Ebook Crafting and Executing Strategy Concepts and Cases The Quest For Competitive Advantage 18Th Edition Thompson Test Bank Full Chapter PDF

Crafting And Executing Strategy
Concepts And Cases The Quest For

Competitive Advantage 18th Edition
Thompson Test Bank
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Chapter 07 - Strategies for Competing in International Markets
Chapter 07
Strategies for Competing in International Markets
Multiple Choice Questions
Why Companies Decide to Enter Foreign Markets
1. The reasons why a company opts to expand outside its home market include
A. gaining access to new customers for the company's products/services.
B. spreading its business risk across a wider market base.
C. achieving lower costs and enhancing the company's competitiveness.
D. a desire to capitalize on its core competencies and capabilities.
E. All of these.
2. Which of the following is not a typical reason for companies to expand into the markets of
foreign countries?
A. To gain access to new customers
B. To strengthen its capability to employ vertical integration strategies, especially those that
involve partial integration (building positions in selected stages of the industry's value chain)
C. To achieve lower costs and enhance the firm's competitiveness
D. To capitalize on company competencies and capabilities
E. To spread business risk across a wider geographic market base
3. Which one of the following is not a reason why a company decides to enter foreign
markets?
A. To spread business risk across a wider geographic market base
B. To capitalize on company competencies and capabilities
D. To gain economic incentives offered by governments of developing countries wishing to
expand industry and job creation
E. To gain access to more buyers for the company's products/services
7-1
Why Competing Across National Borders Makes Strategy Making More Complex
4. Why is crafting a strategy to compete in one or more foreign markets inherently complex?
A. Because factors that affect industry competitiveness vary from country to country.
B. Because of the potential for location-based advantages in certain countries.
C. Because different government policies and economic conditions make the business climate
more favorable in some countries than others.
D. Because of the risks for shifts in currency exchange rates.
E. All of these.
5. Which of the following is not an accurate statement as concerns competing in the markets
of foreign countries?
A. A multi-country strategy is generally superior to a global strategy.
B. There are country-to-country differences in consumer buying habits and buyer tastes and
preferences.
C. A company must contend with fluctuating exchange rates and country-to-country
variations in host government restrictions and requirements.
D. Product designs suitable for one country are often inappropriate in another.
E. Market growth rates vary from country to country.
6. Competing in the markets of foreign countries entails dealing with such factors as
A. fluctuating exchange rates, country-to-country variations in host government restrictions
and requirements, and country-to-country variations in cultural, demographic, and market
conditions.
B. important country-to-country differences in consumer buying habits and buyer tastes and
preferences.
C. whether to customize the company's offerings in each different country market or whether
to offer a mostly standardized product worldwide.
D. the fact that product designs suitable for one country are sometimes inappropriate in
another.
E. All of these.
7-2
7. Competing in the markets of foreign countries generally does not involve which of the
following?
A. Country-to-country differences in consumer buying habits and buyer tastes and preferences
B. Country-to-country variations in host government restrictions and requirements and
fluctuating exchange rates
C. Whether to customize the company's offerings in each different country market or whether
to offer a mostly standardized product worldwide
D. In which countries to locate company operations for maximum locational advantage, given
country-to-country variations in wages rates, worker productivity, energy costs, tax rates, and
the like
E. Crafting a multidomestic strategy that works just as well in one country as in another and
that also has the appeal of turning the world market into a mostly homogeneous market
8. One of the biggest strategic challenges to competing in the international arena include
A. how to avoid the risks of shifting exchange rates.
B. whether to charge the same price in all country markets.
C. how many foreign firms to license to produce and distribute the company's products.
D. whether to offer a mostly standardized product worldwide or whether to customize the
company's offerings in each different country market to more precisely match the tastes and
preferences of local buyers.
E. whether to pursue a global strategy or an international strategy.
9. One important concern a company has in trying to compete successfully in foreign markets
is
A. convincing shippers to keep cross-country transportation costs low enough that the
company can export its goods to foreign countries cheaply.
B. whether it will have to integrate forward into wholesale and/or retail activities in order to
gain visibility for its products in foreign countries.
C. how it can gain competitive advantage based on where it locates its various value chain
activities.
D. how to convince local government officials to reduce tariffs on the imports of its goods
into their country.
E. developing the expertise to avoid the impact of fluctuating exchange rates.
7-3
10. Cross-country variations in government policies and economic conditions affect

A. the establishment of investment priorities and steering corporate resources.
B. opportunities available to foreign entrants and the risks of operating within that country.
C. the ability of foreign markets to remain competitive.
D. the ability of weak-performing businesses to stage a narrow base for business operations.
E. cross-business opportunities such as transferring skills or technology to the new market.
11. Which of the following is not a typical host government requirement that affects the
operations of foreign companies?
A. Establishing local content requirement on goods made inside their borders by foreign
companies
B. Having rules and policies that protect local companies from foreign competition
C. Placing restrictions on exports to ensure adequate local supplies
D. Requiring foreign companies to use vertical integration to support operations of local
companies
E. Imposing burdensome tax structures and regulatory requirements upon foreign companies
doing business within their borders
12. The difference between political risks and economic risks is that
A. political risks stem from instability or weakness in national governments while economic
risks stem from the stability of a country's monetary system, economic and regulatory
policies.
B. political risks stem from stability in foreign business and economic risks stem from an
excess of property right protections.
C. political rights stem from hostility to foreign business while economic risks stem from the
instability of the monetary system.
D. political risks stem from risks due to exchange rate fluctuations and economic risks stem
from hostility to foreign business.
E. political risks stem from stability of a country's monetary system and economic risks stem
from instability in national business.
7-4
13. A U.S. manufacturer that exports goods made at its U.S. plants for shipment to foreign
markets
A. is competitively disadvantaged when the U.S. dollar declines in value against the
currencies of the countries to which it is exporting.
B. is largely unaffected by fluctuating exchange rates; it would, however, be affected if its
plants were in foreign countries.
C. becomes more competitive in foreign markets when the U.S. dollar gains in value against
the currencies of the countries to which it is exporting.
D. becomes more competitive in foreign markets when the U.S. dollar declines in value
against the currencies of the countries to which it is exporting.
E. has no interest in whether the dollar grows stronger or weaker versus foreign currencies
unless it is competing only against companies located in foreign countries.
14. A European manufacturer that exports goods made at its European plants to the United
States
A. is competitively disadvantaged when the euro declines in value against the U.S. dollar.
B. is largely unaffected by fluctuating exchange rates between the euro and the U.S. dollar; it
would, however, be affected if its plants were in the U.S.
C. becomes more competitive in the U.S. market when the euro declines in value against the
U.S. dollar.
D. becomes more competitive in European markets when the euro declines in value against
the U.S. dollar.
E. has no interest in whether the euro grows stronger or weaker versus the U.S. dollar unless
its chief competitors are other companies located in countries whose currency is also the euro.
15. A U.S. company that makes all of its goods at a plant in Brazil and then exports the
Brazilian-made goods to country markets across the world
A. is competitively disadvantaged when the U.S. dollar declines in value against the Brazilian
real.
B. is competitively advantaged when the Brazilian real declines in value against the
currencies of the countries to which the Brazilian-made goods are being exported.
C. becomes less competitive in foreign markets when the Brazilian real declines in value
against the currencies of the countries to which the Brazilian-made goods are being exported.
D. is competitively advantaged when the U.S. dollar appreciates in value against the Brazilian
real.
E. is unaffected by changes in the valuation of foreign currencies against the Brazilian real—
all that matters to a U.S. company is the valuation of the U.S. dollar against the Brazilian real.
7-5
16. A European-based company that makes all of its goods at a plant in Brazil and then
exports the Brazilian-made goods to country markets in many different parts of the world
A. is competitively disadvantaged when the euro declines in value against the Brazilian real.
B. is competitively disadvantaged when the Brazilian real declines in value against the
C. becomes less competitive in foreign markets when the Brazilian real gains in value against
the currencies of the countries to which the Brazilian-made goods are being exported.
D. is competitively advantaged when the euro appreciates in value against the Brazilian real.
E. has no interest in whether the euro grows stronger or weaker versus the Brazilian real
unless its chief competitors are other companies located in countries whose currency is also
the euro.
17. One of the big risks of competing in foreign markets is

