Strategy in International Business
Multiple Choice Questions
STUDY QUESTION 1: What are some of the general features of the challenge and importance of strategy in international business?
1. Generally, managers planning strategy in the global marketplace consider it more complex due to all of the following except _____. a. the steady reduction in trade barriers creates fewer opportunities in previously protected markets (interpretation, page 363) b. they often must compete with cost-efficient overseas rivals c. many overseas competitors operate with greater economies of scale d. the challenge of configuring and coordinating globally dispersed operations
2. Forces that represent the system outside the international firm's boundaries which influence the strategic actions of its managers include _____. a. manufacturing economies
b. monetary policies (interpretation, page 364)
c. supply chain transactions
d. product design standards
3. The idea and perspective of strategy that a company uses to guide its international operations outlines how it plans to _____. a. choose which foreign markets to enter
b. identify which companies to form alliances with
c. modify political conventions and cultural norms (interpretation, page 364) d. build an organization to govern worldwide activities
4. One of the biggest strategic challenges to competing in the international marketplace is _____. a. optimizing the sequence of tactical adjustments
b. discounting cross-country differences in cultural, demographic, and market conditions c. determining how to charge the same price in all countries d. mediating pressure to offer a mostly standardized product worldwide or customizing the company's offerings in each different market (interpretation, page 364)
STUDY QUESTION 2: What are the competing views of firm performance in terms of the industry organization (IO) versus general management perspectives?
5. The industry organization (IO) paradigm reports that, on average, the best predictor of firm performance is the _____. a. company's stockpile of assets, skills, and capabilities b. aggressiveness of a company's objectives
c. consistency among a company's structure, systems, and processes d. profitability of the industry in which it competes (definition, page 365)
6. According to the industry organization (IO) paradigm, which of the following sequence is the fundamental steps to achieve superior performance? a. firm conduct-->industry structure-->firm performance
b. industry structure-->environmental context-->firm performance c. industry structure-->firm conduct-->firm performance (interpretation, page 365) d. environmental context-->firm conduct-->firm performance
7. In contrast to the industry organization (IO) paradigm, the general management view proposes which of the following sequence as the fundamental steps to creating value-creating strategy? a. visionary leadership-->innovative strategy-->insightful product market analysis -->superior return
b. visionary leadership-->insightful product market analysis--> innovative strategy--> superior return (interpretation, page 365) c. visionary leadership-->insightful product market analysis-->superior return-->innovative strategy d. visionary leadership-->innovative strategy-->superior return-->insightful product market analysis
8. Although the industry organization (IO) paradigm suggests industry structure is deterministic of firm performance, an alternative view suggests that firm performance is significantly influenced by _____. a. bright, motivated managers (interpretation, page 365)
b. political trends and events
c. innovative products
d. the emergence of new markets
STUDY QUESTION 3: What is industry structure? How can managers interpret it?
9. Increasing globalization is a powerful force of change for...