Question 1

Most firms enter international markets sequentially, introducing their __________ first.

Accepted Answer

The answer of Most firms enter international markets sequentially, introducing...

Question 2

A multidomestic corporate-level strategy is one in which:

Accepted Answer

A multidomestic strategy involves customizing products and marketing strategies to fit the unique needs and preferences of each country in which the firm operates.

Question 3

Increasingly, customers worldwide are demanding emphasis on local requirements and companies require efficiency as global competition increases.This has triggered an increase in the number of firms using the __________ strategy.

Accepted Answer

The transnational strategy allows firms to balance the need for local responsiveness with the need for global efficiency, addressing both local requirements and global competition.

Question 4

Associations such as the European Union, Organization of American States, and the North American Free Trade Agreement encourage:

Accepted Answer

These associations promote regional strategies by facilitating cooperation and integration among member countries within specific regions.

Question 5

The problems associated with exporting include:

Accepted Answer

Exporting often involves high transportation costs and tariffs, which can make it expensive.

Question 6

The choices that a firm has for entering the international market include all of the following EXCEPT:

Accepted Answer

Leasing is not typically considered a method for entering international markets. The common methods include exporting, licensing, and acquisition.

Question 7

A global corporate-level strategy assumes:

Accepted Answer

A global corporate-level strategy assumes more standardization of products across country markets to achieve economies of scale and efficiency.

Question 8

Disney suffered lawsuits in France, at Disneyland Paris, because of the lack of fit between its transferred personnel policies and the French employees charged to enact them.This is an example of the:

Accepted Answer

The situation described is an example of the liability of foreignness, which refers to the challenges and additional costs that firms face when operating in a foreign country due to differences in cultural, economic, and legal environments.

Question 9

A global corporate-level strategy emphasizes:

Accepted Answer

A global corporate-level strategy focuses on achieving economies of scale by standardizing products and operations across different markets to reduce costs and increase efficiency.

Question 10

Effectively implementing the __________ international corporate-level strategy often produces higher performance than does implementing either the __________ or __________ strategies.

Accepted Answer

The transnational strategy seeks to balance the need for global efficiency and local responsiveness, often leading to higher performance compared to the multidomestic or global strategies, which focus on one aspect over the other.

Question 11

The transnational strategy is becoming increasingly necessary to compete in international markets for all of the following reasons EXCEPT:

Accepted Answer

The transnational strategy is not considered easy to use due to its complexity in balancing global efficiency and local responsiveness, rather than having unifying goals.

Question 12

The two important environmental trends that influence a firm's choice and use of international corporate-level strategies are __________ and __________.

Accepted Answer

The answer of The two important environmental trends that influence...

Question 13

In China, Starbucks is standardizing its operations while simultaneously decentralizing some decision-making responsibility to local levels to meet customers' tastes.Starbucks is following the __________ international corporate-level strategy.

Accepted Answer

Starbucks is following the transnational international corporate-level strategy because it is standardizing its operations while simultaneously decentralizing some decision-making responsibility to local levels to meet customers' tastes. This strategy allows Starbucks to achieve both global efficiency and local responsiveness.

Question 14

A global corporate-level strategy differs from a multidomestic corporate-level strategy in that in a global strategy:

Accepted Answer

In a global corporate-level strategy, the competitive strategy is dictated by the home office, aiming for consistency and efficiency across all markets, unlike a multidomestic strategy where decisions are decentralized.

Question 15

Skaredykat Inc.is considering initial expansion beyond its home market.The firm has decided not to enter markets that differ greatly from its home market, instead expanding within the twelve-nation region that includes its home country.Which of the following statements is true?

Accepted Answer

The firm is using a regional approach to international expansion by choosing to expand within a twelve-nation region similar to its home market.

Question 16

A global strategy:

Accepted Answer

The answer of A global strategy:
...

Question 17

__________ is the set of costs associated with various issues firms face when entering foreign markets, including unfamiliar operating environments; economic, administrative, and cultural differences; and the challenges of coordination over distances.

Accepted Answer

Liability of foreignness refers to the set of costs and challenges that firms encounter when entering and operating in foreign markets, due to differences in economic, administrative, and cultural environments, as well as the difficulties in managing operations across distances.

Question 18

A firm may narrow its focus to a specific region of the world:

Accepted Answer

Focusing on a specific region allows a firm to gain a deeper understanding of the local culture, legal and social norms, and other factors, which can enhance its competitive effectiveness in that market.

Question 19

Leeway Corp.wants to pursue a business-level international strategy to export to developed countries.Which of the following strategies would Leeway most likely select?

Accepted Answer

Cost leadership is often pursued when exporting to developed countries to compete on price and efficiency, leveraging economies of scale.

Question 20

A U.S.manufacturer of adaptive devices for persons with disabilities is considering expanding internationally.It is a fairly small company, but it is looking for growth opportunities.This company should primarily consider the option of:

Accepted Answer

Exporting is a suitable option for a small company seeking international growth as it involves lower risk and investment compared to other options like a greenfield venture or strategic alliance. It allows the company to enter foreign markets without significant capital expenditure.

Quiz 8: International Strategy