635. International Business

Question 1

Overall, strategy is

Answer 1

none of the above

Question 2

a rulebook

Answer 2

Anglo-American capitalism

Question 3

The word blank____________ has now become the most famous Chinese business word to appear in English-language media and means interpersonal networks.

Answer 3

guanxi

Question 4

“Global Strategy” refers to

Answer 4

a particular theory on how to compete
B
offering standardized products and services on a worldwide basis
C
strategy of firms around the globe – essentially various firms’ theories about how to compete successfully
D
all of the above

Question 5

Global strategies have reached new levels of significance because of three defining events:

Answer 5

terrorist attacks, anti-globalization protests, and corporate crisis in Asia and the U.S.

Question 6

A SWOT analysis entails a firm’s assessment of blank______

Answer 6

strengths, weaknesses, opportunities, and threats

Question 7

At the dawn of the 21st century, blank____ had significant ramifications for companies and strategists around the world.

Answer 7

A		
anti-globalization protests
B		
terrorist attacks
C		
corporate governance crisis
D		
all of the above

Question 8

Knowing the concepts and components of global strategy will

Answer 8

A		
improve job and career opportunities
B		
build awareness of what is going on in the world
C		
avoid the downside risks of globalization
D		
all of the above

Question 9

What is the best view of the concept of globalization?

Answer 9

A
A new force sweeping through the world in recent times
B
A long-run historical evolution since the dawn of human history
C
A pendulum that swings from one extreme to another from time to time
D
All of the above

Question 10

What are the three “legs” of the strategy tripod that ensure a strategy impacts performance?

Answer 10

Industry-based competition, firm-specific resources and capabilities, and institutional conditions and transitions

Question 11

In developing a strategy regarding competition or cooperation, it would be useful to not

Answer 11

“Look back, reason ahead”

Question 12

“The extent to which a given competitor possesses strategic endowment comparable, in terms of both type and amount, to those of the focal firm” refers to similarity of

Answer 12

resources

Question 13

Which is not true concerning U.S. anti-trust policy today?

Answer 13

The legal standards for inter-firm cooperation are no longer ambiguous in the U.S.

Question 14

Dumping is defined as

Answer 14

an exporter selling below cost abroad and planning to raise prices after eliminating local rivals

Question 15

In some industries where pressures for globalization are relatively low, local firms may possess some skills and assets that are transferable overseas, thus leading to a/anblank_____ strategy.

Answer 15

extender

Question 16

The main types of attack include

Answer 16

A		
thrust
B		
feint
C		
gambit
D		
all of the above

Question 17

Which of the following would not be considered an initial set of actions to gain competitive advantage:

Answer 17

counterattacks

Question 18

Which of the following is not a legal means of signaling?

Answer 18

Direct discussion of reduced rivalry with competitors

Question 19

Which is true of strategy?

Answer 19

All of the above

Question 20

The three drivers of counterattacks do not include

Answer 20

vengeance

Question 21

Which of the following is not an argument in favor of centralization in knowledge management but instead is an argument in favor of decentralization?

Answer 21

Permits greater speed, flexibility, and innovation

Question 22

Unique to international competition are the pressures for local responsiveness, which are reflected in

Answer 22

A		
consumer preferences
B		
distribution channels
C		
host country demands
D		
all of the above

Question 23

Four strategic choices for MNEs do not include

Answer 23

B

domestic

Question 24

The type of knowledge that is codifiable (that is, it can be written down and transferred without losing much of its richness) is called

Answer 24

explicit

Question 25

Which is true of globalized R&D?

Answer 25

For large firms, there are actually diminishing returns for R&D

Question 26

Knowledge management uses “centers of excellence” in which type of MNE?

Answer 26

global standardization

Question 27

Localization (multi-domestic) strategy involves all of the following except

Answer 27

global standardization strategy is the same as a multi-domestic strategy

Question 28

Pressures for cost reductions and local responsiveness include

Answer 28

``` A the framework of how to simultaneously deal with these two sets of pressures B host country demands and expectations C being locally responsive makes local customers and governments happy but increase costs D all of the above ```

Question 29

Which of the following is not an argument in favor of decentralization in knowledge management but instead is an argument in favor of centralization?

Answer 29

Sufficient power for corporate-level managers to initiate necessary actions

Question 30

This structure is often used to supply customers (often other MNEs) in a coordinated and consistent way across various countries.

Answer 30

global account structure

Question 31

The differences in formal and informal institutions that govern the rules of the game in different countries include blank_______ differences.

Answer 31

``` A Regulatory B Language C Cultural D All of the above ```

Question 32

As firms expand into more countries, they should recognize:

Answer 32

Foreign firms are still often discriminated against. B Foreign firms primarily deploy overwhelming resources and capabilities that offset the liability of foreignness. C Foreign firms are able to offset the liability of foreignness and still have some competitive advantage. D All of the above.

