Question 1

For a firm,all positions on the efficiency frontier are viable.

Accepted Answer

A) True 
 B)False

Question 2

R&D,production,marketing and sales,and customer service are all examples of primary activities.

Accepted Answer

A) True 
 B)False

Question 3

Firms usually respond to pressures for cost reduction by trying to:

Accepted Answer

A)   lower the costs of value creation.
B)   be locally responsive.
C)   undertaking product differentiation.
D)   diversifying product lines.E) None of the above
F) C) and D)

Question 4

_____ can be defined as the rate of return that the firm makes on its invested capital,which is calculated by dividing the net profits of the firm by total invested capital.

Accepted Answer

A)   Profitability
B)   Performance
C)   Cash flow
D)   EfficiencyE) None of the above
F) B) and C)

Question 5

Economies that arise from performing a value creation activity in the optimal place for that activity are referred to as:

Accepted Answer

A)   factor economies.
B)   production economies.
C)   location economies.
D)   value creation economies.E) B) and D)
F) None of the above

Question 6

A firm benefits by basing each value creation activity it performs at that location where economic,political,and cultural conditions,including relative factor costs,are most conducive to the performance of that activity.Firms that pursue such a strategy can realize:

Accepted Answer

A)   differentiation.
B)   location economies.
C)   vertical integration.
D)   horizontal integration.E) All of the above
F) B) and C)

Question 7

Global expansion offers companies the opportunity to generate greater profits than companies that focus strictly on the domestic market.

Accepted Answer

A) True 
 B)False

Question 8

Consider the firm in terms of a value chain.What is the difference between primary activities and support activities? Provide examples of each.

Accepted Answer

The operations of a firm can be thought ...

Question 9

Support activities are always less important than the primary activities in achieving a competitive advantage.

Accepted Answer

A) True 
 B)False

Question 10

Economies of scale arise from all of the following sources,EXCEPT:

Accepted Answer

A)   increasing fixed costs by limiting them to small volumes.
B)   serving domestic and international markets from the same production facilities
C)   serving global markets.
D)   bargaining with suppliers to bring down the cost of key inputs.E) None of the above
F) A) and D)

Question 11

Which of the following statements is NOT true?

Accepted Answer

A)   The way to increase the profitability of a firm is to create more value.
B)   The amount of value a firm creates is measured by the difference between its costs of production and the value that consumers perceive in its products.
C)   The more value customers place on a firm's products,the higher the price the firm is able to charge for those products.
D)   The price a firm charges for a good or service is typically more than the value the customer places on that good or service.E) None of the above
F) A) and B)

Question 12

_____ refer(s) to systematic reductions in production costs that have been observed to occur over the life of a product.

Accepted Answer

A)   Experience curve
B)   Economies of scale
C)   Location economies
D)   Production possibilityE) All of the above
F) B) and C)

Question 13

Lenovo's ThinkPad laptop computers is designed in the United States,the case,keyboard,and hard drive are made in Thailand; the display screen and memory in South Korea; the built-in wireless card in Malaysia; and the microprocessor in the United States.In each case,these components are manufactured and sourced from the optimal location given current factor costs.In this example,Lenovo has:

Accepted Answer

A)   vertical integration advantages.
B)   a global web of value creation activities.
C)   learning effects.
D)   high local responsiveness.E) A) and B)
F) None of the above

Question 14

Which of the following is less likely to add to the pressure for a firm to be locally responsive?

Accepted Answer

A)   National differences in consumer tastes and preferences
B)   Differences in infrastructure and traditional practices
C)   Switching costs for consumers
D)   Host-government demandsE) A) and D)
F) A) and C)

Question 15

The efficiency frontier has a convex shape because of:

Accepted Answer

A)   consumer surplus.
B)   diminishing returns.
C)   profitability.
D)   differentiation strategy.E) A) and D)
F) All of the above

Question 16

A global standardization strategy is appropriate when a firm is facing low pressures for cost reduction but high pressure for local responsiveness.

Accepted Answer

A) True 
 B)False

Question 17

Because differentiation across countries can involve significant duplication and a lack of product standardization,it may reduce costs.

Accepted Answer

A) True 
 B)False

Question 18

Discuss the factors that lead to pressure for local responsiveness.

Accepted Answer

There are many factors that contribute t...

Question 19

Describe localization strategy.

Accepted Answer

A localization strategy focuses on incre...

Question 20

Universal needs exist when the tastes and preferences of consumers in different nations are similar if not identical.

Accepted Answer

A) True 
 B)False

Exam 13: The Strategy of International Business

For a firm,all positions on the efficiency frontier are viable.