A. the extent to which the advantages of exporting goods from a particular country can be
wiped out when fluctuating exchange rates result in that country's currency growing much
weaker relative to the currencies of the countries to which the goods are being exported.
B. whether the economies of foreign countries will continue to grow at double digit rates.
C. the fact that some countries have lower wage rates than others.
D. the potential for local government officials to reduce tariffs on the imports of its goods into
their country.
E. the extent to which the advantages of manufacturing goods in a particular country can be
wiped out when fluctuating exchange rates result in that country's currency growing stronger
relative to the currencies of the countries where the output is being sold.
18. The advantages of manufacturing goods in a particular country and exporting them to
foreign markets
A. are largely unaffected by fluctuating exchange rates.
B. are greatest when local distributors and dealers in that country can be convinced not to
carry products that are made outside the country's borders.
C. can be wiped out when that country's currency grows weaker relative to the currencies of
the countries where the output is being sold.
D. are weakened when that country's currency grows stronger relative to the currencies of the
countries where the output is being sold.
E. are seriously compromised by the potential for local government officials to raise tariffs on
the imports of foreign-made goods into their country.
7-6
19. Which of the following statements concerning the effects of fluctuating exchange rates on
companies competing in foreign markets is not accurate?
A. Fluctuating exchange rates pose significant risks to a company's competitiveness in foreign
markets.
B. The advantages of manufacturing goods in a particular country are largely unaffected by
fluctuating exchange rates.
C. Exporters win when the currency of the country from which the goods are being exported
grows weaker relative to the currencies of the countries that the goods are being exported to.
D. The advantages of manufacturing goods in a particular country can be undermined when
that country's currency grows stronger relative to the currencies of the countries where the
output is being sold.
E. Domestic companies under pressure from lower-cost imports are benefited when their
government's currency grows weaker in relation to the currencies of the countries where the
imported goods are being made.
companies competing in foreign markets is true?
A. Fluctuating exchange rates do not pose significant risks to a company's competitiveness in
foreign markets.
C. Companies that are manufacturing goods in a particular country and are exporting much of
what they produce are disadvantaged when that country's currency grows weaker relative to
the currencies of the countries that the goods are being exported to.
D. Companies that are manufacturing goods in a particular country and are exporting much of
what they produce are benefited when that country's currency grows weaker relative to the
currencies of the countries that the goods are being exported to.
E. Domestic companies under pressure from lower-cost imports are hurt even more when
their government's currency grows weaker in relation to the currencies of the countries where
the imported goods are being made.
7-7
companies competing in foreign markets is true?
A. Fluctuating exchange rates pose significant risks to a company's competitiveness in foreign
markets.
C. Companies that are manufacturing goods in a particular country and are exporting much of
what they produce lose out when that country's currency grows weaker relative to the
currencies of the countries that the goods are being exported to.
D. The advantages of manufacturing goods in a particular country improve when that
country's currency grows stronger relative to the currencies of the countries where the output
is being sold.
E. Domestic companies under pressure from lower-cost imports are hurt even more when
their government's currency grows weaker in relation to the currencies of the countries where
the imported goods are being made.
22. Companies operating in a cross-country marketplace have to respond to

A. whether to customize their offerings in each different country market to match the tastes
and preferences of local buyers.
B. whether to pursue a strategy of offering a mostly standardized product worldwide.
C. how much to customize their offerings in each different country market to match the tastes
and preferences of local buyers.
D. None of these.
E. All of these.
7-8
The Concepts of Multidomestic Competition and Global Competition
23. Which of the following statements regarding multidomestic competition is false?

A. One of the features of multidomestic competition is that buyers in different countries are
attracted to different product attributes.
B. With multidomestic competition, the power and strength of a company's strategy and
resource capabilities in one country significantly enhance its competitiveness in other country
markets.
C. One of the features of multidomestic competition is that industry conditions and
competitive forces in each national market differ in important respects.
D. One of the features of multidomestic competition is that the mix of competitors in each
country market varies from country to country.
E. With multidomestic competition, rivals battle for national championships and winning in
one country market does not necessarily signal the ability to fare well in other countries.
24. Multidomestic competition refers to situations where

A. no domestic companies have king-sized market shares and each national market has many
competitors.
B. competition in one national market is independent of competition in other national markets
and, as a consequence, there is strictly speaking no "international or world market."
C. domestic rivals pursue focused or market niche strategies and do not compete
internationally.
D. domestic companies have a competitive disadvantage in competing with foreign rivals that
operate in many different countries.
E. most competitors operate in more than two country markets but rarely in more than 20.
7-9
25. Multidomestic competition is best characterized as a situation where

A. the competitive arena among rival companies involves several neighboring countries rather
than either a single country or the world market as a whole.
B. competition is mainly among the domestic companies of a few neighboring countries (five
countries at most).
C. there are extensive trade restrictions, sharply fluctuating exchange rates, and high tariff
barriers in many country markets that work against the formation of a true world market.
D. competition among domestic companies predominates and foreign competitors are a minor
factor.
E. there is no international or global market, just a collection of mostly self-contained country
markets.
26. Which of the following statements regarding global competition is false?

A. In global competition, rivals vie for worldwide market leadership.
B. In globally competitive industries, the power and strength of a company's strategy and
resource capabilities in one country significantly enhance its competitiveness in other country
markets.
C. In global competition, a firm's overall competitive advantage (or disadvantage) grows out
of its entire worldwide operations.
D. In global competition, there's more cross-country variation in industry conditions and
competitive forces than there is in industries where multidomestic competition prevails.
E. In global competition, many of the same rival companies compete against each other in
many different countries, but especially so in countries where sales volumes are large and
where having a competitive presence is strategically important to building a strong global
position in the industry.
7-10
27. Which of the following statements regarding multidomestic and global competition is
false?
A. In global competition, rivals vie for worldwide market leadership and the leading
competitors compete head-to-head in the markets of many different countries.
B. In globally competitive industries, a company's competitive position in one country both
affects and is affected by its position in other countries.
C. One of the features of multidomestic competition is there is greater cross-country variation
in market conditions and the nature of the competitive contest among rivals than tends to be
the case in globally competitive markets.
D. With multidomestic competition, the competitive contest is localized, with rivals battling
for national market leadership; moreover, winning in one country market does not necessarily
signal that a company has the ability to fare well in the markets of other countries.
E. In global competition, the size of a firm's worldwide competitive advantage (or
disadvantage) equals the sum of the competitive advantages (or disadvantages) it has in each
country market where it competes.
28. The characteristics of a world market where global competition prevails include
A. a market situation where competitive conditions across national markets are linked
strongly enough to form a true world market and where leading competitors typically compete
head to head in many different countries.
B. minor cost variations from country-to-country (as concerns production, distribution, sales
and marketing, and other primary components of the industry value chain) and minimal cross-
country trade restrictions.
C. a competitive environment comprised of so many competitors that no company has a
sizable worldwide market share.
D. many companies racing for global market leadership, with most contenders using the same
basic type of competitive strategy and positioned in the same strategic group.
E. low barriers to entry, such as large number of rivals that the actions of any one rival have
little impact on the sales and market shares of other rivals, and key success factors that vary
from country to country.
7-11
29. In global competition

A. the leading companies compete for having the biggest share of the world market, but only
occasionally compete head-to-head in different countries.
B. the markets in various countries are part of the world market and competitive conditions
across country markets are strongly linked.
C. a company's overall market strength is the sum of its market shares in each country market
where it has a presence.
D. the industry leaders are foreign companies; domestic companies are relegated to runner-up
status.
E. a firm's overall competitive advantage is determined by the size of the competitive
advantage it has in each of its profit sanctuaries.
Strategic Options for Entering and Competing in International Markets
30. The generic strategic options for competing in foreign markets include
A. global low-cost, global differentiation, global best-cost, and global focus strategies.
B. maintaining a national (one-country) production base and exporting goods to foreign
markets.
C. licensing foreign firms to produce and distribute one's products or to use the company's
technology.
D. a custom-tailored country-by-country approach based on meeting the particular needs of
particular buyers in each target country.
E. All of these.
31. Which of the following is not one of the generic strategy options for competing in the
markets of foreign countries?
A. A profit sanctuary strategy
B. An export strategy
C. A global strategy
D. A multicountry strategy
E. A franchising strategy
7-12
32. Which of the following are generic strategy options for competing in foreign markets?
A. Maintaining a national (one-country) production base and exporting goods to foreign
markets
B. Global strategies keyed either to low-cost or differentiation
C. Franchising and licensing strategies
D. A multicountry strategy (where a company pursues a custom-tailored country-by-country
approach in accordance with local competitive conditions and buyer tastes and preferences)
E. All of these
33. Which of the following are(is) not generic strategy options for competing in foreign
markets?
A. An export strategy and a multidomestic strategy
B. Global strategies keyed either to low-cost or differentiation
C. Cross-border transfer strategies and home-field advantage strategies
D. Using strategic alliances and joint ventures with foreign competitors as the primary
vehicles for entering and competing in foreign markets
E. Franchising and licensing strategies
34. Using domestic plants as a production base for exporting goods to selected foreign
country markets
A. can be an excellent initial strategy to test the international waters and learn if attractive
market positions can be established in foreign markets.
B. can be a competitively successful strategy when a company is focusing on vacant market
niches in each foreign country and does not have to compete head-to-head against strong host
country competitors.
C. can be a powerful strategy since a company can maintain a one-country production base
allowing it to capitalize on company competencies and capabilities.
D. is usually a weak strategy when competitors are pursuing multi-country strategies.
E. can be a powerful strategy because a company is not vulnerable to fluctuating exchange
rates.
7-13
35. The advantages of using an export strategy to build a customer base in foreign markets
include
A. being able to minimize shipping costs, avoid tariffs, and curb the effects of fluctuating
exchange rates.
B. minimizing risk and capital requirements.
C. being cheaper and more cost effective than licensing and franchising.
D. being cheaper and more cost effective than a multicountry strategy.
E. being more suited to accommodating local buyer tastes and host government regulations
than a global strategy.
36. Which of the following is false as concerns use of an export strategy to compete in foreign
markets?
A. One advantage of an export strategy is the ability to test the international waters before
having to commit substantial sums to establishing operations in foreign countries—the
amount of capital required to begin exporting is frequently quite minimal.
B. Exporting carries the risk of being vulnerable to adverse shifts in currency exchange rates.
C. An export strategy is especially well suited to accommodating the different needs and
preferences of buyers in different countries.
D. An export strategy may allow a company to gain additional scale economies from
centralizing production in one or several giant plants.
E. An export strategy is disadvantageous when costs in the country where the goods are being
manufactured for export are higher than the costs in those locations where rivals have their
plants.
7-14
37. The advantages of using a licensing strategy to participate in foreign markets include
A. being especially well suited to achieve scale economies.
B. being able to charge lower prices than rivals.
C. enabling a company to achieve first-mover advantages quickly and easily.
D. being able to leverage the company's technical know-how or patents without committing
significant additional resources to markets that are unfamiliar, politically volatile,
economically uncertain, or otherwise risky.
E. being able to achieve higher product quality and better product performance than with an
export strategy.
38. The advantages of using a franchising strategy to pursue opportunities in foreign markets
include
A. having franchisees bear most of the costs and risks of establishing foreign locations and
requiring the franchiser to expend only the resources to recruit, train, and support foreign
franchisees.
B. being particularly well suited to the global expansion efforts of companies with
multidomestic strategies.
C. allowing a company to achieve scale economies.
D. being well suited to companies who employ cross-border transfer strategies.
E. being well suited to the global expansion efforts of manufacturers.
39. The advantages of using an acquisition strategy to pursue opportunities in foreign markets
include
A. having a high level of control and speed as an entry strategy to overcome trade barriers.
B. allowing a company to achieve scalable economies.
C. eliminating the costs and risks associated with establishing a foreign business location.
D. being able to achieve variable product quality and competitive product performance.
E. being able to export goods at higher costs than rivals in those locations.
40. A greenfield venture in a foreign market is

