Question 1

Pressures for local responsiveness imply that it may not be possible to leverage skills and products associated with a firm's core competencies wholesale from one nation to another.

Accepted Answer

A) True 
 B)False

Question 2

The _____ activities of a firm have to do with the design,creation,and delivery of the product; its marketing; and its support and after-sale service.

Accepted Answer

A)   support
B)   tertiary
C)   ancillary
D)   primary
E)   secondaryF) C) and E)
G) A) and E)

Question 3

A firm maximizes its profitability when it:

Accepted Answer

A)   creates products similar to the products of its competitors.
B)   minimizes the value provided by its products.
C)   picks a position on the efficiency frontier that is not viable.
D)   strips all the value out of its product offering.
E)   configures its internal operations to support the position selected by it on the efficiency frontier.F) B) and E)
G) B) and C)

Question 4

Describe the localization strategy.

Accepted Answer

A localization strategy focuses on incre...

Question 5

What are the sources of economies of scales?

Accepted Answer

Economies of scale have a number of sour...

Question 6

Pressures for cost reduction are intense in:

Accepted Answer

A)   firms which produce products that are well differentiated.
B)   firms whose major competitors are based in high-cost locations.
C)   firms with persistent low capacity.
D)   firms in which consumers face low switching costs.
E)   firms with no international competition.F) B) and D)
G) D) and E)

Question 7

Which of the following conditions is most favorable to reap gains from global scale economies?

Accepted Answer

A)   Low demand for local responsiveness
B)   High pressures for cost reduction
C)   Lack of universal needs
D)   National differences in accepted business practices
E)   High pressure to delegate production to domestic subsidiariesF) A) and B)
G) A) and C)

Question 8

Which of the following caveats is most likely to discourage global expansion of businesses?

Accepted Answer

A)   Economies of scale
B)   High consumers' reservation prices
C)   Trade barriers
D)   Mass customization
E)   Low transportation costsF) A) and C)
G) B) and D)

Question 9

How do firms respond to low cost pressures and low pressures for local responsiveness?

Accepted Answer

Sometimes,multinational firms find thems...

Question 10

Firms that pursue an international strategy focus on increasing profitability by reaping the cost reductions that come from economies of scale,learning effects,and location economies.

Accepted Answer

A) True 
 B)False

Question 11

Firms that operate internationally are able to realize location economies by dispersing individual value creation activities to locations where they are performed most efficiently and effectively.

Accepted Answer

A) True 
 B)False

Question 12

In general,the more value customers place on a firm's products:

Accepted Answer

A)   the lesser the profitability of the firm.
B)   the higher the competitive pressure from other firms.
C)   the lesser the quality of the product.
D)   the lesser the consumer surplus for those products.
E)   the higher the price the firm can charge for those products.F) C) and E)
G) B) and E)

Question 13

The greater the consumer surplus,the lower the value for the money the consumer gets.

Accepted Answer

A) True 
 B)False

Question 14

A firm's ability to increase its profitability and profit growth by expanding globally is constrained:

Accepted Answer

A)   by the imperative of localization.
B)   by the economies of scale.
C)   due to customer surplus.
D)   due to the leveraging of skills developed in foreign operations.
E)   due to the dispersion of individual value creation activities.F) B) and C)
G) A) and B)

Question 15

The _____ of a firm is measured by the difference between the value of a product to an average consumer and the average unit cost of producing that product.

Accepted Answer

A)   customer surplus
B)   value creation
C)   cost curve
D)   value efficiency
E)   customer reservationF) C) and D)
G) A) and D)

Question 16

Managers are most likely to increase the profitability of their firm by pursuing strategies that:

Accepted Answer

A)   add value to the firm's products.
B)   increase costs.
C)   enable the firm to reduce the depth of its product line.
D)   allow the firm to sell less products in existing markets.
E)   allow the firm to exit from relatively new markets.F) B) and D)
G) A) and B)

Question 17

The _____ refer(s) to systematic reductions in production costs that have been observed to occur over the life of a product.

