MGT 499 Exam 3 (Final)( with solved solutions)
To adapt to the globalization of manufactured goods, companies must first adapt their strategy to correct
answers compete against international companies with the same basic product
The competitive position of a company based on the nation-state in which the company is located is
referred to as correct answers national competitive advantage
In what way is licensing similar to franchising correct answers Franchisees pay a royalty to the parent
company
Attributes of a company's competitive advantage, including land, capital, technological knowhow, and
physical infrastructure, are known as correct answers factor endowments
When a company focuses on increasing its profitability by reaping cost reductions that come from
economies of scale and location economies, it is using a(n) correct answers global standardization
strategy
As industries become global in scope, competitors and potential future competitors exist not only in a
company's home market but also in other national markets and can motivate companies to correct answers
expand globally
The rationale for selecting foreign suppliers to manage 65% of the building of Boeing Company's 787 jet
aircraft is that correct answers those particular suppliers are the best in the world at performing their
particular activity
A metal fabrication company is considering entering the global market. It is unsure of what steps to take
and is looking for a cost-effective method to enter into the market by partnering with a company that is
already doing similar business in the host country. Based on the company's preferences, which mode of
entry should the company choose? correct answers Entering into a joint venture
Physicians in the United States are used to dealing with hard-sell pharmaceutical sales reps. However,
British and Japanese doctors respond more favorably to online informational presentations about new
drugs that they can review whenever they have a few free minutes to spare. When PharmaGen decided to
market their newest cardiovascular medicine in Britain, they spent three months developing the Internet
material they would use to present the drug to British doctors. This is an example of pressure for local
responsiveness based on correct answers differences in distribution channels
, Managers of an American television network have been told they need to employ a localization strategy if
they want to break into the European and Australian markets. What specifically should they do to
implement this strategy? correct answers Produce new programming tailored to the needs of these new
markets
The success of multinational companies ultimately comes from correct answers gaining competitive
advantage based on distinctive competencies
If a company is experiencing increasing pressures for cost reduction for its products, which of the
following courses of action should it consider? correct answers Explore opportunities for exporting or
create a wholly owned subsidiary within a country
Coca-Cola, a company that does business in almost every national market, can most accurately be
classified as correct answers a multinational company
Manufactured goods have the ability to gain entry into the global market because correct answers barriers
to international trade are lowering
A company with more production power than is generally utilized for its current production activity can
benefit from entering the global market because correct answers the company can utilize its production
facilities to produce greater volumes to meet demand from a larger market, leading to higher productivity,
lower cost, and greater profitability
A U.S. company that manufactures home appliances is interested in entering the Chinese market. The
company has many national appliance competitors in China, all of which have a better understanding of
the unique needs of Chinese customers. Based on these facts, the U.S. company should consider which
strategy for entering the Chinese market? correct answers Global strategic alliance
Which of the following statements about global expansion is true? correct answers Expanding into the
global marketplace is a decision based on growing profitability with a company's current product offering
A U.S. technology company has decided to move some of its manufacturing processes to facilities in
Japan, utilizing the nation's expertise in technological manufacturing. Doing so gives the company the
ability to price its products at a lower price point locally than its other "Made in America" competitors.
By performing this value creation activity in an optimal location, the company has realized correct
answers location economies
To adapt to the globalization of manufactured goods, companies must first adapt their strategy to correct
answers compete against international companies with the same basic product
The competitive position of a company based on the nation-state in which the company is located is
referred to as correct answers national competitive advantage
In what way is licensing similar to franchising correct answers Franchisees pay a royalty to the parent
company
Attributes of a company's competitive advantage, including land, capital, technological knowhow, and
physical infrastructure, are known as correct answers factor endowments
When a company focuses on increasing its profitability by reaping cost reductions that come from
economies of scale and location economies, it is using a(n) correct answers global standardization
strategy
As industries become global in scope, competitors and potential future competitors exist not only in a
company's home market but also in other national markets and can motivate companies to correct answers
expand globally
The rationale for selecting foreign suppliers to manage 65% of the building of Boeing Company's 787 jet
aircraft is that correct answers those particular suppliers are the best in the world at performing their
particular activity
A metal fabrication company is considering entering the global market. It is unsure of what steps to take
and is looking for a cost-effective method to enter into the market by partnering with a company that is
already doing similar business in the host country. Based on the company's preferences, which mode of
entry should the company choose? correct answers Entering into a joint venture
Physicians in the United States are used to dealing with hard-sell pharmaceutical sales reps. However,
British and Japanese doctors respond more favorably to online informational presentations about new
drugs that they can review whenever they have a few free minutes to spare. When PharmaGen decided to
market their newest cardiovascular medicine in Britain, they spent three months developing the Internet
material they would use to present the drug to British doctors. This is an example of pressure for local
responsiveness based on correct answers differences in distribution channels
, Managers of an American television network have been told they need to employ a localization strategy if
they want to break into the European and Australian markets. What specifically should they do to
implement this strategy? correct answers Produce new programming tailored to the needs of these new
markets
The success of multinational companies ultimately comes from correct answers gaining competitive
advantage based on distinctive competencies
If a company is experiencing increasing pressures for cost reduction for its products, which of the
following courses of action should it consider? correct answers Explore opportunities for exporting or
create a wholly owned subsidiary within a country
Coca-Cola, a company that does business in almost every national market, can most accurately be
classified as correct answers a multinational company
Manufactured goods have the ability to gain entry into the global market because correct answers barriers
to international trade are lowering
A company with more production power than is generally utilized for its current production activity can
benefit from entering the global market because correct answers the company can utilize its production
facilities to produce greater volumes to meet demand from a larger market, leading to higher productivity,
lower cost, and greater profitability
A U.S. company that manufactures home appliances is interested in entering the Chinese market. The
company has many national appliance competitors in China, all of which have a better understanding of
the unique needs of Chinese customers. Based on these facts, the U.S. company should consider which
strategy for entering the Chinese market? correct answers Global strategic alliance
Which of the following statements about global expansion is true? correct answers Expanding into the
global marketplace is a decision based on growing profitability with a company's current product offering
A U.S. technology company has decided to move some of its manufacturing processes to facilities in
Japan, utilizing the nation's expertise in technological manufacturing. Doing so gives the company the
ability to price its products at a lower price point locally than its other "Made in America" competitors.
By performing this value creation activity in an optimal location, the company has realized correct
answers location economies
