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BUSM EXAM 3: Questions And Proper Solutions
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BUSM EXAM 3: Questions And Proper Solutions
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BUSM EXAM 3: Questions And Proper Solutions___________ strategy makes most sense when demands for local responsiveness
are high, but cost pressures are moderate or low Right Ans - A localization
When Casio sells Its calculators in countries across the world, it doesn't need
to worry too much about customizing the product to local needs and
preferences because calculators are a _____________ need Right Ans -
universal
Commodity products are such as bulk chemicals, petroleum, steel, and/or
sugar do not require much ditterentiation because the taste and preterence
forthese products are similar around the world. These products are called
Right Ans - universal needs
Pressures for cost reduction are intense in industries where Right Ans -
there is persistent excess capacity
Economies of scale arise from which source? Right Ans - serving domestic
and international markets from the same production facilities
The price a firm charges for a good or service is typically less than the value
placed on that good or service by the customer. This is because Right Ans -
the customer captures some of that value in the form of a consumer surplus
a pharmaceutical firm wants to expand its offering by coming up with new
drugs to treat Type Il diabetes. What would be a primary activity for this firm?
Right Ans - research and development
The amount of value a firm creates is measured by the Right Ans -
difference between its costs of production and the quality that consumers
perceive in Its products
true or false
as competition intensifies, global standardization strategies and transnational
strategies tend to become less viable, and managers need to direct their
companies toward either an international strategy or a localization strategy
Right Ans - false
, shift toward global standardization/ transnational strategy in advance of
competitors
true or false
Establishing a low-cost position is a way a firm can ward off new competition
C Right Ans - true
true or false
A firm's strategy can be defined as the actions that managers take to attain the
goals of the firm. Right Ans - true
true or false
The preeminent strategic goal for most firms is to maximize the firm's
presence in the global marketplace. Right Ans - true
true or false
One of the sources of economies of scale is the ability to spread fixed costs
over a small volume. Right Ans - false
economies of scale lowers a firms unit costs and increase profitability
true or false
Threats of protectionism, economic nationalism, and local content rules
dictate that international businesses manufacture locally. Right Ans - true
true or false
As competition intensifies, global standardization strategies and transnational
strategies tend to become less viable, and managers need to direct their
companies toward either an international strategy or a localization strategy.
Right Ans - false
need to shift toward a global standardization strategy of transnational
strategy in advance of competitors
The percentage increase in net profits over time measures Right Ans -
profit growth
A consumer surplus can be best described as Right Ans - value for the
money
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