Exam Questions and Correct Answers
(Graded A+)
Which geographic diversification is most likely to reduce the liability of foreignness? -
Answer- Culturally adjacent countries
In combining product and geographic diversification, which is not one of the four
possible combinations? - Answer- Classic replicators
At its core, diversification is essentially driven by all of the following except: - Answer-
Less complicated information systems
Select the best choice: a company that is engaged in oil production, pipelines and
tankers, refining, and gasoline stations has engaged in ________ expansion - Answer-
Vertical
Which is one motive for M&A which does not necessarily increase shareholder value? -
Answer- Hubris
Which is not true concerning U.S. anti-trust policy today? - Answer- The legal standards
for inter-firm cooperation are no longer ambiguous in the U.S.
Dumping is defined as - Answer- An exporter selling below cost abroad and planning to
raise prices after eliminating local rivals
In some industries where pressures for globalization are relatively low, local firms may
possess some skills and assets that are transferable overseas, thus leading to a/an
________ strategy - Answer- Extender
The main types of attack include - Answer- All of the above
Which of the following would not be considered an initial set of actions to gain
competitive advantage - Answer- Counterattacks
Which of the following is not a legal means of signaling? - Answer- Direct discussion of
reduced rivalry with competitors
Which is true of strategy? - Answer- All of the above