A multidomestic company gives strategic priority to:
a. providing a low cost product to local customers
b. having multiple locations for sources of its raw materials
c. adapting a product or service to local needs
d. controlling the strategic options of local companies correct answers c. adap...
a multidomestic company gives strategic priority t
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MGMT 4660 Exam 2 || A+ Verified Solutions.
A multidomestic company gives strategic priority to:
a. providing a low cost product to local customers
b. having multiple locations for sources of its raw materials
c. adapting a product or service to local needs
d. controlling the strategic options of local companies correct answers c. adapting a product or
service to local needs
Comparative advantages are cost or quality advantages particular to a nation.
a. true
b. false correct answers a. true
Foreign direct investment:
a. is any entry-mode strategy
b. means that a multinational owns, in part or in whole, an operation in another country
c. symbolizes the highest rate of internationalization
d. all of the above correct answers d. all of the above
A regional strategy refers to:
a. selling global products and using similar marketing techniques worldwide
b. dispensing value-chain activities anywhere in the world where the company can do them best
or cheapest
c. a strategy where the organization seeks location advantages
d. managing raw material sourcing, production, marketing, and support activities within a
particular region correct answers d. managing raw material sourcing, production, marketing, and
support activities within a particular region
What is NOT a factor considered when assessing political risk?
a. the durability of the political system
b. the role of the government, unions, and the media in political stability
c. the profitability of the business
d. the reliability of the rule of law correct answers c. the profitability of the business
Globalization drivers...
a. fall into four categories: market, costs, governments, and competition
b. are conditions in an industry that favor transitional or international strategies over
multidomestic or regional strategies
c. indicate the degree or globalization of an industry
d. all of the above correct answers d. all of the above
, According to the text, a fundamental dilemma faced by all multinationals is:
a. the form of competitive strategy they should use
b. how much they should emphasize responding to differences in all the markets they operate
c. how to fight their rivals
d. none of the above correct answers b. how much they should emphasize responding to
differences in all the markets they operate
If strategists in a firm believe that centralizing key activities such as R&D is necessary to reduce
coordination costs and to achieve economies of scale, they are more likely to choose:
a. an international strategy
b. a transitional strategy
c. a local strategy
d. none of the above correct answers a. an international strategy
The liabilities of size for small businesses imply that:
a. small businesses can grow as a result of going international
b. being small often means it can be more difficult to obtain necessary resources
c. small size creates only limited liability
d. small and new businesses can only succeed by exporting correct answers b. being small often
means it can be more difficult to obtain necessary reosurces
A global start-up is:
a. a company that goes global from day one of its life
b. a company that starts a global strategy after exporting
c. a company that skips the first stage of the Small Business Model of Internationalization
d. none of the above correct answers a. a company that goes global from day one of its life
Using intermediaries or go-between firms to provide the knowledge and contacts necessary to
sell overseas is usually associated with:
a. direct exporting
b. franchising
c. indirect exporting
d. licensing correct answers c. indirect exporting
A major risk of licensing is the risk of losing your capital investment.
a. true
b. false correct answers b. false
First mover advantages occur when:
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