Chapter 8—International Strategy
TRUE/FALSE
3. A traditional motive for internationalization has been to cure needed resources,
especially minerals and energy.
4. In order to achieve economies of scale, some manufacturing industries in nations
(such as Korea) with small domestic markets must globalize.
7. To the extent that a firm is able to standardize products across country borders, u
the same or similar production facilities, and coordinate critical resource functions,
the more likely it is to achieve economies of scale.
10. The requirement for local repair and rvice capabilities has discouraged
manufacturers of houhold appliances, such as General Motors and Toyota, from
diversifying internationally.
13. When a firm initially pursues an international business-level strategy, its home country
of operation may be its most important source of competitive advantage.
14. Both the size and the nature of a country’s domestic demand for a particular
industry’s good or rvice are important in Porter’s model of national competitive advantage.
19. A major advantage of multidomestic strategies is the ability to customize for the
specific market, although this sacrifices economies of scale.
20. A global strategy assumes that the strategic business units operating in each country
are interdependent.
22. A transnational strategy is difficult to achieve becau the multiple objectives involved
are contradictory.
26. Exporting and licensing are the most appropriate ways for smaller firms to first enter
international markets.
29. Although licensing is the least costly method to enter a foreign market, its
disadvantages include high costs of transportation and low control over the
marketing and distribution of goods.
30. Strategic alliances tend to increa the risk associated with international expansion for
the U.S. partner becau of the greater dependence on the foreign firm.
31. Establishing a wholly-owned subsidiary provides the quickest access to a new market.
35. International diversification ca n help to reduce a firm’s overall risk through the
stabilization of returns.
39. International strategies are complex and can therefore produce greater uncertainty
for the firm.
46. If a firm choos to expand internationally, it must attempt to compete in all the
major world markets, or el lo its competitive advantage.
MULTIPLE CHOICE
1. Shanghai Automotive Industry Corporation (SAIC) exports few cars outside of the
Chine market. Why might established automakers monitorSAIC cloly?
a.SAIC is prently exporting cars to developing economies where the firms
碧玉值钱吗also compete.
b.SAIC is growing in the Chine market where the firms also compete.
c.SAIC is expected to ek entry into the firms’ home markets in the
future.
d.All of the above reasons are accurat陌路花开
e.
公司元宵节祝福语2. Chine firms are becoming more competitive globally due to all of the following
EXCEPT
起源的英文a.emerging technological capabilities gained from foreign partners.
草莓的苗b.the development of their own branded products.
relative to the dollar and euro.
d.incread managerial capabilities.
3. International strategy refers to a(an)
a.action plan pursued by American companies to compete against foreign
companies operating in the United States.
b.strategy through which the firm lls products in markets outside the12寸有多大
桂圆上火吗firm’s domestic market.
c.political and economic action plan developed by business and
governments to cope with global competition.
d.strategy American firms u to dominate international markets.
7. The motivations for expanding into international markets include each of the
following opportunities EXCEPT
a.increasing the size of the firm’s potential markets.
b.incread return on investment.
c.gaining a competitive advantage through location.
d.favorable tax concessions and economic incentives by home-country
governments.
11. Moving into international markets is a particularly attractive strategy to firms who
不是浮云domestic markets
a.demand a differentiation strategy for success.
