Chapter Practice

QuestionAnswerthe trend towards spherewide markets makes it easier to predict where competitors will spring up. reliable or put on? misguidedbeca implement many countries atomic number 18 puting in countries other than their own, each country is becoming more autonomous and independent. professedly up or assumed? mendaciousan proceeds of world-wide expansion is that contention within overseas countries is generally very similar to that of the US. true or false?falseIn michael porters brutalball field of war-ridden advantage there ar 4 broad attributes that, as a system, constitute a nations warringness in an industry. true or false?truethe f executeor endowments of a country be inherited and understructurenot be created. true or false?falsewith regard to factor conditions the pool of resources that a theatre has is lots more important than the speed and efficiency with which these resources argon deployed. true or false?false hireing domestic consumers tend to pu sh firms to blend ahead of companies in other countries where consumers are less demanding and more complacent. true or false?truehigh levels of environmental awareness in Denmark have light-emitting diode to a decline in Denmarks industrial competitiveness in the world-wide marketplace. true or false?falsecountries with a strong supplier base benefit by adding efficiency to upstream activities. true or false?truetypically, intense rivalry in domestic markets does not force firms to forecast outside their national boundaries for new markets. true or false?falsemany transnational firms are increasing their efforts to market their harvest-times and services to countries such as India and china as the ranks of their middle class continue to increase. true or false?true worldwide expansion can extend the disembodied spirit cycle of a mathematical product that is in its maturity stage in a firms home country. true or false?truean advantage of international expansion is that it ca n change a firm to optimize the stance of every activity in its prize chain. true or false?truethe laws, and the enforcement of laws, associated with the protection of intellectual spot rights, represent a significant currency and management risk to transnational firms. true or false?falsedifferences in outside(prenominal) markets such as culture, language, and customs can represent significant management risks when firms enter foreign markets. true or false?true murdershoring takes place when a firm decides to put forward an activity that they were previously performing in a domestic reparation to a foreign location. true or false?true2 opposing pressure levels that managers salute when they make out in foreign markets are cost reduction and adaption to local anaesthetic markets. true or false?truetheodore levitt has argued that people around the world are willing to sacrifice preferences in product features, functions, and design if they are protracted disgrace impai rments and high quality. true or false?trueamong theordore levitts assumptions that would favor a planetary strategy is that consumers around the world are becoming less price sensitive. true or false?falsewithin a worldwide market, the close to hard-hitting strategies are neither purely multidomestic nor purely spherical. true or false?trueindustries in which proportionally more apprize is added in upstream activities are more likely to benefit from a globular strategy than those in which more value is added downstream. true or false?truein a spherical strategy a firm operates all its businesses under a iodine common strategy regardless of location. true or false?truea multidomestic strategy is the most appropriate strategy for international trading operations because it drives economies of surmount as far as possible and provides a middle of the road product appealing to the largest number of consumers in every market. t or f?fal personatehe need to attain economies of scale encourages multinational firms to operate under a multidomestic strategy. true or false?falsecorporations with multiple foreign operations that act very independently of one another are fol get-going a multidomestic strategy. true or false?truea multidomestic strategy would likely overwhelm the use of high volume, centralized production facilities to maximize economies of scale. true or false?falsea limitation of a multidomestic strategy is that it whitethorn locomote to overadaptation as conditions change. true or false?truemultinational firms fol showtimeing a transnational strategy puree to optimize the tradeoffs associated with efficiency, local adaptation, and learning. true or false?truea key article of belief of transnational strategy is improved adaptation to all competitive situations as well as flexibility by capitalizing on communication and noesis flows byout the system of rules. true or falsetrueaccording to studies by Rugman and Verbeke, most of the worl ds 500 firms are world(prenominal)- not regional or biregional. true or false?falsea dealership generally expires after a few years whereas a manifest is designed to last into perpetuity. true or false?falsetypically joint ventures occupy less chair and risk than franchising. true or false?falsetypically the ruff method of entry into a foreign market is the establishment of a wholly possess foreign subsidiary so that the parent organization can maintain a high level of control. true or false?falsea major trend in international developments include great international trade and operations, growing recognition of an international managerial perspective, a large increase in international investmentthe reasons that explain why whatsoever governments make better use of the inflows from foreign investment and know how than others includegovernmental practices that are business friendly, local entrepreneurs that can train workers and invest in modern technology, sound management of broader economic factors such as interest rates and inflationaccording to michael porters framework all of these factors affect a nations competitivenessfactor conditions, demand characteristics, related and supported industriesrivalry is intense in nations with conditions of ____ consumer demand, _____ supplier bases, and _____ new starter motor potential from related industriesstrong, strong, highaccording to michael porter, firms that have experienced intense domestic competition aremore likely to design strategies and structures that allow them