International Strategy Test Bank Answers Ch8

Chapter 8: International Strategy

Test Bank

Type: multiple response question

Title: Chapter 08 Question 01

1) Douglas and Wind (1987) challenge the view held by Levitt that a global approach is necessary. Which of the following constitute part of Douglas and Wind’s argument? Please select all that apply.

Type: true-false

Title: Chapter 08 Question 02

2) Hofstede (1991) agrees with Levitt that world tastes are converging.

a. True

b. False

Type: fill-in-blank

Title: Chapter 08 Question 03

3) A firm exploits the differences in costs and resources that a particular country may possess. This is known as ___________________.

Type: multiple response question

Title: Chapter 08 Question 04

4) What environmental factors could motivate organizations to pursue a strategy of international diversification? Please select all that apply

Type: true-false

Title: Chapter 08 Question 05

5) According to Ghosal (1987), one of the sources of competitive advantage is scope economies. Scope economies are where the unit cost of each unit gets lower as production increases.

a. True

b. False

Type: multiple response question

Title: Chapter 08 Question 06

6) The strategic objectives for a multinational corporation to adopt globalization strategy include: Please select all that apply.

Type: true-false

Title: Chapter 08 Question 07

7) Auto manufacturers use common platforms when making different types of cars. This allows them to achieve smaller production runs at a relatively low cost through economies of scope.

a. True

b. False

Type: multiple response question

Title: Chapter 08 Question 08

8) Some of the benefits of a global strategy include: Please select all that apply.

Type: multiple choice question

Title: Chapter 08 Question 09

9) An international firm in the packaged convenience food industry should follow which generic international strategy?

a. Global

b. Transnational

c. Multidomestic

d. Universal

Type: true-false

Title: Chapter 08 Question 10

10) Truly global strategies rarely exist in practice.

a. True

b. False

Type: fill-in-blank

Title: Chapter 08 Question 11

11) Bartlett and Ghoshal argued that the unidimensional decision balancing efficiency and _______________ is no longer appropriate.

Type: fill-in-blank

Title: Chapter 08 Question 12

12) Four generic international strategies have been identified to deal with the various challenges of internationalization. These strategies are known as global, multi-domestic, international, and _________________.

Type: true-false

Title: Chapter 08 Question 13

13) An automobile firm uses the same engine in all of its car models across the world. It adapts some cosmetic features of the car to suit local tastes. It is following a locally responsive strategy.

a. True

b. False

Type: multiple choice question

Title: Chapter 08 Question 14

14) A firm exploits its core competences to expand into international markets. The centre retains autonomy. What type of strategy is this firm following?

a. Transnational

b. International

c. Multi-domestic

d. Global

Type: fill-in-blank

Title: Chapter 08 Question 15

15) According to Bartlett and Ghoshal, a ________ recognizes the benefits of efficiency that derive from the global company, the response to local needs of the multidomestic firm, and the transfer of knowledge and capabilities across countries by the international firm.

Type: multiple response question

Title: Chapter 08 Question 16

16) In selecting an appropriate entry mode into a foreign country, two questions need to be answered. These are: Please select all that apply.

Type: multiple response question

Type: multiple choice question

Title: Chapter 08 Question 18

18) Which of the following entry modes can be considered as having the lowest risk and the lowest amount of ownership and control?

a. Wholly owned subsidiary

b. Strategic alliance

c. Exporting

d. Franchising

Type: multiple choice question

Title: Chapter 08 Question 19

19) Which type of international strategy did Levitt (1983) believe to be most appropriate for the international business context at that time?

a. Global

b. Multi-domestic

c. Transnational

d. International

Type: true-false

Title: Chapter 08 Question 20

20) Many international companies such as McDonald’s, Benetton, and Pizza Hut adopted franchising as their entry-mode strategy to enter international markets.

a. True

b. False

Type: multiple response question

Title: Chapter 08 Question 21

21) A useful alliance will be beneficiary for both organizations as: Please select all that apply

Type: fill-in-blank

Title: Chapter 08 Question 22

22) FDI is the abbreviation for _____________________.

Type: multiple choice question

Title: Chapter 08 Question 23

23) Worker skills that have developed in a particular country are (in terms of Porter’s Diamond):

a. Related and supporting industry condition

b. Firm structure, strategy and rivalry condition

c. Demand condition

d. Factor condition

Type: true-false

Title: Chapter 08 Question 24

24) According to Porter’s Five Forces framework, national competitive factors include factor condition, demand conditions, related and supporting industries, and firm strategy, structure, and rivalry.

a. True

b. False

Type: multiple choice question

Title: Chapter 08 Question 25

25) The geographic grouping known as the triad consists of:

a. Japan, China, and Russia

b. Japan, Europe, and USA

c. China, Europe, and USA

d. India, Russia, and China

Type: fill-in-blank

Title: Chapter 08 Question 26

26) Rugman and D’Cruz (1991) suggest a _____________________ to more fully take account of the determinants of international competitiveness. For example, Canada’s international competitiveness is determined by conditions in neighbouring USA as well as Canada.

Type: multiple choice question

Title: Chapter 08 Question 27

27) Ghemawat (2005) argues that globalization is more accurately described as:

a. Multi-localization.

b. Cultural imperialism.

c. Globalization.

d. Regionalization.

Type: true-false

Title: Chapter 08 Question 28

28) Internationalization in services is different to internationalization of products.

a. True

b. False

Type: true-false

Title: Chapter 08 Question 29

29) Continuing economic liberalization and information technology are the backdrop to the changes facing the traditional multinational corporation to evolve into a globally integrated enterprise.

a. True

b. False

Type: multiple response question

Title: Chapter 08 Question 30

30) Globalization faces lots of challenges, such as: Please select all that apply