A. one where the company creates a subsidiary business by setting up all aspects of the
operation upon entering the market from the ground up.
B. one where foreign facilities and marketing strategies are shared with local businesses.
C. one where the company learns through training by the foreign entity on how to compete.
D. one that supports exports into a foreign market by marketing indirectly thru local rivals.
E. one that offers lower risk and a faster path to returns.
7-15
41. Strategic alliances, joint ventures, and cooperative agreements between domestic and
foreign firms are a potentially fruitful means for the partners to
A. enter additional country markets and compete on a more global scale while still preserving
their independence.
B. gain better access to scale economies in production and/or marketing.
C. fill competitively important gaps in their technical expertise and/or knowledge of local
markets.
D. share distribution facilities and dealer networks, thus mutually strengthening their access to
buyers.
E. All of these.
42. Which of the following is not a potential benefit of strategic alliances or other cooperative
arrangements between foreign and domestic companies?
A. Gaining wider access to attractive country markets
B. Gaining better access to scale economies in production and/or marketing
C. Filling competitively important gaps in their technical expertise and/or knowledge of local
markets
D. Greater ability to employ a global strategy (as opposed to a multicountry strategy)
E. Sharing distribution facilities and dealer networks, thus mutually strengthening their access
to buyers
43. Strategic alliances between domestic and foreign firms are more effective
A. in building multiple profit sanctuaries than in forging a mutually supportive global
strategy.
B. in reducing supply chain costs than in reducing distribution costs.
C. in helping establish a new beachhead of opportunity than in achieving and sustaining
global market leadership.
D. in helping the partners pursue a multidomestic strategy as compared to a global strategy.
E. in helping the partners pursue a global strategy as compared to a multidomestic strategy.
7-16
44. Which of the following is not one of the problems and risks of strategic alliances between
domestic and foreign firms?
A. Overcoming language and cultural barriers
B. The amount of time required to build trust, effective communication, and coordination
between allies
C. Developing mutually agreeable ways of dealing with key issues or differences
D. Making it harder to pursue a multidomestic strategy as compared to a global strategy
E. Suspicions about whether allies are being forthright in exchanging information and
expertise
45. Which of the following is the role of local managers to experienced multinational
companies?
A. To contribute needed understanding of local market conditions, local buying habits, local
ways of doing business.
B. To run the local operations for the company.
C. To understand how "the system" works to detour the hazards of collaborative alliances
with local companies.
D. To serve as conduits for the flow of information between the corporate office and local
operations.
E. All of these.
Competing Internationally: The Three Main Strategic Approaches
46. When a company operates in the markets of two or more different countries, its foremost
strategic issue is
A. whether to use strategic alliances to help defeat its rivals.
B. whether to vary the company's competitive approach to fit specific market conditions and
buyer preferences in each host country or whether to employ essentially the same strategy in
all countries.
C. whether to maintain a national (one-country) manufacturing base and export goods to the
other countries.
D. choosing which foreign companies to team up with via strategic alliances or joint ventures.
E. whether to test the waters with an export strategy before committing to some other
competitive approach.
7-17
47. A "think local, act local" multidomestic type of strategy

A. is very risky, given fluctuating exchange rates and the propensity of foreign governments
to impose tariffs on imported goods.
B. is usually defeated by a "think global, act global" type of strategy.
C. becomes more appealing the bigger the country-to-country differences in buyer tastes,
cultural traditions, and market conditions.
D. is generally an inferior strategy when one or more foreign competitors is pursuing a global
low-cost strategy.
E. can defeat a global strategy if the "think local, act local" multicountry strategist
concentrates its efforts exclusively in those foreign markets which have superior resources.
48. The strength of a "think local, act local" multidomestic strategy is that
A. it matches a company's competitive approach to prevailing market and competitive
conditions in each country market, country by country.
B. each of a company's country strategies is almost totally different from and unrelated to its
strategies in other countries.
C. the plants located in different countries can be operated independent of one another, thus
promoting greater achievement of scale economies.
D. it avoids host country ownership requirements and import quotas.
E. it eliminates the costs and burdens of trying to coordinate the strategic moves undertaken in
one country with the moves undertaken in the other countries.
49. A "think local, act local" multidomestic strategy works particularly well when
A. host governments enact regulations requiring that products sold locally meet strictly-
defined manufacturing specifications or performance standards.
B. there are significant country-to-country differences in customer preferences and buying
habits.
C. diverse and complicated trade restrictions of host governments preclude the use of a
uniform strategy from country-to-country.
D. there are significant country-to-country differences in distribution channels and marketing
methods.
E. All of these.
7-18
50. A "think-local, act local" multidomestic strategy entails

A. a narrow product line aimed at serving buyers in the same segments of country markets
worldwide.
B. giving local managers considerable strategy-making latitude and often producing different
product versions for different countries.
C. aggressive efforts to locate facilities in those country markets which have superior
resources.
D. pursuing strong product differentiation and competing in many buyer segments.
E. extensive efforts to transfer a company's competencies and resource strengths from one
country to another so as to keep entry costs into new country markets low.
51. In which of the following situations is employing a "think local, act local" multidomestic
strategy highly questionable?
A. When a company wished to transfer competencies and resources across country boundaries
and is striving to build a single, uniform competitive advantage worldwide
B. When there are significant country-to-country differences in customer preferences and
buying habits industry is characterized by big economies of scale and strong experience curve
effects
C. When the trade restrictions of host governments are diverse and complicated
D. When there are significant country-to-country differences in distribution channels and
marketing methods
E. When host governments enact regulations requiring that products sold locally meet strictly-
defined manufacturing specifications or performance standards
52. The drawbacks of a localized multidomestic strategy include

