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
QUESTION Mayer Life Systems, a manufacturer of surgical and medical appliances, invented and patented a new dialysis machine that radically reduced maintenance and operational issues. Responding to a global demand, it decided to sell the machines manufactured at its plant in the United States to various markets across the globe. Since the product features provided […]
QUESTION Firms that pursue which of the following strategies take products first produced for their domestic market and sell them across various markets with only minimal local customization? A. Nationalization B. Transnational C. Global standardization D. International E. Localization ANSWER D
QUESTION One of the principal risks associated with a strategic alliance is that: A. it brings together the complementary skills of alliance partners. B. it makes it difficult for the partner firms to enter into a foreign market. C. a firm can give away more than it receives. D. it does not allow firms to […]
QUESTION Managing an alliance successfully requires building interpersonal relationships between the firms’ managers, or what is sometimes referred to as: A. relational capital. B. interorganizational synergy. C. power equilibrium. D. symbiotics. E. intraorganizational coordination. ANSWER A
