GLO BUS Chapter 8 Exam Questions and Answers Latest Update 2024 (Already Passed)
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GLO BUS Chapter 8
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GLO BUS Chapter 8
GLO BUS Chapter 8 Exam Questions and Answers Latest Update 2024 (Already Passed)
In place of relatively stable and predictable domestic markets, firms across the globe find that they are competing in relatively unstable and unpredictable global markets. - Answers True
After a firm decides to comp...
GLO BUS Chapter 8 Exam Questions and Answers Latest Update 2024 (Already Passed)
In place of relatively stable and predictable domestic markets, firms across the globe find that they are
competing in relatively unstable and unpredictable global markets. - Answers True
After a firm decides to compete internationally, it must select its strategy and choose a mode of entry
into international markets. - Answers True
Because there are still several industrial and consumer markets in which only domestic firms compete,
many firms do not have to be able to compete internationally. - Answers False
One reason why firms pursue international opportunities is to extend the product's life cycle - Answers
True
A reason that firms use international strategies is to secure needed resources, especially minerals and
energy. - Answers True
In some industries, technology drives globalization because the economies of scale necessary to reduce
costs cannot be met by competing in domestic markets alone - Answers True
A major incentive for the use of international strategy by French-based Carrefour Group is the potential
for large demand for goods and services from emerging markets such as China and India - Answers True
The three basic benefits of international strategies are 1) increased market size; 2) increased economies
of scale and learning; and 3) development of competitive advantages through location - Answers True
Rivals Airbus and Boeing have multiple manufacturing facilities and outsource activities partly for the
purpose of developing economies of scale as a source of being able to create value for customers -
Answers True
As an indication of the importance of economies of scale, Ford Motor Company runs a single global
business developing cars and trucks that can be built and sold through the world - Answers True
Coca Cola and PepsiCo are examples of firms that have found it unnecessary to aggressively pursue
international strategies because of extensive growth opportunities available in the U.S. market -
Answers False
Multinational firms have many opportunities to learn from their experiences in international markets,
but they must have a strong R&D system to absorb the knowledge - Answers True
Cultural differences affect location advantages in that business transactions are less difficult for a firm to
complete when there is a strong match among the cultures with which the firm is involved - Answers
True
Location advantages are influenced by costs of production, access to natural resources and critical
supplies, as well as the needs of customers, but not culture - Answers False
, The three corporate-level international strategies are cost leadership, differentiation, and focus -
Answers False
When a firm initially pursues an international business-level strategy, the resources and capabilities
established in the home country frequently allow the firm to pursue the strategy into markets located in
other countries - Answers True
Michael Porter's Determinants of National Advantage describe factors associated with the firm's
domestic environment that contribute to its dominance in a particular global industry. - Answers True
Both the size and the nature of a country's domestic demand for a particular industry's good or service
are important in Porter's determinants of national advantage - Answers True
Having substantial supplies of critical basic natural resources is a necessary condition for a country to
support businesses that can successfully compete in international markets - Answers False
South Korea's success in international markets is primarily a result of its abundant natural resources -
Answers False
Italy has become the leader in the shoe industry because of related and supporting industries such as a
well-established leather-processing industry that provides the leather needed to construct shoes and
related products - Answers True
A firm based in a country with a national competitive advantage is not guaranteed success as it
implements its chosen international business-level strategy. Instead, the actual strategic choices
managers make may be the most compelling reasons for success or failure - Answers True
A multi-domestic strategy is an international strategy in which a firm's home office determines the
strategies business units are to use in each region. - Answers False
A major advantage of multi-domestic strategies is the ability to customize products and services for the
specific market, although this sacrifices economies of scale - Answers True
The firm using a global strategy seeks to develop economies of scale as it produces the same or virtually
the same products for distribution to customers throughout the world who are assumed to have similar
needs - Answers True
The global strategy offers greater opportunities to take innovations developed at the corporate level or
in one market and apply them to other markets - Answers True
Research suggests that the performance of the global strategy is enhanced if it deploys in areas where
regional integration across countries is occurring - Answers True
A transnational strategy is an international strategy in which the firm seeks to achieve both global
efficiency and local responsiveness - Answers True
A transnational strategy is difficult to use because of its conflicting goals - Answers True
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