Question 1

A think global,act global approach to strategy making is preferable to a think local,act local approach when

Accepted Answer

A think global, act global approach is most effective when differences between countries are minimal, allowing a company to utilize a largely uniform strategy across various markets. This approach leverages commonalities among markets to streamline operations and present a consistent brand worldwide.

Question 2

When expanding outside its domestic market,a company can gain competitive advantage by

Accepted Answer

Expanding outside of the domestic market can provide a company with opportunities to lower costs or differentiate its products through favorable location or cross-border coordination that a domestic-only competitor would not have access to. This can provide a significant competitive advantage. A, B, and C are not necessarily effective strategies for gaining a competitive advantage in international markets. E, a multidomestic strategy, may be effective in some cases, but is not the most broadly applicable answer.

Question 3

Dispersing the performance of value chain activities to many different countries rather than concentrating them in a few country locations tends to be advantageous in all of the following situations except

Accepted Answer

dispersing value chain activities to many different countries make it advantageous when resources retain their foreign contexts so that a competitive advantage can be gained in a broader domain. The other options mention situations where dispersing the performance of value chain activities would be advantageous.

Question 4

Which of the following is not a strategic option companies should consider in tailoring their strategy to fit circumstances of emerging country markets?

Accepted Answer

The option of entering only those emerging markets that provide profit sanctuaries by offering opportunities for offensive strategies, such as preemptive strikes, is not a viable strategic option as it limits the company's potential for growth and may result in missed opportunities. Companies should consider a range of strategic options including modifying their business model to fit local circumstances, competing on the basis of low price, and entering emerging markets where it is feasible to adapt their business model.

Question 5

Which of the following is an example of a modification in a particular company's business model to accommodate the unique local circumstances of developing countries?

Accepted Answer

The answer of Which of the following is an example...

Question 6

The ability of a multinational or global competitor to shift production from country to country to take advantage of exchange rate fluctuations,energy costs,wage rates,or changes in tariffs is an example of

Accepted Answer

This is an example of cross-border coordination because the multinational or global competitor is able to adjust their production and operations across different countries to take advantage of various factors such as exchange rate fluctuations, energy costs, and wage rates. This requires coordination across borders in order to make these adjustments effectively. Profit sanctuary pertains more to protecting profits within a specific market or product, international strategic alliance refers to a partnership between companies from different countries, cross-market subsidization refers to using profits from one market to subsidize operations in another, and cross-market differences pertain to differences in cultural, demographic, and market conditions between different international markets.

Question 7

The competitive strategy of a firm pursuing a think global,act local approach to strategy making

Accepted Answer

The answer of The competitive strategy of a firm pursuing...

Question 8

In competing in foreign markets,companies find it advantageous to concentrate their activities in a limited number of locations in all of these situations,except when

Accepted Answer

Concentrating activities in a limited number of locations may not be advantageous if the addition of new production capacity will negatively affect the supply-demand balance in the local market. In such cases, it may be more beneficial to diversify production locations to satisfy local demand and avoid over-saturation of the market.

Question 9

Which of the following is not a typical option that companies have to consider in order to tailor their strategy to fit the circumstances of emerging country markets?

Accepted Answer

Developing a strategy for the short-term and forgetting about long-term strategy is not a typical option for companies to tailor their strategy to fit the circumstances of emerging country markets. Developing a long-term strategy is vital for sustainable success in these markets.

Question 10

Which of the following is not a typical option that companies have to consider in order to tailor their strategy to fit the circumstances of emerging country markets?

Accepted Answer

Developing a strategy only for the short-term and forgetting about a long-term strategy is not a typical option that companies should consider in order to tailor their strategy to fit the circumstances of emerging country markets. Companies must have a long-term perspective and be flexible enough to adapt their strategy as circumstances change in emerging country markets.

Question 11

The transnational approach of a firm using a think global,act local version of a global strategy entails

Accepted Answer

The transnational approach of a firm using a think global, act local version of a global strategy involves pursuing the same basic competitive strategy in all countries where the firm does business while giving local managers some latitude to adjust product attributes and production, distribution, and marketing to be responsive to local market conditions. This means that the company maintains a global strategy but also adapts to local markets, hence the term "think global, act local." A is incorrect because producing a variety of product versions under the same brand name would be more indicative of a multi-domestic approach. B and D are incorrect as they suggest little to no coordination or brand consistency across countries, which goes against the idea of a global strategy. E is also incorrect as it only discusses customization of products and bypassing wholesale/retail dealers, but does not mention anything about a global strategy or taking local market conditions into account.

