Exam 10: Global Strategy: Competing Around the World

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Local responsiveness is the need to tail...

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A) Because MTV failed to understand that music videos were a commodity product
B) Because the globalization hypothesis holds true for the music industry
C) Because cultural distance most affects products with high linguistic content
D) Because an international strategy was more suitable for the music industry

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A) Locus of control
B) Self-efficacy
C) Span of control
D) Power distance

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A) increases linguistic similarities between the two countries.
B) increases the liability of foreignness.
C) reduces the uncertainty of doing business.
D) reduces the transaction costs associated with business.

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A) The process of producing goods in one country and selling them in another
B) The need to tailor product and service offerings to fit native consumer preferences and host-country requirements
C) The belief that consumer needs and preferences throughout the world are converging and thus becoming increasingly homogenous
D) The additional costs of doing business in an unfamiliar culture and economic environment, and of coordinating across geographic distances

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A) Multidomestic strategy
B) Focused differentiation strategy
C) Global-standardization strategy
D) International strategy

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A) non-profit organization
B) nationalized firm
C) sole proprietorship
D) multinational enterprise

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A global strategy is part of a...

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A) economies around the world are becoming more independent.
B) cultural distance between countries is increasing.
C) cost of doing business around the world is increasing.
D) world's market economies are becoming more integrated.

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Student answers will vary.The engine beh...

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A) economies of scope
B) location economies
C) resource immobility
D) resource ambiguity

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A) One Stop Inc. will focus more on cost-reduction than Solar Com Inc.
B) One Stop Inc. will have its business functions spread across the world; Solar Com Inc.'s business functions will be highly centralized.
C) Unlike Solar Com Inc., One Stop Inc. will be able to pursue a differentiation strategy at the business level.
D) Unlike Solar Com Inc., One Stop Inc. will be able to reap significant economies of scale and location economies.

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A) differences in climates and time zones.
B) the absence of a trading bloc.
C) physical remoteness.
D) the lack of connective ethnic and social networks.

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A) Benefits from lower labor costs in manufacturing and services
B) Access to low-cost raw materials such as lumber and iron ore
C) Low levels of economic growth in emerging economies
D) Inefficient infrastructure in countries like China, which have brought down setting-up costs

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Student answers will vary.One of the mos...

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A) food processed in Fernsland.
B) movies and TV shows produced in United Nerumbia.
C) iron ore extracted in Fernsland.
D) luxury items manufactured in United Nerumbia.

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A) they pursue a cost-leadership strategy in their respective industries.
B) they are highly responsive to the local needs and preferences of customers in the host countries.
C) they offer the same products or services in all their stores throughout the world.
D) they attempt to combine benefits of localization and standardization strategies simultaneously.

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A) location economies
B) economies of scope
C) learning races
D) network effects

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