Question 1

The following statement characterizes which country's orientation to introducing products to their mass market: Developing and marketing products that not only
Conserve material and capital but also space to address their consumer's acute
Concern about space limitation.

Accepted Answer

Japan is known for its limited living space and therefore has a strong focus on developing products that conserve space while still being functional. This includes products like futons, sliding doors, and compact appliances.

Question 2

Appropriability regime helps companies retain their _______________ advantage:

Accepted Answer

An appropriability regime is a system that allows firms to protect and benefit from their technological innovations, thereby helping them retain their technological advantage.

Question 3

When Nestle`, a Swiss food company, enjoys economies of scale by considering European, U.S., and Japanese markets together as its primary market it is using the
_________________________ argument.

Accepted Answer

Nestle is using the economies of scope argument, which refers to utilizing resources and capabilities across different product lines, markets, and geographies to achieve cost savings and increase efficiency. In this case, Nestle is taking advantage of shared resources and knowledge across European, U.S., and Japanese markets to reduce production and distribution costs.

Question 4

In the ________________ stage of the international product cycle theory, U.S. companies which have carved out market share in Europe and Japan by exporting
Decide to make a direct investment in production in those markets to protect their
Market position there.

Accepted Answer

In the maturity stage of the international product cycle theory, companies often invest directly in foreign markets to maintain their market position as the product becomes standardized and competition increases.

Question 5

With respect to the international product cycle theory, which stage's orientation is primarily domestic in nature?

Accepted Answer

The introduction stage of the international product cycle theory is primarily domestic in nature as the product is initially introduced and marketed in the domestic market before being introduced to foreign markets. This stage involves high production costs, limited sales, and high marketing and distribution expenses. Therefore, it is primarily focused on the domestic market.

Question 6

Preference similarity explains why:

Accepted Answer

Preference similarity refers to consumers' demand for products that are similar or identical across different countries. When consumers in different countries have similar preferences, companies can benefit from economies of scale by producing the same product for multiple markets. This leads to increased intra-industry trade and can contribute to higher profits for companies operating in similar markets. Therefore, option D is the best choice as it describes the impact of preference similarity on intra-industry trade among industrialized countries.

Question 7

One of the key underlying assumptions in the international product cycle theory is that:

Accepted Answer

The international product cycle theory assumes that new products and technologies are developed in response to market needs and demand, or in other words, "necessity is the mother of invention." This theory suggests that innovation and production of new products typically begin in developed countries where there is a high demand for new goods, and then move to developing countries where production costs are lower as the products mature and become more standardized.

Question 8

A large domestic market such as in the United States makes it possible for U.S. companies to enjoy _________________ in mass production and mass marketing,
Enabling them to become lower cost producers than their competition in foreign
Countries.

Accepted Answer

Economies of scale refer to the cost advantages that a company can achieve by increasing production. In a large domestic market like the United States, companies can produce and sell goods at a larger scale, which results in lower costs per unit. This allows them to offer their products at a lower price than their competitors in foreign markets, giving them a competitive advantage.

Question 9

Technological innovation can provide an innovative company a competitive advantage, or _____________________ over its competitors both at home and
Abroad.

Accepted Answer

Technological innovation can create a "technological gap" between a company and its competitors, giving it an advantage in the market. This can be particularly beneficial for a company both domestically and internationally as it can help increase efficiency, reduce costs, and improve product quality or features.

Question 10

A company's proprietary expertise that makes it different its competitors and helps to maintain its competitive advantage can be discussed under the following theory:

Accepted Answer

The proprietary expertise that makes a company different from its competitors is its intellectual property (IP), which is discussed under the internalization or transaction cost theory. This theory suggests that a company may decide to internalize the production of its proprietary technology rather than license it to external partners to avoid the transaction costs associated with monitoring and enforcing IP rights. Thus, internalizing the production of its IP helps the company to maintain its competitive advantage.

Question 11

The comparative advantage theory is useful in explaining _____________________ between countries that have very different factor endowments.

Accepted Answer

The comparative advantage theory, introduced by David Ricardo, explains inter-industry trade between countries that have different factor endowments. It suggests that countries will export goods in which they have a comparative advantage (lower opportunity cost) and import goods in which they have a comparative disadvantage, leading to more efficient global resource allocation and increased overall economic welfare.

