Exam 7: Strategies for Competing in International Markets

A) producing and marketing a variety of product versions under the same brand name,with each different version being designed specifically to accommodate the needs and preferences of buyers in a particular country.
B) little or no strategy coordination across countries.
C) pursuing the same basic competitive strategy theme (low-cost,differentiation,best-cost,focused) in all countries where the firm does business but giving local managers some latitude to adjust product attributes to better satisfy local buyers and to adjust production,distribution,and marketing to be responsive to local market conditions.
D) selling the company's products under a wide variety of brand names (often one brand for each country or group of neighboring countries) so that buyers in each country market will think they are buying a locally made brand.
E) selling numerous product versions (each customized to buyer tastes in one or more countries and sometimes branded for each country) but opting to only sell direct to buyers at the company's website so as to bypass the costs of establishing networks of wholesale/retail dealers in each country market.

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A) To exploit the natural resources found within its home market.
B) To decrease the rate at which they accumulate experience and move up the learning curve.
C) To raise input costs through greater pooled purchasing power.
D) To capture economies of scale in product development,manufacturing,or marketing.
E) To concentrate risk within a broader base of countries,especially when sales are down in one area and the company can undermine sales elsewhere.

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A multidomestic strategy is one in which...

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A) establishes a wholly owned subsidiary.
B) acquires a foreign company.
C) supports direct control over all aspects of operating in a foreign market.
D) establishes a start-up operation.
E) creates multiple country value chains to attain and sustain a competitive advantage in all markets served.

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Strategic alliances,joint ventures,and o...

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A) Prepare to compete on the basis of low price.
B) Be prepared to modify aspects of the company's business model to accommodate local circumstances (but not so much that the company loses the advantage of global scale and global branding) .
C) Try to change the local market to better match the way the company does business elsewhere.
D) Develop a strategy for the short-term and forget about a long-term strategy because conditions in emerging country markets change so rapidly.
E) Stay away from those emerging markets where it is impractical or uneconomic to modify the company's business model to accommodate local circumstances.

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Companies that compete multinationally c...

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A) Hyundai Motor Company plans to open a new manufacturing plant in the Czech Republic.
B) Carrefour,a French grocery chain,established a new wholly owned venture in Poland.
C) Facebook took over WhatsApp for $19 billion in February 2014.
D) The insurance company Geico is a wholly owned subsidiary of Berkshire Hathaway.
E) Renault-Nissan sells more than one in ten cars worldwide.

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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.

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The five general modes for entering fore...

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A) can be an excellent initial strategy to pursue international sales.
B) can be a competitively successful strategy when a company is focusing on vacant market niches in each foreign country.
C) works well when a firm does not have the financial resources to employ cross-market subsidization.
D) is usually a weak strategy when competitors are pursuing multicountry strategies.
E) can be a powerful strategy because the company is not vulnerable to fluctuating exchange rates.

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A) not pursuing costly efforts to build multiple profit sanctuaries.
B) deliberately choosing not to compete in countries with high tariffs and high taxes (which then have to be passed along to buyers in the form of higher prices) ,thus keeping costs and prices lower than rivals'.
C) using an export strategy to circumvent the risks of adverse exchange rate fluctuations.
D) using location to lower costs or help achieve greater product differentiation or using cross-border coordination in ways a domestic-only competitor cannot.
E) employing a multidomestic strategy instead of a global strategy.

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A) Use acquisition and rapid-growth strategies to better defend against expansion-minded international media companies.
B) Take advantage of aspects of the local workforce with which large international media companies may be unfamiliar.
C) Utilize keen understanding of local customer needs and preferences to create customized products or services.
D) Develop business models that exploit shortcomings in local media content distribution networks or infrastructure.
E) Transfer company expertise to cross-border markets and initiate actions to contend on an international level.

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