BSG Final Exam25
Many companies acquire a local business as a means of entering foreign markets because -
ANSWERS-acquisition is quicker than creating a new subsidiary and building its entire
operations from the ground up, and it may be the least risky and cost-efficient means of
hurdling entry barriers.
Which of the following account for why companies decide to enter foreign markets? -
ANSWERS-To gain access to new customers and/or achieve lower costs and thereby become
more cost competitive
Because buyer tastes for a particular product or service sometimes differ substantially from
country to country, - ANSWERS-companies operating in a global marketplace must wrestle with
whether and how much to customize their offerings in each different country market to match
the tastes and preferences of local buyers or whether to pursue a strategy of offering a mostly
standardized product worldwide
The advantages of using a franchising strategy to pursue opportunities in foreign markets
include - ANSWERS-having franchisees bear most of the costs and risks of establishing foreign
locations and requiring the franchiser to expand only the resources to recruit, train, support,
and monitor foreign franchisees.
A company is said to be engaging in "cross market. subsidization" when - ANSWERS-it supports a
competitive offensive in one market with resources, capabilities, and profits (cash flows)
diverted from operations in other country markets.
Which of the following is not among the various strategic ways a company can establish a
competitive presence in foreign markets? - ANSWERS-A profit sanctuary strategy
,Which of the following statements regarding global competition is false? - ANSWERS-In global
competition, there's more cross-country variation in industry conditions and competitive forces
than there is in industries where multicountry competition prevails.
In which one of the following instances is it not advantageous to concentrate a company's
activities in a few locations? - ANSWERS-When the company is striving to build profit
sanctuaries in more than five different countries
Profit Sanctuaries - ANSWERS-are country markets (or geographic regions) in which a company
derives substantial profits because of its strong or protected market position
Based on the content of Figure 7.2, which of the following is the most unlikely element of a
localized multicountry strategy - ANSWERS-Using the best suppliers from anywhere in the world
Domestic companies facing competitive pressure from lower-cost imports - ANSWERS-benefit
when their government's currency declines in value relative to the currencies of the countries
where the lower cost foreign imports are being manufactured
According to Figure 7.2, which of the following does not accurately characterize the differences
between a localized multicountry strategy and a global strategy? - ANSWERS-A global strategy
involves striving to be the global low-cost provider by economically producing and marketing a
mostly standardized product worldwide whereas a multicountry strategy entails pursuing broad
differentiation and striving to strongly differentiate its products in one country from the
products it sells in other countries.
A firm pursuing a "think global, act local" approach to strategy-making - ANSWERS-pursues a
competitive strategy that is essentially the same in all country markets where it operates 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.
Which one of the following is among the important strategic issues associated with competing
across national boundaries? - ANSWERS-Whether to employ essentially the same basic
, competitive strategy in all countries or modify the strategy country by country to better match
local market and competitive conditions
Competing in one or more countries or regions of the world causes strategy-making to be more
complex partly because of - ANSWERS-sizable cross-country differences in wage rates, worker
productivity, inflation rates, energy supplies and costs, tax rates, and other factors that impact a
company's costs and profit prospects.
Which one of the following is not a reason why a company decides to enter foreign markets? -
ANSWERS-To build the profit sanctuaries necessary to wage guerilla offensives against global
challengers endeavoring to invade the company's home market
Competing in one or more countries or regions of the world causes strategy-making to be more
complex because of - ANSWERS-the risks of adverse shifts in currency exchange rates and the
presence of important cross-country differences in buyer tastes, market sizes, and growth
potential.
According to Figure 7.2, which one of the following is not a common trait of a global strategy? -
ANSWERS-Design manufacturing plants to cost-effectively produce many different product
versions
Which of the following is not one of the strategic ways a company can establish a competitive
presence in foreign markets? - ANSWERS-Using the creation of profit sanctuaries as the primary
vehicle for entering foreign markets
Because there are country-country differences in buyer tastes, income levels, distribution
channels, competitive conditions, and other market-related factors that impact a company's
strategy choices, - ANSWERS-one of the managerial challenges at companies with international
or global operations is how best to tailor a company's strategy to take all these cross-country
differences into account.