A. hindering the use of cross-border coordination of a company's activities and increasing
company vulnerability to adverse shifts in currency exchange rates.
B. making it very difficult to take into account significant country-to-country differences in
distribution channels and marketing methods.
C. making it difficult and costly to be responsive to country-to-country differences in
customer needs, buying habits, cultural traditions, and market conditions.
D. hindering transfer of a company's competencies and resources across country boundaries
and hindering the pursuit of a single, uniform competitive advantage in all country markets
where a company operates.
E. being unsuitable for competing in the markets of emerging countries and posing added
difficulty in modifying a company's business model to compete on the basis of low price.
7-19
53. Two drawbacks of a "think local, act local" multidomestic strategy are
A. that it is especially vulnerable to fluctuating exchange rates and that it can usually be
defeated by companies employing cross-border coordination techniques.
B. excessive vulnerability to fluctuating exchange rates and having to craft a separate strategy
for each country market in which the company competes.
C. hindering a company's transfer of competencies and resources across country boundaries
(since somewhat different competencies and capabilities are likely to be employed in different
host countries) and not promoting the building of a single, unified competitive advantage in
all country markets where a company competes.
D. greater exposure to both increases in tariffs and restrictive trade barriers and added
difficulty in accommodating the diverse trade restrictions and regulatory requirements of host
governments.
E. not being able to export products manufactured in one country to markets in other countries
and being largely unsuitable for competing in the markets of emerging countries.
54. A "think global, act global" approach to strategy-making is preferable to a "think local, act
local" approach when
A. a big majority of the company's rivals are pursuing localized multidomestic strategies.
B. country-to-country differences are small enough to be accommodated with the framework
of a mostly uniform global strategy.
C. plants need to be scattered across many countries to avoid high shipping costs.
D. market growth rates vary considerably from country to country.
E. host governments enact regulations requiring that products sold locally meet strict
manufacturing specifications or performance standards.
55. Which of the following is the most unlikely element of a localized multidomestic
strategy?
A. Granting country managers fairly wide strategy-making lattitude
B. Plants scattered across many host countries, each producing product versions for local area
markets
C. Marketing and distribution adapted to the buying habits, customs, and culture of each host
country
D. Preference for local suppliers (use of some local suppliers may be mandated by host
governments)
E. Selling direct to buyers (perhaps via the company's Web site) to avoid having to establish
networks of wholesale/retail dealers in each country market
7-20
56. A "think global, act global" approach to crafting a global strategy involves
A. pursuing the same basic competitive strategy theme (low-cost, differentiation, best-cost,
focused) in all countries where the firm does business.
B. selling much the same products under the same brand names everywhere and expanding
into most, if not all, nations where there is significant buyer demand.
C. integrating and coordinating the company's strategic moves worldwide.
D. utilizing the same competitive capabilities, distribution channels, and marketing
approaches worldwide.
E. All of these.
57. Which of the following is the most unlikely element of a "think global, act global"
approach to crafting a global strategy?
A. Minimal responsiveness to buyer tastes, cultural traditions, and market conditions in each
country market
B. Scattering plants across many countries, with each plant producing product versions for
local area markets
C. Utilizing the same competitive capabilities, distribution channels, and marketing
approaches worldwide
D. Requiring local managers in host countries to stick close to the chosen global strategy
E. Selling much the same products under same brand names worldwide
58. The approach of a firm using a "think global, act local" version of a global strategy
entails
A. producing and marketing a variety of product versions under the same brand name, with
each different version being designed specifically to accommodate the needs and preferences
of buyers in a particular country.
B. little or no strategy coordination across countries.
C. pursuing the same basic competitive strategy theme (low-cost, differentiation, best-cost,
focused) in all countries where the firm does business but giving local managers some latitude
to adjust product attributes to better satisfy local buyers and to adjust production, distribution,
and marketing to be responsive to local market conditions.
D. selling the company's products under a wide variety of brand names (often one brand for
each country or group of neighboring countries) so that buyers in each country market will
think they are buying a locally-made brand.
E. selling numerous product versions (each customized to buyer tastes in one or more
countries and sometimes branded for each country) but opting to only sell direct to buyers at
the company's Web site so as to bypass the costs of establishing networks of wholesale/retail
dealers in each country market.
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59. The competitive strategy of a firm pursuing a "think global, act local" approach to
strategy-making
A. entails little or no strategy coordination across countries.
B. usually involves cross-subsidizing the prices in those markets where there are significant
country-to-country differences in the product attributes that customers are most interested in.
C. involves selling a mostly standardized product worldwide, but varying a company's use of
distribution channels and marketing approaches to accommodate local market conditions.
D. is essentially the same in all country markets where it competes but it may nonetheless
give local managers room to make minor variations where necessary to better satisfy local
buyers and to better match local market conditions.
E. involves having strongly differentiated product versions for different countries and selling
them under distinctly different brand names (one for each country or group of neighboring
countries) so that there will be no doubt in customers' minds that the product is more local
than global.
60. The essential difference between a "think global, act global" and a "think global, act local"
approach to strategy-making is that
A. a "think global, act global" approach entails extensive strategy coordination across
countries and a "think global, act local" approach entails little or no strategy coordination
across countries.
B. the former aims at implementing the same business model worldwide whereas the latter
aims at implementing customized business models to better match local market
circumstances.
C. the "think global, act local" approach gives local managers more latitude to make minor
strategy variations where necessary to better satisfy local buyers and to better match local
market conditions.
D. a "think global, act global" approach involves selling a mostly standardized product
worldwide whereas a "think global, act local" approach entails selling products that are highly
differentiated from country to country.
E. a "think global, act global" approach involves selling under a single brand name worldwide
whereas a "think global, act local" approach entails utilizing multiple brands (typically one for
each different country or group of neighboring countries).
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61. Which of the following does not accurately characterize the differences between a
localized multidomestic strategy and a global strategy?
A. A global strategy entails extensive strategy coordination across countries and a
multidomestic strategy entails little or no strategy coordination across countries.
B. A global strategy often entails use of the best suppliers from anywhere in the world
whereas a multidomestic strategy may entail fairly extensive use of local suppliers (especially
where use of local sources is required by host governments).
C. A global strategy tends to involve use of similar distribution and marketing approaches
worldwide whereas a multidomestic strategy often entails adapting distribution and marketing
to local customs and the culture of each country.
D. A global strategy involves striving to be the global low-cost provider by economically
producing and marketing a mostly standardized product worldwide whereas a multidomestic
strategy entails pursuing broad differentiation and striving to strongly differentiate its
products in one country from the products it sells in other countries.
E. A global strategy relies upon the same technologies, competencies, and capabilities
worldwide whereas a multidomestic strategy often entails the use of somewhat different
technologies, competencies, and capabilities as may be needed to accommodate local buyer
tastes, cultural traditions, and market conditions.
62. In expanding outside its domestic market, one way a company can strive to gain
competitive advantage (or offset domestic disadvantages) is by
A. using a differentiation-based competitive strategy in those country markets with superior
resources.
B. deliberately choosing not to compete in countries with high tariffs and high taxes (which
then have to be passed along to buyers in the form of higher prices), thus keeping costs and
prices lower than rivals.
C. using an export strategy to circumvent the risks of adverse exchange rate fluctuations.
D. using location in a manner that lowers costs or else helps achieve greater product
differentiation and allowing for the transfer of competitively valuable competencies and
capabilities from its domestic operations to its operations in foreign markets.
E. employing a multidomestic strategy instead of a global strategy.
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63. In expanding into foreign markets, a company can strive to gain competitive advantage (or
offset domestic disadvantages) by
A. building a state-of-the-art facility to fully capture scale economies via an export strategy.
B. using export, licensing, or franchising strategies so as to minimize risk and capital
investment.
C. locating buyer-related activities in all countries where it sells its product.
D. dispersing its activities among various countries in a manner that lowers costs or else helps
achieve greater product differentiation and transferring competitively valuable competencies
and capabilities from its domestic operations to its operations in foreign markets.
E. avoiding the use of strategies that entail coordinating its domestic strategic moves with its
strategic moves in the various foreign markets that it enters.
64. Which one of the following is not one of the ways a company can strive to gain
competitive advantage (or offset domestic disadvantages) by expanding into foreign markets?
A. By competing in both developed and emerging country markets and/or by selling direct to
foreign buyers via the company's Web site
B. By dispersing its activities among various countries in a manner that lowers costs.
C. By transferring competitively valuable competencies and capabilities from its domestic
operations to its operations in foreign markets
D. By dispersing its activities among various countries in a manner that helps achieve greater
product differentiation and, and/or working to deepen/broaden its resource strengths and
capabilities
E. By using cross-border coordination of its strategic moves in ways that a domestic-only
competitor cannot
65. To use location to build competitive advantage, a company that operates multinationally
or globally must
A. employ either an export strategy or a franchising strategy.
B. scatter its production plants across many countries in different parts of the world so as to
minimize transportation costs.
C. consider (1) whether to concentrate each activity it performs in a few select countries or
disperse performance of the activity to many nations and (2) in which countries to locate
particular activities.
D. locate production plants in those countries having suppliers that can supply all the
necessary raw materials and components so as to avoid inbound shipping costs.
E. concentrate all of its value chain activities in a single country—the one that has the best
combination of low wage rates, low shipping costs, and low tax rates on profits.
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66. To use location to build competitive advantage when competing in both domestic and
foreign markets, a company must
A. scatter its production plants across many different country markets so as to minimize the
costs of shipping to its own distribution centers and/or to wholesalers/retail dealers.
B. consider (1) whether to concentrate each activity it performs in a few select countries or to
disperse performance of the activity to many nations and (2) in which countries to locate
particular activities.
C. concentrate buyer-related activities in a few well-chosen locations so as to maximize the
capture of distribution-related scale economies.
D. disperse both production and distribution activities across many nations in order to hedge
against fluctuating exchange rates and lessen the risks of adverse political developments.
E. avoid selling in countries where there are high trade barriers or where buyers purchase in
small quantities.
67. In competing in foreign markets, companies find it advantageous to concentrate their

activities in a limited number of locations when
A. there are significant scale economies in performing an activity.
B. the costs of manufacturing or other activities are significantly lower in some geographic
locations than in others.
C. when there is a steep learning or experience curve associated with performing an activity in
a single location (thus making it economical to serve the whole world market from just one or
maybe a few locations).
D. certain locations have superior resources, allow better coordination of related activities, or
offer other valuable advantages.
E. All of these.
68. In which of the following circumstances is it not advantageous for a multinational

competitor to concentrate its activities in a limited number of locations in order to build
competitive advantage?
A. When the costs of performing certain value chain activities are significantly lower in
certain geographic locations than in others
B. When a company has competitively superior patented technology that it can license to
foreign partners
C. When there is a steep learning or experience curve associated with performing an activity
in a single location
D. When certain locations have superior resources, allow better coordination of related
activities, or offer other valuable advantages
E. When there are significant scale economies in performing the activity
7-25
69. Dispersing the performance of value chain activities to many different countries rather
than concentrating them in a few country locations tends to be advantageous
A. when high transportation costs make it expensive to operate from central locations.
B. whenever buyer-related activities are best performed in locations close to buyers.
C. if diseconomies of large size exist, thereby making it more economical to perform an
activity on a smaller scale in several different locations.
D. when it is desirable to hedge against (1) the risks of fluctuating exchange rates, (2) supply
interruptions or (3) adverse political developments.
E. All of these.
70. The competitive advantage opportunities that a global competitor can gain by dispersing
performance of its activities across many nations include
A. being able to shift production from one country to another to take advantage of exchange
rate fluctuations, differing wage rates, differing energy costs, or differing trade restrictions.
B. being in better position to choose where and how to challenge rivals.
C. shortening delivery times to customers by having geographically scattered distribution
facilities.
D. locating buyer-related activities (such as sales, advertising, after-sale service and technical
assistance) close to buyers.
E. All of these.
71. Dispersing particular value chain activities across many countries rather than
concentrating them in a select few countries can be more advantageous when
A. buyer-related activities (such as sales, advertising, after-sale service and technical
assistance) need to take place close to buyers.
B. buyers demand short delivery times and/or high transportation costs make it uneconomical
to operate from one or just a few locations.
C. it helps hedge against the risks of exchange rate fluctuations, supply disruptions, and
adverse political developments.
D. there are diseconomies of scale in trying to operate from a single location.
E. All of these.
7-26
72. Transferring core competencies and resource strengths from one country market to
another is
A. a good way for companies to develop broader or deeper competencies and competitive
capabilities that can become a strong basis for sustainable competitive advantage.
B. best accomplished with a multidomestic strategy as opposed to a global strategy.
C. feasible only with a global strategy; it can't be done with a multidomestic strategy.
D. unlikely to result in a competitive advantage.
E. nearly always the easiest and most sure-fire way to build competitive advantage in trying to
compete successfully in foreign markets.
73. A key approach for a company to grow sales and profits in several country markets is to
A. transfer its valuable competencies and resource strengths among these markets to aid in the
development of broader competencies and capabilities.
B. employ a multidomestic strategy rather than a global strategy.
C. locate technical after-sale services close to buyers.
D. minimize transportation costs among these markets.
E. take advantage of less restrictive restrictions and requirements of host governments.
74. Companies that compete on an international basis have a competitive advantage over their
purely domestic rivals
A. to achieve a larger domestic interest by developing sufficient resource strengths and
competitive capabilities for success.
B. to benefit from coordinating activities across different countries' domains.
C. solely for the benefit of their shareholders.
D. that guarantees the generation of big profits, big returns on investment, and big cash
surpluses after dividends are paid.
E. All of these.
7-27
Profit Sanctuaries and Cross-Border Strategic Moves
75. Profit sanctuaries are country markets or geographic regions whereby

