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Exam 12: The Strategy of International Business

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Question 1

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Which of the following is NOT a factor driving local responsiveness among global firms?

A) cross-national differences in distribution channels
B) diverging consumer tastes and preferences
C) cross-national differences in product standards
D) host government support of freer international trade

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Question 2

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A strategy that focuses on lowering operating costs is referred to as a ________ strategy.

A) differentiation
B) cost leadership
C) niche market
D) diversification

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Question 3

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A differentiation strategy works well when ________.

Support activities define the infrastructure of the firm and serve as the basis for the daily implementation of primary activities in the value chain.

Pressures for local responsiveness include cross-national differences in terms of consumer preferences, advances in technology, and government regulations.

A global strategy drives performance by making standardized products that are marketed with minimum adaptation to local conditions.

Citibank decides to open a call center in Mumbai, India because a detailed analysis of the country-specific advantages suggests that India is the optimal place for responding to customers' calls.Citibank is exploiting ________ by running a call center in India.

________ is the framework that managers apply to determine the competitive moves and business approaches that run the company.

Tel-Comm Tek is a company that believes it has core competencies that its competitors in foreign markets lack and that it faces relatively weak pressures for local responsiveness and cost reductions.Tel-Comm Tek is likely to adopt an international strategy.

Describe the two basic ways that companies can create value.What role does the value chain play in these methods?

Which of the following is LEAST likely to trigger the standardization of consumer preferences?

Johnson Enterprises manufactures computer chips used in cell phones.The MNE has long production runs that lower the per unit cost of each chip.The firm also purchases materials in bulk from its suppliers with whom Johnson has long-term contracts.Johnson is most likely benefiting from ________.

Firms that pursue a(n) ________ strategy create value by transferring core competencies from the home market to foreign markets in which local rivals lack a competitive alternative.

Dispersing value activities where and in how many places in the world is the issue of ________.

The term ________ refers to a global company that thrives on seeking unique ideas and insights from locations around the world and then leveraging that knowledge in international markets.

Which strategy champions worldwide consistency and standardization to support the firm's goal to become the low-cost leader?

In a brief essay, discuss the strategy used by Zara, the firm described in the opening case.Also discuss the features of Zara's value chain.

In the global environment, firms use an international strategy, a localization strategy, a global strategy, or a ________ strategy.

________ are the two basic strategies for creating value and attaining a competitive advantage in an industry.

Zara creates, produces, and distributes most of its products from its headquarters in Spain.Zara is most likely using a ________ configuration.