Question 1

Explain using Stopford and Wells model how an internationalizing firm would typically develop.

Accepted Answer

Stopford and Wells (1972) found that fir...

Question 2

According to Ghoshal (1987)  there are three fundamental tools for building global competitive advantage. These are achieving economies of scale, achieving economies of scope and

Accepted Answer

A)   innovation
B)   creating barriers to entry
C)   exploiting absolute advantage
D)   exploiting comparative advantageE) A) and B)
F) A) and D)

Question 3

Which term is used to describe an industry where consumer tastes are not homogenous across all national markets?

Accepted Answer

A)   Multinational
B)   Glocal
C)   Multidomestic
D)   GlobalE) A) and D)
F) A) and C) C

Question 4

In international business, the USA, Japan and the EU form what is commonly known as the

Accepted Answer

A)   trading bloc
B)   triad
C)   trading region
D)   FDIE) A) and D)
F) B) and C)

Question 5

How effective is the transnational organizational form in addressing the strategic challenges of globalized industries?

Accepted Answer

According to Bartlett and Ghoshal the tr...

Question 6

When an international business decides on how to configure the value chain, it is deciding

Accepted Answer

A)   How to integrate activities
B)   How to coordinate activities
C)   How to link similar activities
D)   Where to perform each activityE) A) and B)
F) A) and D)

Question 7

The competitive advantage matrix of Rugman and Hodgetts (2003)  is used as a basis for understanding the basis of competitive advantage of firms.The matrix is based around two variables - firm specific advantages and

Accepted Answer

A)   factor specific advantage
B)   diamond specific advantage
C)   triad specific advantages
D)   country specific advantagesE) A) and C)
F) None of the above

Question 8

According to Rugman and D'Cruz (2000) , a 'flagship' firm is one which

Accepted Answer

A)   Is in the top ten of the biggest MNEs in the world
B)   Can create value through the creation of beneficial relationships
C)   Is able to be both globally integrated and locally responsive
D)   Triggers an industry to become globalE) None of the above
F) All of the above B

Question 9

Which of the following statements describes the transnational strategy?

Accepted Answer

A)   Treats the world as a single integrated unit
B)   The world of integrated variety
C)   Treats foreign operations as offshoots of domestic strategy
D)   Treats the world as a portfolio of local marketsE) A) and B)
F) All of the above

Question 10

Production and assembly of automobiles is suitable for which kind of strategy?

Accepted Answer

A)   Local adaptation
B)   Multidomestic
C)   Global standardization
D)   InternationalE) A) and B)
F) B) and D)

Question 11

Which writer compelled multinational firms to treat the world as one market?

Accepted Answer

A)   Levitt
B)   Ohmae
C)   Ghemawat
D)   PorterE) A) and B)
F) All of the above

Question 12

The 500 largest multinational enterprises in the world accounts for how much of all FDI?

Accepted Answer

A)   8%
B)   25%
C)   80%
D)   18%E) B) and C)
F) None of the above

Question 13

According to Bartlett and Ghoshal (1989) , MNEs following a multidomestic strategy were typically from

Accepted Answer

A)   Japan
B)   USA
C)   Europe
D)   AsianE) A) and D)
F) A) and B) C

Question 14

Explain why a global standardization strategy would not be suitable for a high street retailer.

Accepted Answer

High street retailers deal directly with...

Question 15

Which kind of strategy is most suitable for high street retailing?

Accepted Answer

A)   Global standardization
B)   Local adaptation
C)   Transnational
D)   Global integrationE) A) and C)
F) A) and B)

Question 16

Which of the following models can be used to understand why some countries have global competitive advantage in certain industries?

Accepted Answer

A)   Porter's Diamond
B)   Porter's Five Forces
C)   Ghemawat's CAGE framework
D)   Prahalad and Doz's integration responsiveness gridE) A) and B)
F) A) and C)

Question 17

Some MNEs benefit from the factor conditions outside its home base in achieving global competitive advantage. This is known as

Accepted Answer

A)   The transnational effect
B)   The 'double diamond' effect
C)   The competitive advantage of nations
D)   The diamond of national advantageE) B) and C)
F) A) and B)

Question 18

Describe the factors in Porter's Diamond of National Advantage.