A. a company can rank the competitive advantage opportunities in each industry.
B. a company possesses good strategic fit with other businesses and identifies the value chain
where this fit occurs.
C. a company derives substantial profits because of its protected market position or
unassailable competitive advantage.
D. a company creates substantial investment strategies because it is losing competitive
advantage over competitors.
E. a company that invests its dividends in expanding its foreign market presence.
76. What supports competitive offensives in one market with resources and profits diverted
from operations in another market?
A. Cross-market subsidization.
B. Foreign market strategy.
C. Domestic-only company.
D. Home market offensive.
E. Multidomestic company.
77. What can happen when international rivals compete against one another in multiple-
country markets?
A. Businesses create attractive industries which would have badly deteriorated.
B. Would create a business line up that consists of too many slow-growth, declining, low-
margin, or competitively weak businesses.
C. A greater diversity in the types of value chain activities between each business.
D. The deterrence effect that restrains them from taking aggressive action against one another
due to the fear of a retaliatory response that might escalate the battle into a cross-border
competitive war.
E. Increased shareholder interests by concentrating corporate resources on foreign business
activities to contend for market leadership.
7-28
78. Companies racing for global market leadership

A. generally have to consider establishing competitive positions in the markets of emerging
countries.
B. are well-advised to avoid all the risks and problems of competing in emerging country
markets.
C. seldom have the resource capabilities it takes to be effective in competing in emerging
country markets and usually are at a strong competitive disadvantage to the domestic market
leaders.
D. can usually be expected to earn sizable profits quickly in emerging country markets.
E. usually encounter very low barriers in entering the markets of emerging countries.
79. Which of the following is not a typical option that companies have to consider to tailor
their strategy to fit the circumstances of emerging country markets?
A. Prepare to compete on the basis of low price
B. Be prepared to modify aspects of the company's business model to accommodate local
circumstances (but not so much that the company loses the advantage of global scale and
global branding)
C. Try to change the local market to better match the way the company does business
elsewhere
D. Develop a strategy for the short-term and forget about a long-term strategy because
conditions in emerging country markets change so rapidly
E. Stay away from those emerging markets where it is impractical or uneconomic to modify
the company's business model to accommodate local circumstances
80. One of the most viable strategic options companies should consider in tailoring their
strategy to fit circumstances of emerging country markets include
A. Try to change the local market to better match the way the company does business
elsewhere
B. Be prepared to modify aspects of the company's business model to accommodate local
circumstances
C. Prepare to compete on the basis of low price
D. Stay away from those emerging markets where it is impractical to modify the company's
business model to accommodate local circumstances
E. All of these
7-29
81. Which of the following is an option for tailoring a company's strategy to fit unusual
circumstances presented in developing-country markets?
A. Prepare to compete on the basis of low price.
B. Modify aspects of company's business model and/or strategy to accommodate local
customs.
C. Attempt to modify the local market to do business in the manner that the company works
elsewhere.
D. Avoid markets where it is impractical or uneconomic to do business in such a way as to
accommodate local circumstances.
E. All of these.
Defending Against Global Giants: Strategies for Local Companies in Developing

Countries
82. The basic strategy options for local companies in competing against global challengers
include
A. best-cost provider, focused low cost, and low-cost leadership strategies.
B. export strategies, licensing strategies, and cross-border transfer strategies.
C. utilizing keen understanding of local customer needs and preferences to create customized
products or services, developing business models to exploit shortcoming in local
infrastructure, and using acquisitions and rapid growth to defend against expansion-minded
multinationals.
D. franchising strategies, multidomestic strategies keyed to product superiority, global low-
cost leadership strategies, and cross-border coordination strategies.
E. focused differentiation and broad differentiation strategies.
7-30
83. The best strategy options for a local company in competing against global challengers
include
A. locating buyer related activities, such as sales, advertising, or technical assistance, close to
buyers.
B. export strategies, entering into alliances and/or joint ventures with one or more foreign
companies having globally competitive strengths, and/or cross-border transfer strategies.
C. export strategies, licensing strategies, franchising strategies, and cross-market coordination
strategies.
D. using understanding of local customer preferences to create customized products or
services, transferring the company's expertise to cross-border markets, and/or using
acquisitions and rapid growth strategies to defend against expansion-minded multinationals.
E. offensives aimed at the global challengers' strengths, promoting anti-dumping legislation,
and/or launching some type of guerilla warfare strategy.
84. Which of the following is not a viable strategy option for a local company in competing
against global challengers?
A. Using cross-market transfer strategies to hedge against the risks of exchange rate
fluctuations and adverse political developments
B. Developing business models to exploit shortcoming in local distribution networks or
infrastructure
C. Taking advantage of low-cost labor and other competitively important local work-force
qualities
D. Transferring a company's expertise to cross-border markets and initiating actions to
contend on a global scale
E. Using acquisitions and rapid growth strategies to defend against expansion-minded
multinationals
7-31
Short Answer Questions
85. Identify and briefly discuss the key reasons why a company may consider expanding
outside its domestic market.
86. Briefly identify the special features of competing in foreign markets.
7-32
87. Explain how exchange rate fluctuations pose a risk to manufacturing companies who rely
upon an export strategy to compete in foreign markets.
88. Explain why a company desirous of competing in foreign markets needs to pay careful
attention to where it locates it value chain activities.
89. Identify and briefly describe any four of the six generic strategic options for competing in
foreign markets.
7-33
90. Compare and contrast the advantages for entering and competing in foreign markets for
the strategic options of exporting, licensing, and franchising.
91. What are the pros and cons of using strategic alliances to try to enhance a company's
ability to compete in foreign markets?
92. Identify four things a company needs to consider or do if it is to make the most of
strategic alliances with foreign partners.
93. Briefly discuss why a domestic company desirous of entering foreign markets might see
attractive advantages in forming strategic alliances with foreign companies. What are the risks
and disadvantages of such alliances?
7-34
94. Identify and explain the significance of each of the following terms and concepts:
a) multidomestic strategy
b) global strategy
c) export strategy
d) licensing strategy
e) franchising strategy
95. Discuss in some detail the difference between a multidomestic strategy and a global
strategy and give the pros and cons of each.
96. What circumstances call for use of a multidomestic strategy for competing in international
markets? When is a global strategy "superior" to a multidomestic strategy?
7-35
97. A global strategy embraces the theme "think global, act global" whereas a multidomestic
strategy relies more on a "think global, act local" mentality. True or false? Explain.
98. Explain the differences between a "think global, act global" strategy and a "think global,
act local" strategy.
99. Under what circumstances is it advantageous for a company competing in foreign markets
to concentrate its value chain activities in a select few locations?
100. Under what circumstances is it advantageous for a company competing in foreign

