Question 1

Both the size and the nature of a country's domestic demand for a particular industry's good or service are important in Porter's determinants of national advantage.

Accepted Answer

Both the size and nature of domestic demand are included in Porter's determinants of national advantage, as they can influence a country's overall competitiveness in a given industry.

Question 2

When a firm initially pursues an international business-level strategy, the resources and capabilities established in the home country frequently allow the firm to pursue the strategy into markets located in other countries.

Accepted Answer

The resources and capabilities established in the home country can be leveraged by the firm to initially pursue an international business-level strategy in other countries.

Question 3

The growing number of global competitors heightens the requirements to keep costs down and there is the desire for more specialized products to meet customer needs. These two pressures make transnational strategies increasingly necessary.

Accepted Answer

The statement is true. The increasing competition and demand for specialized products require companies to adopt transnational strategies to keep costs down and meet customer needs.

Question 4

A transnational strategy is an international strategy in which the firm seeks to achieve both global efficiency and local responsiveness.

Accepted Answer

A transnational strategy seeks to balance the benefits of global standardization with local adaptation, allowing the firm to achieve efficiency and effectiveness across multiple countries and cultures.

Question 5

The firm using a global strategy seeks to develop economies of scale as it produces the same or virtually the same products for distribution to customers throughout the world who are assumed to have similar needs.

Accepted Answer

A global strategy typically involves standardizing products and processes in order to capitalize on economies of scale and serve similar customer needs across multiple markets.

Question 6

A firm based in a country with a national competitive advantage is not guaranteed success as it implements its chosen international business-level strategy. Instead the actual strategic choices managers make may be the most compelling reasons for success or failure.

Accepted Answer

Just because a firm is based in a country with a national competitive advantage does not guarantee success in implementing an international business-level strategy. Success is dependent on the strategic choices made by managers.

Question 7

A multidomestic strategy is an international strategy in which strategic and operating decisions are decentralized to the strategic business units in individual or regions.

Accepted Answer

A multidomestic strategy allows for local adaptation and responsiveness to regional differences by decentralizing decision-making to individual regions or business units. This is in contrast to a global strategy, which emphasizes standardization and centralization of decisions.

Question 8

A global strategy is an international strategy through which the firm offers standardized products across country markets, with competitive strategy being dictated by offices within the host markets served.

Accepted Answer

The answer of A global strategy is an international strategy...

Question 9

South Korea's success in international markets is primarily a result of its abundant natural resources.

Accepted Answer

South Korea's success in international markets is primarily a result of its skilled workforce, strong government support for industries, and innovative technologies, rather than abundant natural resources.

Question 10

Italy has become the leader in the shoe industry because of related and supporting industries such as a well-established leather-processing industry which provides the leather needed to construct shoes and related products.

Accepted Answer

Italy has a well-established leather-processing industry which provides the leather needed to construct shoes and related products, thus supporting and contributing to its leadership in the shoe industry.

Question 11

Even if effectively implemented, the transnational strategy often produces lower performance than does the implementation of either the multidomestic or global strategies.

Accepted Answer

The answer of Even if effectively implemented, the transnational strategy...

Question 12

A transnational strategy is difficult to use because of its conflicting goals.

Accepted Answer

The answer of A transnational strategy is difficult to use...

Question 13

Research suggests that the performance of the global strategy in enhanced if it deploys in areas where regional integration across countries is occurring.

Accepted Answer

The answer of Research suggests that the performance of the...

Question 14

A major advantage of multidomestic strategies is the ability to customize for the specific market, although this sacrifices economies of scale.

Accepted Answer

Multidomestic strategies focus on adapting products and services to the specific market, which may result in higher costs and less efficiency but can lead to greater success in individual markets. This approach sacrifices economies of scale, which are achieved through standardization of products and services across multiple markets.

Question 15

Having substantial supplies of critical basic natural resources is a necessary condition for a country to support businesses which can successfully compete in international markets.

Accepted Answer

The answer of Having substantial supplies of critical basic natural...

Question 16

A multidomestic strategy is an international strategy in which a firm's home office determines the strategies business units are to use in each region.

Accepted Answer

In a multidomestic strategy, the business units in each region have a high degree of autonomy to develop and implement their own strategies based on the unique needs and characteristics of that market. The home office may provide resources and support, but does not dictate the strategies for each region.

Question 17

The global strategy offers greater opportunities to take innovations developed at the corporate level in one market and apply them to other markets.

Accepted Answer

The answer of The global strategy offers greater opportunities to...

Question 18

A company that chooses a truly global corporate-level strategy assumes that the liability of foreignness will be minimal.

Accepted Answer

A truly global corporate-level strategy aims to create a standard product or service that can be sold in multiple countries without requiring significant adaptation to different markets. By choosing this strategy, the company assumes that the benefits of standardization and global integration outweigh the potential costs and challenges of operating in foreign markets. Therefore, the liability of foreignness is expected to be minimal.

Question 19

Part of Japan's success in the video game industry is derived from two related and support industries: cartoons and animation, and electronics.

Accepted Answer

Japan's success in the video game industry is due in part to the country's highly developed anime and manga industry which provides a wealth of intellectual property for game developers to work with. Additionally, Japan is also known for its advanced electronics industry which has allowed for the creation of innovative gaming hardware and consoles.

Question 20

Michael Porter's Determinants of National Advantage describe factors associated with the firm's domestic environment that contribute to its dominance in a particular global industry.

Accepted Answer

This statement correctly describes Michael Porter's Determinants of National Advantage theory, which identifies key factors within a country's domestic environment that contribute to its success in a particular industry on a global scale. These factors include the availability of resources, the sophistication of local demand, the level of domestic competition, and the presence of related and supporting industries.

Quiz 8: Global Strategy