Accepted Answer

Factor conditions - these are supply cha...

Question 19

According to Porter, the determinants of national competitive advantage are

Accepted Answer

A)   1. Factor conditions 2. Firm strategy, structure and rivalry 3. Barriers to entry 4. Related and supporting industries
B)   1. Factor conditions 2. Firm strategy, structure and rivalry 3. Demand conditions 4. Related and supporting industries
C)   1. Buyer power 2. Firm strategy, structure and rivalry 3. Barriers to entry 4. Related and supporting industries
D)   1. Supplier power 2. Firm strategy, structure and rivalry 3. Barriers to entry 4. Related and supporting industriesE) A) and B)
F) B) and C)

Question 20

The activities of the value chain of an international firm are likely to be geared towards either global standardization or local adaptation.

Accepted Answer

A) True 
 B)False

Exam 9: Global Strategies and International Advantage

Explain using Stopford and Wells model how an internationalizing firm would typically develop.

Correct AnswerverifiedStopford and Wells (1972) found that fir...View AnswerShow Answer

According to Ghoshal (1987) there are three fundamental tools for building global competitive advantage. These are achieving economies of scale, achieving economies of scope and

Correct AnswerverifiedShow Answer

Which term is used to describe an industry where consumer tastes are not homogenous across all national markets?

Correct AnswerverifiedC

In international business, the USA, Japan and the EU form what is commonly known as the

Correct AnswerverifiedShow Answer

How effective is the transnational organizational form in addressing the strategic challenges of globalized industries?

Correct AnswerverifiedAccording to Bartlett and Ghoshal the tr...View AnswerShow Answer

When an international business decides on how to configure the value chain, it is deciding

Correct AnswerverifiedShow Answer

The competitive advantage matrix of Rugman and Hodgetts (2003) is used as a basis for understanding the basis of competitive advantage of firms.The matrix is based around two variables - firm specific advantages and

Correct AnswerverifiedShow Answer

According to Rugman and D'Cruz (2000) , a 'flagship' firm is one which

Correct AnswerverifiedB

Which of the following statements describes the transnational strategy?

Correct AnswerverifiedShow Answer

Production and assembly of automobiles is suitable for which kind of strategy?

Correct AnswerverifiedShow Answer

Which writer compelled multinational firms to treat the world as one market?

Correct AnswerverifiedShow Answer

The 500 largest multinational enterprises in the world accounts for how much of all FDI?

Correct AnswerverifiedShow Answer

According to Bartlett and Ghoshal (1989) , MNEs following a multidomestic strategy were typically from

Correct AnswerverifiedC

Explain why a global standardization strategy would not be suitable for a high street retailer.

Correct AnswerverifiedHigh street retailers deal directly with...View AnswerShow Answer

Which kind of strategy is most suitable for high street retailing?

Correct AnswerverifiedShow Answer

Which of the following models can be used to understand why some countries have global competitive advantage in certain industries?

Correct AnswerverifiedShow Answer

Some MNEs benefit from the factor conditions outside its home base in achieving global competitive advantage. This is known as

Correct AnswerverifiedShow Answer

Describe the factors in Porter's Diamond of National Advantage.

Correct AnswerverifiedFactor conditions - these are supply cha...View AnswerShow Answer

According to Porter, the determinants of national competitive advantage are

Correct AnswerverifiedShow Answer

The activities of the value chain of an international firm are likely to be geared towards either global standardization or local adaptation.

Correct AnswerverifiedShow Answer

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Stopford and Wells (1972) found that fir...
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C

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According to Bartlett and Ghoshal the tr...
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B

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C

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High street retailers deal directly with...
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Factor conditions - these are supply cha...
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