MBA 634 Final Exam Prem
65. International strategy refers to a(n)
a. action plan pursued by American companies to compete against foreign companies operating in
the United
States.
b. strategy through which the firm sells products in markets outside the firm's domestic market.
c. political and economic action plan developed by businesses and governments to cope with global
competition.
d. strategy American firms use to dominate international markets. - ✔✔b. strategy through which the
firm sells products in markets outside the firm's domestic market.
66. Raymond Vernon states that the classic rationale for international diversification is to
a. pre-emptively dominate world markets before foreign companies can establish dominance.
b. avoid domestic governmental regulation.
c. extend the product's life cycle.
d. avoid international governmental regulation. - ✔✔c. extend the product's life cycle.
67. Which of the following is NOT an incentive for firms to become multinational?
a. to gain access to consumers in emerging markets
b. to gain easier access to raw materials
c. to avoid high domestic taxation on corporate income
d. opportunities to integrate operations on a global scale - ✔✔c. to avoid high domestic taxation on
corporate income
68. The increased pressures for global integration of operations have been driven mostly by
a. new low-cost entrants.
b. increasing demand for similar products.
c. increased levels of joint ventures.
d. the rise of governmental regulation. - ✔✔b. increasing demand for similar products.
,69. The benefits of expanding into international markets include each of the following opportunities
EXCEPT
a. increasing the size of the firm's potential markets.
b. economies of scale and learning.
c. location advantages.
d. favorable tax concessions and economic incentives by home-country governments. - ✔✔d.
favorable tax concessions and economic incentives by home-country governments.
70. U.S. companies moving into the international market need to be sensitive to the need for local
country or regional responsiveness because of
a. increasing rejection of American culture across much of the world.
b. the sophistication of the international consumer because of the Internet.
c. consumer needs, political and legal structures, and social norms vary by country.
d. the increasing loss of economies of scale. - ✔✔c. consumer needs, political and legal structures,
and social norms vary by country.
71. Which of the following is NOT a factor pressuring companies for local responsiveness?
a. differences in employment laws
b. customization due to cultural differences
c. government pressure for firms to use local sources for procurement
d. availability of low labor costs - ✔✔d. availability of low labor costs
72. U.S. cola companies entered the global market because of
a. limited growth opportunities in their domestic market.
b. lower labor costs in the emerging markets.
c. economies of scale that offset research and development costs.
d. an increase in the return on investment from their U.S. bottling plants. - ✔✔a. limited growth
opportunities in their domestic market.
73. Moving into international markets is a particularly attractive strategy to firms whose domestic
markets
a. demand a differentiation strategy for success.
,b. are limited in opportunities for growth.
c. have developed unfriendly business attitudes toward the industry.
d. have too much regulation. - ✔✔b. are limited in opportunities for growth.
74. Working in multiple international markets can provide firms with perhaps even in terms of
a. location advantages; larger markets.
b. research and development activities; larger markets.
c. new learning opportunities; research and development activities.
d. economies of scale and learning; larger markets. - ✔✔c. new learning opportunities; research and
development activities.
75. Firms able to standardize the processes used to produce, sell, distribute, and service their
products across country borders enhance their ability to
a. learn how to continuously reduce costs while increase the value of their products.
b. increase investment in research and development.
c. access to a low-cost labor force in the host market.
d. mitigate cultural differences. - ✔✔a. learn how to continuously reduce costs while increase the
value of their products.
76. Firms with core competencies that can be exploited across international markets are able to
a. achieve synergies and produce high-quality goods at lower costs.
b. enter new markets more quickly.
c. enhance their market image and brand loyalty among local consumers.
d. meet local government requirements more quickly than their international competitors. - ✔✔a.
achieve synergies and produce high-quality goods at lower costs.
77. The location advantages associated with locating facilities in other countries can include all of the
following
EXCEPT
, a. low-cost labor.
b. access to critical supplies.
c. access to customers.
d. evasion of host country governmental regulations. - ✔✔d. evasion of host country governmental
regulations.
78. Factors of production in Porter's model of international competitive advantage include all of the
following EXCEPT
a. labor.
b. capital.
c. infrastructure.
d. technology. - ✔✔d. technology.
79. In Porter's model, a specialized factor of production would include
a. abundant natural resources.
b. a large workforce.
c. an extensive highway transportation system.
d. workers with advanced engineering skills. - ✔✔d. workers with advanced engineering skills.
80. In Porter's model, if a country has both and production factors, it is likely to serve an industry
well by spawning strong home-country competitors that can also be successful global competitors.
a. basic; advanced
b. advanced; generalized
c. basic; generalized
d. advanced; specialized - ✔✔d. advanced; specialized
81. Japan, due to a lack of undeveloped land, would be an unusual choice of location for a U.S. cattle
company to set up local grazing operations. This limiting factor would be identified in what part of
Porter's determinants of national advantage?
a. factors of production
b. demand conditions
65. International strategy refers to a(n)
a. action plan pursued by American companies to compete against foreign companies operating in
the United
States.
b. strategy through which the firm sells products in markets outside the firm's domestic market.
c. political and economic action plan developed by businesses and governments to cope with global
competition.
d. strategy American firms use to dominate international markets. - ✔✔b. strategy through which the
firm sells products in markets outside the firm's domestic market.
