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Strategic Management Ch. 8

Terms in this set (15)

International Strategy refers to a(n)
strategy through which the firm sells products in markets outside the firm's domestic market.
The benefits of expanding into international markets include each of the following opportunities EXCEPT
a.) increasing the size of the firms' potential markets.
b.) economies of scale and learning
c.) location advantages
d.) favorable tax concessions and economic incentive by home-country governments
d.) favorable tax concessions and economic incentives by home-country governments
Moving into international markets is a particularly attractive strategy to firms whose domestic markets
a. demand a differentiation strategy for success.
b. are limited in opportunities for growth.
c. have developed unfriendly business attitudes toward the industry.
d. have too much regulation.
b.) are limited in opportunities for growth
The location advantages associated with locating facilities in other countries can include all of the following EXCEPT
a.) low-cost labor
b.) access to critical supplies
c.) access to customers
d.) evasion of host country governmental regulations.
d.) evasion of host country governmental regulations
The four aspects of Porter's model of international competitive advantage include all of the following EXCEPT
a.) factors of production
b.) demand conditions
c.) political and economic institutions
d.) related and supporting industries
c.) political and economic institutions
A large domestic market can provide the country's industries a chance at dominating the world market because

a. they have been able to develop economies of scale at home.
b. they have access to abundant and inexpensive factors of production.
c. the related and supporting industries will have been developed.
d. the nation's culture and educational system will be adapted to producing the labor force needed for the industry.
a.) they have been able to develop economies of scale at home.
All of the following are international corporate-level strategies EXCEPT the ____ strategy
a.) multi-domestic
b.) universal
c.) global
d.) transnational
b.) universal
International corporate-level strategy focuses on
the scope of operations through both product and geographic diversification.
a multi-domestic corporate-level strategy has ___ need for global integration and ___ need for local market responsiveness.
low; high
A global corporate-level strategy differs from a multi-domestic corporate-level strategy in that in a global strategy,
competitive strategy is dictated by the home office
A global corporate-level strategy emphasizes
economies of scale
A transnational corporate-level strategy seeks to achieve:
global efficiency and local responsiveness
The transnational strategy is becoming increasingly necessary to compete in international markets for all the following reasons EXCEPT:
a.) the growing number of competitors heightens the requirements to keep costs low.
b.) the desire for specialized products to meet consumers needs.
c.) differences in culture and institutional environments also require firms to adapt their products and approaches to local environments.
d.) it is easy to use
d.) it is easy to use
The two important environmental trends that influence a firm's choice and use of international corporate-level strategies are ____ and ____
liability of foreignness; regionalization
The choices that a firm has for entering the international market include all of the following EXCEPT

a. exporting.
b. licensing.
c. leasing.
d. acquisition.
leasing
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