Global Strategy: Competing Around The World
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- What Is StrategyStrategic Leadership: Managing the Strategy ProcessExternal Analysis: Industry Structure, Competitive Forces, and Strategic GroupsInternal Analysis: Resources, Capabilities, and Core CompetenciesCompetitive Advantage, Firm Performance, and Business ModelsBusiness Strategy: Differentiation, Cost Leadership, and Blue OceansBusiness Strategy: Innovation, Entrepreneurship, and PlatformsCorporate Strategy: Vertical Integration and DiversificationCorporate Strategy: Strategic Alliances, Mergers and AcquisitionsGlobal Strategy: Competing Around the WorldOrganizational Design: Structure, Culture, and ControlCorporate Governance and Business Ethics
Question 1
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Multiple Choice
Disney's "Wedding Banned," a romantic comedy about a divorced couple trying to prevent their daughter from getting married, was axed in the advanced production stage despite several marquee stars (Robin Williams, Anna Faris, and Diane Keaton).Which of the following statements best explains why this happened?
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The purchasing power of the U.S. audience had reduced drastically.
There was a feeling that the movie was against traditional American values regarding marriage.
The movie was a copy of an already existing French movie.
There were perceptions that this movie would not succeed outside of the American market.
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Question 2
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Multiple Choice
Today, Hollywood movies are banking more on foreign sales for their overall revenues.Hollywood studios have been adapting scripts to appeal to global audiences, and casting foreign actors in leading roles.Which of the following statements most accurately explains the reason for this change?
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The purchasing power of the U.S. audience has reduced drastically.
Hollywood is now a truly global enterprise with the vast majority of revenues coming from outside the United States.
Hollywood actors and actresses are no longer willing to participate in domestic productions since there is no money in this industry.
The movie industries of other countries are not doing so well.
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Question 3
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Multiple Choice
As a result of globalization, the:
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economies around the world are becoming more independent.
cultural distance between countries is increasing.
cost of doing business around the world is increasing.
world's market economies are becoming more integrated.
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Question 4
Free
Multiple Choice
Jane is the CEO of a clothing brand, Diva Rule Inc., which has retail stores and production units in five different countries.The firm's shareholders ensure the proper management of Diva Rule Inc.through their appointed board of directors.In this scenario, Diva Rule Inc.is most likely a _____ .
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non-profit organization
nationalized firm
sole proprietorship
multinational enterprise
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Question 5
Free
Multiple Choice
European aircraft maker Airbus is investing $600 million in Mobile, Alabama, to build jetliners.Which of the following statements best explains why it is employing this strategy?
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To take advantage of the high labor costs in the southern United States
To take advantage of the high cost of living in the southern United States
To take advantage of the low impact of globalization in the United States
To take advantage of lower taxes in the southern United States
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Question 6
Multiple Choice
During the period of globalization 1.0, the mode of entry into foreign markets primarily involved:
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exporting goods.
making foreign direct investments.
making foreign institutional investments.
licensing production and distribution.
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Question 7
Multiple Choice
Which of the following is a feature of the globalization 2.0 stage?
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Huge investments in fiber-optic cable networks around the world enabled companies to operate as global-collaboration networks.
Only sales and distribution operations took place overseas, while all the important business functions were located in the home country.
Two-way knowledge flow between the local subsidiaries and their U.S. headquarters was strong.
Multinational enterprises (MNEs) began to create smaller, self-contained replicas of themselves in a few key countries.
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Question 8
Multiple Choice
Which of the following is an observable feature in the globalization 3.0 stage?
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Knowledge flow between the local replicas of the multinational enterprises and their U.S. headquarters is limited.
Only sales and distribution functions of a multinational enterprise are located in a few key countries.
Based on an optimal mix of costs, skills, and PESTEL factors, companies now freely locate business functions anywhere in the world.
Firms have reorganized from a global enterprise with different centers of expertise to a multinational company with self-contained operations in a few selected countries.
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Question 9
Multiple Choice
A trend observed during the globalization 3.0 stage involves:
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countries around the globe becoming more self-sufficient and independent.
multinational companies organizing as global-collaboration networks.
privately-owned firms getting nationalized.
world's market economies becoming less integrated.
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Question 10
Multiple Choice
How will an increase in coordinated economic and political integration between countries affect the world economy?
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The world's market economies will become self-sufficient and independent.