Question 33

Small firms in a large domestic market are referred to as:

Answer 33

Occasional internationalizers.

Question 34

Firms may choose not to enter certain countries if:

Answer 34

There are dissemination risks.

Question 35

Organizing firm-specific resources and capabilities as a bundle:

Answer 35

Favors firms with strong complementary assets.

Question 36

Which of the following are not regulatory risks?

Answer 36

Recent trends among host governments regarding their relationships with MNEs.

Question 37

Which of the following exemplify trade barriers?

Answer 37

``` A Tariffs. B Local content requirements. C Restrictions on certain entry modes. D A and C above. E All of the above. ```

Question 38

The strategic goal of blank__________ involves going after countries that offer the highest price.

Answer 38

Market seeking

Question 39

First mover advantages do not include:

Answer 39

Successful clashes with dominant firms in domestic markets

Question 40

Large-scale entries do which of the following?

Answer 40

``` A Benefit from a strategic commitment. B Assure local customers and suppliers. C Deter potential entrants. D A and B above. E All of the above. ```

Question 41

Non-equity modes of entry typically involve:

Answer 41

Exports and contractual agreements.

Question 42

All of the following are true of direct exports except:

Answer 42

The agendas and objectives of the intermediaries and exporters are the same.

Question 43

Selling the rights to intellectual property for a royalty fee is involved in:

Answer 43

Licensing/franchising.

Question 44

Greenfield operations refers to:

Answer 44

Wholly owned subsidiaries.

Question 45

Sources of operational synergy include:

Answer 45

``` A Technologies. B Marketing. C Manufacturing. D All of the above. ```

Question 46

Diversification premium is the same thing as:

Answer 46

Conglomerate advantage.

Question 47

Which would be more characteristic of conglomerates?

Answer 47

“Putting one’s eggs in similar baskets.” C “Putting one’s eggs in different baskets.” b and c

Question 48

Research regarding the relationship between product diversification and firm performance indicates that:

Answer 48

A Performance may increase as firms shift from single business strategies to product-related diversification. B Performance may decrease as firms change from product-related to product–unrelated. C The linkage between diversification and performance is inverted U shaped. D “Putting your eggs in similar baskets,” has emerged as a balanced way to both reduce risk and leverage synergy. E All of the above.

Question 49

Which geographic diversification is most likely to reduce the liability of foreignness?

Answer 49

Culturally adjacent countries.

Question 50

In combining product and geographic diversification, which is not one of the four possible combinations?

Answer 50

Classic replicators.

Question 51

At its core, diversification is essentially driven by all of the following except:

Answer 51

Less complicated information systems.

Question 52

Select the best choice: a company that is engaged in oil production, pipelines and tankers, refining, and gasoline stations has engaged in blank______________ expansion.

Answer 52

Vertical

Question 53

Which is one motive for M&A which does not necessarily increase shareholder value?

Answer 53

Hubris.

Question 54

Corporate scope is shaped by:

Answer 54

``` A Industry conditions. B Firm capabilities. C Institutional constraints. D Opportunities in both developed and emerging economies. E All of the above. ```

Question 55

Product-related diversification involves all of the following except:

Answer 55

A single business strategy.

Question 56

he following managerial motives for conglomerations do not benefit shareholders except:

Answer 56

Organizational stability.

Question 57

Which of the following is true regarding M&As?

Answer 57

70% fail

Question 58

To ensure the success of the M&A, managers need to make sure of all the following except:

Answer 58

Seek organizational contrast and variety rather than organizational fit.

Question 59

Which is true regarding restructuring?

Answer 59

Corporate restructuring is not widely embraced around the world.

Question 60

Which is true of relatedness?

Answer 60

Relatedness can be a common underlying dominant logic that connects various businesses in a diversified firm.