QUESTION Labor productivity increases over time as individuals understand the most efficient ways to perform particular tasks. This is a result of: A. diminishing returns. B. location economies. C. economies of time. D. learning effects. E. an efficiency frontier. ANSWER D
Date: September 3rd, 2020
QUESTION The appropriateness of the strategy that a firm chooses to use in an international market varies with the extent of pressures for: A. quality improvement and product standardization. B. customer surplus and quality improvements. C. customer surplus and product standardization. D. cost reductions and local responsiveness. E. product standardization and cost reductions. ANSWER […]
Date: September 3rd, 2020
QUESTION A number of studies have observed that a product’s production costs decline by some quantity about each time: A. annual output is halved. B. cumulative output doubles. C. the workforce is trimmed by 75 percent. D. fixed investment triples. E. foreign domestic investment doubles. ANSWER B
Date: September 3rd, 2020
QUESTION For an international business, which of the following is most likely to be an outcome of protectionism and nationalism in a host-country? A. Increase in the attractiveness of location economies B. Pressure for localization of production C. Requirement of standardization of products or services D. Pressure for cost reduction E. Decrease in the significance […]
Date: September 3rd, 2020
QUESTION Learning effects tend to be more significant when: A. a task involves a few simple steps. B. a task is repeated for a period of over five years. C. the workforce consists of unskilled labor. D. the cumulative output becomes half of what it was originally. E. a technologically complex task is repeated. […]
Date: September 3rd, 2020
QUESTION Which of the following strategies focuses on increasing profitability by customizing the firm’s goods or services so that they provide a good match to tastes and preferences in different national markets? A. International strategy B. Global standardization strategy C. Localization strategy D. Transnational strategy E. Nationalization strategy ANSWER C
Date: September 3rd, 2020
QUESTION Which of the following refers to the reductions in unit cost achieved by producing a large volume of a product? A. Location economies B. Learning effects C. Standardization economies D. Core economies E. Economies of scale ANSWER E
Date: September 3rd, 2020
QUESTION A firm is most likely to pursue a global standardization strategy when: A. it wants to implement a high-cost strategy on a global scale. B. it wants to reduce consumer surplus. C. there are no universal needs to be served. D. there are strong demands for local responsiveness. E. there are strong pressures for […]
Date: September 3rd, 2020
QUESTION Which of the following is true about learning effects? A. They tend to be more significant in nonrepetitive tasks. B. They tend to be less significant when a task is technologically complex. C. They typically last a lifetime. D. They are important only during the start-up period of a new process. E. They do […]
Date: September 3rd, 2020
QUESTION Spreading fixed costs over a large volume results in a cost-savings phenomenon referred to as: A. volume synergies. B. economies of scale. C. captured savings. D. size effects. E. location economies. ANSWER B
Date: September 3rd, 2020
