Chapter Two

Question 0

Three. Types of strategy

Answer 0

Differentiation
Cost leadership
Response

Question 1

Six reasons domestic business operations decide to go global:

Answer 1

Improve supply chain
Reduce costs labor, taxes, tariffs, etc
Improve operations
Understand markets
Improve products
Attract and retain global talent

Question 2

Ten operation decisions:

Answer 2

Product
Quality
Process
Location
Layout
Human resources
Supply chain
Inventory
Scheduling
Maintenance

Question 3

Theory of competitive advantage

Answer 3

Countries benefit from specializing in services which they have relative advantage and they benefit from Importing goods and services for which they have a relative disadvantage

Question 4

Strategy in which operating decisions are centralized and headquarters coordinates the standardization and learning between facilities

Answer 4

Global strategy

Question 5

Global markets are penetrated using export licenses

Answer 5

International strategy

Question 6

Operating decisions are centralized to each country to enhance local responsiveness

Answer 6

Multidomestic strategy

Question 7

A firm that has extensive involvement in international business, owning or controlling more than one facilities in more than one country

Answer 7

Multinational corporation

Question 8

A firm that engages in cross border transactions

Answer 8

International business

Question 9

Combines benefits do global scale efficiencies with the benefits if local responsiveness

Answer 9

Transactional strategy