TEST BANK and SOLUTION MANUAL For International
Business 3rd Edition by Michael Geringer, Jeanne
McNett
a firms strategy can be defined as the actions that managers take to attain the goals
of the firm - ANSWER: true
the preeminent strategic goal for most firms is to maximize the value of the firm for
its owners - ANSWER: true
the customer is able to garner the benefit of the consumer surplus because one firm
is competing with other firms for the customers business, so the firm must charge a
lower price than it could if it was a monopoly supplier - ANSWER: true
according to porter, the way to create superior value is to drive down the cost
structure of the business and differentiate the product in some way so that
consumers value it more - ANSWER: true
for a firm, all positions on the efficiency frontier are viable - ANSWER: false
support activities are always less important than the primary activities in achieving a
competitive advantage - ANSWER: false
the success of many multinational corporations its based not just upon the goods or
services that they sell in foreign nations but also upon the core competencies that
underlie the development, production, and marketing of those goods or services -
ANSWER: true
the skills within the firm that a competitor cannot easily match or imitate are known
as core competence - ANSWER: true
systematic increases in sales that have been observed to occur over the life of the
product are referred to as the experience curve - ANSWER: false
one of the sources of economies of scale is the ability to spread fixed costs over a
large volume - ANSWER: true
once a firm has established a low cost position it can act as a barrier to new
competition - ANSWER: true
in a multinational enterprise, skills are always generated at the headquarters
location and are then dispersed to the rest of the organization - ANSWER: false
To leverage subsidiary skills, companies should establish incentive systems that
encourage local employees to acquire new skills. - ANSWER: true
, Universal needs exist when the tastes and preferences of consumers in different
nations are similar if not identical - ANSWER: true
when consumers tastes and preferences differ significantly between countries, there
is low pressure for local responsiveness - ANSWER: false
Threats of protectionism, economic nationalism, and local content rules dictate that
international businesses manufacture locally - ANSWER: true
a global standardization strategy is appropriate when a firm is facing low pressures
for cost reduction but high pressure for local responsiveness - ANSWER: false
as competition intensifies global standardization strategies and transnational
strategies tend to become less viable, and managers need to orientate their
companies toward either an international strategy or localization strategy - ANSWER:
false
research has shown that In the modern multinational enterprise, core competencies
typically reside in the home country - ANSWER: false
Enterprises that pursue an international strategy tend to decentralize control over
marketing and product strategies. - ANSWER: false
____ is measure by the percentage increase in net profits over time - ANSWER: profit
growth
The amount of value a firm creates is measured by - ANSWER: the difference
between its costs of production and the value that consumers perceive in its
products.
the ___ all of the different positions that a firm can adopt with regard to adding
value to the product and low cost assuming that its internal operations are
configured efficiently to support a particular position - ANSWER: efficiency frontier
shows
the strategy operations and organization of a firm must all be consistent with each
other if the firm is to ____ and achieve superior profitability - ANSWER: attain a
competitive advantage
____ include the design, creation, and delivery of a product - ANSWER: primary
activities
research and development, production, marketing and sales, and customer service
are all examples of - ANSWER: primary activities
top management should be viewed as part of the firms - ANSWER: infrastructure
Business 3rd Edition by Michael Geringer, Jeanne
McNett
a firms strategy can be defined as the actions that managers take to attain the goals
of the firm - ANSWER: true
the preeminent strategic goal for most firms is to maximize the value of the firm for
its owners - ANSWER: true
the customer is able to garner the benefit of the consumer surplus because one firm
is competing with other firms for the customers business, so the firm must charge a
lower price than it could if it was a monopoly supplier - ANSWER: true
according to porter, the way to create superior value is to drive down the cost
structure of the business and differentiate the product in some way so that
consumers value it more - ANSWER: true
for a firm, all positions on the efficiency frontier are viable - ANSWER: false
support activities are always less important than the primary activities in achieving a
competitive advantage - ANSWER: false
the success of many multinational corporations its based not just upon the goods or
services that they sell in foreign nations but also upon the core competencies that
underlie the development, production, and marketing of those goods or services -
ANSWER: true
the skills within the firm that a competitor cannot easily match or imitate are known
as core competence - ANSWER: true
systematic increases in sales that have been observed to occur over the life of the
product are referred to as the experience curve - ANSWER: false
one of the sources of economies of scale is the ability to spread fixed costs over a
large volume - ANSWER: true
once a firm has established a low cost position it can act as a barrier to new
competition - ANSWER: true
in a multinational enterprise, skills are always generated at the headquarters
location and are then dispersed to the rest of the organization - ANSWER: false
To leverage subsidiary skills, companies should establish incentive systems that
encourage local employees to acquire new skills. - ANSWER: true
, Universal needs exist when the tastes and preferences of consumers in different
nations are similar if not identical - ANSWER: true
when consumers tastes and preferences differ significantly between countries, there
is low pressure for local responsiveness - ANSWER: false
Threats of protectionism, economic nationalism, and local content rules dictate that
international businesses manufacture locally - ANSWER: true
a global standardization strategy is appropriate when a firm is facing low pressures
for cost reduction but high pressure for local responsiveness - ANSWER: false
as competition intensifies global standardization strategies and transnational
strategies tend to become less viable, and managers need to orientate their
companies toward either an international strategy or localization strategy - ANSWER:
false
research has shown that In the modern multinational enterprise, core competencies
typically reside in the home country - ANSWER: false
Enterprises that pursue an international strategy tend to decentralize control over
marketing and product strategies. - ANSWER: false
____ is measure by the percentage increase in net profits over time - ANSWER: profit
growth
The amount of value a firm creates is measured by - ANSWER: the difference
between its costs of production and the value that consumers perceive in its
products.
the ___ all of the different positions that a firm can adopt with regard to adding
value to the product and low cost assuming that its internal operations are
configured efficiently to support a particular position - ANSWER: efficiency frontier
shows
the strategy operations and organization of a firm must all be consistent with each
other if the firm is to ____ and achieve superior profitability - ANSWER: attain a
competitive advantage
____ include the design, creation, and delivery of a product - ANSWER: primary
activities
research and development, production, marketing and sales, and customer service
are all examples of - ANSWER: primary activities
top management should be viewed as part of the firms - ANSWER: infrastructure
