Question 1

A multidomestic corporate-level strategy is one in which

Accepted Answer

A multidomestic corporate-level strategy is one in which the firm customizes the product for each country in which it competes. This means that the firm tailors its products, services, and marketing strategies to meet the specific preferences and needs of consumers in each market where it operates. This approach recognizes the significant differences in culture, language, and other factors that influence consumer behavior in different countries. This strategy is commonly used by companies operating in industries such as food and beverages, fashion, and consumer electronics, where consumer preferences and tastes are highly localized.

Question 2

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

Accepted Answer

The liability of foreignness refers to the additional costs and risks that a firm may face when operating in foreign markets, such as cultural differences, legal systems, and language barriers. This influences a firm's choice of international corporate-level strategies, such as whether to enter a new market through a joint venture or a wholly owned subsidiary. Regionalization and globalization are also important environmental trends, but they are not the two that specifically influence a firm's choice and use of international corporate-level strategies.

Question 3

A global corporate-level strategy emphasizes

Accepted Answer

A global corporate-level strategy emphasizes economies of scale, which means that the company aims to achieve cost reductions by producing large volumes of standardized products or services for a global market. This strategy requires centralization of control and close monitoring to ensure consistency in operations and cost savings. Differentiated products (A) and sensitivity to local product preferences (C) are more characteristic of a multi-domestic strategy, which emphasizes customization of products and services to local markets. Decentralizing control and limited monitoring (D) is not consistent with any corporate-level strategy as it can lead to inefficiency and lack of coordination.

Question 4

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

Accepted Answer

The statement "it is easy to use" is not a valid reason for why the transnational strategy is becoming increasingly necessary to compete in international markets. The other three options all provide valid reasons for why the transnational strategy is important.

Question 5

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

Accepted Answer

The situation described in the question highlights the liability of foreignness, which refers to the difficulties that foreign firms can face when trying to succeed in a host country due to cultural, legal, and institutional differences. The lack of fit between Disney's transferred personnel policies and the French employees resulted in lawsuits, indicating that the cultural differences led to negative outcomes for the company. This highlights the risks that foreign firms face when operating abroad.

Question 6

All of the following are international corporate-level strategies EXCEPT the ____ strategy.

Accepted Answer

The three international corporate-level strategies are multidomestic, global, and transnational. The universal strategy is not a recognized strategy in international business literature.

Question 7

A multidomestic corporate-level strategy has ____ need for global integration and ____ need for local market responsiveness.

Accepted Answer

A multidomestic strategy aims to cater to the specific needs of local markets, which requires a high level of local market responsiveness. However, there is little need for global integration as products and services are tailored to each individual market, resulting in low need for global integration.

Question 8

_______________________ is the set of costs associated with unfamiliar operating environments; economic, administrative and cultural differences; and the challenges of coordination over distances.

Accepted Answer

The term "liability of foreignness" refers to the costs and disadvantages that a company may face when operating in unfamiliar environments, such as economic, administrative, and cultural differences across borders, and challenges of coordination over distances. This term is often used in international business and management literature to describe the difficulties that companies face when expanding their operations to foreign countries.

Question 9

All of the following are correct about what managers should know about firms based in a country with a national competitive advantage EXCEPT

Accepted Answer

Success is not guaranteed for any firm, regardless of whether it is based in a country with a national competitive advantage or not. The actual strategic choices made by the firm and how they are implemented are the most compelling reasons for success or failure. The determinants of national competitive advantage can provide a foundation for a firm's competitive advantages, but they do not guarantee success.

Question 10

In addition to the four basic dimensions of Porter's "diamond" model, ____ may also contribute to the success or failure of firms.

Accepted Answer

Government policy can have a significant impact on a firm's success or failure. Depending on the policies in place in a particular country, firms may face different barriers to entry, taxation structures, regulations, or other factors that can make it easier or more difficult to compete in the marketplace. For example, some countries may have protectionist policies that favor domestic firms, while others may have more open and competitive marketplaces. This can have a significant impact on a firm's ability to compete and succeed. Choices A, B, and D are all important factors that may contribute to a country's overall economic success or competitiveness, but they are not necessarily key dimensions of Porter's "diamond" model.

Question 11

A global strategy

Accepted Answer

A global strategy lacks responsiveness to local markets because it involves standardizing products, marketing, and operations across borders, which may not always align with the preferences and needs of local consumers. Therefore, a global strategy may not be the most effective approach for companies looking to gain a competitive advantage in diverse international markets.

Question 12

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

Accepted Answer

The answer of Increasingly, customers worldwide are demanding emphasis on...

Question 13

International corporate-level strategy focuses on

Accepted Answer

International corporate-level strategy is concerned with the scope of operations, which can be achieved through both product and geographic diversification. This involves expanding into new markets and developing new products or services to increase the company's reach and revenue. Competition within each country, economies of scale, and monitoring and controlling systems are all important factors to consider, but they are typically addressed at the functional or business unit level, rather than the corporate level.

