Question 1

One of the most viable strategic options companies should consider in tailoring their strategy to fit circumstances of emerging country markets includes

Accepted Answer

The answer of One of the most viable strategic options...

Question 2

Cross-border coordination contributes to a competitive advantage for a global competitor by

Accepted Answer

All of these options contribute to a global competitor's competitive advantage by allowing them to optimize their operations and resources across borders. By taking advantage of exchange rates, energy costs, wage rates, and changes in tariffs and quotas, they can lower their production costs and prices. Knowledge transfer between different locations can increase efficiencies and effectiveness, while shifting workloads can optimize utilization of personnel. Coordinating R&D efforts globally can lead to faster innovation and product development, giving the company an edge in the market.

Question 3

In which of the following circumstances is it not advantageous for a multinational competitor to concentrate its activities in a limited number of locations in order to build competitive advantage?

Accepted Answer

If a company has competitively superior patented technology that it can license to foreign partners, it would be advantageous to have activities spread out in different locations to be able to reach a wider customer base and maximize profits through licensing fees. Concentrating activities in a limited number of locations may limit the company's ability to fully leverage their patented technology.

Question 4

Which of the following is not a typical option that companies have to consider to tailor their strategy to fit the circumstances of emerging country markets?

Accepted Answer

Developing a strategy only for the short-term and ignoring long-term objectives is not a typical option that companies have to consider. Companies must have a long-term strategy because emerging country markets change so rapidly. The other options (A, B, C, and E) are typical options that companies consider to tailor their strategy to fit the circumstances of emerging country markets.

Question 5

Dispersing particular value chain activities across many countries rather than concentrating them in a select few countries can be more advantageous when

Accepted Answer

All of these reasons are valid reasons for dispersing particular value chain activities across many countries. Operating activities closer to buyers can improve customer service and satisfaction, high transportation costs make it impractical to operate from just one or a few locations, dispersion helps mitigate risks associated with exchange rate fluctuations, supply disruptions, and adverse political developments, and diseconomies of scale can occur in attempting to operate from a single location.

Question 6

Companies racing for global market leadership

Accepted Answer

Companies that want to become global market leaders have to consider establishing competitive positions in the markets of emerging countries, as these markets have significant growth potential and can lead to increased market share and profits. However, this also means dealing with potential risks and problems that come with competing in emerging country markets.

Question 7

The ability of a multinational or global competitor to shift production from country to country to take advantage of exchange rate fluctuations, energy costs, wage rates, or changes in tariffs is an example of

Accepted Answer

This is an example of cross-border coordination, where the multinational company is able to adapt and adjust its production and sourcing strategies based on changes in external factors across different markets. This allows them to optimize their operations and gain a competitive advantage. The other options are not appropriate as they do not fully capture the nature of the scenario described.

Question 8

Dispersing the performance of value chain activities to many different countries rather than concentrating them in a few country locations tends to be advantageous

Accepted Answer

All of the options are advantages of dispersing the performance of value chain activities to many different countries rather than concentrating them in a few country locations. High transportation costs can make it expensive to operate from central locations, buyer-related activities are often best performed in locations close to buyers, diseconomies of large size can exist, making it more economical to perform an activity on a smaller scale in several different locations, and dispersing activities across different locations can help to hedge against risks such as fluctuating exchange rates, supply interruptions, or adverse political developments.

Quiz 7: Strategies for Competing in International Markets