MGMT 497 Chapter 7 Flashcards

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Because buyer tastes for a particular product or service sometimes differ substantially from country to country,

companies operating in a global marketplace must wrestle with whether and how much to customize their offerings in each different country market to match the tastes and preferences of local buyers or whether to pursue a strategy of offering a mostly standardized product worldwide.


Which of the following is not a potential benefit of collaborative strategies involving alliances and/or joint ventures with foreign partners?

Greater ability to employ offensive strategies and build well-protected profit sanctuaries


Which of the following qualifies as an offensive strategy for companies competing internationally or globally?

Attacking the profit sanctuaries of rival companies


Which of the following is the most unlikely element of a "think global, act global" approach to strategy-making?

Selling different product versions under different brand names


According to Figure 7.2, which one of the following does not accurately characterize the differences between a localized multicountry strategy and a global strategy?

A localized multicountry strategy involves competing on the basis of the same competencies and resource capabilities in each country market where it operates whereas a global strategy entails rapid cross-country transfers of new ideas, products, and capabilities.


Which of the following is not one of the primary strategy options for competing in the markets of foreign countries?

Employing a multiple cross-country strategy that involves strategic alliances, joint ventures, and other cooperative agreements with foreign companies


Multicountry competition refers to a market situation where

there's so much cross-country variation in market conditions and in the companies contending for leadership that the market contest among rivals in one country is localized to that country and not closely connected to the market contests in other countries.


The advantages of using a franchising strategy to pursue opportunities in foreign markets include

having franchisees bear most of the costs and risks of establishing foreign locations and requiring the franchiser to expend only the resources to recruit, train, support, and monitor foreign franchisees.


Which one of the following is not a reason why a company decides to enter foreign markets?

To build the profit sanctuaries necessary to wage guerilla offensives against global challengers endeavoring to invade its home market


In which of the following situations is employing a "think local, act local" multicountry strategy highly questionable?

When a company is striving to build a globally recognized brand name for one of its products or services


A U.S. manufacturer that exports goods made at its U.S. plants for shipment to foreign markets

becomes more cost competitive in selling its exported goods in foreign markets when the U.S. dollar declines in value against the currencies of the countries to which it is exporting.


Competing in one or more countries or regions of the world causes strategy-making to be more complex because of

differing governmental policies and regulations from country to country and the risks of adverse shifts in currency exchange rates.


The classic reason for locating a particular value chain activity in a particular country is

to achieve low costs in performing that activity.


A company that has competitively powerful resources and capabilities can enhance its competitiveness internationally and perhaps build competitive advantage by

transferring a portion of these resources and capabilities from its operations in one country to its operations in other countries because the cost of sharing or transferring already developed resources and capabilities across country borders is low in comparison to the time and considerable expense it takes for a country subsidiary to build matching capabilities on its own.


Which of the following is not among the important strategic issues associated with competing across national boundaries?

How best to revamp the company's value chain in order to facilitate achievement of a global competitive advantage