Question 14

A transnational corporate-level strategy seeks to achieve

Accepted Answer

A transnational corporate-level strategy aims to achieve a balance between global efficiency and local responsiveness. This means that the company tries to standardize its operations to achieve economies of scale, while also customizing its products and services to meet the needs and preferences of local markets. The goal is to achieve the benefits of centralization while also being flexible enough to adapt to differences across regions or countries. Therefore, options A, B, and D are not the correct choices because they do not reflect the dual goals of global efficiency and local responsiveness that are central to a transnational strategy.

Question 15

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

Accepted Answer

According to the text, implementing the transnational international corporate-level strategy often leads to higher performance compared to implementing either the multidomestic or global strategy. Therefore, option D is the correct answer.

Question 16

Under industry structural analysis (Chapter 2), ____ rivalry is viewed as detrimental to profitability. Under the model of national advantage (Chapter 8), ____ rivalry is viewed as ____ as it results in competition and surviving firms are able to compete against global rivals.

Accepted Answer

The answer of Under industry structural analysis (Chapter 2), ____...

Question 17

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

Accepted Answer

The answer of A global corporate-level strategy differs from a...

Question 18

In China, Starbucks (Chapter 8 Opening Case) 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' strategy involves standardizing certain operations, such as product quality and store design, while also allowing for local customization in terms of menu offerings and marketing campaigns. This reflects a transnational strategy, which seeks to balance global integration of operations with local responsiveness to meet the unique needs and tastes of customers in different markets.

Question 19

A global corporate-level strategy assumes

Accepted Answer

A global corporate-level strategy involves standardizing products across country markets to achieve economies of scale, reduce costs, and increase efficiencies. This approach assumes that consumers in different countries have similar needs and preferences and can be satisfied with identical products. It does not assume a rise in income levels or increasing levels of cultural differences among nations. The strategy also does not necessarily achieve simultaneous customization and efficiency.

Question 20

A large domestic market can provide the country's industries a chance at dominating the world market because

Accepted Answer

The answer of A large domestic market can provide the...

Quiz 8: International Strategy

A multidomestic corporate-level strategy is one in which

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

A global corporate-level strategy emphasizes

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

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

All of the following are international corporate-level strategies EXCEPT the ____ strategy.

A multidomestic corporate-level strategy has need for global integration and need for local market responsiveness.

_______________________ is the set of costs associated with unfamiliar operating environments; economic, administrative and cultural differences; and the challenges of coordination over distances.

All of the following are correct about what managers should know about firms based in a country with a national competitive advantage EXCEPT

In addition to the four basic dimensions of Porter's "diamond" model, ____ may also contribute to the success or failure of firms.

A global strategy

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

International corporate-level strategy focuses on

A transnational corporate-level strategy seeks to achieve

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

Under industry structural analysis (Chapter 2) , rivalry is viewed as detrimental to profitability. Under the model of national advantage (Chapter 8) , rivalry is viewed as as it results in competition and surviving firms are able to compete against global rivals.

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

In China, Starbucks (Chapter 8 Opening Case) 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.

A global corporate-level strategy assumes

A large domestic market can provide the country's industries a chance at dominating the world market because

Quiz 8: International Strategy

A multidomestic corporate-level strategy is one in which

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

A global corporate-level strategy emphasizes

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

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

All of the following are international corporate-level strategies EXCEPT the ____ strategy.

A multidomestic corporate-level strategy has ____ need for global integration and ____ need for local market responsiveness.

_______________________ is the set of costs associated with unfamiliar operating environments; economic, administrative and cultural differences; and the challenges of coordination over distances.

All of the following are correct about what managers should know about firms based in a country with a national competitive advantage EXCEPT

In addition to the four basic dimensions of Porter's "diamond" model, ____ may also contribute to the success or failure of firms.

A global strategy

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

International corporate-level strategy focuses on

A transnational corporate-level strategy seeks to achieve

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

Under industry structural analysis (Chapter 2) , ____ rivalry is viewed as detrimental to profitability. Under the model of national advantage (Chapter 8) , ____ rivalry is viewed as ____ as it results in competition and surviving firms are able to compete against global rivals.

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

In China, Starbucks (Chapter 8 Opening Case) 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.

A global corporate-level strategy assumes

A large domestic market can provide the country's industries a chance at dominating the world market because

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

A multidomestic corporate-level strategy has need for global integration and need for local market responsiveness.

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

Under industry structural analysis (Chapter 2) , rivalry is viewed as detrimental to profitability. Under the model of national advantage (Chapter 8) , rivalry is viewed as as it results in competition and surviving firms are able to compete against global rivals.