Question 1

The various value creation activities that a firm undertakes are referred to as operations.

Accepted Answer

A) True 
 B)False

Question 2

Firms that pursue a(n) _____ strategy focus on increasing profitability and profit growth by reaping the cost reductions that come from economies of scale,learning effects,and location economies.

Accepted Answer

A)   international
B)   transnational
C)   localization
D)   global standardization
E)   nationalizationF) None of the above
G) C) and D)

Question 3

Strategies that increase profitability can also expand a firm's business and thus enable it to attain a higher rate of profit growth.

Accepted Answer

A) True 
 B)False

Question 4

A global car manufacturer wants to start production in China.While catering to local responsiveness,what can the firm do to get scale economies?

Accepted Answer

A)   Increase costs whenever possible
B)   Use common vehicle platforms and components across many different models
C)   Shorten the production runs for each component
D)   Increase the duplication of functions required for each operation
E)   Manufacture only one type of car and sell it in all the international marketsF) A) and E)
G) A) and D)

Question 5

Processes are the manner in which decisions are made and work is performed within the organization.

Accepted Answer

A) True 
 B)False

Question 6

What constitutes an organizational structure?

Accepted Answer

Organizational structure consists of thr...

Question 7

For services such as banking or health care,"production" typically occurs when:

Accepted Answer

A)   the customer specifies the service requirements.
B)   the service is paid for by the customer.
C)   the service is designed in-house.
D)   the service is delivered to the customer.
E)   the customer gives a feedback.F) A) and D)
G) C) and D)

Question 8

How does possessing a core competence help a firm?

Accepted Answer

A)   It helps a firm to create value in such a way that premium pricing is impossible.
B)   It reduces a firm's dependence on its logistics function.
C)   It enables a firm to reduce the costs of value creation.
D)   It reduces the scope of transfer of skills to foreign markets.
E)   It reduces the need to replicate a business model in a foreign market.F) A) and E)
G) A) and B)

Question 9

The _____ function of a value chain controls the transmission of physical materials through the value chain,from procurement through production and into distribution.

Accepted Answer

A)   human resource
B)   finance
C)   marketing
D)   logistics
E)   research and developmentF) C) and D)
G) A) and E)

Question 10

A firm creates a(n) _____ by dispersing different stages of its value chain to those locations around the world where the value added is maximized or where the costs of value creation are minimized.

Accepted Answer

A)   integral circle
B)   dispersal chain
C)   global web
D)   international mesh
E)   worldwide circleF) B) and E)
G) C) and D)

Question 11

Profit growth is measured by the percentage increase in net profits over time.

Accepted Answer

A) True 
 B)False

Question 12

_____ refer to cost savings that come from acquiring knowledge from doing a task.

Accepted Answer

A)   Learning effects
B)   Exponential effects
C)   Ancillary effects
D)   Economies of scale
E)   Location economiesF) A) and D)
G) None of the above

Question 13

A strategy that focuses primarily on increasing the attractiveness of a product is referred to as a low-cost strategy.

Accepted Answer

A) True 
 B)False

Question 14

In which of the following tasks will the learning effects be most significant?

Accepted Answer

A)   Pizza delivery for a fast-food major
B)   Data entry for a loan recovery center
C)   Assembly process involving 1,000 complex steps
D)   Sewing buttons onto shirts in a garment factory
E)   Delivering letters to different recipientsF) A) and E)
G) A) and D)

Question 15

Maintaining the company infrastructure is a support activity.

Accepted Answer

A) True 
 B)False

Question 16

A company can create more value for a product by:

Accepted Answer

A)   charging a higher price for the product.
B)   raising production costs.
C)   generating more profits.
D)   making the product more attractive.
E)   increasing the profitability of the product.F) C) and E)
G) A) and E)

Question 17

What are the sources of pressures for local responsiveness?

Accepted Answer

Pressures for local responsiveness arise...

Question 18

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

Accepted Answer

A)   tactical union
B)   strategic alliance
C)   political affiliation
D)   economic association
E)   nationalizationF) D) and E)
G) C) and E)

Question 19

_____ is a support activity.

Accepted Answer

A)   Research and development
B)   Production
C)   Marketing and sales
D)   Logistics
E)   Customer serviceF) A) and B)
G) B) and D)

Question 20

Which of the following is an observation made by researchers Bartlett and Ghoshal regarding modern multinational enterprises?

Accepted Answer

A)   Global logistics industry makes the concept of "location economies" redundant for international firms.
B)   Core competencies and skills can develop in any of the firm's worldwide operations.
C)   Flow of skills between a firm and its global subsidiaries should be unidirectional.
D)   Differentiating across geographic markets helps a firm in reducing costs.
E)   Customer demands for local customization are on the decline worldwide.F) C) and D)
G) A) and C)

Exam 12: The Strategy of International Business

Maintaining the company infrastructure is a support activity.

Correct AnswerverifiedShow Answer

In which of the following tasks will the learning effects be most significant?

Correct AnswerverifiedShow Answer

How does possessing a core competence help a firm?

Correct AnswerverifiedShow Answer

Which of the following is an observation made by researchers Bartlett and Ghoshal regarding modern multinational enterprises?

Correct AnswerverifiedShow Answer

A company can create more value for a product by:

Correct AnswerverifiedShow Answer

Strategies that increase profitability can also expand a firm's business and thus enable it to attain a higher rate of profit growth.

Correct AnswerverifiedShow Answer

Processes are the manner in which decisions are made and work is performed within the organization.

Correct AnswerverifiedShow Answer

The various value creation activities that a firm undertakes are referred to as operations.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A strategy that focuses primarily on increasing the attractiveness of a product is referred to as a low-cost strategy.

Correct AnswerverifiedShow Answer

What constitutes an organizational structure?

Correct AnswerverifiedOrganizational structure consists of thr...View AnswerShow Answer

For services such as banking or health care,"production" typically occurs when:

Correct AnswerverifiedShow Answer

A global car manufacturer wants to start production in China.While catering to local responsiveness,what can the firm do to get scale economies?

Correct AnswerverifiedShow Answer

The _____ function of a value chain controls the transmission of physical materials through the value chain,from procurement through production and into distribution.

Correct AnswerverifiedShow Answer

What are the sources of pressures for local responsiveness?

Correct AnswerverifiedPressures for local responsiveness arise...View AnswerShow Answer

_____ is a support activity.

Correct AnswerverifiedShow Answer

A firm creates a(n) _____ by dispersing different stages of its value chain to those locations around the world where the value added is maximized or where the costs of value creation are minimized.

Correct AnswerverifiedShow Answer

Firms that pursue a(n) _____ strategy focus on increasing profitability and profit growth by reaping the cost reductions that come from economies of scale,learning effects,and location economies.

Correct AnswerverifiedShow Answer

Profit growth is measured by the percentage increase in net profits over time.

Correct AnswerverifiedShow Answer

_____ refer to cost savings that come from acquiring knowledge from doing a task.

Correct AnswerverifiedShow Answer

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Organizational structure consists of thr...
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Pressures for local responsiveness arise...
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