WorksheetsONLINE TEST :4 STRATEGY DEVELOPMENT IN IB
Total questions: 50
Worksheet time: 2hrs 38mins
In the context of value chain analysis, the primary activities of a firm include:
A) R&D, human resources, materials management, and production
B) service, human resources, production, and materials management
C) company infrastructure, information systems, human resources, and materials management
D) R&D, production, marketing & sales, and service
Global expansion allows firms to achieve all of the following except _______________________.
A) minimize returns by failing to capture skills developed in foreign countries
B) realize location economies by dispersing value creation activities on the optimal location
C) realize cost economies from experience effects generated by serving a larger market from a central location
D) expand the market for their domestic product offerings by selling those products in international markets
A firm that is positioned in the upper left hand corner of the cost reductions/local responsiveness grid is facing
A) high pressure for local responsiveness and high pressure for cost reductions
B) low pressure for local responsiveness and high pressure for cost reductions
C) high pressure for local responsiveness and low pressure for cost reductions
D) low pressure for local responsiveness and low pressure for cost reductions
Firms such as Intel or Texas Instruments that produce products serving universal needs follow a _______ strategy.
A) global standardization
B) localization
C) international
D) transnational
Apple Inc. suit with strategy _____________
international
global standardization
localization
transnational
What is contract manufacturing
The company manages its entire value chain in the foreign market except for contracting logistics
When a local (foreign) lawyer helps prepare contracts with agents or distributors
The production is made by a foreign firm; the rest of the value chain is taken cared of by the company itself
When a foreign firm decides to outsource its down-stream functions to an external partner
When working with Franchising and/or Licensing the difference is that
When licensing the foreign firm does not handle marketing
When licensing the foreign firm handles marketing
When franchising the foreign firm does not handle marketing
When franchising the foreign firm does not handle marketing
Which mode is franchising
Export mode
Intermediate mode
Hierarchical mode
What does Ethnocentric orientation mean
The company views regions as unique and seeks to develop an integrated regional strategy
The company assumes that its home country is superior to the rest of the world
The company views the entire world as a potential market and strives to develop integrated world market strategies
The company assumes that each country in which the company does business is unique
What term could refer to an equity partnership between two or more partners
X coalition
Y coalition
Joint venture
Licensing
What is the first step in selecting a foreign market?
assessing market potential
monitoring major markets
evaluating host country's trade policies
assessing general legal and political environments
________ are those factors that affect the desirability of host country production relative to home country production.
Ownership advantages
Location advantages
National competitive advantages
Internalization advantages
When deciding which mode of entry to use, a firm must consider things like ownership advantages, location advantages, and internalization advantages.
True
False
________ is the most common form of international business activity.
Exporting
Licensing
Greenfield strategy
Management contract
Franklin Carpets engages in indirect exporting, so the firm sells its carpets to a(n) ________.
domestic customer who then sells the carpets to a foreign customer
foreign customer who then sells the carpets to a domestic customer
affiliated company located in a foreign country
foreign customer through e-commerce
What are the third parties that specialize in facilitating imports and exports called?
intermediaries
wholesalers
exporters
distributors
Kodak focuses on developing photo editing software, and the firm has agreements with a Chinese manufacturer to assemble most Kodak cameras. Which entry mode for international business is used by Kodak?
management contracting
international franchising
contract manufacturing
international licensing
One disadvantage of exporting is the logistical complexities.
True
False
Ownership advantages are always tangible or intangible resources owned by a firm that grant it a competitive advantage over its industry rivals.
True
False
Licencing and Franchising are same?
True
False
How many modes of entry are there in International market
5
10
11
12
Make In India movement helps in generating employment
True
False
TRIMs stands for
Target Regarding Investment Modes
Trade Related Investment Measures
Trade Related Insurance Markets
Trade Relevent to International Markets
Business transactions taking place within the geographical boundaries of a nation is known as -------------------------.
(a)
Goods that are tangible are called ---------------------.(merchandise)
(a)
Giving permission to produce and sell goods in another country under a specific trademark is known as -------------------.
(a)
The most appropriate and secure method of payment adopted to settle international transactions is (a) .
The Trade which refers to purchase of goods from a foreign country is called (a) .
Importers appoint (a) who are well versed with the formalities of customs clearance.
General agreement for Tariffs & Trade was transformed into (a) on January 1, 1995.
"The goods were not loaded on the ship as they did not get the custom clearance due to lack of one of the main document."Identify the document which was required among the following:-
(a) Bill of clearance
(b) Custom bill
(c) Shipping bill
(d) Bill of exchange
Performa Invoice is issued by the-
(a) Shipping company of importer
(b) Exporter to importer
(c) Importer to exporter
(d) Exporter to the shipping company
Which of the following documents is not required in connection with an import transaction?
(a) Bill of lading.
(b) Shipping bill.
(c) Certificate of origin.
(d) Shipment advice.
Which of the following is not a document related to export transaction?
a. Shipping Bill
b. Airway Bill
c. Mate’s Receipt
d. Bill of Entry
Profit growth can be achieved through ________
increase cost
decrease cost
add value and raise prices
enter new markets
The two basic strategies for creating value are ________
value and cost
differentiation and low cost
profitability and profit growth
R&D and production
The following is the component of support activities EXCEPT _________
Information system
Logistics
Human resources
R & D
Organization architecture include the following EXCEPT
control systems and incentives
organizational culture
market conditions
processes
Organization architecture include the following EXCEPT
Processes
Control & incentives
Market conditions
Organization culture
Which strategy is make sense when there are low cost pressures and low pressures for local responsiveness?
Localization strategy
Global standardization strategy
Transnational strategy
International strategy
Job work is an example of:
a. B2B commerce
b. E- business
c. Outsourcing
d. C2C commerce
The term outsourcing has more popularly came to be associated with
(a) job- work
(b) knowledge process outsourcing
(c) business process outsourcing
(d) legal process outsourcing
Ethnocentricity can be defined as the ________.
A) scientific description of individual human societies
B) systematic study of an ethnic group's religious core
C) merging of all ethnic practices into one homogeneous culture
D) belief that one's own ethnic group or culture is superior to that of others
Which of the following would characterize a nation with high degree of economic freedom?
A) low tariffs
B) strict trade policies
C) government interventions
D) flourishing black markets
It involves pulling of resources among foreign and local coinventors to operate the business.
Strategic Alliance
joint ventures
franchising
