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Chapter 13: The Strategy of International Business

Total questions: 10

Worksheet time: 6mins

Name
Class
Date
1.

What does regionalism refer to?

a)

a) Favoring local supplies rather over international

b)

b) Formation of economic agreements between countries within a specific geographic region

c)

c) Standardizing products for global market

d)

B and C

2.

How do differences in tastes and preferences of customer impact on firm production process?

a)

Firm ignore local preferences to maintain their product quality

b)

Firm standardize their products all across markets

c)

Firm customize their products according to the local needs and wants

d)

Firm cannot distribute their product into that market since the product does not meet the tastes and preferences

3.

What are practical strategies to use when there is a high competition? (Check all that apply)

a)

Global Standardization

b)

Transnational

c)

Internationalization

d)

Localization

4.

What strategy to implement when the firm is in a high-pressure local responsiveness and high-pressure cost reduction?

a)

Global Standardization

b)

Transnational

c)

Internationalization

d)

Localization

5.

International Strategy focus mostly on local customization. Is it true or false?

a)

True

b)

False

6.

USA and China are the two world largest economies because their actions always affect to global economic directly, is this statement true or false?

a)

True

b)

False

7.

If many countries gathered to be a group and continue to develop their economies, then they have free trade between each other and create higher barrier between trading bloc, what is the standard that they should use?

(a)  

8.

What are two types of competitive pressure that international firms faces? (Select all that apply)

a)

To be local responsive

b)

exchange rate

c)

rise of regionalism

d)

cost reduction

e)

Regulations

9.

Firms A want to expand their business in Vanuatu, and in order to successfully expand in the country, firms A may need to differentiate their products for matching with the country’s market demand. By doing that, what would be the consequence of Firms A’s action?

a)

raising of the production costs

b)

the production becomes more standardized

c)

decreasing in price of the product

d)

the company may lose their market shares

10.

What does universal needs mean?

a)

Needs that are the same all over the world, such as steel, bulk chemicals, industrial electronics.

b)

Economics and political demands imposed by host-country governments may require local responsiveness.

c)

Creating value by discovering consumer needs.

d)

Skills that competitors cannot easily match or imitate.