International Strategy: Creating Valuein Global Markets

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Questions Bank

Strategic Management: Creating Competitiveadvantages
Analyzing the External Environment Ofthe Firm: Creating Competitive Advantages
Assessing the Internal Environmentof the Firm
Recognizing a Firms Intellectual Assets: Moving Beyond a Firms Tangibleresources
Business-Level Strategy: Creating Andsustaining Competitive Advantages
Corporate-Level Strategy: Creatingvalue Through Diversification
International Strategy: Creating Valuein Global Markets
Entrepreneurial Strategy and Competitive Dynamics
Strategic Control and Corporategovernance
Creating Effective Organizational Designs
Strategic Leadership: Creating a Learning Organization and an Ethical Organization
Managing Innovation and Fosteringcorporate Entrepreneurship

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Question 1

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The trend towards worldwide markets makes it easier to predict where competitors will spring up.

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Question 2

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Because many countries are investing in countries other than their own,each country is becoming more autonomous and independent.

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Question 3

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Increasing international exchange in goods and services can run into the difficulty of having one offer that meets the needs of customers at differing income levels.

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Question 4

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By 2015,it is predicted that trade within nations will exceed trade across nations.

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Question 5

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There are risks associated with the Bottom of the Pyramid strategy.One of them is that the new low-cost products that are developed may cannibalize the sales of the core products of the company using the strategy.

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Question 6

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Emerging markets are growing slower than developed markets,thus shifting the structure of the global economy.

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Question 7

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The Michael Porter Diamond of National Advantage is a framework that explains why countries foster successful multinational corporations based on factor endowments and demand conditions only.

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Question 8

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The factor endowments of a country are inherited and cannot be created.

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Question 9

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With regard to factor conditions,the pool of resources that a firm (or nation)has is much more important than the speed and efficiency with which these resources are deployed.

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Question 10

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Demanding domestic consumers tend to push firms to move ahead of companies in other countries where consumers are less demanding and more complacent.

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Question 11

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High levels of environmental awareness in Denmark have led to a decline in Danish industrial competitiveness in the international marketplace.

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Question 12

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Countries with a strong supplier base benefit by adding efficiency to downstream activities.

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Question 13

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Typically,intense rivalry in domestic markets does not force firms to look outside their national boundaries for new markets.

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Question 14

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Many international firms are increasing their efforts to market their products and services to countries such as India and China as the ranks of their middle class continue to increase.

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Question 15

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Expanding the global presence of a firm does not automatically increase its scale of operations.

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Question 16

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Arbitrage opportunities are more than simple trading opportunities and account for a large part of the success Walmart experiences.

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Question 17

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Arbitrage opportunities in global financial markets are more attractive to local companies than global corporations,because they enable them to buy in huge volume and therefore increase their bargaining power with suppliers.

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Question 18

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International expansion can extend the life cycle of a product that is in its maturity stage in the company home country.

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Question 19

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An advantage of international expansion is that it can enable a firm to optimize the location of every activity in its value chain.

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Question 20

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The laws and the enforcement of laws associated with the protection of intellectual property rights,represent a significant currency and management risk to multinational firms.

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