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Exam 7: International Strategy: Creating Value in Global Markets

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Question 61

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Similarity of culture, laws, rules, and norms encourages

A) regionalization.
B) globalization.
C) trans-nationalization.
D) ethnocentric expansion.

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Question 62

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The Indian software industry has become one of the leading global markets for software. The industry has grown to over 60 billion USD, and Indian IT firms provide software and services to over half the Fortune 500 firms. This success is being driven by factor endowments such as a large, growing market with sophisticated customers.

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Question 63

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Fees that a multinational receives from a foreign licensee in return for its use of intellectual property (trademark, patent, trade secret, technology) are usually called

Firms can lessen political instability and adverse government actions risks by: competing in a range of geographic markets, developing stakeholder coalitions, cultivating relationships with key influences, and including key public-private stakeholders in their boards.

If the U.S. dollar appreciates relative to foreign currency, what is likely to be the result for the U.S. company that has branches abroad?

Corporations with multiple foreign operations that act very independently of one another are following a multidomestic strategy.

Trading blocs and free trade zones promote the rise of international expansion.

Ricoh Americas Corporation has significant international operations. Faced with local reticence to adapt changes that come from other global regions, what does Ricoh suggest is the most successful approach?

Typically, joint ventures involve less control and risk than franchising.

Major Western hemisphere trade blocs include NAFTA, Mercosur, and ASEAN.

A domestic corporation considering international expansion for the first time typically will follow which of these paths?

Among the assumptions of Theodore Levitt that would favor a global strategy is that consumers around the world are becoming less price-sensitive.

According to Exhibit 7.1 in the textbook, the country experiencing the highest rate of growth in GDP from 2001-2011 was

Multinational firms following a transnational strategy strive to optimize the trade-offs associated with efficiency, local adaptation, and learning.

For years O.R.T. Technologies resisted moving any operations outside Israel. However, when faced with a sharp rise in the value of the shekel, the maker of specialized software for managing gas stations froze all local hiring and decided to transfer some developmental work to Eastern Europe. This is an example of _____________ risk.

Typically, intense rivalry in domestic markets does not force firms to look outside their national boundaries for new markets.

The Nestle line of pizzas marketed in the United Kingdom includes cheese with ham and pineapple topping on a French bread crust. This is an example of company adaptation to global markets.

Canada and Mexico are the same distance from the United States, but trade is higher between the U.S. and Canada than with Mexico because

High pressure for local adaptation combined with low pressure for lower costs would suggest what type of international strategy?

Related industries create the probability that new companies will enter the market. This ________ competition and forces existing firms to improve ___________.