Question 1

A(n)_____ strategy makes sense if a firm has a valuable core competence that indigenous competitors in foreign markets lack.

Accepted Answer

The distinguishing feature of many firms pursuing an international strategy is that they are selling a product that serves universal needs,but they do not face significant competitors,and thus unlike firms pursuing a global standardization strategy,they are not confronted with pressures to reduce their cost structure.

Question 2

The four safeguards against opportunism by alliance partners include: walling off critical technology,establishing contractual safeguards,agreeing to swap valuable skills and technologies,and __________________.

Accepted Answer

The risk of opportunism by an alliance partner can be reduced if the firm extracts a significant credible commitment from its partner in advance.

Question 3

A(n)_____ strategy makes sense when a firm faces high pressures for cost reductions,high pressures for local responsiveness,and significant opportunities for leveraging valuable skills within a multinational's global network of operations.

Accepted Answer

Firms that pursue a transnational strategy are trying to simultaneously achieve low costs through location economies,economies of scale,and learning effects;differentiate their product offering across geographic markets to account for local differences;and foster a multidirectional flow of skills between different subsidiaries in the firm's global network of operations.

Question 4

According to the text,which of the following strategies is difficult to implement due to conflicting demands?

Accepted Answer

Firms that pursue a transnational strategy are trying to simultaneously achieve low costs through location economies,economies of scale,and learning effects;differentiate their product offering across geographic markets to account for local differences;and foster a multidirectional flow of skills between different subsidiaries in the firm's global network of operations.

Question 5

According to the text,the success of a strategic alliance is a function of three factors.These are: partner selection,alliance structure,and _____________.

Accepted Answer

As in all international business deals,an important factor is sensitivity to cultural differences.Managing an alliance successfully requires building interpersonal relationships between the firms' managers,or what is sometimes referred to as relational capital.

Question 6

What constitutes an organizational structure?

Accepted Answer

The answer of What constitutes an organizational structure?...

Question 7

Xerox had a monopoly on photocopiers for several years as the technology underlying the photocopier was protected by strong patents.As it served a universal need,this favorable position led Xerox to pursue a(n)_____ strategy.

Accepted Answer

The distinguishing feature of many firms pursuing an international strategy is that they are selling a product that serves universal needs,but they do not face significant competitors,and thus unlike firms pursuing a global standardization strategy,they are not confronted with pressures to reduce their cost structure.

Question 8

One of the principal risks with strategic alliances is:

Accepted Answer

Unless a firm is careful,it can give away more than it receives.But there are so many examples of apparently successful alliances between firms-including alliances between U.S.and Japanese firms.

Question 9

Which of the following is a disadvantage of strategic alliances?

Accepted Answer

Strategic alliances may facilitate entry into a foreign market.Strategic alliances also allow firms to share the fixed costs (and associated risks)of developing new products or processes.It can make sense to form an alliance that will help the firm establish technological standards for the industry that will benefit the firm.

Question 10

What makes up the value chain of a firm? Describe the roles of primary activities and support activities in the value chain.

Accepted Answer

The answer of What makes up the value chain of...

Question 11

Which of the following is NOT a required attribute of a good strategic alliance partner?

Accepted Answer

A good ally,or partner,in a strategic alliance has three characteristics.First,a good partner helps the firm achieve its strategic goals.The partner must have capabilities that the firm lacks and that it values.Second,a good partner shares the firm's vision for the purpose of the alliance.If two firms approach an alliance with radically different agendas,the chances are great that the relationship will not be harmonious,will not flourish,and will end in divorce.Third,a good partner is unlikely to try to opportunistically exploit the alliance for its own ends.

Question 12

Mayer Life Systems,a manufacturer of surgical and medical appliances,have recently invented and patented a new dialysis machine that radically reduces maintenance and operational issues.Responding to global demand,they have decided to sell the machines manufactured at their plant in the U.S.to various markets across the globe.Which strategy is Mayer pursuing here?

Accepted Answer

Firms pursuing an international strategy take products first produced for their domestic market and sell them internationally with only minimal local customization.

