A) a profit sanctuary.
B) cross-border coordination.
C) an international strategic alliance.
D) cross-market subsidization.
E) cross-market differences in cultural, demographic, and market conditions.
Correct Answer
verified
Multiple Choice
A) gaining access to local distribution networks, building supplier networks, and establishing working relationships with key government officials.
B) moving directly to the task of transferring resources and personnel, integrating and redirecting activities into its own operation.
C) putting its own strategy into place.
D) accelerating efforts to build a strong market presence.
E) All of these.
Correct Answer
verified
Multiple Choice
A) When the costs of performing certain value chain activities are significantly lower in certain geographic locations than in others
B) When a company has competitively superior patented technology that it can license to foreign partners
C) When there is a steep learning or experience curve associated with performing an activity in a single location
D) When certain locations have superior resources, allow better coordination of related activities, or offer other valuable advantages
E) When there are significant scale economies in performing the activity
Correct Answer
verified
Multiple Choice
A) how to avoid the risks of shifting exchange rates.
B) whether to charge the same price in all country markets.
C) how many foreign firms to license to produce and distribute the company's products.
D) whether to offer a mostly standardized product worldwide or whether to customize the company's offerings in each different country market to match the tastes and preferences of local buyers.
E) whether to pursue a global strategy or an international strategy.
Correct Answer
verified
Multiple Choice
A) try to change the local market to better match the way the company does business elsewhere.
B) be prepared to modify aspects of the company's business model to accommodate local circumstances.
C) prepare to compete on the basis of low price.
D) stay away from those emerging markets where it is impractical to modify the company's business model to accommodate local circumstances.
E) All of these.
Correct Answer
verified
Multiple Choice
A) buyer-related activities (such as sales, advertising, after-sale service and technical assistance) need to take place close to buyers.
B) high transportation costs make it uneconomical to operate from one or just a few locations.
C) it helps hedge against the risks of exchange rate fluctuations, supply disruptions, and adverse political developments.
D) there are diseconomies of scale in trying to operate from a single location.
E) All of these.
Correct Answer
verified
Multiple Choice
A) host governments enact regulations requiring that products sold locally meet strictly defined manufacturing specifications or performance standards.
B) there are 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) there are significant country-to-country differences in distribution channels and marketing methods.
E) All of the above.
Correct Answer
verified
Multiple Choice
A) allowing production to be shifted from country to country to take advantage of exchange rate fluctuations, energy costs, wage rates, or changes in tariffs and quotas.
B) allowing knowledge gained in one location to be transferred to operations in other countries.
C) shifting workloads from where they are unusually heavy to locations were personnel are underutilized.
D) accelerating product development and enhancing innovation by globally linking and coordinating the scattered R&D departments of a multinational company.
E) All of these.
Correct Answer
verified
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