whole is greater than the sum of the parts

Accepted Answer

synergy

Question 20

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

Accepted Answer

formulation process

Question 21

The firm develops the tactics for achieving the formulated international strategies

Accepted Answer

strategy implementation

Question 22

The first step in the strategic planning process is to

Accepted Answer

develop a mission statement

Question 23

Which of the following clarifies the organization\'s purpose, values, and direction?

Accepted Answer

mission statement

Question 24

Which of the following would most likely be initiated through an environmental scan?

Accepted Answer

SWOT analysis

Question 25

A systematic collection of data about all elements of the firm\'s external and internal environments

Accepted Answer

environmental scan

Question 26

Which term was developed by Michael Porter to describe the firm\'s important activities, such as production, marketing, and HR management?

Accepted Answer

value chain

Question 27

Which term refers to the major objectives that a firm wants to accomplish through pursuing a specific course of action?

Accepted Answer

strategic goals

Question 28

What is the final step of formulating an international business strategy?

Accepted Answer

developing a control framework

Question 29

Calls for a firm to rely on a single business, product, or service for all its revenue.

Accepted Answer

single-business strategy

Question 30

Calls for the firm to operate in several different but fundamentally related businesses, industries, or markets at the same time

Accepted Answer

related diversification strategy

Question 31

Firms using this strategy operate in several unrelated industries and markets

Accepted Answer

unrelated diversification strategy

Question 32

Which strategy calls for a firm to target specific types of products for certain customer groups or regions?

Accepted Answer

focus strategy

Question 33

Which of the following is NOT one of the three steps in increasing market share, revenue, and profits?

Accepted Answer

perform a situation analysis

Question 34

LVHM uses all of the following entry methods in its international operations except

Accepted Answer

establishing franchises

Question 35

What is the first step in selecting a foreign market?

Accepted Answer

assessing market potential

Question 36

Which of the following is NOT a critical factor in assessing new market opportunities?

Accepted Answer

worldwide learning potential

Question 37

Objective measures of the potential for growth in an economy include all of the following except

Accepted Answer

impact of changes in political regime

Question 38

Refer to expenses incurred by the firm as it enters a new foreign market

Accepted Answer

direct costs

Question 39

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?

Accepted Answer

opportunity costs

Question 40

All of the following are potential benefits of entering a new market except

Accepted Answer

eliminating synergy with other operations

Question 41

Which theory listed below is useful in deciding which mode of entry to use when entering foreign markets?

Accepted Answer

Eclectic theory

Question 42

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

Accepted Answer

liability of foreignness

Question 43

Which of the following is NOT a mode of entry into foreign markets?

Accepted Answer

importing

Question 44

Are tangible or intangible resources owned by a firm which grant it a competitive advantage over its industry rivals

Accepted Answer

Ownership advantages

Question 45

Are those factors that affect the desirability of host country production relative to home country production

Accepted Answer

location advantages

Question 46

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

Accepted Answer

Internalization advantages

Question 47

Toyota\'s efficient manufacturing techniques and reputation for producing high-quality automobiles are examples of

Accepted Answer

ownership advantages

Question 48

The most common form of international business activity

Accepted Answer

exporting

Question 49

Which of the following is NOT a characteristic of exporting?

Accepted Answer

high financial exposure

Question 50

Are those that pull a firm into foreign markets as a result of opportunities available there

Accepted Answer

proactive motivations

Question 51

for exporting are those that push a firm into foreign markets

Accepted Answer

reactive motivations

Question 52

Which mode of entry has the most potential to create a future competitor?

Accepted Answer

licensing

Question 53

Which of the following is a characteristic of foreign direct investment?

Accepted Answer

high profit potential

Question 54

Franklin Carpets engages in indirecting exporting, so the firm sells its carpets to

Accepted Answer

domestic customer who then sells the carpets to a foreign customer

Question 55

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

Accepted Answer

indirect exporting

Question 56

When Hewlett-Packard buys microchips from Intel to use in manufacturing computers and then exports the completed computers to Europe, what has occurred?

Accepted Answer

indirect exporting of Intel\'s chips

Question 57

Which term refers to sales made to either distributions or end-users located outside the firm\'s home country?

Accepted Answer

direct exporting

Question 58

Which term refers to the sale of goods by a firm in one country to an affiliated firm in another country?

Accepted Answer

intracorporate transfers

Question 59

Which form of exporting is used by firms in order to lower their production costs?

Accepted Answer

intracorporate transfers

Question 60

Which of the following would most likely discourage an international firm from relying on exports as an entry mode?

Accepted Answer

tariffs

Question 61

What are the third parties that specialize in facilitating imports and exports called?

Accepted Answer

intermediaries

Question 62

Offer services including export management companies, Webb-Pomerene associations, and international trading companies

Accepted Answer

intermediaries

Question 63

Is a firm that acts as its client\'s export department

Accepted Answer

export management company

Question 64

When an export management company acts as a commission agent for exporters, the EMC most likely

Accepted Answer

handles shipping responsibilities

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