to successfully compete abroad.all of these factors have made Indias software services industry extremely competitive on a orbicular scalelarge pool of skilled workers, large mesh of public and private educational institutions, large, growing market and sophisticated customersadvantages of global diversificationfirm not being solely dependent on domestic market, firm with large margins at home helping subsidize its operations in other nations, potential to lower cost of operation even if the base market is at homeoptimizing the location of every activity in the value chain can yield all of these strategic advantagesperformance enhancements, cost reduction, extending the life cycle of the product or serviceMicrosoft decided to establish a collective research laboratory in Cambridge, Englandto access the outstanding technical and victor talent available there so that they can attain world class excellence in selected value creating activitiesthe sale of boeings commercial aircraft and microsofts operational systems in many countries enable these companies to benefit fromeconomies of scaleMany US multinational companies set up maquiladora operations south of the US-Mexico border primarilyto take advantage of the low cost of laborappreciation of the US dollar will have this impact on McDonaldslower profits, because foreign profits will be reduced when measured in dollarsThis occurs when a firm decides to utilize other firms to perform value-creating activities that were previously performed in houseoutsourcingwhat is one of Theodore Levitts assumptions supporting a pure global strategy?MNCs can compete with aggressive pricing on low cost products that check the common needs of global consumerspressures to reduce costs require thata confederacy must pursue what is economically beneficial to the telephoner including maximizing economies of scale and learning curve effectsLow pressure for local adaptation have with low pressure for lower costs would suggest what type of strategy?internationalHigh pressure for local adaptation combined with low pressure for lower costs would suggest what type of international strategy?multidomesticSoftware Tech Inc. a phoner in the computer software industry, invests heavily in R&D and product design. Thus, most of its value is addedupstreamIndustries in which proportionally more value is added in _____ activities are more likely to benefit from a ______ strategy.upstream, globalWhat types of international firms are most likely to benefit from a global strategy as opposed to a multidomestic strategy?firms in industries that have much value added in research and design or manufacturingRecent trends that might racetrack to managers of multinational corporations to adopt a more decentralized strategy for their operations would includeconsumers are the world are increasingly willing to trade off idiosyncratic preferences in product features for lower price, flexible mftg trends have allowed a decline in the min volume required to reach unobjectionable levels of production efficiencyFirms following a global strategy strive to offer ______ products and services as well as locate manufacturing, R&D, and market activities in ______ locations.standardized, fewGilletes worldwide success with its Sensor razor demonstratesthat a global marketing effort can sometimes be successfulas in the shimmy of Siebel systems, elements of a global strat egy may facilitate the competitive advantage of differentiation bythe creation of a world wide network to strain consistent service regardless of location.risks associated with global strategyfirm with only one mfg location must export its product, geographic concentration of any activity may also tend to isolate that activity from the target market, concentrating an activity in a single location makes the firm dependent on that locationlimitations of global strategylimited ability to adapt to local markets, concentration of activities may increase dependence on single facility, single locations may lead to higher tariffs and transportation costsElements of a multidomestic strategy may facilitate the competitive advantage of cost leadership bydecreased shipping and transportation costs constitutional in local productionlimitations of a multidomestic strategyless ability to realize cost savings through scale economies, greater difficulty in transferring knowledge crossways countri es, may lead to overadpatation as conditions changehigh pressure for local adaptation combined with high pressure for lower costs would suggest what type of international strategy?transnationalUnits coordinate their activities with headquarters and one another, units adapt to special raft only the face, and the entire org draws upon relevant corporate resources. These are attributes oftransnational strategyWhat is a disadvantage of a transnational strategy?unique managerial challenges in fostering knowledge transferin order to realize the strongest competitive advantage, firms engaged in worldwide competition mustpursue a strategy that combines the uniformity of a global strategy and the particular(prenominal)ity of a multidomestic strategy in order to achieve optimal resultsAccording to studies by Rugman and Verbeke, approx how many of the worlds largest 500 firms are global, that is, they have at least 20% of their total revenues each in North America, Asia, and Europe?10What d escribes the most typical order of entry into foreign markets?exporting, licensing, franchising, joint venture, and wholly owned subsidiarya domestic corporation considering expanding into international markets for the first time will typicallyconsider implementing a low risk/low control strategy such as exportingThe form of entry strategy into operations that offers the lowest level of control would beexportingFees that a multinational receives from a foreign licensee in eliminate for its use of intellectual property are usually calledroyaltiesthe difference amid a franchise and licensing contract is thata franchise contract is more specific and longer in duration_________ entails the creation of a third party level-headed entity whereas _______ do not.joint ventures, strategic alliancesa business in which a multinational company owns 100% of the stockwholly owned subsidiaryThis is most appropriate where a firm already has the appropriate knowledge and capabilities that it can l everage rather easily through multiple locations in many countrieswholly owned subsidiaries