QUESTION Although mercantilism is an old and largely discredited doctrine, its echoes remain in modern political debate and in the trade policies of many countries. Indicate whether the statement is true or false. ANSWER TRUE Although mercantilism is an old and largely discredited doctrine, its echoes remain in modern political debate and in the […]
QUESTION Pressures for greater protectionism increased around the world during the 1980s and early 1990s due to the strain caused by the persistent trade deficit in the world’s largest economy, Japan. Indicate whether the statement is true or false. ANSWER FALSE During the 1980s and early 1990s, the world trading system erected by the […]
QUESTION A critical competitive feature of an oligopoly is independence of the major players. Indicate whether the statement is true or false. ANSWER FALSE An oligopoly is an industry composed of a limited number of large firms. A critical competitive feature of such industries is interdependence of the major players: What one firm does […]
QUESTION Which of the following is most likely to necessitate the delegation of marketing functions to national subsidiaries? A. Differences in distribution channels B. Pressures for decreasing consumer surplus C. Lack of product customization D. Pressures for increasing economies of scale E. Pressures for increasing consumers’ reservation price ANSWER A
QUESTION Which of the following is true of a firm that pursues a global standardization strategy? A. It ensures that it pursues a high-cost strategy on a global scale. B. It has its production, marketing, and R&D activities in only one optimum location. C. It tries to customize its products to local conditions. D. It […]
QUESTION Firms that pursue which of the following strategies focus on increasing profitability and profit growth by reaping the cost reductions that come from economies of scale, learning effects, and location economies? A. International B. Transnational C. Localization D. Global standardization E. Nationalization ANSWER D
QUESTION Firms that pursue which of the following strategies differentiate their product offering across geographic markets to account for local differences? A. International B. Global standardization C. Transnational D. Multidomestic E. Nationalization ANSWER C
QUESTION Beginning in the 1970s, European and Japanese firms began to shift labor-intensive manufacturing operations from developing nations to their home countries where labor costs were lower. Indicate whether the statement is true or false. ANSWER FALSE Beginning in the 1970s, European and Japanese firms began to shift labor-intensive manufacturing operations from their home […]
QUESTION Which of the following strategies is a firm most likely to pursue when it simultaneously faces both strong cost pressures and strong pressures for local responsiveness? A. Global standardization strategy B. Localization strategy C. International strategy D. Transnational strategy E. Nationalization strategy ANSWER D
QUESTION The United States accounted for a significantly larger share of the world economy in 2012 than it did in the 1960s. Indicate whether the statement is true or false. ANSWER FALSE During the 1960s, the United States routinely accounted for 20 percent of world exports of manufactured goods, but the U.S. share of […]