There will be gains in social welfare and living standards across the globe.
The cost of labor will further decline in emerging economies.
There will be a movement away from global-collaboration networks among multinational enterprises (MNEs).
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Question 11
Multiple Choice
How has China been affected by its one-child-per-family policy and appreciation of its currency?
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The purchasing power of its workforce has reduced.
The value added to production has reduced.
The standard of living within the economy has lowered.
The country's advantage in low-cost manufacturing has reduced.
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Question 12
Multiple Choice
GM entered China in 1997 through a joint venture with Shanghai Automotive Industrial Corp.(SAIC).Which of the following factors best contributes to the fact that the Chinese market already accounts for 25 percent of GM's total revenues?
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Chinese workers cost only a fraction of what U.S. workers do.
The company operates a larger number of assembly plants in China than the U.S.
The China operation sells more vehicles while employing twice the number of employees.
GM's China operation has never been cost-competitive.
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Question 13
Multiple Choice
Which of the following has been a key driver for firms to expand globally during the globalization 3.0 stage?
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Benefits from lower labor costs in manufacturing and services
Access to low-cost raw materials such as lumber and iron ore
Low levels of economic growth in emerging economies
Inefficient infrastructure in countries like China, which have brought down setting-up costs
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Question 14
Multiple Choice
India has been able to carve out a competitive advantage in business process outsourcing (BPO)primarily because:
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it has emerged as a manufacturing powerhouse.
of an efficient infrastructure and high labor costs.
it has an abundance of uneducated workers who are highly trainable.
of an abundance of well-educated, English-speaking young people.
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Question 15
Multiple Choice
Unilever's new-concept center is situated in downtown Shanghai, China, attracting hundreds of eager volunteers to test the firm's latest product innovations onsite while Unilever researchers monitor consumer reactions.In this example, Unilever is trying to reap the benefits of _____ .
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location economies
economies of scope
learning races
network effects
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Question 16
Multiple Choice
GearOne Autos Inc.has shifted its research and development unit from its home country to Germany.This allows the company to be better informed about the latest developments in the automotive industry by tapping into the highly advanced automotive industry in Germany.In this scenario, GearOne Autos Inc.is reaping the benefits of _____ .
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economies of scope
location economies
resource immobility
resource ambiguity
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Question 17
Multiple Choice
A firm is said to be pursuing a polycentric innovation strategy when:
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its research facility is situated in the headquarters and all other business activities are located around the world.
it draws from multiple, equally important research facilities located throughout the world.
it restricts its innovation to Western economies and production to developing markets.
its knowledge flow takes a one-way path-from its headquarters to the subsidiaries.
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Question 18
Multiple Choice
Which of the following statements accurately explains the primary reason behind Walmart's failure in Germany?
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Inability to implement its trademark focused-differentiation strategy in the German market
Significant differences between its U.S. personnel policies and Germany's culture
Germany's unfamiliarity with retail discount powerhouses
Metro's hostile takeover of Walmart in Germany
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Question 19
Multiple Choice
Silca Electronics Inc.is a consumer-electronics company based in the country of Pelo.It has approximately 300 stores across the country and is already active in three foreign countries.It attempts to establish itself successfully in the country of Zevar, and uses its low-cost strategy to do so.However, due to the additional costs associated with training, coordinating across geographic distances, and other costs associated with doing business in an unfamiliar cultural and economic environment, Silca Electronics Inc.incurs huge financial losses in Zevar.In this scenario, Silca Electronics Inc.'s failure to establish itself successfully in Zevar occurs most likely because:
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it overestimates its need to protect its intellectual property.
it underestimates its liability of foreignness when entering the Zevar market.
it underestimates its dwindling reputation before it enters the Zevar market.
it overestimates the geographic and cultural distance between Pelo and Zevar.
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Question 20
Multiple Choice
Japanese and European engineering companies entered China to participate in building the world's largest network of high-speed trains worth billions of dollars.Companies such as Kawasaki Heavy Industries (Japan), Siemens (Germany), and Alstom (France)were joint-venture partners with domestic Chinese companies.These firms now allege that the Chinese partners built on the Japanese and European partners' advanced technology to create their own, next-generation high-speed trains.This example best highlights the _____ that firms can experience when expanding overseas.
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threat of new entrants
liability of foreignness
loss of reputation
intellectual property exposure
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