Session 10 Quiz Strategic Management

Multinational firms are constantly faced with the dilemma of choosing between _______ and __________.

• local adaptation; global integration

• local adaptation; local integration

• global adaptation; local integration

• global adaptation; global integration

According to Michael Porter, firms that have experienced intense domestic competition are _________________________________.

• unlikely to have the time or resources to compete abroad

• more likely to demand protection from their governments

• most likely to design strategies aimed primarily at the domestic market

• more likely to design strategies and structures that allow them to successfully compete abroad

Which of the factors below has not made the software services industry in India extremely competitive on a global scale?

• large pool of skilled workers

• large network of public and private educational institutions

• tax and antitrust legislation that protects the dominant players in the industry

• large, growing market and sophisticated customers

If the U.S. dollar appreciates relative to foreign currency, what is likely to be the result for the U.S. company that has company branches abroad?

• Profits will increase, when measured in U.S. dollars.

• Profits will decrease, when measured in U.S. dollars.

• Foreign exports to the United States will decrease.

• Foreign demand for U.S. goods and services will decrease.

__________ occurs when a firm decides to utilize other firms to perform value-creating activities that were previously performed in-house.

• Offshoring

• A global strategy

• Outsourcing

• A transnational strategy

When firms expand into global markets, they are faced with the choice of reducing costs and/or adapting to the local market. When high pressures exist to lower costs, companies should choose a __________ or __________ in order to compete in the global marketplace.

• global strategy; transnational strategy

• global strategy: multidomestic strategy

• international strategy; multidomestic strategy

• international strategy; transnational strategy

When firms expand into global markets, they are faced with the choice of reducing costs and/or adapting to the local market. When high pressures exist to adapt locally, companies should choose a __________ or __________ in order to compete in the global marketplace.

• global strategy; transnational strategy

• global strategy: multidomestic strategy

• international strategy; global strategy

• transnational strategy; multidomestic strategy

Which would be the appropriate strategy for companies to use to compete in the global marketplace if the marketplace pressure is for lower costs with little pressure for local adaptation?

• international strategy

• global strategy

• multidomestic strategy

• transnational strategy

High pressure for local adaptation combined with low pressure for lower costs would suggest what type of international strategy?

• global strategy

• multidomestic strategy

• transnational strategy

• overall cost leadership strategy

Firms following a global strategy strive to offer __________ products and services as well as locate manufacturing, Research and Development, and marketing activities in a limited number of locations.

• more expensive local

• more expensive local

• internationally differentiated

• standardized