markets to disperse certain value chain activities across many countries?
7-36
101. Discuss why a company desirous of competing in foreign country markets needs to pay
close attention to the advantages of cross-border transfer of competencies and capabilities. Is
such transfer often a key to competitive advantage? Why or why not?
102. Identify and briefly describe the strategic options for tailoring a company's strategy to
compete in emerging country markets.
103. Identify and briefly describe a local company's strategic options in competing against
global challengers.
7-37
Chapter 07 Strategies for Competing in International Markets Answer Key
Multiple Choice Questions
Why Companies Decide to Enter Foreign Markets
1. (p. 206-207) The reasons why a company opts to expand outside its home market include
A. gaining access to new customers for the company's products/services.
B. spreading its business risk across a wider market base.
C. achieving lower costs and enhancing the company's competitiveness.
D. a desire to capitalize on its core competencies and capabilities.
E. All of these.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 07-01 Develop an understanding of the primary reasons companies choose to compete in international markets.
Topic: Foreign Markets
2. (p. 206-207) Which of the following is not a typical reason for companies to expand into the
A. To gain access to new customers
B. To strengthen its capability to employ vertical integration strategies, especially those that
involve partial integration (building positions in selected stages of the industry's value chain)
D. To capitalize on company competencies and capabilities
E. To spread business risk across a wider geographic market base
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
7-38
3. (p. 206-207) Which one of the following is not a reason why a company decides to enter foreign
markets?
A. To spread business risk across a wider geographic market base
B. To capitalize on company competencies and capabilities
D. To gain economic incentives offered by governments of developing countries wishing to
expand industry and job creation
E. To gain access to more buyers for the company's products/services
AACSB: Analytic
Bloom's: Remember
Difficulty: Medium
Why Competing Across National Borders Makes Strategy Making More Complex
4. (p. 207) Why is crafting a strategy to compete in one or more foreign markets inherently
complex?
A. Because factors that affect industry competitiveness vary from country to country.
B. Because of the potential for location-based advantages in certain countries.
C. Because different government policies and economic conditions make the business climate
more favorable in some countries than others.
D. Because of the risks for shifts in currency exchange rates.
E. All of these.
AACSB: Analytic
Bloom's: Remember
Difficulty: Medium
Topic: Foreign Market Strategy
7-39
5. (p. 207-208) Which of the following is not an accurate statement as concerns competing in the
A. A multi-country strategy is generally superior to a global strategy.
B. There are country-to-country differences in consumer buying habits and buyer tastes and
preferences.
C. A company must contend with fluctuating exchange rates and country-to-country
variations in host government restrictions and requirements.
D. Product designs suitable for one country are often inappropriate in another.
E. Market growth rates vary from country to country.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 07-02 Learn how and why differing market conditions across countries and industries make crafting international
strategy a complex undertaking.
6. (p. 208-209) Competing in the markets of foreign countries entails dealing with such factors as
A. fluctuating exchange rates, country-to-country variations in host government restrictions
and requirements, and country-to-country variations in cultural, demographic, and market
conditions.
B. important country-to-country differences in consumer buying habits and buyer tastes and
preferences.
C. whether to customize the company's offerings in each different country market or whether
to offer a mostly standardized product worldwide.
D. the fact that product designs suitable for one country are sometimes inappropriate in
another.
E. All of these.
AACSB: Analytic
Bloom's: Understand
Difficulty: Easy
7-40
7. (p. 208-209) Competing in the markets of foreign countries generally does not involve which of
the following?
A. Country-to-country differences in consumer buying habits and buyer tastes and preferences
B. Country-to-country variations in host government restrictions and requirements and
fluctuating exchange rates
C. Whether to customize the company's offerings in each different country market or whether
to offer a mostly standardized product worldwide
D. In which countries to locate company operations for maximum locational advantage, given
country-to-country variations in wages rates, worker productivity, energy costs, tax rates, and
the like
E. Crafting a multidomestic strategy that works just as well in one country as in another and
that also has the appeal of turning the world market into a mostly homogeneous market
AACSB: Analytic
Bloom's: Understand
Difficulty: Easy
8. (p. 214) One of the biggest strategic challenges to competing in the international arena
include
A. how to avoid the risks of shifting exchange rates.
B. whether to charge the same price in all country markets.
C. how many foreign firms to license to produce and distribute the company's products.
D. whether to offer a mostly standardized product worldwide or whether to customize the
company's offerings in each different country market to more precisely match the tastes and
preferences of local buyers.
E. whether to pursue a global strategy or an international strategy.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
7-41
9. (p. 209) One important concern a company has in trying to compete successfully in foreign
markets is
A. convincing shippers to keep cross-country transportation costs low enough that the
company can export its goods to foreign countries cheaply.
B. whether it will have to integrate forward into wholesale and/or retail activities in order to
gain visibility for its products in foreign countries.
C. how it can gain competitive advantage based on where it locates its various value chain
activities.
D. how to convince local government officials to reduce tariffs on the imports of its goods
into their country.
E. developing the expertise to avoid the impact of fluctuating exchange rates.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Topic: Foreign Markets and Value Chain Activities
10. (p. 210) Cross-country variations in government policies and economic conditions affect
A. the establishment of investment priorities and steering corporate resources.
B. opportunities available to foreign entrants and the risks of operating within that country.
C. the ability of foreign markets to remain competitive.
D. the ability of weak-performing businesses to stage a narrow base for business operations.
E. cross-business opportunities such as transferring skills or technology to the new market.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Topic: Foreign Conditions
7-42
11. (p. 211) Which of the following is not a typical host government requirement that affects the
operations of foreign companies?
A. Establishing local content requirement on goods made inside their borders by foreign
companies
B. Having rules and policies that protect local companies from foreign competition
C. Placing restrictions on exports to ensure adequate local supplies
D. Requiring foreign companies to use vertical integration to support operations of local
companies
E. Imposing burdensome tax structures and regulatory requirements upon foreign companies
doing business within their borders
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
12. (p. 211) The difference between political risks and economic risks is that
A. political risks stem from instability or weakness in national governments while economic
risks stem from the stability of a country's monetary system, economic and regulatory
policies.
B. political risks stem from stability in foreign business and economic risks stem from an
excess of property right protections.
C. political rights stem from hostility to foreign business while economic risks stem from the
instability of the monetary system.
D. political risks stem from risks due to exchange rate fluctuations and economic risks stem
from hostility to foreign business.
E. political risks stem from stability of a country's monetary system and economic risks stem
from instability in national business.
AACSB: Analytic
Bloom's: Understand
Difficulty: Hard
7-43
13. (p. 212) A U.S. manufacturer that exports goods made at its U.S. plants for shipment to
foreign markets
A. is competitively disadvantaged when the U.S. dollar declines in value against the
currencies of the countries to which it is exporting.
B. is largely unaffected by fluctuating exchange rates; it would, however, be affected if its
plants were in foreign countries.
C. becomes more competitive in foreign markets when the U.S. dollar gains in value against
the currencies of the countries to which it is exporting.
D. becomes more competitive in foreign markets when the U.S. dollar declines in value
against the currencies of the countries to which it is exporting.
E. has no interest in whether the dollar grows stronger or weaker versus foreign currencies
unless it is competing only against companies located in foreign countries.
AACSB: Analytic
Bloom's: Understand
Difficulty: Hard
Topic: Foreign Markets and Exchange Rates
14. (p. 212) A European manufacturer that exports goods made at its European plants to the
United States
A. is competitively disadvantaged when the euro declines in value against the U.S. dollar.
B. is largely unaffected by fluctuating exchange rates between the euro and the U.S. dollar; it
would, however, be affected if its plants were in the U.S.
C. becomes more competitive in the U.S. market when the euro declines in value against the
U.S. dollar.
D. becomes more competitive in European markets when the euro declines in value against
the U.S. dollar.
E. has no interest in whether the euro grows stronger or weaker versus the U.S. dollar unless
its chief competitors are other companies located in countries whose currency is also the euro.
AACSB: Analytic
Bloom's: Understand
Difficulty: Hard
7-44
15. (p. 212-213) A U.S. company that makes all of its goods at a plant in Brazil and then exports
the Brazilian-made goods to country markets across the world
A. is competitively disadvantaged when the U.S. dollar declines in value against the Brazilian
real.
B. is competitively advantaged when the Brazilian real declines in value against the
C. becomes less competitive in foreign markets when the Brazilian real declines in value
against the currencies of the countries to which the Brazilian-made goods are being exported.
D. is competitively advantaged when the U.S. dollar appreciates in value against the Brazilian
real.
E. is unaffected by changes in the valuation of foreign currencies against the Brazilian real—
all that matters to a U.S. company is the valuation of the U.S. dollar against the Brazilian real.
AACSB: Analytic
Bloom's: Understand
Difficulty: Hard
16. (p. 212-213) A European-based company that makes all of its goods at a plant in Brazil and
then exports the Brazilian-made goods to country markets in many different parts of the
world
A. is competitively disadvantaged when the euro declines in value against the Brazilian real.
B. is competitively disadvantaged when the Brazilian real declines in value against the
C. becomes less competitive in foreign markets when the Brazilian real gains in value against
the currencies of the countries to which the Brazilian-made goods are being exported.
D. is competitively advantaged when the euro appreciates in value against the Brazilian real.
E. has no interest in whether the euro grows stronger or weaker versus the Brazilian real
unless its chief competitors are other companies located in countries whose currency is also
the euro.
AACSB: Analytic
Bloom's: Understand
Difficulty: Hard
7-45
Another random document with
no related content on Scribd:
learnt their lessons by using the memories he had given them,
because he had given them minds by which they understood them.
They loved their parents, and relations, and companions, because
their Friend had given them affections.”
“It seems to me,” interrupted Charley, “that Friend gave them
everything. It must be God, mother, for I know he gives us everything
we have.”
“Yes, my dear Charley; and I am sorry to say these two children
neglected their Friend. They had often been told by their mother
never to get into bed without first kneeling and thanking him for all
his gifts; but they did not think of him. They used and enjoyed his
gifts, but they sometimes forgot the Giver.”
Ellen laid her head on her mother’s bosom,—
“Mother,” she said, “you mean us.”
“My dear Ellen,” replied her mother, “your conscience is like the
ring in the fairy tale. Yes, I did mean you and Charles. I was sorry,
when I came into the room to-night, to see you getting into bed
without saying your prayers. God has given you a voice to speak, my
children. Your dog, Dash, Charles, cannot speak to thank God for
anything he receives; but you can.”
“And I will!” exclaimed the good little boy, ashamed that he had
been ungrateful and thoughtless. “Come, Ellen, we will jump up and
say our prayers; and,” he added in a whisper, “we’ll speak for Dash
too.”
Cromwell at Croyden palace.
Oliver Cromwell.
This individual was one of the most wonderful men that ever
lived. He was born at Huntingdon, in England, April 28, 1599. It is
related of him, that, when an infant, a large ape seized him, and ran
with him up to the top of a barn; there the creature held him, and
refused, for a long time, to give him up, frightening the people with
the idea that he should let him fall. It is said that, while he was still
young, a gigantic female figure appeared at his bedside, and foretold
his future greatness.
Cromwell was well educated; but, after quitting the university, he
became very dissipated. At twenty-one, he married Elizabeth
Bouchire, from which time he became regular in his life.
In 1625 he was chosen to parliament; and thus began, at twenty-
six years of age, that public career which ended in his becoming the
sole ruler of England, and one of the most energetic and powerful
sovereigns of Europe. He was soon distinguished as a speaker in
parliament, always taking part against the court and the established
church. In 1642, when civil war was about to commence, he raised a
troop of horse, and seizing the plate of the university of Cambridge,
appropriated it to the paying of the expenses of the army. He was
engaged in several battles, where he displayed the utmost skill and
courage. In 1645, the famous battle of Naseby was won by his valor
and good management; and, in consideration of his services,
parliament voted him the annual sum of £25,000 during his life.
King Charles I., against whom Cromwell and his party were
acting, was betrayed into their hands by the Scotch. By the intrigues
of Cromwell, he was tried, condemned, and beheaded. Cromwell
himself became, soon after, the ruler of the kingdom, under the title
of Lord Protector of the Commonwealth of England, Scotland and
Ireland. Though he had obtained his power by a series of violent
acts, and by the practice of every species of hypocrisy, Cromwell
now set himself about promoting the strength, power, and prosperity
of his kingdom. Though this was done harshly, yet it was with
wisdom and energy. The country flourished at home, and the name
of England was much respected abroad.
But though Cromwell had risen to the utmost height of honor and
power, he was a miserable man. He was perpetually haunted with
superstitious fears, the promptings of a conscience ill at ease. The
death of the king, which was effected by his management, weighed
upon his spirit like a murder. He went constantly armed, and yet he
was constantly in fear. At last, when Col. Titus wrote a book, entitled,
Killing no Murder, in which he attempted to prove that it was a duty
of the citizens to kill Cromwell, he was thrown into a fever, and died,
Sept. 3, 1658, leaving his weak brother, Richard, to wield the sceptre
for a few years, and then surrender it to a son of the murdered
Charles I. Cromwell was buried in Westminster Abbey; but, after
Charles II. came to the throne, his body was dug up and hung on a
gibbet, beneath which it was buried!
Musings.
I wandered out one summer night—
’Twas when my years were few:
The breeze was singing in the light,
And I was singing too.
The moonbeams lay upon the hill,
The shadows in the vale,
And here and there a leaping rill
Was laughing at the gale.
One fleecy cloud upon the air