Accepted Answer

A)   experience curve
B)   learning effects
C)   location economies
D)   efficiency slope
E)   economies of scaleF) A) and B)
G) B) and D)

Question 18

Firms that pursue a(n) _____ strategy take products first produced for their domestic market and sell them across various markets with only minimal local customization.

Accepted Answer

A)   nationalization
B)   transnational
C)   global standardization
D)   international
E)   localizationF) All of the above
G) C) and D)

Question 19

Which of the following statements is true about economies of scale?

Accepted Answer

A)   Economies of scale lead to an increase in the average unit cost of a product.
B)   Attaining economies of scale increases a firm's profitability.
C)   The ability to spread variable costs over a large volume is a source of economies of scale.
D)   Economies of scale result due to the increase in the perceived value of a product.
E)   Economies of scale refer to cost savings that come from learning by doing.F) All of the above
G) A) and E)

Question 20

A firm's profitability maximizes when it:

Accepted Answer

A)   creates products similar to the products of its competitors.
B)   strips all the value out of its product offering.
C)   ensures that it has the right organization structure in place to execute its strategy.
D)   picks a position on the efficiency frontier that is not viable.
E)   does not configure its internal operations to reduce costs.F) A) and E)
G) C) and D)

Exam 12: The Strategy of International Business

Which of the following conditions is most favorable to reap gains from global scale economies?

Correct AnswerverifiedShow Answer

A firm's profitability maximizes when it:

Correct AnswerverifiedShow Answer

What are the sources of economies of scales?

Correct AnswerverifiedEconomies of scale have a number of sour...View AnswerShow Answer

Firms that pursue an international strategy focus on increasing profitability by reaping the cost reductions that come from economies of scale,learning effects,and location economies.

Correct AnswerverifiedShow Answer

Describe the localization strategy.

Correct AnswerverifiedA localization strategy focuses on incre...View AnswerShow Answer

In general,the more value customers place on a firm's products:

Correct AnswerverifiedShow Answer

The _____ activities of a firm have to do with the design,creation,and delivery of the product; its marketing; and its support and after-sale service.

Correct AnswerverifiedShow Answer

Firms that operate internationally are able to realize location economies by dispersing individual value creation activities to locations where they are performed most efficiently and effectively.

Correct AnswerverifiedShow Answer

The _____ of a firm is measured by the difference between the value of a product to an average consumer and the average unit cost of producing that product.

Correct AnswerverifiedShow Answer

Firms that pursue a(n) _____ strategy take products first produced for their domestic market and sell them across various markets with only minimal local customization.

Correct AnswerverifiedShow Answer

Pressures for cost reduction are intense in:

Correct AnswerverifiedShow Answer

A firm maximizes its profitability when it:

Correct AnswerverifiedShow Answer

The greater the consumer surplus,the lower the value for the money the consumer gets.

Correct AnswerverifiedShow Answer

The _____ refer(s) to systematic reductions in production costs that have been observed to occur over the life of a product.

Correct AnswerverifiedShow Answer

Managers are most likely to increase the profitability of their firm by pursuing strategies that:

Correct AnswerverifiedShow Answer

Which of the following caveats is most likely to discourage global expansion of businesses?

Correct AnswerverifiedShow Answer

A firm's ability to increase its profitability and profit growth by expanding globally is constrained:

Correct AnswerverifiedShow Answer

Pressures for local responsiveness imply that it may not be possible to leverage skills and products associated with a firm's core competencies wholesale from one nation to another.

Correct AnswerverifiedShow Answer

Which of the following statements is true about economies of scale?

Correct AnswerverifiedShow Answer

How do firms respond to low cost pressures and low pressures for local responsiveness?

Correct AnswerverifiedSometimes,multinational firms find thems...View AnswerShow Answer

Correct Answer
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Economies of scale have a number of sour...
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A localization strategy focuses on incre...
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Correct Answer
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Sometimes,multinational firms find thems...
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