Question 1

Karina believes the value of a wristwatch sold at $160 is $250. In this scenario, the $250 value is referred to as the

Accepted Answer

A)   market price.
B)   customer's negotiated price.
C)   base value of the product.
D)   customer's reservation price.
E)   profit growth price.F) A) and C)
G) A) and B)

Question 2

How do firms approach customization of products when using the global standardization strategy?

Accepted Answer

A)   These firms focus on customizing products to various conditions.
B)   These firms are typically first-movers in customizing product offerings.
C)   These firms focus on regional differences but do not assess national differences.
D)   These firms rely on customization to reduce production runs and lower costs.
E)   These firms try not to customize to meet local conditions to allow for longer production runs.F) C) and D)
G) B) and E)

Question 3

Researchers Bartlett and Ghoshal noted that in the modern global environment, competition is so intense that in order to survive, a company must do all they can to

Accepted Answer

A)   ignore factor endowments.
B)   provide local responsiveness.
C)   create first-mover advantage.
D)   increase costs of production.
E)   rely on location economies.F) D) and E)
G) B) and D)

Question 4

How does possessing a core competency help a firm?

Accepted Answer

A)   It helps a firm to create value in such a way that premium pricing is impossible.
B)   It reduces a firm's dependence on its logistics function.
C)   It enables a firm to reduce the costs of value creation.
D)   It reduces the scope of transfer of skills to foreign markets.
E)   It reduces the need to replicate a business model in a foreign market.F) C) and D)
G) A) and C)

Question 5

Firms that pursue a(n)  ________ strategy focus on increasing profitability and profit growth by reaping the cost reductions that come from economies of scale, learning effects, and location economies.

Accepted Answer

A)   international
B)   transnational
C)   localization
D)   global standardization
E)   nationalizationF) B) and E)
G) B) and C)

Question 6

The experience curve refers to systematic increases in production costs that have been observed to occur over the life of a product.

Accepted Answer

A) True 
 B)False  False

Question 7

What are strategic alliances?

Accepted Answer

Strategic alliances are cooperative agre...

Question 8

At the beginning of the year, Marissa created three goals for each sales person on her staff and she uses those goals as a way to measure their performance throughout the year. These goals are an example of

Accepted Answer

A)   reports.
B)   controls.
C)   rewards.
D)   knowledge flows.
E)   folkways.F) B) and E)
G) B) and C)

Question 9

WeShop4You has created a grocery delivery service that is unmatched by its competition. The value the company has created now makes it difficult to implement new ideas without spending more money than it originally took to start the business. This demonstrates the idea of

Accepted Answer

A)   entrepreneurism.
B)   a low-cost strategy.
C)   consumer surplus.
D)   diminishing returns.
E)   offshoring.F) C) and D)
G) A) and C)

Question 10

According to Michael Porter, what are the two basic strategies for creating value and attaining a competitive advantage in an industry?

Accepted Answer

A)   differentiation and low-cost
B)   value creation and generalization
C)   one-size-fits-all and zero-sum
D)   comparison and standardization
E)   profitability and strategic fitF) C) and D)
G) A) and B)

Question 11

The ________ refers to systematic reductions in production costs that have been observed to occur over the life of a product.

Accepted Answer

A)   experience curve
B)   learning effect
C)   location economies
D)   efficiency slope
E)   economies of scaleF) B) and E)
G) B) and D)

Question 12

Processes are defined as the

Accepted Answer

A)   manner in which decisions are made and work is performed within the organization.
B)   metrics used to measure the performance of subunits.
C)   devices used to reward appropriate managerial behavior.
D)   metrics used to make judgments about how well managers are running the subunits.
E)   norms and value systems that are shared among employees of an organization.F) C) and E)
G) C) and D)

Question 13

The concept of ________ suggests that when a company has built significant value into its product offerings, trying to increase the value of the products by even a small amount requires a significant financial investment.

Accepted Answer

A)   tragedy of the commons
B)   diminishing returns
C)   the Sullivan principle
D)   supply-and-demand
E)   purchasing power parityF) None of the above
G) B) and D)

Question 14

A strategy that focuses primarily on increasing the manufacturing rate of a product is referred to as a low-cost strategy.