Was all that met my eyes;
It floated like an angel there,
Between me and the skies.
I clapped my hands and warbled wild
As here and there I flew;
For I was but a careless child,
And did as children do.
The waves came dancing o’er the sea

In bright and glittering bands:
Like little children wild with glee,
They linked their dimpled hands.
They linked their hands—but ere I caught
Their mingled drops of dew,
They kissed my feet, and, quick as thought,
Away the ripples flew.
The twilight hours like birds flew by,

As lightly and as free;
Ten thousand stars were in the sky,
Ten thousand in the sea;
For every wave with dimpled cheek
That leaped upon the air,
Had caught a star in its embrace,
And held it trembling there.
The young moon too, with upturned sides,

Her mirrored beauty gave;
And as a bark at anchor rides,
She rode upon the wave.
The sea was like the heaven above,
As perfect and as whole,
Save that it seemed to thrill with love,
As thrills the immortal soul.
The leaves, by spirit-voices stirred,

Made murmurs on the air—
Low murmurs, that my spirit heard,
And answered with a prayer:
For ’twas upon the dewy sod,
Beside the moaning seas,
I learned at first to worship God,
And sing such strains as these.
The flowers, all folded to their dreams,

Were bowed in slumber free,
By breezy hills and murmuring streams,
Where’er they chanced to be.
No guilty tears had they to weep,
No sins to be forgiven;
They closed their eyes, and went to sleep,
Right in the face of heaven.
No costly raiment round them shone,

No jewels from the seas,
Yet Solomon upon his throne
Was ne’er arrayed like these:
And just as free from guilt and art
Were lovely human flowers,
Ere sorrow set her bleeding heart
On this fair world of ours.
I heard the laughing wind behind,

A playing with my hair—
The breezy fingers of the wind,
How cool and moist they were!
I heard the night bird warbling o’er
Its soft, enchanting strain—
I never heard such sounds before,
And never shall again.
Then wherefore weave such strains as these,

And sing them day by day,
When every bird upon the breeze
Can sing a sweeter lay?
I’d give the world for their sweet art,
The simple, the divine;
I’d give the world to melt one heart,
As they have melted mine.
Sou. Lit. Mess.
Anecdote of an Atheist.—An atheist on his death-bed was

addressed by his son,—“Father, the physician says you can live but
a few hours.” “I know it, my son. Have you anything to say to me?”
“My father, you and my mother have held different creeds; my
mother is a Christian—you believe there is no God. Shall I follow her
faith or yours?” “My son,” said the dying parent, “believe in the God
of your mother.”
Thus it is in the hour of sickness, at the moment when the frail
supports of pride and passion are wrecked, that the sinking atheist
clutches at the plank of the Christian. Thus it is that the atheist, when
he is brought upon the stand before his Maker, confesses that his
creed is not one that he would wish to bequeath to his children.
Who made this?
Here is a picture of the bones or skeleton of a horse. What a
wonderful piece of mechanism it is! How many bones and joints, and
how they are all fitted to each other!
Now, every horse has such a skeleton or frame-work of bones:
and who contrives and makes them? Can men make such curious
machinery? Certainly not. Men may make steamboats, and ships,
and cotton-factories, but they cannot make the bones of an animal;
nor can they put muscles and life to these bones. Now, if man cannot
do these things, who can? God only: he only can do these wonderful
things.
Wisdom of the Creator.—The happy proportioning of one thing

to another shows the wisdom of the Creator. Man, for instance, is
adapted to the size and strength of a horse. If men were giants, they
could not ride horses. If men were either pigmies or giants, they
could not milk cows, mow grass, reap corn, train vines, or shear
sheep, with anything like the conveniency they do now. If men were
pigmies, they would be lost in the grass and rushes, and their
children would be carried off by birds of prey. Every one can see,
that, other things being as they are, man would suffer by being either
much larger or smaller than he is.
Yankee Energy.—A few days since, a gentleman of the city of

New York was standing near the canal, at Albany, when he saw a
small yawl-boat approaching him, propelled by a lad about
seventeen years of age. The boat contained also the boy’s mother,
six sisters, and a small brother. Our friend asked him where he was
from, and where bound, and was answered, in substance, as
follows:
“We are from Ohio. My father died there, and as we were nearly
destitute, mother thought we had better go back to Saybrook, Conn.,
where we used to live; so we raised money enough to get this boat,
and started from Ohio last fall. We came through Lake Erie, and got
into the canal, where we were stopped by the ice. During the winter
we hauled our boat up by the side of the canal, where we remained
till the ice broke up. Sometimes we were considerably cold, and at
times were sick a little, but on the whole we all got along right smart.
We shall go down the North river, and up the sound to Saybrook.”
During this conversation, our friend was walking along the margin
of the canal; our noble Yankee boy, being unwilling to lose any time,
kept constantly propelling his boat forward, the younger brother, a
lad of only seven or eight years of age, steering the craft. It was
Sunday morning, and the mother and daughters were clad in their
Sabbath suits, and engaged in reading. A small furnace was
standing on the deck of the boat, and a sail, snugly stowed, was
lying fore and aft. The few cooking utensils, bedding, and clothing
belonging to this poor family, were securely placed under the deck.
Here is an instance of industry and perseverance, which
commends itself to the notice of the rising generation—ay, and the
present one too. No doubt, if this boy lives, he will yet make a stir in
the world; and if we knew his name, we would publish it.
Who Made Man?—Look at the foot—how ingeniously is this

contrived! Look at the arm: what piece of mechanism can compare
with it? But of all parts of the body, the eye is perhaps the most
wonderful. It has in it a lens, like that of a telescope, through which
the rays of light pass; and at the back of the eye a little picture of
whatever comes before the eye is formed. This picture falls upon a
nerve which lines the interior of the eye, and thus it is we see. All this
contrivance is very ingenious. And observe how the eye itself is
placed in the head. See how easily it turns this way and that!
Consider these things, and tell me, who but a Superior Being, one
who contrives, one who thinks, could have made man?
Power of God.—The sun is as large as three hundred and

thirty-seven thousand of our worlds. Jupiter is as large as one
thousand two hundred and eighty-one of our worlds. Mercury flies
along in its path at the rate of twenty miles in a second. Uranus is
seventeen times as large as our world, one billion eight hundred
milions of miles from the sun, and flies along at the rate of two
hundred and forty miles every minute!
Here, then, is the power of God! A world, with all its mountains,
and oceans, and kingdoms, is but a pebble in the hands of the
Almighty!
THE BIRD’S ADIEU!
the words and music composed for
merry’s museum.
Farewell to the meadow,

