QUESTION In international business, a strategic commitment has a short-term impact and is easily reversible. Indicate whether the statement is true or false. ANSWER FALSE For international businesses, a strategic commitment has a long-term impact and is difficult to reverse. Deciding to enter a foreign market on a significant scale is a major strategic […]
QUESTION Which of the following strategies is most likely to be pursued by a firm when there are strong pressures for cost reductions and demands for local responsiveness are minimal? A. Domestic strategy B. Global standardization strategy C. International strategy D. Transnational strategy E. Nationalization strategy ANSWER B
QUESTION The probability of survival decreases if an international business enters a national market after several other foreign firms have already done so. Indicate whether the statement is true or false. ANSWER FALSE Research seems to confirm that the probability of survival increases if an international business enters a national market after several other […]
QUESTION Which of the following is true of a localization strategy? A. It allows a firm to capture the cost reductions of mass-producing a standardized product. B. It reduces duplication of functions. C. It involves longer production runs. D. It makes sense if the value added by customization supports higher pricing. E. It substantially reduces […]
QUESTION In international business, an early entrant to a foreign market may be at a disadvantage relative to a later entrant, if regulations change in a way that diminishes the value of an early entrant’s investments. Indicate whether the statement is true or false. ANSWER TRUE In international business, an early entrant to a […]
QUESTION A global car manufacturer wants to start production in China. While catering to local responsiveness, what can the firm do to get scale economies? A. Increase costs whenever possible. B. Use common vehicle platforms and components across many different models. C. Shorten the production runs for each component. D. Increase the duplication of functions […]
QUESTION By considering advantages and disadvantages, trade-offs can often be avoided when selecting an entry mode. Indicate whether the statement is true or false. ANSWER FALSE All the entry modes have advantages and disadvantages. Thus, trade-offs are inevitable when selecting an entry mode.
QUESTION Which of the following statements is true about an international strategy? A. International strategy typically involves taking products first produced for foreign markets and then customizing them for domestic markets. B. International strategy should be pursued by a firm if it manufactures a product that satisfies local, rather than universal, needs. C. When a […]
QUESTION A risk-averse international firm that enters a foreign market on a small scale will increase its potential losses. Indicate whether the statement is true or false. ANSWER FALSE A risk-averse international firm that enters a foreign market on a small scale may limit its potential losses, but it may also miss the chance […]
QUESTION Xerox had a monopoly on photocopiers for several years as the technology underlying the photocopier was protected by strong patents. As it served a universal need, this favorable position led Xerox to pursue a(n): A. global standardization strategy. B. localization strategy. C. international strategy. D. transnational strategy. E. nationalization strategy. ANSWER C
