Deck 5: Competing in the Global Marketplace

Question 1

Gupta and Govindarajan suggested which of the following as a choice available for companies considering entering a foreign market?

A)Rapid entry
B)Gradual entry
C)Disregard for now
D)Establish reasonable foothold
E)All the above

Answer 1

E

Question 2

Prior to the last twenty years,the involvement of Arab firms in the global market place were primarily limited to specific sectors that include

A)energy,trade,and transportation.
B)energy,petrochemicals,and trade.
C)energy,transportation,and space.
D)energy,petrochemicals,and transportation .

Answer 2

B

Question 3

Companies are influenced by which two primary factors in deciding what strategy should be chosen?

A)Global market position and national responsiveness.
B)National integration and global responsiveness.
C)National market position and global responsiveness.
D)Global integration and national responsiveness.

Answer 3

D

Question 4

In the last three decades,many Arab firms have utilized as an ideal way to enter international markets and accumulate experience abroad

A)turnkey operations.
B)licensing.
C)joint venture.
D)export.

Question 5

Whichof the following is not a mechanism for achieving competitive advantage?

A)Economies of scope
B)National economies
C)National differences
D)Scale economies

Question 6

Which type of business involves a contractual agreement for a company to provide management services and expertise to another company for a determined period?

A)management contract
B)franchising
C)export
D)licensing
E)None of the above

Question 7

From Brazil to Japan,and from Spain to China,cultural differences are apparent in religious beliefs and

A)dress.
B)personal interaction.
C)eating habits.
D)regard for time and work.
E)all the above

Question 8

Executives who consider the culture of the host country as appropriate to guide the operation and decision making are from orientations.

A)regiocentric
B)polycentric
C)ethnocentric
D)geocentric
E)All of the above

Question 9

Which of the following is not a type of global strategy?

A)Agitation
B)Arbitrage
C)Aggregation
D)Adaptation

Question 10

The various reasons why Arab executives from Morocco to Oman are interested in expanding beyond domestic and regional markets include

A)new market exploration.
B)technology advancement.
C)accessibility to low cost materials.
D)market expansion.
E)all the above

Question 11

Which type of agreement has increased steadily in the Arab world since governments in the region have embarked on liberalization programs?

A)Turnkey operations
B)Export
C)Licensing
D)Franchising
E)Both B and D

Question 12

Which global trends should be integrated into strategic planning?

A)The growth of the public sector,and integration in business and social realms.
B)The increasing influence of emerging economies in the global marketplace,and increasingly global labor and talent markets.
C)The influence of emerging economies in the global marketplace,and interaction in business and social realms.
D)The increasing influence of emerging economies in the global marketplace,and the growth of the public sector.

Question 13

Under orientations,executives are guided by the best practice globally and tend to prefer an integrated approach to managing operations.

A)geocentric
B)polycentric
C)ethnocentric
D)regiocentric
E)None of the above

Question 14

When a firm utilizes its entire worldwide system of production and market position against competition,it is using a

A)multidomestic strategy.
B)transnational strategy.
C)international strategy.
D)global strategy.

Question 15

Firms in the Gulf Cooperation Council (GCC)states lack a competitive advantage when positioning themselves strategically.This is due to

A)an inability to project the global market growth.
B)an inability to deal with staggering opportunities.
C)a shortage of qualified manpower .
D)inadequate ability to exploit the market.

Question 16

Which of the following is not a global trend that was specified in the Mckinsey & Company study?

A)Increasingly global labor and talent markets.
B)A growing number of consumers in emerging economies.
C)Increasing constraints in supply or usage of natural resources.
D)Growing global demographic trends.
E)Growth of public sector.

Question 17

Which of the following is not a way of entering foreign markets?

A)Exporting
B)Investment
C)Merging
D)Contractual approaches

Question 18

Managers,who subscribe to orientations,find it useful to let the general beliefs and values prevailing in a particular region guide the operations there.

A)ethnocentric
B)polycentric
C)regiocentric
D)geocentric
E)All of the above

Question 19

The global strategy that seeks to boost revenues and market share by maximizing the company's local importance is called

A)adaptation.
B)agitation.
C)arbitrage.
D)aggregation.

Question 20

Which option gives the company the opportunity to reduce its foreign investment and in the process enables it to have control over its product?

