MGT 590 Final (Chapters 7-12) Glo -Bus questions well solved 2022/2023

Using domestic plants as a a production base for exporting goods to selected foreign country markets: Can be an excellent initial strategy for exploring the profitability of selling goods to foreign buyers without spending much, if any, additional capital (should the company's domestic plants have unused production capacity that can be utilized to produce goods for export) Operating in the markets of many different foreign countries requires company managers to confront the strategic issue of: Whether to vary the company's competitive approach to fit specific market conditions and buyer preferences in each host country or whether to employ essentially the same competitive strategy approach in all countries A U.S. manufacturer that exports goods made at it's U.S. plants for shipment to foreign markets: Becomes more cost competitive in selling its exported goods in foreign markets when the U.S. dollar declines in value against the currencies of the countries to which it is exporting Many companies acquire a local business as a means of entering foreign markets because: Acquisition is quicker than creating a new subsidiary and building its entire operations from the ground up, and it may be the least risky and cost-efficient means of hurdling entry barriers. Which of the following is NOT a typical reason why companies opt to sell their products/services or to locate some of their operations in some or many countries? To strengthen the company's capability to employ more effective offensive and defensive strategies. Global competition exists when: Competitive conditions across national markets are linked strongly enough to form a true international or world market and when leading competitors compete head to head in many different countries. Because buyer tastes for a particular product or service sometimes differ substantially from country to country: Company managers must resolve the tension between the market pressures to localize the firm's product offerings country-by-country to match the tastes and preferences of local buyers and the competitive pressures to lower costs by offering mostly standardized products in all countries where a company competes. Competing in one or more countries or regions of the world causes strategy-making to be more complex because of: The risks of advance shifts, currency exchange rates, and the presence of important cross-country differences of buyer tastes, market sizes, and growth potential. Which of the following is NOT among the important strategic issues associated with competing across national borders? Which foreign country markets are the best candidates for becoming large and well-protected profit sanctuaries According to Figure 7.2, which of the following does NOT accurately characterize the difference between a localized multicountry strategy and a global strategy? A global strategy involves striving to minimize worldwide shipping costs whereas a multicountry strategy entails a willingness to tolerate high shipping costs in the interest of minimizing overall production costs. An international or global competitor can strive to gain competitive advantage or counteract disadvantages by: Doing a better job than rivals do of transferring some of its competitively powerful resources and capabilities from countries where it has established competitively strong market positions to its operations in those countries where it is competitively weaker. Which of the following is the most unlikely element of a "think global, act global" approach to crafting a global strategy? (You may find the content of Figure 7.2 helpful in answering this question.) Having relatively small plants in many countries, with each plant producing product versions for local area markets.