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BMAL 590 Global Dimensions of Business Exam with correct Answers
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BMAL 590 Global Dimensions of Business Exam with correct Answers
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BMAL 590 Global Dimensions ofBusiness Exam with correct Answers
Global Strategy - Answers -Each firm's theory about how to compete successfully in
whatever global markets the firm chooses to compete
Stragegy as a Plan - Answers -Suggests that strategy is embodied in the same explicit
rigorous formal planning as in the military
Strategy as an Action - Answers -Suggests that strategy is most fundamentally reflected
by firms' patterns of action
Strategy as an Integration - Answers -Defines strategy as "a firm's theory about how to
compete successfully"
Multi-market competition - Answers -Occurs when firms engage the same rivals in
multiple markets
Mutual forbearance - Answers -Reduction of competitive intensity among rivals of multi-
market competition industries
Industry-based considerations - Answers -Always concerned with inter-firm rivalry
Concentration; industry leader; product homogeneity; stability of demand and supply;
entry barriers; market commonality with rivals
Collusion - Answers -Collective attempts to reduce competition
Tacit collusion - Answers -when firms indirectly coordinate actions by signaling intent to
reduce output and maintain pricing above competitive levels
Explicit collusion - Answers -when firms directly negotiate production output and pricing
agreements to reduce competition and divide markets
Cartel - Answers -An output and price-fixing entity involving multiple competitors
Resource-based considerations - Answers -Include: value; rarity; imitability;
organization; resource similarity; and fighting low-cost rivals
valuable capabilities to attack, deter or retaliate; rarity of certain assets; imitability of
competition; organizational skills for actions; resource similarity with rivals
, Institution-based considerations - Answers -Advise managers to be well versed in the
"rules of the game" governing domestic and international competition
domestic competition: primarily competition/anti-trust policy
International competition: primarily trade/anti-dumping policy
American Anti-trust policy - Answers -Pro-consumer
Collusive price setting - Answers -Anti-trust law that refers to monopolists or collusion
parties setting prices at a level higher than the competitive level
Predatory pricing - Answers -Anti-trust law that refers to practices of setting prices
below costs in the short run to destroy rivals with the intent of raising prices to cover
losses in the long run after eliminating rivals
Extraterritoriality - Answers -The reach of one country's laws to other countries
Dumping - Answers -An exporter selling below cost abroad and planning to raise prices
after eliminating local rivals in an attempt to manipulate international competition
Export cartels - Answers -Alliances of firms that cooperate in exporting
Attack - Answers -An initial set of actions to gain competitive advantage.
Counterattack - Answers -a set of actions in response to an attack
3 main types of attack - Answers -Thrust: brute force
feint: attack on a focal arena important to a competitor
gambit: a move that sacrifices a low-value piece in order to capture a high-value piece
or improve one's position significantly
3 distinct elements of a counterattack - Answers -Awareness: of competition, market
commonality, & resource similarity
Motivation: choose to attack wisely
Capabilities: managers must know their strengths and use them
4 legal ways to "wink" at competitors - Answers -1. Non-aggression (fat cat)
2. Market entry has the same effect as firms may enter new markets to seek mutual
forbearance by establishing multi-market contact
3. Firms can send an open signal for a truce
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