Strategic Management Chapter 10 questions

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Which of the following modes of entering a foreign market has the highest level of investment and control?

Acquisition

A reason for a country's development of advanced and specialized factors of production is often its ___________.

Lack of a critical resource

The degree of CORE COMPETENCIES increased in a firm when adopting Globalization 2.0 is ________.

Low, because firms still have limited knowledge flow back to headquarters.

Global 2.0

requires individual and self-sufficient SBUs around the globe, and because of this, the knowledge flow back to headquarters remains limited.

Japan, due to a lack of undeveloped land, would be an unusual choice of location for a U.S. cattle company to set up local grazing operations. This limiting factor would be identified in what part of Porter's determinants of national advantage?

Factor condition

Which one of the following can be considered a characteristic of a cluster?

Location economies

To maximize profitability, the best global strategy to use ________________.

is dependent on products offered and strategic intent

There is no definitive answer here as the better course must be based on the context and circumstances.

..

Firms within emerging economies may want to form strategic alliances with firms from developed countries because __________.

It gains access to the foreign firm's sophisticated technology

AstraZeneca, a Swiss pharmaceutical firm, relocated its research facility to the Boston biotech cluster. This is because they want to ___________.

develop new competencies

A large domestic market can provide the country's industries with a chance at dominating the world market because _____________.

They have been able to develop economies of scale at home

High competitive intensity in the focal industry is advantageous for many MNEs because _________________

It forces MNEs to be more prepared for intense global competition

In high uncertainty-avoidance cultures, the values will lean more toward ________.

structured career patterns

A U.S. manufacturer of adaptive devices for persons with disabilities is considering expanding internationally. It is a fairly small company, but it is looking for growth opportunities. This company should primarily consider the option of:

Exporting.

China is a popular target for MNEs, but it is NOT because of ___________.

Their information censorship policy

Firms with core competencies that can be exploited across international markets are able to __________

Achieve synergies and produce high quality goods at lower costs

Which one of the following does NOT contribute to the rapid development of globalization?

Increasing local tariffs.

Foreign direct investment (FDI) is a firm's investment in _________ abroad.

value-chain activities

Terrorist attacks and the war in Iraq have:

Increased the liability of foreignness for firms thinking of expanding.

According to the Integration-Responsiveness Framework, if a firm is facing high pressure for local responsiveness and low pressure for cost reductions, the firm is likely to adopt a(n) _____________.

localization strategy

transnational strategy

a strategy that combines global coordination to attain efficiency with flexibility to meet specific needs in various countries

global-Standardization strategy

a firm focuses on increasing profitability and profit growth by reaping the cost reductions that come from economies of scale, learning effects, and location economies

International strategy

trying to create value by taking products first produced for the domestic market and selling them internationally with only minimal local customization

Why might going global be necessary to achieve growth in smaller economies, such as South Korea?

Limited domestic market.

Japan, due to a lack of undeveloped land, would be an unusual choice of location for a U.S. cattle company to set up local grazing operations. This limiting factor would be identified in what part of Porter's determinants of national advantage?

Factor condition

Globalization 1.0 in Strategy Highlight 10.1 is similar to which one of the following strategies?

international strategy

Globalization 1.0 refers to the timeframe prior to WWII when firms maintained their most important operations in the home country and used exporting and other fairly simple international techniques.

This pairs best with the international strategy from Exhibit 10.7.

What is the main reason that Globalization 2.0 practices have faded over time?

Substantial FDI for the duplication of home-based business functions induced a waste of resources.

A U.S. manufacturer of adaptive devices for persons with disabilities is considering expanding internationally. It is a fairly small company, but it is looking for growth opportunities. This company should primarily consider the option of _________.

exporting

Moving into international markets is a particularly attractive strategy to firms whose domestic markets:

Have entered the mature stage on the industry life cycle; By entering global markets, firms may explore more market opportunities at different life cycle stages.

One disadvantage noted in the text of an International Strategy is _____.

expropriation of intellectual property by foreign competitors

Globalization 1.0 in Strategy Highlight 10.1 is similar to which one of the following strategies?

International strategy

A large domestic market can provide the country's industries a chance at dominating the world market because _____________.

they have been able to develop economies of scale at home

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