A)Licensing
B)Turnkey operations
C)Contract manufacturing
D)Franchising
E)Both A and B

Question 21

The following UN agencies provide detailed and relevant information about conditions in many countries

A)World Health Organization (WHO),World Trade Organization (WTO),and International Monetary Fund (IMF)
B)World Health Organization (WHO),World Trade Organization (WTO),and World Bank
C)World Bank,World Trade Organization (WTO),and International Monetary Fund (IMF)
D)World Bank,World Health Organization (WHO),and International Monetary Fund (IMF)

Question 22

Executives who subscribe to _ orientations tend to project the beliefs and values of the parent company on its subsidiaries and offices abroad.

A)ethnocentric
B)regiocentric
C)geocentric
D)polycentric
E)None of the above

Question 23

The oldest and possibly the least risky approach to foreign market expansion is

A)export.
B)franchising.
C)licensing.
D)turnkey operations.

Question 24

Which city is not a popular choice among international property investors scouting for locations to build a signature office tower?

A)Panama city
B)Guatemala city
C)Mexico city
D)New York city

Question 25

Which of the following is not something that a company should consider before pursuing a particular strategy?

A)How to apply integration mechanisms in order to match people to jobs.
B)Internalization of segregation.
C)Whether the new elements of a strategy are a good fit for the organization.
D)Externalization of integration.

Question 26

Which of the following is common in manufacturing,especially where brand is important?

A)Management contract
B)Franchising
C)Export
D)Licensing
E)All of the above

Question 27

In March 2010 the Egypt- based Eastern Company,a cigarette manufacturer,signed a contract with Jordan's Tag Company to produce,market,and distribute Eastern's products in Jordan.This is an example of

A)franchising.
B)exportation.
C)licensing.
D)contract manufacturing.

Question 28

Two strategic focal points for expansion are

A)globalization and privatization.
B)globalization and localization.
C)globalization and internationalization.
D)globalization and nationalization.

Question 29

The major Arab companies that have established a presence in attractive markets in emerging economies and the western world are

A)Aramco,SABIC,and the National Bank of Kuwait.
B)Aramco,ADNOC,and the National Bank of Kuwait.
C)Aramco,EPCO,and the National Bank of Kuwait.
D)Aramco,Qatar Petrochemicals,and the National Bank of Kuwait.

Question 30

Which type of operation enables clients to have access to hard- to- get skills and technology?

A)Licensing
B)Turnkey operation
C)Contract manaufacturing
D)Franchising

Question 31

The is limited to expansion to a few countries.

A)low- cost leader strategy
B)vertical integration strategy
C)global strategy
D)international strategy

Question 32

In 2006,Dubai Ports World bought the British shipping and logistics firm,Peninsular and Oriental Steam Navigation Company.What is this an example of?

A)A joint venture
B)A turnkey operation
C)Establilshing a wholly owned subsidiary
D)Licensing

Question 33

Which type of agreement involves a firm granting the right to another entity to run its business in a specified manner and provide assistance during the contract duration?

A)Franchising
B)Export
C)Licensing
D)Turnkey operations

Question 34

When a company constructs an entire project for the host country organization,this is called

A)franchising.
B)a turnkey operation.
C)licensing.
D)contract manufacturing.

Question 35

Investing in emerging economies can bring what immediate benefits to Arab businesses?

A)increasing communication and greater ease of obtaining and developing knowledge.
B)Application of scientific techniques and approaches to business management.
C)Diversification of portfolios and greater ease of obtaining and developing knowledge.
D)Diversification of portfolios,and access to natural resources and untapped markets.

Question 36

In the global marketplace,joint ventures are established for various reasons,including

A)reducing risk and achieving a competitive position.
B)complying with government regulations.
C)gaining access to new technology or resources.
D)ease in entering and gaining knowledge of foreign markets.
E)all the above

Question 37

The global strategy that attempts to achieve economies of scale by creating regional or sometimes global operations is called

A)arbitrage.
B)aggregation.
C)adaptation.
D)agitation.

Question 38

Which of the following is not an advantage of export?

A)It is easy to arrange suitable distribution channels.
B)It is low- cost and low- risk.
C)It is easy to carry out without investing scarce resources.
D)The company has full ownership of profits.

Question 39

Which type of agreement represents a producer giving the rights of their intellectual property in return for royalties?

