QUESTION In terms of attaining a competitive advantage, support activities can be as important as the primary activities of the firm. Indicate whether the statement is true or false. ANSWER TRUE The support activities of the value chain provide inputs that allow the primary activities to occur. In terms of attaining a competitive advantage, […]
QUESTION According to the noted economist Jeffrey Sachs, the International Monetary Fund should: A. not be accountable to anyone as it is a powerful institution. B. bail out banks that have rash lending policies. C. have a “one-size-fits-all” approach to macroeconomic policy. D. keep its operations open to greater outside scrutiny. E. lend only to […]
QUESTION The various value creation activities that a firm undertakes are referred to as operations. Indicate whether the statement is true or false. ANSWER TRUE Operations are the different value creation activities a firm undertakes.
QUESTION In response to the global financial crisis of 2008-2009, the International Monetary Fund began to: A. exercise tight controls on fiscal policy of the borrowing countries. B. encourage activities that prevent high inflation rates. C. display inflexibility in policy responses. D. urge countries to adopt policies that included fiscal stimulus and monetary easing. E. […]
QUESTION According to Michael Porter, all positions on the efficiency frontier are viable. Indicate whether the statement is true or false. ANSWER FALSE Porter emphasizes that it is very important for management to decide where the company wants to be positioned with regard to value (V) and cost (C), to configure operations accordingly, and […]
QUESTION Which of the following poses a problem for international businesses in the long run? A. Using exchange rate instruments like the forward market and swaps B. Volatility of the global exchange rate regime C. Anti-inflationary monetary policies D. Maintaining strategic flexibility by dispersing production to different locations E. A policy of reduction in government […]
QUESTION Firms that operate internationally are able to realize location economies by dispersing individual value creation activities to locations where they are performed most efficiently and effectively. Indicate whether the statement is true or false. ANSWER TRUE Firms that operate internationally are able to realize location economies by dispersing individual value creation activities to […]
QUESTION Which of the following observations about the International Monetary Fund (IMF) is true? A. The IMF can force countries to adopt the policies required to correct economic mismanagement. B. Internal political problems can affect a government’s commitment to taking corrective action in return for an IMF loan. C. In recent years, the IMF has […]
QUESTION It is most appropriate for a firm to contract out manufacturing when: A. individual manufacturers have few firm-specific skills that contribute to the value of their product. B. the value of the host country currency is expected to appreciate. C. supplier switching costs are correspondingly high. D. firm-specific technology and expertise add significant value […]
QUESTION Which of the following is a feature of the current monetary system? A. It is free from government intervention. B. It is free from volatile movements in exchange rates. C. It has increased foreign exchange risk for businesses. D. It has made it easier to get insurance coverage against exchange rate changes. E. Instruments […]
