MGMT 425 ACTUAL SCRIPT ANSWERS AND
QUESTIONS SET A+
✔✔INTERNATIONAL corporate-level strategy focuses on:
a. the scope of operations through both product and geographic diversification.
b. competition within each country.
c. economies of scale.
d. sophistication of monitoring and controlling systems. - ✔✔A
✔✔A Global strategy:
a. is easy to manage because of common operating decisions across borders.
b. achieves efficient operations without sharing resources across country boundaries.
c. increases risk because decision-making is centralized at the home office.
d. lacks responsiveness to local markets. - ✔✔D
✔✔A Global corporate-level strategy differs from a multi-domestic corporate-level
strategy in that in a global strategy:
a. competitive strategy is dictated by the home office.
b. competitive strategy is decentralized and controlled by individual strategic business
units.
c. products are customized to meet the individual needs of each country.
d. the firm sells in multiple countries. - ✔✔A
✔✔A Global corporate-level strategy emphasizes:
a. differentiated products.
b. economies of scale.
c. sensitivity to local product preferences.
d. decentralizing control and limited monitoring. - ✔✔B
✔✔A Multi-domestic corporate-level strategy is one in which:
a. a corporation chooses not to compete internationally but where there are a number of
international competitors in the firm's local marketplace.
b. the firm produces a standardized product, but markets it differently in each country in
which it competes.
,c. the firm customizes the product for each country in which it competes.
d. the firm competes in a number of countries, but it is centrally coordinated by the
home office. - ✔✔C
✔✔A Large domestic market can provide the country's industries a chance at
dominating the world market because:
a. they have been able to develop economies of scale at home.
b. they have access to abundant and inexpensive factors of production.
c. the related and supporting industries will have been developed.
d. the nation's culture and educational system will be adapted to producing the labor
force needed for the industry. - ✔✔A
✔✔A Fundamental reason for a country's development of advanced and specialized
factors of production is often its:
a. lack of basic resources.
b. monetary wealth.
c. small workforce.
d. protective tariffs. - ✔✔A
✔✔ALL of the following are international corporate-level strategies EXCEPT the
__________ strategy.
a. Multi-domestic
b. Universal
c. Global
d. Transnational - ✔✔B
✔✔FIRMS With core competencies that can be exploited across international markets
are able to:
a. achieve synergies and produce high quality goods at lower costs.
b. enter new markets more quickly.
c. enhance their market image and brand loyalty among local consumers.
d. meet local government requirements more quickly than their international
competitors. - ✔✔A
✔✔OPTIMAL economies of scale in the international market for a standardized product
derive from:
a. the ability to use similar production facilities.
b. effective investment in research and development.
c. access to a low-cost labor force.
d. rapid advances in new technology. - ✔✔A
✔✔MOST R&D intensive industries are international because:
a. of the need to make use of scientific talent in many nations.
b. large markets are necessary for earning above-average returns on investments.
, c. of mandatory requirements by emerging economies that firms take part in joint
ventures or direct investment in the country in order to sell their products in that country.
d. intellectual property is copied so rapidly that firms must move products into the
international market immediately. - ✔✔B
✔✔MOVING into international markets is a particularly attractive strategy to firms whose
domestic markets:
a. demand a differentiation strategy for success.
b. are limited in opportunities for growth.
c. have developed unfriendly business attitudes toward the industry.
d. have too much regulation. - ✔✔B
✔✔BEER companies entered the global market because of:
a. fully-exploited domestic markets for beer.
b. lower labor costs in the emerging markets.
c. economies of scale offset research and development costs.
d. growing consumer preference in the developed world for beer over wine. - ✔✔A
✔✔THE Motivations for expanding into international markets include each of the
following opportunities EXCEPT:
a. increasing the size of the firm's potential markets.
b. gaining economies of scale.
c. gaining a competitive advantage through location.
d. favorable tax concessions and economic incentives by home-country governments. -
✔✔D
✔✔WHICH of the following is NOT a factor pressuring companies for local
responsiveness?
a. the need for local repair and service to customers
b. customization due to cultural differences
c. government pressure for firms to use local sources for procurement
d. availability of low labor costs - ✔✔D
✔✔U.S. Companies moving into the international market need to be sensitive to the
need for local country or regional responsiveness due to:
a. increasing rejection of American culture across much of the world.
b. the sophistication of the international consumer due to the Internet.
c. customization required by cultural differences.
d. the increasing loss of economies of scale. - ✔✔C
✔✔THE Increased pressures for global integration of operations have been driven
mostly by:
a. new low cost entrants.
b. universal product demand.
c. increased levels of joint ventures.