Accepted Answer

A) True 
 B)False

Question 15

The amount of value a firm creates is measured by the difference between its costs of production and the value that consumers perceive in its products.

Accepted Answer

A) True 
 B)False

Question 16

Xerox had a monopoly on photocopiers for several years as the technology underlying the photocopier was protected by strong patents. As it served a universal need, this favorable position led Xerox to pursue a(n)

Accepted Answer

A)   global standardization strategy.
B)   localization strategy.
C)   international strategy.
D)   transnational strategy.
E)   nationalization strategy.F) C) and D)
G) A) and E)

Question 17

When Brite Fabrics first began operations, it took six hours to make a coat in the workroom. Today, that task takes three hours as more efficient sewing and patterning techniques have been introduced. This improvement in efficiency is an example of

Accepted Answer

A)   diminishing returns.
B)   location economies.
C)   a geographic implication.
D)   learning effects.
E)   an efficiency frontier.F) A) and B)
G) C) and D) D

Question 18

A number of studies have observed that a product's production costs decline by some quantity about each time

Accepted Answer

A)   annual output is halved.
B)   cumulative output doubles.
C)   the workforce is trimmed by 75 percent.
D)   fixed investment triples.
E)   foreign domestic investment doubles.F) C) and D)
G) D) and E)

Question 19

Explain the value of learning effects and provide examples of industries that benefit from them.

Accepted Answer

Learning effects refer to cost savings that come from learning by doing. Labor, for example, learns by repetition how to carry out a task, such as assembling airframes, most efficiently. Labor productivity increases over time as individuals learn the most efficient ways to perform particular tasks. Equally important in new production facilities, management typically learns how to manage the new operation more efficiently over time. Hence, production costs decline due to increasing labor productivity and management efficiency, which increases the firm's profitability. Student examples will vary but some possible industries that may benefit include automobile manufacturing and assembly line work for making everything from furniture to computers.

Question 20

When Nathan accepted his new job, his manager explained that each employee who demonstrated at least two ideas that could lead the company to a competitive advantage received a $5,000 bonus at the end of the year. This bonus is an example of a(n)

Accepted Answer

A)   control.
B)   hierarchy.
C)   folkway.
D)   incentive.
E)   process.F) All of the above
G) None of the above

Exam 12: The Strategy of International Business

Karina believes the value of a wristwatch sold at $160 is $250. In this scenario, the $250 value is referred to as the

Correct Answer
verified

How do firms approach customization of products when using the global standardization strategy?

Correct Answer
verified

Researchers Bartlett and Ghoshal noted that in the modern global environment, competition is so intense that in order to survive, a company must do all they can to

Correct Answer
verified

How does possessing a core competency help a firm?

Correct Answer
verified

Firms that pursue a(n) ________ strategy focus on increasing profitability and profit growth by reaping the cost reductions that come from economies of scale, learning effects, and location economies.

Correct Answer
verified

The experience curve refers to systematic increases in production costs that have been observed to occur over the life of a product.

Correct Answer
verified
False

What are strategic alliances?

Correct Answer
verified
Strategic alliances are cooperative agre...
View Answer

At the beginning of the year, Marissa created three goals for each sales person on her staff and she uses those goals as a way to measure their performance throughout the year. These goals are an example of

Correct Answer
verified

WeShop4You has created a grocery delivery service that is unmatched by its competition. The value the company has created now makes it difficult to implement new ideas without spending more money than it originally took to start the business. This demonstrates the idea of

Correct Answer
verified

According to Michael Porter, what are the two basic strategies for creating value and attaining a competitive advantage in an industry?

Correct Answer
verified

The ________ refers to systematic reductions in production costs that have been observed to occur over the life of a product.

Correct Answer
verified

Processes are defined as the

Correct Answer
verified

The concept of ________ suggests that when a company has built significant value into its product offerings, trying to increase the value of the products by even a small amount requires a significant financial investment.

Correct Answer
verified

A strategy that focuses primarily on increasing the manufacturing rate of a product is referred to as a low-cost strategy.

