Exam 7: Strategies for Competing in International Markets

A) The popular Disney character Mickey Mouse can only be leased or rented for use by companies.
B) Subway allows small-business owners to use its trademarks,services,and products for a fee.
C) The Unites States is the world's largest producer and supplier of artificial fur.
D) American Airlines' common stock,owned by AMR Corp. ,is not available for public purchase.
E) Walmart earns a quarter of its revenue outside the United States.

Correct Answer

verified

Show Answer

A) When an internal startup is more costly.
B) When an internal startup affects the supply-demand balance by increasing production capacity
C) When an internal startup is unable to gain distribution access advantages
D) When an internal startup has the necessary scale and resource strengths to compete with rivals
E) When an internal startup lacks the experience in establishing new subsidiaries

Correct Answer

verified

Show Answer

A) gaining access to new customers for the company's products/services.
B) spreading its business risk across a wider market base.
C) achieving lower costs through economies of scale,experience,and increased purchasing power.
D) exploiting its core competencies and capabilities.
E) identifying resources and capabilities in the company's home market.

Correct Answer

verified

Show Answer

A) In global competition,rivals vie for worldwide market leadership and the leading competitors compete head-to-head in the markets of many different countries.
B) In globally competitive industries,a company's competitive position in one country both affects and is affected by its position in other countries.
C) In multidomestic competition,there is greater cross-country variation in market conditions and the nature of the competitive contest among rivals than tends to be the case in globally competitive markets.
D) With multidomestic competition,the competitive contest is localized,with rivals battling for national market leadership;moreover,winning in one country market does not necessarily signal that a company has the ability to fare well in the markets of other countries.
E) In global competition,the size of a firm's worldwide competitive advantage (or disadvantage) equals the sum of the competitive advantages (or disadvantages) it has in each country market where it competes.

Correct Answer

verified

Show Answer

Correct Answer

verified

A global strategy is one in which a comp...

View Answer

Show Answer

A) Cross-market subsidization
B) A foreign market strategy
C) A domestic-only company
D) A home market offensive
E) A multidomestic company

Correct Answer

verified

Show Answer

A) Granting country managers fairly wide strategy-making latitude
B) Scattering plants across many host countries,each producing product versions for local area markets
C) Adapting marketing and distribution to the buying habits,customs,and culture of each host country
D) Considering the preference for local suppliers (use of some local suppliers may be mandated by host governments)
E) Selling directly to buyers (perhaps via the company's website) to avoid having to establish networks of wholesale/retail dealers in each country market

Correct Answer

verified

Show Answer

A) allows firms to address local needs as precisely as locally based rivals can.
B) permits firms to be more responsive to changes in local market conditions,either in the form of new opportunities or competitive threats.
C) provides for lower transportation costs and also may involve higher tariffs.
D) involves higher coordination costs due to more complex tasks of managing a globally integrated enterprise.
E) raises production costs due to the greater variety of designs and components.

Correct Answer

verified

Show Answer

A) using a differentiation-based competitive strategy in those country markets with superior resources.
B) choosing not to compete in countries with high tariffs and high taxes (which then have to be passed along to buyers in the form of higher prices) ,thus keeping costs and prices lower than rivals.
C) using an export strategy to circumvent the risks of adverse exchange rate fluctuations.
D) locating value chain activities in whatever nations prove most advantageous in a manner that uses location to lower costs or achieve greater product differentiation,allow for the transfer of competitively valuable competencies and capabilities from one country to another,and allow for cross-border coordination.
E) employing a multidomestic strategy instead of a global strategy.

Correct Answer

verified

Show Answer

A) regulations enacted by the host governments requiring that products sold locally meet strictly defined manufacturing specifications or performance standards.
B) significant country-to-country differences in customer preferences and buying habits.
C) diverse and complicated trade restrictions of host governments preclude the use of a uniform strategy from country-to-country.
D) significant country-to-country differences in distribution channels and marketing methods.
E) large demands to pursue conflicting objectives simultaneously.

Correct Answer

verified

Show Answer

A) This is a true statement.
B) No,the U.S.dollar must be stronger.
C) Yes,because it provides for a weakened foreign demand for U.S.-made goods.
D) Yes,because it makes such plants less cost competitive with foreign plants.
E) Yes,because it provides incentives of foreign companies to locate manufacturing facilities in the U.S.to make goods for U.S.consumers.

Correct Answer

verified

Show Answer

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

Correct Answer

verified

Show Answer

A) is competitively disadvantaged when the euro declines in value against the Brazilian real.
B) is competitively disadvantaged when the Brazilian real declines in value against the currencies of the countries to which the Brazilian-made goods are being exported.
C) becomes less competitive in foreign markets when the Brazilian real gains in value against the currencies of the countries to which the Brazilian-made goods are being exported.
D) is competitively advantaged when the euro appreciates in value against the Brazilian real.
E) has no interest in whether the euro grows stronger or weaker versus the Brazilian real unless its chief competitors are other companies located in countries whose currency is also the euro.

Correct Answer

verified

Show Answer

A) there are significant scale economies in performing an activity.
B) the costs of manufacturing or other activities are significantly lower in some geographic locations than in others.
C) when there is a steep learning or experience curve associated with performing an activity in a single location (thus making it economical to serve the whole world market from just one or maybe a few locations) .
D) certain locations have superior resources,allow better coordination of related activities,or offer other valuable advantages.
E) the addition of new production capacity will not adversely impact the supply-demand balance in the local market.

Correct Answer

verified

Show Answer

A) offering a narrow product line aimed at serving buyers in the same segments of country markets worldwide.
B) giving local managers considerable strategy-making latitude and often producing different product versions for different countries.
C) adopting aggressive efforts to locate facilities in those country markets that have superior resources.
D) pursuing strong product differentiation and competing in many buyer segments.
E) extensive efforts to transfer a company's competencies and resource strengths from one country to another so as to keep entry costs into new country markets low.

Correct Answer

verified

Show Answer

A) allowing franchisees to achieve scale economies.
B) maintaining quality control due to a lack of commitment to consistency and standardization.
C) eliminating the costs and risks associated with establishing a foreign business location.
D) sharing foreign facilities and marketing strategies with local businesses.
E) achieving higher product quality and better product performance than with an export strategy.

Correct Answer

verified

Show Answer

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.

Correct Answer

verified

Show Answer

A) are largely unaffected by fluctuating exchange rates.
B) are greatest when local distributors and dealers in that country can be convinced not to carry products that are made outside the country's borders.
C) can be wiped out when that country's currency grows weaker relative to the currencies of the countries where the output is being sold.
D) are weakened when that country's currency grows stronger relative to the currencies of the countries where the output is being sold.
E) are multiplied by the potential for local government officials to raise tariffs on the imports of foreign-made goods into their country.

Correct Answer

verified

Show Answer