Question 12

To use location to build competitive advantage when competing in both domestic and foreign markets,a company must

Accepted Answer

To effectively use their location to build competitive advantage, a company needs to carefully consider which activities to concentrate in which countries. This may involve concentrating buyer-related activities in a few well-chosen locations to capture distribution-related economies of scale, but it may also involve dispersing production or distribution activities to minimize risks or take advantage of specific location-related benefits. Therefore, option B is the best choice.

Question 13

To use location to build competitive advantage,a company that operates multinationally or globally must

Accepted Answer

To use location to build competitive advantage, a company that operates multinationally or globally must consider whether to concentrate each activity it performs in a few select countries or disperse performance of the activity to many nations and in which countries to locate particular activities. This is known as the global configuration strategy. A company needs to consider factors such as the cost and availability of resources, market demand, political and legal environment, and cultural differences before deciding on a location strategy. Simply scattering production plants or concentrating all value chain activities in a single country are not effective strategies for building a competitive advantage based on location.

Question 14

Briefly identify the major reasons a company may choose to expand outside its domestic market.

Accepted Answer

The answer of Briefly identify the major reasons a company...

Question 15

A localized or multidomestic strategy

Accepted Answer

The answer of A localized or multidomestic strategy
...

Question 16

In which of the following circumstances is it not advantageous for a multinational competitor to concentrate its activities in a limited number of locations in order to build competitive advantage?

Accepted Answer

When a company has a competitively superior patented technology that it can license to foreign partners, it may not need to concentrate its activities in a limited number of locations in order to build competitive advantage. In this case, the company can license its technology and allow partners around the world to perform various value chain activities in their own locations, which can provide cost advantages and improve coordination. This allows the company to leverage its technology for competitive advantage without having to concentrate its activities in a limited number of locations.

Question 17

The drawbacks of a localized multidomestic strategy include

Accepted Answer

Localized multidomestic strategy focuses on customizing products and marketing strategies to suit the local market. However, this can hinder the transfer of a company's competencies and resources across country boundaries, which can be essential for achieving a uniform competitive advantage in all country markets where a company operates. Additionally, localized strategies can pose challenges in building multiple profit sanctuaries and may not be suitable for competing in emerging markets.

Question 18

Televisa,a Mexican media company,became the world's most prolific producer of Spanish-language soap operas owing to its expertise in Spanish culture and linguistics.Which of the following strategies did Televisa employ to defend against global giants?

Accepted Answer

The answer of Televisa,a Mexican media company,became the world's most...

Question 19

Two major drawbacks of a think local,act local multidomestic strategy are

Accepted Answer

A think local, act local multidomestic strategy can hinder the transfer of competencies and resources across countries due to the need for different strategies in each market, and it does not promote a unified competitive advantage across all markets.

Question 20

Companies racing for global market leadership

Accepted Answer

Companies racing for global market leadership cannot ignore the huge potential of emerging markets. Emerging markets have growing middle classes with increasing purchasing power, and companies can establish a strong competitive position by capturing a share of this market. Therefore, companies have to consider establishing competitive positions in the markets of emerging countries.

Quiz 7: Strategies for Competing in International Markets

A think global,act global approach to strategy making is preferable to a think local,act local approach when

When expanding outside its domestic market,a company can gain competitive advantage by

Dispersing the performance of value chain activities to many different countries rather than concentrating them in a few country locations tends to be advantageous in all of the following situations except

Which of the following is not a strategic option companies should consider in tailoring their strategy to fit circumstances of emerging country markets?

Which of the following is an example of a modification in a particular company's business model to accommodate the unique local circumstances of developing countries?

The ability of a multinational or global competitor to shift production from country to country to take advantage of exchange rate fluctuations,energy costs,wage rates,or changes in tariffs is an example of

The competitive strategy of a firm pursuing a think global,act local approach to strategy making

In competing in foreign markets,companies find it advantageous to concentrate their activities in a limited number of locations in all of these situations,except when

Which of the following is not a typical option that companies have to consider in order to tailor their strategy to fit the circumstances of emerging country markets?

Which of the following is not a typical option that companies have to consider in order to tailor their strategy to fit the circumstances of emerging country markets?

The transnational approach of a firm using a think global,act local version of a global strategy entails

To use location to build competitive advantage when competing in both domestic and foreign markets,a company must

To use location to build competitive advantage,a company that operates multinationally or globally must

Briefly identify the major reasons a company may choose to expand outside its domestic market.

A localized or multidomestic strategy

In which of the following circumstances is it not advantageous for a multinational competitor to concentrate its activities in a limited number of locations in order to build competitive advantage?

The drawbacks of a localized multidomestic strategy include

Televisa,a Mexican media company,became the world's most prolific producer of Spanish-language soap operas owing to its expertise in Spanish culture and linguistics.Which of the following strategies did Televisa employ to defend against global giants?

Two major drawbacks of a think local,act local multidomestic strategy are

Companies racing for global market leadership