QUESTION Which of the following supports the argument that customer demands for local customization are on the decline worldwide? A. Local and indigenous industries are increasingly filling up available demand. B. High costs of local customization are deterring companies from doing so. C. Governments across the world are standardizing their legal procedures. D. Customer tastes […]
QUESTION Which of the following conditions is most favorable to reap gains from global scale economies? A. Low demand for local responsiveness B. High pressures for cost reduction C. Lack of universal needs D. National differences in accepted business practices E. High pressure to delegate production to domestic subsidiaries ANSWER A
QUESTION Pressures for cost reduction are intense in firms: A. that produce products that are well differentiated. B. whose major competitors are based in high-cost locations. C. with persistent low capacity. D. in which consumers face low switching costs. E. with no international competition. ANSWER D
QUESTION The liberalization of the world trade and investment environment in recent decades, by facilitating greater international competition, has generally: A. increased cost pressures. B. decreased the demand for local responsiveness. C. decreased pressures for cost reduction. D. increased consumer surplus. E. reduced the production of conventional commodity products. ANSWER A
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
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 […]
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
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 […]
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. […]
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
