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Exam 7: International Strategy: Creating Value in Global Markets

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Question 31

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Countries with demanding consumers, like environmentally-concerned Denmark, drive __________ to meet the demand.

A) worldwide innovation
B) in-country innovation
C) foreign manufacturing
D) global exchange

E) A) and C)
F) B) and C)

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Question 32

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Multinational companies, like GE, take advantage of globalization to tap into talent around the world in order to build products.

A) True
B) False

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Question 33

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Typically, the least risky method of entry into a foreign market is through the establishment of a wholly owned foreign subsidiary so that the parent organization can maintain a high level of control.

As the pressure to lower costs increases, firms move toward selecting global and transnational strategies for competing in the global marketplace.

Many international firms are increasing their efforts to market their products and services to countries such as India and China as the ranks of their middle class continue to increase.

Which one of the following explains why so few firms are global?

A natural regional trade bloc based upon language affinity is the region from Algeria and Morocco to Oman and Yemen.

Shared Spanish colonialism is one reason that explains regionalism tendencies in

High levels of environmental awareness in Denmark have led to a decline in Danish industrial competitiveness in the international marketplace.

Since the strategies and tactics to differentiate products and services to local markets can involve additional expenses, company costs will tend to fall.

Traditionally, company globalization is measured in terms of its foreign sales as a percentage of total sales, but this can be confused with regionalization.

Rivalry is intense in nations with conditions of __________ consumer demand, __________ supplier bases, and __________ new entrant potential from related industries.

In addition to responding to pressures to lower costs, managers must strive to be responsive to global pressures in order to tailor their products to the demand of the local market in which they do business.

In reviewing the Indian Software industry and the diamond of national advantage, which of the following is a growing detractor to the national competitive advantage in this industry?

Which of the following is not a risk associated with a global strategy?

Which one of the following is not a limitation of a global strategy?

The sale of Boeing commercial aircraft and Microsoft operating systems in many countries enables these companies to benefit from

Multinational firms are constantly faced with the dilemma of choosing between _______ and __________.

A report issued by the World Trade Organization described the production of a particular U.S. car. The study showed that 30 percent of the car value goes to Korea for assembly, 17.5 percent to Japan for components and advanced technology, 7.5 percent to Germany for design, 4 percent to Taiwan and Singapore for minor parts, 2.5 percent to U.K. for advertising and marketing services, and 1.5 percent to Ireland and Barbados for data processing. This is an example of

According to the Euromoney magazine 2014 annual Country Risk Rating, which one of the following countries has the highest economic risk?