1|Page | © copyright 2024/2025 | Grade A+
BUSM EXAM 3 Questions and
Answers (100% Pass)
___________ strategy makes most sense when demands for local
responsiveness are high, but cost pressures are moderate or low
✓ A localization
When Casio sells Its calculators in countries across the world, it doesn't need
to worry too much about customizing the product to local needs and
preferences because calculators are a _____________ need
✓ universal
Commodity products are such as bulk chemicals, petroleum, steel, and/or
sugar do not require much ditterentiation because the taste and preterence
forthese products are similar around the world. These products are called
✓ universal needs
Pressures for cost reduction are intense in industries where
✓ there is persistent excess capacity
Economies of scale arise from which source?
Master01 | October, 2024/2025 | Latest update
, 1|Page | © copyright 2024/2025 | Grade A+
✓ serving domestic and international markets from the same production
facilities
The price a firm charges for a good or service is typically less than the value
placed on that good or service by the customer. This is because
✓ the customer captures some of that value in the form of a consumer
surplus
a pharmaceutical firm wants to expand its offering by coming up with new
drugs to treat Type Il diabetes. What would be a primary activity for this firm?
✓ research and development
The amount of value a firm creates is measured by the
✓ difference between its costs of production and the quality that
consumers perceive in Its products
true or false
as competition intensifies, global standardization strategies and transnational
strategies tend to become less viable, and managers need to direct their
companies toward either an international strategy or a localization strategy
Master01 | October, 2024/2025 | Latest update
BUSM EXAM 3 Questions and
Answers (100% Pass)
___________ strategy makes most sense when demands for local
responsiveness are high, but cost pressures are moderate or low
✓ A localization
When Casio sells Its calculators in countries across the world, it doesn't need
to worry too much about customizing the product to local needs and
preferences because calculators are a _____________ need
✓ universal
Commodity products are such as bulk chemicals, petroleum, steel, and/or
sugar do not require much ditterentiation because the taste and preterence
forthese products are similar around the world. These products are called
✓ universal needs
Pressures for cost reduction are intense in industries where
✓ there is persistent excess capacity
Economies of scale arise from which source?
Master01 | October, 2024/2025 | Latest update
, 1|Page | © copyright 2024/2025 | Grade A+
✓ serving domestic and international markets from the same production
facilities
The price a firm charges for a good or service is typically less than the value
placed on that good or service by the customer. This is because
✓ the customer captures some of that value in the form of a consumer
surplus
a pharmaceutical firm wants to expand its offering by coming up with new
drugs to treat Type Il diabetes. What would be a primary activity for this firm?
✓ research and development
The amount of value a firm creates is measured by the
✓ difference between its costs of production and the quality that
consumers perceive in Its products
true or false
as competition intensifies, global standardization strategies and transnational
strategies tend to become less viable, and managers need to direct their
companies toward either an international strategy or a localization strategy
Master01 | October, 2024/2025 | Latest update
