BPL Chapter 7 Test Questions with Correct Answers
Low pressure for local adaptation combined with low pressure for lower costs would suggest what type of strategy?
A. international
B. global
C. multidomestic
D. transnational - Answer-A
High pressure for local adaptation combined with lo...
BPL Chapter 7 Test Questions with
Correct Answers
Low pressure for local adaptation combined with low pressure for lower costs would
suggest what type of strategy?
A. international
B. global
C. multidomestic
D. transnational - Answer-A
High pressure for local adaptation combined with low pressure for lower costs would
suggest what type of international strategy?
A. Global
B. Multidomestic
C. Transnational
D. Overall cost leadership - Answer-B
Software Tech, Inc., a company in the computer software industry, invests heavily in
R&D and product design. Thus, most of its value is added
A. upstream.
B. in its infrastructure.
C. downstream.
D. midstream. - Answer-A
Industries in which proportionally more value is added in __________ activities are
more likely to benefit from a __________ strategy.
A. downstream; global
B. upstream; multidomestic
C. upstream; global
D. manufacturing; multidomestic - Answer-C
Which of the following types of international firms are most likely to benefit from a global
strategy as opposed to a multidomestic strategy?
A. Firms that compete in industries in which consumer preferences vary substantially in
each country.
B. Firms in industries that are expanding very rapidly.
C. Firms in industries that have value added by sales and marketing departments.
D. Firms in industries that have much value added in research and design or
manufacturing. - Answer-D
Recent trends that might lead managers of multinational corporations (MNCs) to adopt
a more decentralized strategy for their operations would include all of the following
EXCEPT
, A. customers' needs, interests, and tastes are becoming increasingly homogenized or
similar.
B. consumers around the world are increasingly willing to tradeoff idiosyncratic
preferences in product features for lower price.
C. flexible manufacturing trends have allowed a decline in the minimum volume required
to reach acceptable levels of production efficiency.
D. fluctuating exchange rates. - Answer-A
Firms following a global strategy strive to offer __________ products and services as
well as locate manufacturing, R&D, and marketing activities in __________ locations.
A. a wide variety of; several
B. a wide variety of; few
C. standardized; several
D. standardized; few - Answer-D
Gillette's worldwide success with its Sensor razor demonstrates
A. the importance of merging global and multidomestic strategies.
B. the values of establishing joint ventures with several multinational corporations.
C. that a global marketing effort can sometimes be successful.
D. the usefulness of a multidomestic strategy. - Answer-C
As in the case of Siebel Systems (now part of Oracle), elements of a global strategy
may facilitate the competitive advantage of differentiation by
A. increased freedom of individual business units to adapt to local tastes.
B. the creation of a worldwide network to achieve consistent service regardless of
location.
C. flexibility in applying R&D to meet country-specific needs.
D. tailoring products to meet country-specific needs. - Answer-B
All of the following are risks associated with a global strategy EXCEPT
A. a firm with only one manufacturing location must export its product—some of which
may be a great distance from the operation.
B. the geographic concentration of any activity may also tend to isolate that activity from
the targeted markets.
C. concentrating an activity in a single location makes the rest of the firm dependent on
that location.
D. the pressures for local adaptation may elevate the firm's cost structure. - Answer-D
A major trend in international developments includes
A. greater international trade and operations.
B. a growing recognition of an international managerial perspective.
C. a large increase in international investment.
D. all of these. - Answer-D
The reasons that explain why some governments make better use of the inflows from
foreign investment and know-how than others include all of the following EXCEPT
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