PRE-TEST: Topic 8 Strategy of IB

A firm has high profits when it creates more value for its customers.

• TRUE

• FALSE

Low-cost and differentiation cannot be adopted simultaneously (both in one time).

• TRUE

• FALSE

Differentiation strategy ensures customers are not willing to pay more for a product.

• TRUE

• FALSE

Firms may produce a premium and unique product in differentiation strategy.

• TRUE

• FALSE

Pricing is very crucial in low-cost strategy.

• TRUE

• FALSE

Firms may produce a premium and unique product in differentiation strategy.

• TRUE

• FALSE

Pressures for cost reductions arise when consumers are powerful and face low switching costs.

• TRUE

• FALSE

Strong pressure emerges when consumer tastes and preferences are similar between countries.

• TRUE

• FALSE

Localization strategy makes sense when there are low pressures for cost reduction AND local responsiveness.

• TRUE

• FALSE

The goal of globalization strategy is to pursue a low-cost strategy on a global scale.

• TRUE

• FALSE