A)Licensing
B)Franchising
C)Export
D)Turnkey operations

Question 40

In the near future,more Arab corporations will expand their markets into Asia,Africa,Europe,and other regions.

Question 41

Instead of making efforts to adjust to differences in foreign markets,companies will often exploit those differences in order to create opportunities.

Question 42

Under a franchising agreement,McDonalds or Hilton might supply a local businessman in Cairo with its intangible property and operational knowledge.

Question 43

Governments in various parts of the world have relaxed market regulations and accelerated privatization of state- owned companies.

Question 44

The key to successful global strategy is to manage the interactions between the different goals and means.

Question 45

Companies utilize different modes for entering into a market and,depending on the situation,can use multiple modes simultaneously.

Question 46

A global strategy is simply the leveraging of benefits of the firm's country of origin.

Question 47

As cultural and economic differences always exist among countries,Arab executives have had to give- up surveillance and alert systems.

Question 48

Arab- based companies have been aggressively venturing abroad for 30 years now.

Question 49

In the global marketplace,strategy is not a vital instrument for competitively positioning a company.

Question 50

In 2009,Advanced Technology Investment Company of Abu Dhabi acquired Singapore's Chartered Semiconductor Manufacturing.

Question 51

It is not so important for Arab executives to monitor global trends as long as they are familiar with general and economic conditions of the target country or region.

Question 52

Achieving superior performance relative to competitors requires an establishment and sustained comparative position over rivals,including domestic firms.

Question 53

In 2005,UNESCO reported that the Arab world has spent U.S.$1,000 billion on turnkey projects in the past three decades.

Question 54

Export is the newest and possibly the least risky approach to foreign market expansion.

Question 55

Demographically,while some countries have experienced an acute shortage in youth population,the Arab world has a high ratio of youth.

Question 56

In the process of globalization,the activities and involvement of the firms are determined by opportunities.

Question 57

With 60 percent of the world's population spread out over three continents,BRIC already accounts for 35 percent of global GDP.

Question 58

Both internationalization and global approaches have been essential in enabling Arab business to leave their mark on the world economy.

Question 59

Arab countries rarely vary in their commitment to international expansion and activities.

Question 60

Increasing competition,and the willingness of many Arab executives,has induced many companies to expand overseas.

Question 61

Arab corporations should not study the strategic approaches of their counterparts in emerging countries because those counterparts have found it hard to acheive success.

Question 62

Major Arab companies have recognized the need to sustain their competitiveness and meet their competitors on similar fronts.

Question 63

In a world where global presence has become essential,Arab firms have no choice but to position themselves strategically.

Question 64

Angela Martins,international director of Banco ABC Brasil,states that Brazil's growth is easy for Arab real- estate investors to ignore.

Question 65

The share of the United States in world exports of goods and services is 9.9 percent,while that of sub- Saharan Africa (44 countries)is over 20 percent.

Question 66

The expansion of Arab companies into global markets eases prevailing management practices.

Question 67

Planet Food World,a Saudi based company,has invested heavily in agriculture products,mainly industrial farms,in Turkey.

Question 68

Arab corporations have to rethink their roles globally and embark on strategic initiatives to seize global opportunities.

Question 69

Trade openness and the liberalization process,along with increasing numbers of MNCs from the non- Western world,have changed the nature of competition in the world market.

Question 70

The World Factbook includes information related to the history,people,government,economy,geography,communications,transportation,military,and transnational issues of 266 nation states.

Question 71

Up to the early 1970s,most Arab business people served as representatives of,and/or distributors for major multinational corporations.

Question 72

Companies are endowed with various different capabilities and resources,and when they operate overseas they are confronted with complex factors and demands.

Question 73

Emerging economies are becoming less and less important as they no longer offer attractive investment opportunities for global retailers.

Question 74

Arab executives from Morocco to Oman have intended to expand their business to international markets.

Question 75

When companies have multiproduct or multiple business units,the market might be attractive for a particular product or business but not for others.

Question 76

Arab firms have many global brands.

Question 77

There are hundreds of markets,but which markets to focus on is a strategic decision that should top the marketing manager's list of priorities.

Question 78

In recent years,Arab executives have not considered international and global business involvement to be a strategic choice essential for growth and development.

Question 79

The growth of other emerging and developing economies was impressive as economically advanced countries struggled with the 2008 financial crisis.

Question 80

The methods of tackling various issues due to global expansion are product of a single factor.