Correct Answer
verified

The amount of value a firm creates is measured by the difference between its costs of production and the value that consumers perceive in its products.

Correct Answer
verified

Xerox had a monopoly on photocopiers for several years as the technology underlying the photocopier was protected by strong patents. As it served a universal need, this favorable position led Xerox to pursue a(n)

Correct Answer
verified

When Brite Fabrics first began operations, it took six hours to make a coat in the workroom. Today, that task takes three hours as more efficient sewing and patterning techniques have been introduced. This improvement in efficiency is an example of

Correct Answer
verified
D

A number of studies have observed that a product's production costs decline by some quantity about each time

Correct Answer
verified

Explain the value of learning effects and provide examples of industries that benefit from them.

When Nathan accepted his new job, his manager explained that each employee who demonstrated at least two ideas that could lead the company to a competitive advantage received a $5,000 bonus at the end of the year. This bonus is an example of a(n)

Correct Answer
verified

Exam 12: The Strategy of International Business

Karina believes the value of a wristwatch sold at $160 is $250. In this scenario, the $250 value is referred to as the

Correct AnswerverifiedShow Answer

How do firms approach customization of products when using the global standardization strategy?

Correct AnswerverifiedShow Answer

Researchers Bartlett and Ghoshal noted that in the modern global environment, competition is so intense that in order to survive, a company must do all they can to

Correct AnswerverifiedShow Answer

How does possessing a core competency help a firm?

Correct AnswerverifiedShow Answer

Firms that pursue a(n) ________ strategy focus on increasing profitability and profit growth by reaping the cost reductions that come from economies of scale, learning effects, and location economies.

Correct AnswerverifiedShow Answer

The experience curve refers to systematic increases in production costs that have been observed to occur over the life of a product.

Correct AnswerverifiedFalse

What are strategic alliances?

Correct AnswerverifiedStrategic alliances are cooperative agre...View AnswerShow Answer

At the beginning of the year, Marissa created three goals for each sales person on her staff and she uses those goals as a way to measure their performance throughout the year. These goals are an example of

Correct AnswerverifiedShow Answer

WeShop4You has created a grocery delivery service that is unmatched by its competition. The value the company has created now makes it difficult to implement new ideas without spending more money than it originally took to start the business. This demonstrates the idea of

Correct AnswerverifiedShow Answer

According to Michael Porter, what are the two basic strategies for creating value and attaining a competitive advantage in an industry?

Correct AnswerverifiedShow Answer

The ________ refers to systematic reductions in production costs that have been observed to occur over the life of a product.

Correct AnswerverifiedShow Answer

Processes are defined as the

Correct AnswerverifiedShow Answer

The concept of ________ suggests that when a company has built significant value into its product offerings, trying to increase the value of the products by even a small amount requires a significant financial investment.

Correct AnswerverifiedShow Answer

A strategy that focuses primarily on increasing the manufacturing rate of a product is referred to as a low-cost strategy.

Correct AnswerverifiedShow Answer

The amount of value a firm creates is measured by the difference between its costs of production and the value that consumers perceive in its products.

Correct AnswerverifiedShow Answer

Xerox had a monopoly on photocopiers for several years as the technology underlying the photocopier was protected by strong patents. As it served a universal need, this favorable position led Xerox to pursue a(n)

Correct AnswerverifiedShow Answer

When Brite Fabrics first began operations, it took six hours to make a coat in the workroom. Today, that task takes three hours as more efficient sewing and patterning techniques have been introduced. This improvement in efficiency is an example of

Correct AnswerverifiedD

A number of studies have observed that a product's production costs decline by some quantity about each time

Correct AnswerverifiedShow Answer

Explain the value of learning effects and provide examples of industries that benefit from them.

When Nathan accepted his new job, his manager explained that each employee who demonstrated at least two ideas that could lead the company to a competitive advantage received a $5,000 bonus at the end of the year. This bonus is an example of a(n)

Correct AnswerverifiedShow Answer

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False

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Strategic alliances are cooperative agre...
View Answer

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D

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