Exam 7: Strategies for Competing in International Markets

A) where the company creates a wholly owned subsidiary business by setting up all aspects of the operation upon entering the market from the ground up.
B) where foreign facilities and marketing strategies are shared with local businesses.
C) where the company learns through training by the foreign entity on how to compete.
D) that supports exports into a foreign market by marketing indirectly through local rivals.
E) that offers lower risk and a faster path to financial returns.

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A) a transnational strategy
B) an international strategy
C) a think-local, act-global strategy
D) a cross-border integrated strategy
E) a standardized integrated strategy

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If opportunity-seeking, resource-rich in...

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A) growth potential of India's emerging market
B) global standardization of mobile phone technology
C) potential location advantages in wages, inflation rates, and tax rates that reduce costs
D) franchising opportunities in India
E) comparatively lower exchange rate and political risks

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A) control over its resource capabilities.
B) a dominating depth in some competitively valuable area.
C) an intensity of resource diversification.
D) precision and compliance in resource agility and responsiveness.
E) direct investments in foreign countries.

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A) conflicting objectives and strategies.
B) deep differences of opinion about how to proceed operationally and strategically.
C) important differences in corporate values.
D) misunderstandings about appropriate ethical standards.
E) potential for royalty from trustworthy firms.

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A) promotes fair trade practices
B) actively polices dumping
C) deals with the rules of trade between nations
D) helps producers, exporters, and importers conduct business
E) sets countries' tariff rates

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A) being able to shift production from one country to another to take advantage of exchange rate fluctuations, differing wage rates, differing energy costs, or differing trade restrictions.
B) being in a better position to choose where and how to challenge rivals.
C) shortening delivery times to customers by having geographically scattered distribution facilities.
D) locating buyer-related activities (such as sales, advertising, after-sale service and technical assistance) close to buyers.
E) centralizing value chain activities to foster just-in-time inventory activities.

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A) evaluate country-to-country differences in consumer buying habits and buyer tastes and preferences.
B) evaluate country-to-country variations in host government restrictions and requirements and fluctuating exchange rates for the company's offerings in each different country market or whether to offer a mostly standardized product worldwide.
C) evaluate which countries to locate company operations for maximum locational advantage, given country-to-country variations in wage rates, worker productivity, energy costs, tax rates, and the like.
D) evaluate a multidomestic strategy that considers the world market as a mostly homogeneous market.

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A) It hinders the use of cross-border coordination of a company's activities and increases a company's vulnerability to adverse shifts in currency exchange rates.
B) It makes it very difficult to take into account significant country-to-country differences in distribution channels and marketing methods.
C) It makes it difficult and costly to be responsive to country-to-country differences in customer needs, buying habits, cultural traditions, and market conditions.
D) It hinders the transfer of a company's competencies and resources across country boundaries and hinders the pursuit of a single, uniform competitive advantage in all country markets where a company operates.
E) It is unsuitable for competing in the markets of emerging countries and posing added difficulty in modifying a company's business model to compete on the basis of low price.

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A) whether to test the waters with an export strategy before committing to some other competitive approach.
B) whether to vary the company's competitive approach to fit specific market conditions and buyer preferences in each host country or whether to employ essentially the same strategy in all countries.
C) whether to maintain a national (one-country) manufacturing base and export goods to the other countries.
D) which foreign companies to team up with via strategic alliances or joint ventures.
E) whether to use strategic alliances to help defeat its rivals.

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A) high transportation costs, diseconomies of large size, and trade barriers make it too expensive to operate from a central location.
B) a multidomestic strategy is better than a global strategy.
C) technical after-sale services are unimportant to buyers.
D) achieving economies of scale and scope in materials procurement, parts manufacture, finished-goods assembly, technology research, and new product development can frequently be decoupled from buyer locations and performed wherever advantage lies.
E) host governments offer less restrictive trade barriers and regulatory requirements to companies that conform to local business practices.

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A) Nike produces its own line of skate shoes.
B) Keurig has acquired a large coffee farm in Costa Rica.
C) Scotland provides low-cost loans to U.S. craft whisky distillers seeking entry to its markets in order to stimulate competitive rivalry.
D) Intel's silicon chips are identical across the world.
E) McDonald's offers 100 percent beef-free products in its outlets in India.

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A) tax incentives.
B) stringent environmental compliance regulations.
C) site development assistance.
D) low-cost loans.
E) reduced tariffs, quotas, and percentages of local content required in production of products and services.

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A) a big majority of the company's rivals are pursuing localized multidomestic strategies.
B) striking the right balance between thinking globally and acting locally, even though it is more costly and complex to implement.
C) host governments enact regulations requiring that products sold locally meet strict manufacturing specifications or performance standards.
D) plants need to be scattered across many countries to avoid high shipping costs.
E) market growth rates vary considerably from country to country.

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A) being especially well-suited to achieve scale economies.
B) being able to charge lower prices than rivals.
C) being able to achieve first-mover advantages quickly and easily.
D) being able to leverage the company's technical know-how, appealing brand, or patents without committing their resources or capabilities to foreign markets.
E) being able to achieve higher product quality and better product performance than with an export strategy.

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A) how to leverage the opportunities arising from shifting exchange rates.
B) how to charge the same price in all country markets.
C) how to identify foreign firms licensed to produce and distribute the company's products.
D) whether to offer a standardized product worldwide or a customized product offering in each different country market.
E) whether to pursue a franchising strategy or a joint venture strategy.

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A) Dumping practices
B) Price-clearing system
C) Clearance sale
D) Discounting practices
E) Competitive advantage

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