Many companies acquire a local business as a means of entering foreign markets because -
ANSWERS-acquisition is quicker than creating a new subsidiary and building its entire
operations from the ground up, and it may be the least risky and cost-efficient means of
hurdling entry barriers.
Which of the following account for why companies decide to enter foreign markets? -
ANSWERS-To gain access to new customers and/or achieve lower costs and thereby become
more cost competitive
Because buyer tastes for a particular product or service sometimes differ substantially from
country to country, - ANSWERS-companies operating in a global marketplace must wrestle with
whether and how much to customize their offerings in each different country market to match
the tastes and preferences of local buyers or whether to pursue a strategy of offering a mostly
standardized product worldwide
The advantages of using a franchising strategy to pursue opportunities in foreign markets
include - ANSWERS-having franchisees bear most of the costs and risks of establishing foreign
locations and requiring the franchiser to expand only the resources to recruit, train, support,
and monitor foreign franchisees.
A company is said to be engaging in "cross market. subsidization" when - ANSWERS-it supports a
competitive offensive in one market with resources, capabilities, and profits (cash flows)
diverted from operations in other country markets.
Which of the following is not among the various strategic ways a company can establish a
competitive presence in foreign markets? - ANSWERS-A profit sanctuary strategy
,Which of the following statements regarding global competition is false? - ANSWERS-In global
competition, there's more cross-country variation in industry conditions and competitive forces
than there is in industries where multicountry competition prevails.
In which one of the following instances is it not advantageous to concentrate a company's
activities in a few locations? - ANSWERS-When the company is striving to build profit
sanctuaries in more than five different countries
Profit Sanctuaries - ANSWERS-are country markets (or geographic regions) in which a company
derives substantial profits because of its strong or protected market position
Based on the content of Figure 7.2, which of the following is the most unlikely element of a
localized multicountry strategy - ANSWERS-Using the best suppliers from anywhere in the world
Domestic companies facing competitive pressure from lower-cost imports - ANSWERS-benefit
when their government's currency declines in value relative to the currencies of the countries
where the lower cost foreign imports are being manufactured
According to Figure 7.2, which of the following does not accurately characterize the differences
between a localized multicountry strategy and a global strategy? - ANSWERS-A global strategy
involves striving to be the global low-cost provider by economically producing and marketing a
mostly standardized product worldwide whereas a multicountry strategy entails pursuing broad
differentiation and striving to strongly differentiate its products in one country from the
products it sells in other countries.
A firm pursuing a "think global, act local" approach to strategy-making - ANSWERS-pursues a
competitive strategy that is essentially the same in all country markets where it operates 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.
Which one of the following is among the important strategic issues associated with competing
across national boundaries? - ANSWERS-Whether to employ essentially the same basic
, competitive strategy in all countries or modify the strategy country by country to better match
local market and competitive conditions
Competing in one or more countries or regions of the world causes strategy-making to be more
complex partly because of - ANSWERS-sizable cross-country differences in wage rates, worker
productivity, inflation rates, energy supplies and costs, tax rates, and other factors that impact a
company's costs and profit prospects.
Which one of the following is not a reason why a company decides to enter foreign markets? -
ANSWERS-To build the profit sanctuaries necessary to wage guerilla offensives against global
challengers endeavoring to invade the company's home market
Competing in one or more countries or regions of the world causes strategy-making to be more
complex because of - ANSWERS-the risks of adverse shifts in currency exchange rates and the
presence of important cross-country differences in buyer tastes, market sizes, and growth
potential.
According to Figure 7.2, which one of the following is not a common trait of a global strategy? -
ANSWERS-Design manufacturing plants to cost-effectively produce many different product
versions
Which of the following is not one of the strategic ways a company can establish a competitive
presence in foreign markets? - ANSWERS-Using the creation of profit sanctuaries as the primary
vehicle for entering foreign markets
Because there are country-country differences in buyer tastes, income levels, distribution
channels, competitive conditions, and other market-related factors that impact a company's
strategy choices, - ANSWERS-one of the managerial challenges at companies with international
or global operations is how best to tailor a company's strategy to take all these cross-country
differences into account.
