MGT 499 Exam 3 (Final) Questions With
Accurate Answers
To adapt to the globalization of manufactured goods, companies must first adapt
their strategy to - ANSWER 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 - ANSWER national competitive advantage
In what way is licensing similar to franchising - ANSWER 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 - ANSWER
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) - ANSWER 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 - ANSWER expand globally
The rationale for selecting foreign suppliers to manage 65% of the building of
Boeing Company's 787 jet aircraft is that - ANSWER 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? - ANSWER 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 - ANSWER 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? - ANSWER
Produce new programming tailored to the needs of these new markets
The success of multinational companies ultimately comes from - ANSWER
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? - ANSWER
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 - ANSWER a multinational company
Manufactured goods have the ability to gain entry into the global market
because - ANSWER 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 -
ANSWER 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? - ANSWER Global strategic alliance
Which of the following statements about global expansion is true? - ANSWER
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 - ANSWER location economies
Accurate Answers
To adapt to the globalization of manufactured goods, companies must first adapt
their strategy to - ANSWER 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 - ANSWER national competitive advantage
In what way is licensing similar to franchising - ANSWER 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 - ANSWER
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) - ANSWER 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 - ANSWER expand globally
The rationale for selecting foreign suppliers to manage 65% of the building of
Boeing Company's 787 jet aircraft is that - ANSWER 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? - ANSWER 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 - ANSWER 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? - ANSWER
Produce new programming tailored to the needs of these new markets
The success of multinational companies ultimately comes from - ANSWER
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? - ANSWER
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 - ANSWER a multinational company
Manufactured goods have the ability to gain entry into the global market
because - ANSWER 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 -
ANSWER 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? - ANSWER Global strategic alliance
Which of the following statements about global expansion is true? - ANSWER
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 - ANSWER location economies