Correct Answer
verified

Because differentiation across countries can involve significant duplication and a lack of product standardization,it may reduce costs.

Correct Answer
verified

Consider the firm in terms of a value chain.What is the difference between primary activities and support activities? Provide examples of each.

Correct Answer
verified
The operations of a firm can be thought ...
View Answer

Which of the following statements is NOT true?

Correct Answer
verified

Correct Answer
verified

Support activities are always less important than the primary activities in achieving a competitive advantage.

Correct Answer
verified

Firms usually respond to pressures for cost reduction by trying to:

Correct Answer
verified

Universal needs exist when the tastes and preferences of consumers in different nations are similar if not identical.

Correct Answer
verified

_____ refer(s) to systematic reductions in production costs that have been observed to occur over the life of a product.

Correct Answer
verified

The efficiency frontier has a convex shape because of:

Correct Answer
verified

_____ can be defined as the rate of return that the firm makes on its invested capital,which is calculated by dividing the net profits of the firm by total invested capital.

Correct Answer
verified

Global expansion offers companies the opportunity to generate greater profits than companies that focus strictly on the domestic market.

Correct Answer
verified

Describe localization strategy.

Correct Answer
verified
A localization strategy focuses on incre...
View Answer

Which of the following is less likely to add to the pressure for a firm to be locally responsive?

Correct Answer
verified

R&D,production,marketing and sales,and customer service are all examples of primary activities.

Correct Answer
verified

A global standardization strategy is appropriate when a firm is facing low pressures for cost reduction but high pressure for local responsiveness.

Correct Answer
verified

Economies of scale arise from all of the following sources,EXCEPT:

Correct Answer
verified

Economies that arise from performing a value creation activity in the optimal place for that activity are referred to as:

Correct Answer
verified

A firm benefits by basing each value creation activity it performs at that location where economic,political,and cultural conditions,including relative factor costs,are most conducive to the performance of that activity.Firms that pursue such a strategy can realize:

Correct Answer
verified

Discuss the factors that lead to pressure for local responsiveness.

Correct Answer
verified
There are many factors that contribute t...
View Answer

Exam 13: The Strategy of International Business

For a firm,all positions on the efficiency frontier are viable.

Correct AnswerverifiedShow Answer

Because differentiation across countries can involve significant duplication and a lack of product standardization,it may reduce costs.

Correct AnswerverifiedShow Answer

Consider the firm in terms of a value chain.What is the difference between primary activities and support activities? Provide examples of each.

Correct AnswerverifiedThe operations of a firm can be thought ...View AnswerShow Answer

Which of the following statements is NOT true?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Support activities are always less important than the primary activities in achieving a competitive advantage.

Correct AnswerverifiedShow Answer

Firms usually respond to pressures for cost reduction by trying to:

Correct AnswerverifiedShow Answer

Universal needs exist when the tastes and preferences of consumers in different nations are similar if not identical.

Correct AnswerverifiedShow Answer

_____ refer(s) to systematic reductions in production costs that have been observed to occur over the life of a product.

Correct AnswerverifiedShow Answer

The efficiency frontier has a convex shape because of:

Correct AnswerverifiedShow Answer

_____ can be defined as the rate of return that the firm makes on its invested capital,which is calculated by dividing the net profits of the firm by total invested capital.

Correct AnswerverifiedShow Answer

Global expansion offers companies the opportunity to generate greater profits than companies that focus strictly on the domestic market.

Correct AnswerverifiedShow Answer

Describe localization strategy.

Correct AnswerverifiedA localization strategy focuses on incre...View AnswerShow Answer

Which of the following is less likely to add to the pressure for a firm to be locally responsive?

Correct AnswerverifiedShow Answer

R&D,production,marketing and sales,and customer service are all examples of primary activities.

Correct AnswerverifiedShow Answer

A global standardization strategy is appropriate when a firm is facing low pressures for cost reduction but high pressure for local responsiveness.

Correct AnswerverifiedShow Answer

Economies of scale arise from all of the following sources,EXCEPT:

Correct AnswerverifiedShow Answer

Economies that arise from performing a value creation activity in the optimal place for that activity are referred to as:

Correct AnswerverifiedShow Answer

A firm benefits by basing each value creation activity it performs at that location where economic,political,and cultural conditions,including relative factor costs,are most conducive to the performance of that activity.Firms that pursue such a strategy can realize:

Correct AnswerverifiedShow Answer

Discuss the factors that lead to pressure for local responsiveness.

Correct AnswerverifiedThere are many factors that contribute t...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The operations of a firm can be thought ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A localization strategy focuses on incre...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
There are many factors that contribute t...
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