Learn smart 7

Question 1

Focusing on a limited number of locations can increase a companys competitive advantage when

Answer 1

• Manufcacturing costs are lower in a certain area

- a large learning curve is associated with a particular task

Question 2

another way to define the concept of multi domestic strategy is as a

Answer 2

-Think-local, art-local approach

Question 3

what is way a company can successfully compete in a developing country market, as shown by japans Suzuki when it entered india?

Answer 3

change the local market to match the companys core operations

Question 4

What are policies that governments adopt to stimulate business investment

Answer 4

• Offering low cost business loans

- Providing government-sponsored job training

Question 5

An International strategy is a companys strategy for competing in two or more_____ simultaneously

Answer 5

countries

Question 6

To be successful, a think-global, act-global approach generally requires which of the following?

Answer 6

• centralized production

- a global brand name

Question 7

The practice of operating on very thing margins coupled with healthy profits to acquire a profit sanctuary is known as

Answer 7

cross-market subsidization

Question 8

acquiring a foreign company as a means of entering a foreign market can allow a business to do which of the following?

Answer 8

• Build supplier relationships
• Avoid the risks of greenfield venture
• Gain access to local distribution channels

Question 9

Which statements about greenfield ventures are true?

Answer 9

• They are subject to a high level of risk
• They are costly
• They require many company resources

Question 10

in terms of a country business climate, a country’s inflation rate and level of deficit spending are types of

Answer 10

Economic risk

Question 11

a company that distributes its activities across multiple location can seek which advantages?

Answer 11

_ lowering distribution costs
_ providing customer with timely service and technical support
_reducing the risks of fluctuating exchange rate

Question 12

The strategic option of home based production and export allows a company to do what?

Answer 12

• Minimize its direct investment in foreign countries

- limit its involvement in foreign markets

Question 13

A Company that wishes to control all aspects of its operation when it expands into foreign markets should establish a

Answer 13

wholly owned subsidiary

Question 14

A company seeking to establish a subsidiary in a foreign country may choose to establish a greenfield venture if an internal startup

Answer 14

• costs less than an acquisition
• can gain good distribution access
• can successfully compete w local rivals

Question 15

For domestic manufacturs,positive aspects of a weak domestic currency include

Answer 15

• reduced domestic demand for foreign made good

- lower prices for domestic products

Question 16

what do companies commonly risk losing when they develop joint ventures with companies in a foreign country ?

Answer 16

Their competitive advantage

Question 17

What are reasons that companies expand into foreign markets?

Answer 17

• To gain access to new customers
• to achieve lower costs
• to gain access to low cost production

Question 18

Spurring market growth in a domestic market can translate into an international competitive advantage owing to which of the following?

Answer 18

increasing innovation and quality improvements

Question 19

Producing goods in domestic plants and exporting them is considered

Answer 19

a conservative way to enter a foreign market

Question 20

a transitional strategy is a ____ approach

Answer 20

think-global, act-local

Question 21

Which factors make dispersing a companys activities competitively important
?

Answer 21

• Major customers in areas without low-cost production
• Threat of supply interruptions
• Trade barriers to importing maufactured goods

Question 22

Focusing on a limited number of locations can increase a companys competitive advantage when

Answer 22

• manufacturing costs are lower in a certain area

- a large learning curve is associated with a particular task

Question 23

Elements of a countrys infrastructure that can contribute to factor conditions include

Answer 23

• banking systems
• transportation
• communication

Question 24

Companies typically move into foreign markets to

Answer 24

exploit their competitive core competencies

Question 25

Which two issues do companies encounter when undergoing international expansion?

Answer 25

• the demand to customize products to suit local preferences
• the cost-effectiveness of providing a standardized product globally

Question 26

If significant economies of scale exist, a company that concentrates on a limited number of locations can do what?

Answer 26

achieve major cost savings

Question 27

Joint ventures are likely when what occurs?

Answer 27

a local partners expertise is less valuable than expected

Question 28

what are examples of demand conditions ?

Answer 28

• relative size of the market
• growth potential
• domestic buyers needs and wants

Question 29

A global company can achieve market share in a national market by

Answer 29

• Cutting prices
• drawing customers away from domestic rivals
• launching marketing campaigns

Question 30

A Company that employs a global strategy will do which of the following?

Answer 30

• Create a strong headquarters to oversee its global activities
• Coordinate efforts across country boundaries build a global brand
• Sell a standardized global product

Question 31

in terms of a counrys business climate, the instability or weakness of a national government is a type of

Answer 31

Political risk

Question 32

Companies that implement a transitional strategy often employ mass-customization techniques designed to

Answer 32

Accommodate local preferences in a semi standardized way

Question 33

A joint venture hamper a companys goal for global market leadership by fostering

Answer 33

too much dependence on a foreign partner

Question 34

currency exchange rates can pose a risk for businessess bc they

Answer 34

-can change by more than 20% a year

• vary unpredictability
• affect a company profit

Question 35

A company that expands into a foreign market by purchasing the option of entering into a strategic alliance with a foreign partner can

Answer 35

-share technological know how
share distribution facilities
-achieve cost savings

Question 36

to discourage foreign companies from locating manufacturing facilities in a country, the countrys government can do which of the following?

Answer 36

• Provide government financial assisstance to domestic companies
• Require partial ownership of the facilities by local companies or investors

-make a new facility’s compliance with local environmental regulations very costly

Question 37

creating a strategy for entering an international market can be more difficult than entering a domestic market because

Answer 37

buyer prefrences in foreign markets force companies to customize their products

Question 38

what are drawbacks of global strategies?

Answer 38

• difficulty addressing local needs

- higher transportation costs

Question 39

exporting goods may be a successful strategic option if the company

Answer 39

can maintain its cost competitiveness at home

Question 40

the strategic option of acquiring a foreign partner gives a company expanding into a foreign market the advantage of

Answer 40

• intimidate knowledge of local buying habits and consumer preferences
• already established relationship with distributors
• familiarity with local government regulations

Question 41

By transfering company expertise to cross border markets, a domestic company can successfully do what

Answer 41

transform into a global company in its own right

Question 42

wat can help a company compete successfully in developing country markets?

Answer 42

• customizing its business model to suit local circumstances

- offering lower priced , better products

Question 43

Governments can discourage imports of specific items by

Answer 43

-imposing a ban on importation