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| 1 | |
In many developing economies, distributions of income remain much narrower than they do in the developed world, leaving many impoverished even as the economies grow. This creates a challenge for globalization to determine how to meet the needs of customers at these same income levels. |
| | A) | True |
| | B) | False |
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| 2 | |
The Michael Porter Diamond of National Advantage is a framework that explains why countries foster successful multinational corporation based on non-factor endowments, non-demand conditions, related and supporting industries; and firm strategy, structure, and rivalry. |
| | A) | True |
| | B) | False |
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| 3 | |
The sale in many foreign countries of Boeing commercial aircraft and Microsoft operating systems are examples of how global presence prohibits firms from attaining economies of scale. |
| | A) | True |
| | B) | False |
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| 4 | |
Onshoring takes place when a firm decides to shift an activity that they were previously performing in a domestic location to a foreign location. |
| | A) | True |
| | B) | False |
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| 5 | |
When firms expand into global markets, they are faced with the choice of reducing costs and/or adapting to the local market. When low pressures exist to lower costs, companies should choose a __________ or __________ in order to compete in the global marketplace. |
| | A) | global strategy: multidomestic strategy |
| | B) | transnational strategy; global strategy |
| | C) | international strategy; multidomestic strategy |
| | D) | international strategy; transnational strategy |
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| 6 | |
Which would be the appropriate strategy for companies to use to compete in the global marketplace if the marketplace pressures are high to lower costs and high for local adaptation? |
| | A) | global strategy |
| | B) | international strategy |
| | C) | multidomestic strategy |
| | D) | transnational strategy |
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| 7 | |
Industries in which proportionally more value is added in __________ activities, such as service, are more likely to benefit from a decentralization strategy. |
| | A) | upstream |
| | B) | downstream |
| | C) | marketing |
| | D) | sales |
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| 8 | |
A multidomestic strategy is one of decentralization, meaning more likelihood of local production. One benefit of this is _________ costs in transportation. |
| | A) | increased |
| | B) | decreased |
| | C) | stable |
| | D) | fluctuating |
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| 9 | |
Which of the following is not a reason for the rise in global expansion? |
| | A) | increase in the number of trading blocs and free trade zones |
| | B) | increase in the number of local customers |
| | C) | decreasing national trade restrictions |
| | D) | decreasing value of local taxes and tariffs |
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| 10 | |
The form of entry strategy into international operations that offers the lowest level of control for the domestic corporation would be _____________. |
| | A) | franchising |
| | B) | exporting |
| | C) | licensing |
| | D) | joint venture |
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