GLO BUS CH8 EXAM QUESTIONS &
ELABORATED COMPLETE ANSWERS
PASSED
In place of relatively stable and predictable domestic markets, firms across the globe
find that they are competing in relatively unstable and unpredictable global markets. -
Correct Answer ✔✔ True
After a firm decides to compete internationally, it must select its strategy and choose a
mode of entry into international markets. - Correct Answer ✔✔ True
Because there are still several industrial and consumer markets in which only domestic
firms compete, many firms do not have to be able to compete internationally. - Correct
Answer ✔✔ False
One reason why firms pursue international opportunities is to extend the product's life
cycle - Correct Answer ✔✔ True
A reason that firms use international strategies is to secure needed resources,
especially minerals and energy. - Correct Answer ✔✔ True
In some industries, technology drives globalization because the economies of scale
necessary to reduce costs cannot be met by competing in domestic markets alone -
Correct Answer ✔✔ True
A major incentive for the use of international strategy by French-based Carrefour Group
is the potential for large demand for goods and services from emerging markets such as
China and India - Correct Answer ✔✔ True
The three basic benefits of international strategies are 1) increased market size; 2)
increased economies of scale and learning; and 3) development of competitive
advantages through location - Correct Answer ✔✔ True
Rivals Airbus and Boeing have multiple manufacturing facilities and outsource activities
partly for the purpose of developing economies of scale as a source of being able to
create value for customers - Correct Answer ✔✔ True
As an indication of the importance of economies of scale, Ford Motor Company runs a
single global business developing cars and trucks that can be built and sold through the
world - Correct Answer ✔✔ True
, Coca Cola and PepsiCo are examples of firms that have found it unnecessary to
aggressively pursue international strategies because of extensive growth opportunities
available in the U.S. market - Correct Answer ✔✔ False
Multinational firms have many opportunities to learn from their experiences in
international markets, but they must have a strong R&D system to absorb the
knowledge - Correct Answer ✔✔ True
Cultural differences affect location advantages in that business transactions are less
difficult for a firm to complete when there is a strong match among the cultures with
which the firm is involved - Correct Answer ✔✔ True
Location advantages are influenced by costs of production, access to natural resources
and critical supplies, as well as the needs of customers, but not culture - Correct
Answer ✔✔ False
The three corporate-level international strategies are cost leadership, differentiation,
and focus - Correct Answer ✔✔ False
When a firm initially pursues an international business-level strategy, the resources and
capabilities established in the home country frequently allow the firm to pursue the
strategy into markets located in other countries - Correct Answer ✔✔ True
Michael Porter's Determinants of National Advantage describe factors associated with
the firm's domestic environment that contribute to its dominance in a particular global
industry. - Correct Answer ✔✔ True
Both the size and the nature of a country's domestic demand for a particular industry's
good or service are important in Porter's determinants of national advantage - Correct
Answer ✔✔ True
Having substantial supplies of critical basic natural resources is a necessary condition
for a country to support businesses that can successfully compete in international
markets - Correct Answer ✔✔ False
South Korea's success in international markets is primarily a result of its abundant
natural resources - Correct Answer ✔✔ False
Italy has become the leader in the shoe industry because of related and supporting
industries such as a well-established leather-processing industry that provides the
leather needed to construct shoes and related products - Correct Answer ✔✔ True
A firm based in a country with a national competitive advantage is not guaranteed
success as it implements its chosen international business-level strategy. Instead, the
actual strategic choices managers make may be the most compelling reasons for
success or failure - Correct Answer ✔✔ True
ELABORATED COMPLETE ANSWERS
PASSED
In place of relatively stable and predictable domestic markets, firms across the globe
find that they are competing in relatively unstable and unpredictable global markets. -
Correct Answer ✔✔ True
After a firm decides to compete internationally, it must select its strategy and choose a
mode of entry into international markets. - Correct Answer ✔✔ True
Because there are still several industrial and consumer markets in which only domestic
firms compete, many firms do not have to be able to compete internationally. - Correct
Answer ✔✔ False
One reason why firms pursue international opportunities is to extend the product's life
cycle - Correct Answer ✔✔ True
A reason that firms use international strategies is to secure needed resources,
especially minerals and energy. - Correct Answer ✔✔ True
In some industries, technology drives globalization because the economies of scale
necessary to reduce costs cannot be met by competing in domestic markets alone -
Correct Answer ✔✔ True
A major incentive for the use of international strategy by French-based Carrefour Group
is the potential for large demand for goods and services from emerging markets such as
China and India - Correct Answer ✔✔ True
The three basic benefits of international strategies are 1) increased market size; 2)
increased economies of scale and learning; and 3) development of competitive
advantages through location - Correct Answer ✔✔ True
Rivals Airbus and Boeing have multiple manufacturing facilities and outsource activities
partly for the purpose of developing economies of scale as a source of being able to
create value for customers - Correct Answer ✔✔ True
As an indication of the importance of economies of scale, Ford Motor Company runs a
single global business developing cars and trucks that can be built and sold through the
world - Correct Answer ✔✔ True
, Coca Cola and PepsiCo are examples of firms that have found it unnecessary to
aggressively pursue international strategies because of extensive growth opportunities
available in the U.S. market - Correct Answer ✔✔ False
Multinational firms have many opportunities to learn from their experiences in
international markets, but they must have a strong R&D system to absorb the
knowledge - Correct Answer ✔✔ True
Cultural differences affect location advantages in that business transactions are less
difficult for a firm to complete when there is a strong match among the cultures with
which the firm is involved - Correct Answer ✔✔ True
Location advantages are influenced by costs of production, access to natural resources
and critical supplies, as well as the needs of customers, but not culture - Correct
Answer ✔✔ False
The three corporate-level international strategies are cost leadership, differentiation,
and focus - Correct Answer ✔✔ False
When a firm initially pursues an international business-level strategy, the resources and
capabilities established in the home country frequently allow the firm to pursue the
strategy into markets located in other countries - Correct Answer ✔✔ True
Michael Porter's Determinants of National Advantage describe factors associated with
the firm's domestic environment that contribute to its dominance in a particular global
industry. - Correct Answer ✔✔ True
Both the size and the nature of a country's domestic demand for a particular industry's
good or service are important in Porter's determinants of national advantage - Correct
Answer ✔✔ True
Having substantial supplies of critical basic natural resources is a necessary condition
for a country to support businesses that can successfully compete in international
markets - Correct Answer ✔✔ False
South Korea's success in international markets is primarily a result of its abundant
natural resources - Correct Answer ✔✔ False
Italy has become the leader in the shoe industry because of related and supporting
industries such as a well-established leather-processing industry that provides the
leather needed to construct shoes and related products - Correct Answer ✔✔ True
A firm based in a country with a national competitive advantage is not guaranteed
success as it implements its chosen international business-level strategy. Instead, the
actual strategic choices managers make may be the most compelling reasons for
success or failure - Correct Answer ✔✔ True