Question 13

Describe the concept of value creation.What are the two primary strategies used to attain competitive advantage by organizations?

Accepted Answer

The answer of Describe the concept of value creation.What are...

Question 14

Describe the concept of "core competence." What types of core competencies are the most valuable for penetrating foreign markets?

Accepted Answer

The answer of Describe the concept of "core competence." What...

Question 15

Which of the following could be the most appropriate strategy for MTV,given the business imperative that their programming provides a good match to tastes and preferences in different national markets?

Accepted Answer

A localization strategy focuses on increasing profitability by customizing the firm's goods or services so that they provide a good match to tastes and preferences in different national markets.

Question 16

Managing an alliance successfully requires building interpersonal relationships between the firms' managers,or what is sometimes referred to as:

Accepted Answer

Managing an alliance successfully requires building interpersonal relationships between the firms' managers,or what is sometimes referred to as relational capital.

Question 17

The term _____ refers to cooperative agreements between potential or actual competitors.

Accepted Answer

Strategic alliances refer to cooperative agreements between potential or actual competitors.They run the range from formal joint ventures,in which two or more firms have equity stakes,to short-term contractual agreements,in which two companies agree to cooperate on a particular task (such as developing a new product).

Question 18

Which of the following is a disadvantage for firms pursuing an international strategy?

Accepted Answer

Enterprises pursuing an international strategy tend to centralize product development functions such as R&D at home.Although they may undertake some local customization of product offering and marketing strategy,this tends to be rather limited in scope.Ultimately,in most firms that pursue an international strategy,the head office retains fairly tight control over marketing and product strategy.

Question 19

Describe four ways in which a firm can profit from global expansion.

Accepted Answer

The answer of Describe four ways in which a firm...

Question 20

Firms that pursue a(n)_____ strategy try to create value by transferring valuable skills and products to foreign markets where indigenous competitors lack those skills and products.

Accepted Answer

The distinguishing feature of many firms pursuing an international strategy is that they are selling a product that serves universal needs,but they do not face significant competitors,and thus unlike firms pursuing a global standardization strategy,they are not confronted with pressures to reduce their cost structure.

Quiz 11: The Strategy of International Business

A(n) _____ strategy makes sense if a firm has a valuable core competence that indigenous competitors in foreign markets lack.

The four safeguards against opportunism by alliance partners include: walling off critical technology,establishing contractual safeguards,agreeing to swap valuable skills and technologies,and __________________.

A(n) _____ strategy makes sense when a firm faces high pressures for cost reductions,high pressures for local responsiveness,and significant opportunities for leveraging valuable skills within a multinational's global network of operations.

According to the text,which of the following strategies is difficult to implement due to conflicting demands?

According to the text,the success of a strategic alliance is a function of three factors.These are: partner selection,alliance structure,and _____________.

What constitutes an organizational structure?

Xerox had a monopoly on photocopiers for several years as the technology underlying the photocopier was protected by strong patents.As it served a universal need,this favorable position led Xerox to pursue a(n) _____ strategy.

One of the principal risks with strategic alliances is:

Which of the following is a disadvantage of strategic alliances?

What makes up the value chain of a firm? Describe the roles of primary activities and support activities in the value chain.

Which of the following is NOT a required attribute of a good strategic alliance partner?

Describe the concept of value creation.What are the two primary strategies used to attain competitive advantage by organizations?

Describe the concept of "core competence." What types of core competencies are the most valuable for penetrating foreign markets?

Which of the following could be the most appropriate strategy for MTV,given the business imperative that their programming provides a good match to tastes and preferences in different national markets?

Managing an alliance successfully requires building interpersonal relationships between the firms' managers,or what is sometimes referred to as:

The term _____ refers to cooperative agreements between potential or actual competitors.

Which of the following is a disadvantage for firms pursuing an international strategy?

Describe four ways in which a firm can profit from global expansion.

Firms that pursue a(n) _____ strategy try to create value by transferring valuable skills and products to foreign markets where indigenous competitors lack those skills and products.