Question 12

Historically, _______________ companies developed and introduced many products that were labor- and time-saving or responded to high-income consumer needs,
Including dishwashers, microwave owens, automatic washers, and dryers, PCs, and so
On:

Accepted Answer

The U.S. has a strong history of technological innovation and has been responsible for introducing many labor-saving and high-income consumer products, such as dishwashers, microwave ovens, and PCs.

Question 13

When a company such as Nike wishes to pursue a comparative advantage strategy, it would have product designing and development and special material development
Conducted in the United States and _________________ operations conducted in
Labor-abundant countries like China or Brazil.

Accepted Answer

Manufacturing operations typically involve the actual production of goods, and relocating this process to labor-abundant countries can often result in cost savings due to lower labor costs. This aligns with pursuing a comparative advantage strategy, where a company seeks to specialize in and produce goods more efficiently than other countries. Product designing, development, and special material development may still be conducted in the United States to maintain quality control and ensure that the final product meets the company's standards. Custom painting, testing, inventory, and promotion are all important aspects of a company's operations, but they do not directly relate to pursuing a comparative advantage strategy in the same way that manufacturing does.

Question 14

In the _________________ stage of the international product cycle theory , the United States eventually begins to import what was once a U.S. innovation.

Accepted Answer

In the international product cycle theory, the decline stage is when the United States, or the innovating country, starts to import the product that was originally its innovation. This happens because production has typically moved to countries with lower production costs, and the product becomes standardized and less profitable in its home market.

Question 15

In the __________________ stage of the international product cycle theory, U.S. companies typically increase exports to Europe and Japan as those foreign markets expand.

Accepted Answer

In the growth stage of the international product cycle theory, U.S. companies typically increase exports to Europe and Japan as those foreign markets expand. This is because in the growth stage, demand for the product increases and companies look to expand their market share by exporting to new markets.

Question 16

Dominant design is synonymous with ________________________.

Accepted Answer

The answer of Dominant design is synonymous with ________________________.
...

Question 17

The Silk Road once connected Shanghai (China) to Istanbul (Turkey) on land.

Accepted Answer

The Silk Road primarily connected the city of Xi'an in China to various destinations including cities in the Middle East, such as Baghdad, and eventually to Istanbul, but not specifically from Shanghai.

Question 18

The following statement characterizes which country's orientation to introducing products to their mass market: Innovate on material- and capital-saving products
And processes to meet their local consumer's needs and lifestyle orientation (such
As small and no-frill automobiles and recyclable products).

Accepted Answer

The answer of The following statement characterizes which country's orientation...

Question 19

An example of ____________________ competition is when BMW exports its sports cars to Japan, while Honda exports its competing models to Germany.

Accepted Answer

Intra-industry competition refers to competition between firms that operate in the same industry and produce similar products. In this example, BMW and Honda are both operating in the same industry (automobiles) and exporting competing models to each other's home market, making it an example of intra-industry competition.

Question 20

The __________________________ addresses the following questions: Why and how does competition tend to evolve over time and across national boundaries in the
Same industry? How does a company develop its marketing strategy in the presence
Of competitors at home and abroad?

Accepted Answer

The international product cycle theory explains how competition evolves over time and across national boundaries in the same industry, and how companies develop marketing strategies in response to competitors both domestically and internationally.

Quiz 1: Globalization Imperative

The following statement characterizes which country's orientation to introducing products to their mass market: Developing and marketing products that not only Conserve material and capital but also space to address their consumer's acute Concern about space limitation.

Appropriability regime helps companies retain their _______________ advantage:

When Nestle`, a Swiss food company, enjoys economies of scale by considering European, U.S., and Japanese markets together as its primary market it is using the _________________________ argument.

In the ________________ stage of the international product cycle theory, U.S. companies which have carved out market share in Europe and Japan by exporting Decide to make a direct investment in production in those markets to protect their Market position there.

With respect to the international product cycle theory, which stage's orientation is primarily domestic in nature?

Preference similarity explains why:

One of the key underlying assumptions in the international product cycle theory is that:

A large domestic market such as in the United States makes it possible for U.S. companies to enjoy _________________ in mass production and mass marketing, Enabling them to become lower cost producers than their competition in foreign Countries.

Technological innovation can provide an innovative company a competitive advantage, or _____________________ over its competitors both at home and Abroad.