International Business Strategies Quiz

What is the primary goal of a firm’s strategy?

• To increase the company’s debt

• To maximize shareholder losses

• To attain profitability and profit growth

• To reduce the number of customers

Which of the following is NOT a basic international strategy?

• Global Standardization

• Localization

• Transnational

• Horizontal Integration

Which strategy focuses on reaping cost reductions through economies of scale, learning effects, and location economies?

• International Strategy

• Localization Strategy

• Global Standardization Strategy

• Transnational Strategy

A firm following a localization strategy should focus on:

• Reducing costs by standardizing operations globally

• Customizing products and services to match local preferences

• Maximizing global consistency in branding

• Expanding rapidly without market research

Which strategy tries to balance cost reduction and local responsiveness?

• International Strategy

• Localization Strategy

• Transnational Strategy

• Differentiation Strategy

Which of the following factors influence a firm’s international strategy choice?

• Cost pressures and local responsiveness

• Number of employees

• Tax policies only

• Currency exchange rates

When is a global standardization strategy most effective?

• When cost pressures are high and local responsiveness is low

• When cost pressures are low and local responsiveness is high

• When customization is the main priority

• When the firm operates only in its home country

An international strategy is most suitable when:

• There are low cost pressures and low pressures for local responsiveness

• A company is new to the global market and wants to expand aggressively

• Local market preferences vary significantly

• Government regulations are highly restrictive

Which of the following statements about transnational strategy is true?

• It focuses only on cost reduction

• It ignores local responsiveness

• It tries to achieve both cost efficiency and local responsiveness

• It does not involve any international expansion

Which concept refers to systematic reductions in production costs over time due to learning effects and economies of scale?

• Value Chain

• Experience Curve

• Cost Leadership

• Differentiation