SEVI 3013 CHAPTER #7 EXAM
QUESTIONS AND ANSWERS
Euromoney magazine's semiannual "Country Risk Rating" evaluates which of the
following? (Check all that apply.) - Answer-political and economic risks
financial and credit risks
Which of the following are characteristics of a multidomestic strategy? (Check all that
apply.) - Answer-There is little pressure to keep cost low.
It emphasizes adapting products and services to local markets.
Decisions are generally decentralized.
______ is shifting a value-creating activity from a domestic location to a foreign location.
- Answer-Offshoring
A transnational strategy is used in industries where the pressure for ______. - Answer-
both local adaptation and lowering costs are high
______ are the nature of home-market demand for the industry's product or service. -
Answer-Demand conditions
Which of the following are the main types of risk when expanding internationally?
(Check all that apply.) - Answer-economic
currency
political
Which of the following refers to the presence, absence, and quality in the nation of
supplier industries and other related industries that supply services, support, or
technology to firms in the industry value chain? - Answer-related and supporting
industries
______ is using other firms to perform value-creating activities that were previously
performed in-house. - Answer-Outsourcing
Rivalry is particularly intense in nations with which of the following conditions? (Check
all that apply.) - Answer-There is a high likelihood for potential entrants from related
industries.
There are a large number of suppliers for that industry.
There is strong consumer demand.
Which of the following are among the basic strategies that companies can use to
compete in the global marketplace? (Check all that apply.) - Answer-multidomestic
strategy
transnational strategy
QUESTIONS AND ANSWERS
Euromoney magazine's semiannual "Country Risk Rating" evaluates which of the
following? (Check all that apply.) - Answer-political and economic risks
financial and credit risks
Which of the following are characteristics of a multidomestic strategy? (Check all that
apply.) - Answer-There is little pressure to keep cost low.
It emphasizes adapting products and services to local markets.
Decisions are generally decentralized.
______ is shifting a value-creating activity from a domestic location to a foreign location.
- Answer-Offshoring
A transnational strategy is used in industries where the pressure for ______. - Answer-
both local adaptation and lowering costs are high
______ are the nature of home-market demand for the industry's product or service. -
Answer-Demand conditions
Which of the following are the main types of risk when expanding internationally?
(Check all that apply.) - Answer-economic
currency
political
Which of the following refers to the presence, absence, and quality in the nation of
supplier industries and other related industries that supply services, support, or
technology to firms in the industry value chain? - Answer-related and supporting
industries
______ is using other firms to perform value-creating activities that were previously
performed in-house. - Answer-Outsourcing
Rivalry is particularly intense in nations with which of the following conditions? (Check
all that apply.) - Answer-There is a high likelihood for potential entrants from related
industries.
There are a large number of suppliers for that industry.
There is strong consumer demand.
Which of the following are among the basic strategies that companies can use to
compete in the global marketplace? (Check all that apply.) - Answer-multidomestic
strategy
transnational strategy