QUESTIONS SET A+
✔✔INTERNATIONAL corporate-level strategy focuses on:
a. the scope of operations through both product and geographic diversification.
b. competition within each country.
c. economies of scale.
d. sophistication of monitoring and controlling systems. - ✔✔A
✔✔A Global strategy:
a. is easy to manage because of common operating decisions across borders.
b. achieves efficient operations without sharing resources across country boundaries.
c. increases risk because decision-making is centralized at the home office.
d. lacks responsiveness to local markets. - ✔✔D
✔✔A Global corporate-level strategy differs from a multi-domestic corporate-level
strategy in that in a global strategy:
a. competitive strategy is dictated by the home office.
b. competitive strategy is decentralized and controlled by individual strategic business
units.
c. products are customized to meet the individual needs of each country.
d. the firm sells in multiple countries. - ✔✔A
✔✔A Global corporate-level strategy emphasizes:
a. differentiated products.
b. economies of scale.
c. sensitivity to local product preferences.
d. decentralizing control and limited monitoring. - ✔✔B
✔✔A Multi-domestic corporate-level strategy is one in which:
a. a corporation chooses not to compete internationally but where there are a number of
international competitors in the firm's local marketplace.
b. the firm produces a standardized product, but markets it differently in each country in
which it competes.
,c. the firm customizes the product for each country in which it competes.
d. the firm competes in a number of countries, but it is centrally coordinated by the
home office. - ✔✔C
✔✔A Large domestic market can provide the country's industries a chance at
dominating the world market because:
a. they have been able to develop economies of scale at home.
b. they have access to abundant and inexpensive factors of production.
c. the related and supporting industries will have been developed.
d. the nation's culture and educational system will be adapted to producing the labor
force needed for the industry. - ✔✔A
✔✔A Fundamental reason for a country's development of advanced and specialized
factors of production is often its:
a. lack of basic resources.
b. monetary wealth.
c. small workforce.
d. protective tariffs. - ✔✔A
✔✔ALL of the following are international corporate-level strategies EXCEPT the
__________ strategy.
a. Multi-domestic
b. Universal
c. Global
d. Transnational - ✔✔B
✔✔FIRMS With core competencies that can be exploited across international markets
are able to:
a. achieve synergies and produce high quality goods at lower costs.
b. enter new markets more quickly.
c. enhance their market image and brand loyalty among local consumers.
d. meet local government requirements more quickly than their international
competitors. - ✔✔A
✔✔OPTIMAL economies of scale in the international market for a standardized product
derive from:
a. the ability to use similar production facilities.
b. effective investment in research and development.
c. access to a low-cost labor force.
d. rapid advances in new technology. - ✔✔A
✔✔MOST R&D intensive industries are international because:
a. of the need to make use of scientific talent in many nations.
b. large markets are necessary for earning above-average returns on investments.
, c. of mandatory requirements by emerging economies that firms take part in joint
ventures or direct investment in the country in order to sell their products in that country.
d. intellectual property is copied so rapidly that firms must move products into the
international market immediately. - ✔✔B
✔✔MOVING into international markets is a particularly attractive strategy to firms whose
domestic markets:
a. demand a differentiation strategy for success.
b. are limited in opportunities for growth.
c. have developed unfriendly business attitudes toward the industry.
d. have too much regulation. - ✔✔B
✔✔BEER companies entered the global market because of:
a. fully-exploited domestic markets for beer.
b. lower labor costs in the emerging markets.
c. economies of scale offset research and development costs.
d. growing consumer preference in the developed world for beer over wine. - ✔✔A
✔✔THE Motivations for expanding into international markets include each of the
following opportunities EXCEPT:
a. increasing the size of the firm's potential markets.
b. gaining economies of scale.
c. gaining a competitive advantage through location.
d. favorable tax concessions and economic incentives by home-country governments. -
✔✔D
✔✔WHICH of the following is NOT a factor pressuring companies for local
responsiveness?
a. the need for local repair and service to customers
b. customization due to cultural differences
c. government pressure for firms to use local sources for procurement
d. availability of low labor costs - ✔✔D
✔✔U.S. Companies moving into the international market need to be sensitive to the
need for local country or regional responsiveness due to:
a. increasing rejection of American culture across much of the world.
b. the sophistication of the international consumer due to the Internet.
c. customization required by cultural differences.
d. the increasing loss of economies of scale. - ✔✔C
✔✔THE Increased pressures for global integration of operations have been driven
mostly by:
a. new low cost entrants.
b. universal product demand.
c. increased levels of joint ventures.