66. Raymond Vernon states that the classic rationale for international diversification is to
a. pre-emptively dominate world markets before foreign companies can establish dominance.
b. avoid domestic governmental regulation.
c. extend the product's life cycle.
d. avoid international governmental regulation. - ✔✔c. extend the product's life cycle.
67. Which of the following is NOT an incentive for firms to become multinational?
a. to gain access to consumers in emerging markets
b. to gain easier access to raw materials
c. to avoid high domestic taxation on corporate income
d. opportunities to integrate operations on a global scale - ✔✔c. to avoid high domestic taxation on
corporate income
68. The increased pressures for global integration of operations have been driven mostly by
a. new low-cost entrants.
b. increasing demand for similar products.
c. increased levels of joint ventures.
d. the rise of governmental regulation. - ✔✔b. increasing demand for similar products.
,69. The benefits of expanding into international markets include each of the following opportunities
EXCEPT
a. increasing the size of the firm's potential markets.
b. economies of scale and learning.
c. location advantages.
d. favorable tax concessions and economic incentives by home-country governments. - ✔✔d.
favorable tax concessions and economic incentives by home-country governments.
70. U.S. companies moving into the international market need to be sensitive to the need for local
country or regional responsiveness because of
a. increasing rejection of American culture across much of the world.
b. the sophistication of the international consumer because of the Internet.
c. consumer needs, political and legal structures, and social norms vary by country.
d. the increasing loss of economies of scale. - ✔✔c. consumer needs, political and legal structures,
and social norms vary by country.
71. Which of the following is NOT a factor pressuring companies for local responsiveness?
a. differences in employment laws
b. customization due to cultural differences
c. government pressure for firms to use local sources for procurement
d. availability of low labor costs - ✔✔d. availability of low labor costs
72. U.S. cola companies entered the global market because of
a. limited growth opportunities in their domestic market.
b. lower labor costs in the emerging markets.
c. economies of scale that offset research and development costs.
d. an increase in the return on investment from their U.S. bottling plants. - ✔✔a. limited growth
opportunities in their domestic market.
73. Moving into international markets is a particularly attractive strategy to firms whose domestic
markets
a. demand a differentiation strategy for success.
,b. are limited in opportunities for growth.
c. have developed unfriendly business attitudes toward the industry.
d. have too much regulation. - ✔✔b. are limited in opportunities for growth.
74. Working in multiple international markets can provide firms with perhaps even in terms of
a. location advantages; larger markets.
b. research and development activities; larger markets.
c. new learning opportunities; research and development activities.
d. economies of scale and learning; larger markets. - ✔✔c. new learning opportunities; research and
development activities.
75. Firms able to standardize the processes used to produce, sell, distribute, and service their
products across country borders enhance their ability to
a. learn how to continuously reduce costs while increase the value of their products.
b. increase investment in research and development.
c. access to a low-cost labor force in the host market.
d. mitigate cultural differences. - ✔✔a. learn how to continuously reduce costs while increase the
value of their products.
76. Firms with core competencies that can be exploited across international markets are able to
a. achieve synergies and produce high-quality goods at lower costs.
b. enter new markets more quickly.
c. enhance their market image and brand loyalty among local consumers.
d. meet local government requirements more quickly than their international competitors. - ✔✔a.
achieve synergies and produce high-quality goods at lower costs.
77. The location advantages associated with locating facilities in other countries can include all of the
following
EXCEPT
, a. low-cost labor.
b. access to critical supplies.
c. access to customers.
d. evasion of host country governmental regulations. - ✔✔d. evasion of host country governmental
regulations.
78. Factors of production in Porter's model of international competitive advantage include all of the
following EXCEPT
a. labor.
b. capital.
c. infrastructure.
d. technology. - ✔✔d. technology.
79. In Porter's model, a specialized factor of production would include
a. abundant natural resources.
b. a large workforce.
c. an extensive highway transportation system.
d. workers with advanced engineering skills. - ✔✔d. workers with advanced engineering skills.
80. In Porter's model, if a country has both and production factors, it is likely to serve an industry
well by spawning strong home-country competitors that can also be successful global competitors.
a. basic; advanced
b. advanced; generalized
c. basic; generalized
d. advanced; specialized - ✔✔d. advanced; specialized
81. Japan, due to a lack of undeveloped land, would be an unusual choice of location for a U.S. cattle
company to set up local grazing operations. This limiting factor would be identified in what part of
Porter's determinants of national advantage?
a. factors of production
b. demand conditions