For summer is past;
Farewell, for its leaves
Now whirl o’er the blast.
Farewell to the bough
Where my cradle was swung,
And the song of my mother
Was joyously sung.
2
How sweet was that song
Of the light-hearted bird;
No other I’ll sing—
’Twas the first that I heard.
And though to far lands
I must hasten away,
Wherever I roam,
I will carry that lay.
3
How sweet are these scenes,
For my birth-place is here;
And I know that in absence,
They’ll be but more dear.
I’ll sing of them there,
In the land where I roam,
And, winter departed,
I’ll return to my home.
MERRY’S MUSEUM.
VOLUME II.—No. 4.
Merry’s Life and Adventures.
CHAPTER XII.
Raymond’s story of the School of Misfortune—concluded.
“It was several hours after his arrival at the city before R. had fully
recovered his senses. When he was completely restored, and began
to make inquiries, he found that all his ship companions had
perished. He, who probably cared least for life—he, who had no
family, no friends, and who was weary of existence—he only, of all
that ship’s company, was the one that survived the tempest!
“There was something in this so remarkable, that it occupied his
mind, and caused deep emotions. In the midst of many painful
reflections, he could not, however, disguise the fact, that he felt a
great degree of pleasure in his delivery from so fearful a death.
Again and again he said to himself, ‘How happy, how thankful I feel,
at being saved, when so many have been borne down to a watery
grave!’ The loss of his property, though it left him a beggar in the
world, did not seem to oppress him: the joy of escape from death
was to him a source of lively satisfaction; it gave birth to a new
feeling—a sense of dependence on God, and a lively exercise of
gratitude towards him. It also established in his mind a fact before
entirely unknown, or unremarked—that what is called misfortune, is
often the source of some of our most exquisite enjoyments. ‘It seems
to me,’ said R., in the course of his reflections, ‘that, as gems are
found in the dreary sands, and gold among the rugged rocks, and as
the one are only yielded to toil, and the other to the smelting of the
fiery furnace,—so happiness is the product of danger, suffering, and
trial. I have felt more real peace, more positive enjoyment from my
deliverance, than I was able to find in the whole circle of voluptuous
pleasures yielded by wealth and fashion. I became a wretch,
existence was to me a burthen, while I was rich. But, having lost my
fortune, and experienced the fear of death, I am happy in the bare
possession of that existence which I spurned before.’
“Such were the feelings and reflections of R. for a few days after
his escape; but at length it was necessary for him to decide upon
some course of action. He was absolutely penniless. Everything had
been sunk with the ship. He had no letters of introduction, he had no
acquaintances in New York; nor, indeed, did he know any one in all
America, save that a brother of his was a clergyman in some part of
the United States; but a coldness had existed between them, and he
had not heard of him for several years. R. was conscious, too, that
this coldness was the result of his own ungenerous conduct; for the
whole of his father’s estate had been given to him, to the exclusion
of his brother, and he had permitted him to work his own way in life,
without offering him the least assistance. To apply to this brother
was, therefore, forbidden by his pride; and, beside, he had every
reason to suppose that brother to be poor.
“What, then, was to be done? Should he return to England? How
was he to get the money to pay his passage? Beside, what was he
to do when he got there? Go back to the village where he carried his
head so high, and look in the faces of his former dashing
acquaintances—acknowledging himself a beggar! This was not to be
thought of. Should he seek some employment in America? This
seemed the only plan. He began to make inquiries as to what he
could find to do. One proposed to him to keep school; another, to go
into a counting-room; another, to be a bar-keeper of a hotel. Any of
these occupations would have given him the means of living; but R.’s
pride was in the way;—pride, that dogs us all our life, and stops up
almost every path we ought to follow, persuaded R. that he, who was
once a gentleman, ought to live the life of a gentleman; and of
course he could not do either of the things proposed.
“But events, day by day, pressed R. to a decision. His landlord, at
last, became uneasy, and told him that for what had accrued, he was
welcome, in consideration of his misfortunes; but he was himself
poor, and he begged him respectfully to make the speediest possible
arrangements to give up his room, which he wanted for another
boarder. ‘I have been thinking,’ said R. in reply to this, ‘that I might
engage in the practice of physic. In early life I was thought to have a
turn for the profession.’ This suggestion was approved by the
landlord, and means were immediately taken to put it in execution.
Dr. R., late of England, was forthwith announced; and in a few weeks
he was in the full tide of successful experiment.
“This fair weather, however, did not continue without clouds. Many
persons regarded Dr. R. only as one of the adventurers so frequently
coming from England to repay the kindness and courtesy of the
Yankees with imposition and villany. Various inquiries and stories
were got up about him; some having a sprinkling of truth in them,
and, for that reason, being very annoying. R., however, kept on his
way, paying little heed to these rumors, fancying that, if left to
themselves, they would soon die. And such would, perhaps, have
been the result, had not a most unfortunate occurrence given
matters another turn.
“In the house where R. boarded, several small sums of money,
and certain ornaments of some value, were missed by the boarders,
from time to time. Suspicions fell upon a French servant in the
family; but as nothing could be proved against him, he was retained,
and a vigilant watch kept over his actions. Discovering that he was
suspected, this fellow determined to turn the suspicion against R.;
he, therefore, in the dead of night, took a valuable watch from one of
the rooms, and laid it under the pillow of R.’s bed. This was done
with such address, that neither the gentleman from whom the watch
was stolen, nor R. himself, saw anything of it at the time. The watch
was missed in the morning, and the French servant was arrested.
But as soon as the chambermaid began to make up R.’s bed,
behold, the pilfered watch was there! The French servant was at
once released, and R. was arrested, briefly examined, and thrown
into prison.
“The circumstances in which he had come to the country now all
made against him. The unfavorable rumors that had been afloat
respecting him were revived; all the stories of swindlers that had
visited the country for twenty years back, were published anew, with
embellishments. In short, R. was tried and condemned by the public,
while he lay defenceless in prison, and long before his real trial came
on. The subject became a matter of some notoriety; the
circumstances were detailed in the newspapers. A paragraph
noticing these events met the eye of R.’s brother, who was settled as
a minister of the gospel in a country parish not far distant, and he
immediately came to the city. Satisfying himself by a few inquiries
that it was indeed his brother who was involved in difficulty and
danger, he went straight to the prison, with a heart overflowing with
sympathy and kindness. But pride was still in the way, and R.
haughtily repulsed him.
“The pious minister was deeply grieved; but he did not the less
seek to serve his brother. He took care to investigate the facts, and
became persuaded that the French servant had practised the
deception that has been stated; but he was not able to prove it. He
employed the best of counsel; but, in spite of all his efforts, and all
his sympathy, R. was found guilty, condemned, and consigned to
prison.
“Up to this time, the pride of R. had sustained him; but it now gave
way. He had borne the loss of fortune, but to be convicted of a low,
base theft, was what his spirit could not endure. His health sunk
under it, and his reason, for a time, departed. His sufferings during
that dark hour, God only knows. He at last recovered his health and
his senses, and then he heard, that, on his death-bed, the French
servant had confessed his iniquity. It was from the lips of his brother,
and under his roof, where he had been removed during his insanity,
that R. learnt these events. He was released from prison, and his
character was cleared of the imputation of crime.
“From this period R. was an altered man. His pride was effectually
quelled; no longer did that disturber of earth’s happiness,—the real
serpent of Eden,—remain to keep him in a state of alienation from
his brother. The two were now, indeed, as brothers. But there were
other changes in R.; his health was feeble, his constitution was
broken; his manly beauty had departed, and he was but the wreck of
former days. But, strange as it may seem, he now, for the first time,
found peace and happiness. He had now tasted of sorrow, and was
acquainted with grief. This enabled him to enter into the hearts of
other men, to see their sorrows, and to desire to alleviate them. A
new world was now open to him; a world of effort, of usefulness, of
happiness. In the days of prosperity, he had no cares for anybody
but himself; and mere selfishness had left him a wretch while in
possession of all the supposed means of bliss. He had now made
the discovery,—more important to any human being than that of
Columbus,—that pride is the curse of the human race, and humility
its only cure; that trial, sorrow, and misfortune are necessary, in most
cases, to make us acquainted with our own hearts, and those of our
fellow-men; and that true bliss is to be found only in a plan of life
which seeks, earnestly and sincerely, the peace and happiness of
others.”
Here ended R.’s story of the School of Misfortune; and I had no
difficulty in discovering that he had been telling the story of his own
life, though he had, in some respects, as I had reason to suppose,
departed from its details.
(To be continued.)

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Crafting And Executing Strategy

Concepts And Cases The Quest For

Multiple Choice Questions

Why Companies Decide to Enter Foreign Markets

10. Cross-country variations in government policies and economic conditions affect

17. One of the big risks of competing in foreign markets is

22. Companies operating in a cross-country marketplace have to respond to

The Concepts of Multidomestic Competition and Global Competition

23. Which of the following statements regarding multidomestic competition is false?

24. Multidomestic competition refers to situations where

25. Multidomestic competition is best characterized as a situation where

26. Which of the following statements regarding global competition is false?

29. In global competition

Strategic Options for Entering and Competing in International Markets

40. A greenfield venture in a foreign market is

Competing Internationally: The Three Main Strategic Approaches

47. A "think local, act local" multidomestic type of strategy

50. A "think-local, act local" multidomestic strategy entails

52. The drawbacks of a localized multidomestic strategy include

67. In competing in foreign markets, companies find it advantageous to concentrate their

68. In which of the following circumstances is it not advantageous for a multinational

Profit Sanctuaries and Cross-Border Strategic Moves

75. Profit sanctuaries are country markets or geographic regions whereby

78. Companies racing for global market leadership

Defending Against Global Giants: Strategies for Local Companies in Developing

Short Answer Questions

86. Briefly identify the special features of competing in foreign markets.

100. Under what circumstances is it advantageous for a company competing in foreign

Chapter 07 Strategies for Competing in International Markets Answer Key

Multiple Choice Questions

Why Companies Decide to Enter Foreign Markets

One fleecy cloud upon the air

The waves came dancing o’er the sea

The twilight hours like birds flew by,

The young moon too, with upturned sides,

The leaves, by spirit-voices stirred,

The flowers, all folded to their dreams,

No costly raiment round them shone,

I heard the laughing wind behind,

Then wherefore weave such strains as these,

Anecdote of an Atheist.—An atheist on his death-bed was

Wisdom of the Creator.—The happy proportioning of one thing

Yankee Energy.—A few days since, a gentleman of the city of

Who Made Man?—Look at the foot—how ingeniously is this

Power of God.—The sun is as large as three hundred and

Farewell to the meadow,

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