635. International Business Flashcards Preview

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Flashcards in 635. International Business Deck (60):
1

Overall, strategy is

none of the above

2

a rulebook

Anglo-American capitalism

3

The word blank____________ has now become the most famous Chinese business word to appear in English-language media and means interpersonal networks.

guanxi

4

"Global Strategy" refers to

a particular theory on how to compete
B
offering standardized products and services on a worldwide basis
C
strategy of firms around the globe -- essentially various firms' theories about how to compete successfully
D
all of the above

5

Global strategies have reached new levels of significance because of three defining events:

terrorist attacks, anti-globalization protests, and corporate crisis in Asia and the U.S.

6

A SWOT analysis entails a firm's assessment of blank______

strengths, weaknesses, opportunities, and threats

7

At the dawn of the 21st century, blank____ had significant ramifications for companies and strategists around the world.

A
anti-globalization protests
B
terrorist attacks
C
corporate governance crisis
D
all of the above

8

Knowing the concepts and components of global strategy will


A
improve job and career opportunities
B
build awareness of what is going on in the world
C
avoid the downside risks of globalization
D
all of the above

9

What is the best view of the concept of globalization?


A
A new force sweeping through the world in recent times
B
A long-run historical evolution since the dawn of human history
C
A pendulum that swings from one extreme to another from time to time
D
All of the above

10

What are the three "legs" of the strategy tripod that ensure a strategy impacts performance?

Industry-based competition, firm-specific resources and capabilities, and institutional conditions and transitions

11

In developing a strategy regarding competition or cooperation, it would be useful to not

"Look back, reason ahead"

12

"The extent to which a given competitor possesses strategic endowment comparable, in terms of both type and amount, to those of the focal firm" refers to similarity of

resources

13

Which is not true concerning U.S. anti-trust policy today?

The legal standards for inter-firm cooperation are no longer ambiguous in the U.S.

14

Dumping is defined as

an exporter selling below cost abroad and planning to raise prices after eliminating local rivals

15

In some industries where pressures for globalization are relatively low, local firms may possess some skills and assets that are transferable overseas, thus leading to a/anblank_____ strategy.

extender

16

The main types of attack include

A
thrust
B
feint
C
gambit
D
all of the above

17

Which of the following would not be considered an initial set of actions to gain competitive advantage:

counterattacks

18

Which of the following is not a legal means of signaling?

Direct discussion of reduced rivalry with competitors

19

Which is true of strategy?

All of the above

20

The three drivers of counterattacks do not include

vengeance

21

Which of the following is not an argument in favor of centralization in knowledge management but instead is an argument in favor of decentralization?

Permits greater speed, flexibility, and innovation

22

Unique to international competition are the pressures for local responsiveness, which are reflected in

A
consumer preferences
B
distribution channels
C
host country demands
D
all of the above

23

Four strategic choices for MNEs do not include

B
domestic

24

The type of knowledge that is codifiable (that is, it can be written down and transferred without losing much of its richness) is called

explicit

25

Which is true of globalized R&D?

For large firms, there are actually diminishing returns for R&D

26

Knowledge management uses “centers of excellence” in which type of MNE?

global standardization

27

Localization (multi-domestic) strategy involves all of the following except

global standardization strategy is the same as a multi-domestic strategy

28

Pressures for cost reductions and local responsiveness include


A
the framework of how to simultaneously deal with these two sets of pressures
B
host country demands and expectations
C
being locally responsive makes local customers and governments happy but increase costs
D
all of the above

29

Which of the following is not an argument in favor of decentralization in knowledge management but instead is an argument in favor of centralization?

Sufficient power for corporate-level managers to initiate necessary actions

30

This structure is often used to supply customers (often other MNEs) in a coordinated and consistent way across various countries.

global account structure

31

The differences in formal and informal institutions that govern the rules of the game in different countries include blank_______ differences.

A
Regulatory
B
Language
C
Cultural
D
All of the above

32

As firms expand into more countries, they should recognize:


Foreign firms are still often discriminated against.
B
Foreign firms primarily deploy overwhelming resources and capabilities that offset the liability of foreignness.
C
Foreign firms are able to offset the liability of foreignness and still have some competitive advantage.
D
All of the above.

33

Small firms in a large domestic market are referred to as:

Occasional internationalizers.

34

Firms may choose not to enter certain countries if:

There are dissemination risks.

35

Organizing firm-specific resources and capabilities as a bundle:

Favors firms with strong complementary assets.

36

Which of the following are not regulatory risks?

Recent trends among host governments regarding their relationships with MNEs.

37

Which of the following exemplify trade barriers?

A
Tariffs.
B
Local content requirements.
C
Restrictions on certain entry modes.
D
A and C above.
E
All of the above.

38

The strategic goal of blank__________ involves going after countries that offer the highest price.

Market seeking

39

First mover advantages do not include:

Successful clashes with dominant firms in domestic markets

40

Large-scale entries do which of the following?


A
Benefit from a strategic commitment.
B
Assure local customers and suppliers.
C
Deter potential entrants.
D
A and B above.
E
All of the above.

41

Non-equity modes of entry typically involve:

Exports and contractual agreements.

42

All of the following are true of direct exports except:

The agendas and objectives of the intermediaries and exporters are the same.

43

Selling the rights to intellectual property for a royalty fee is involved in:

Licensing/franchising.

44

Greenfield operations refers to:

Wholly owned subsidiaries.

45

Sources of operational synergy include:

A
Technologies.
B
Marketing.
C
Manufacturing.
D
All of the above.

46

Diversification premium is the same thing as:

Conglomerate advantage.

47

Which would be more characteristic of conglomerates?

“Putting one’s eggs in similar baskets.”
C
“Putting one’s eggs in different baskets.”

b and c

48

Research regarding the relationship between product diversification and firm performance indicates that:


A
Performance may increase as firms shift from single business strategies to product-related diversification.
B
Performance may decrease as firms change from product-related to product–unrelated.
C
The linkage between diversification and performance is inverted U shaped.
D
“Putting your eggs in similar baskets,” has emerged as a balanced way to both reduce risk and leverage synergy.
E
All of the above.

49

Which geographic diversification is most likely to reduce the liability of foreignness?

Culturally adjacent countries.

50

In combining product and geographic diversification, which is not one of the four possible combinations?

Classic replicators.

51

At its core, diversification is essentially driven by all of the following except:

Less complicated information systems.

52

Select the best choice: a company that is engaged in oil production, pipelines and tankers, refining, and gasoline stations has engaged in blank______________ expansion.

Vertical

53

Which is one motive for M&A which does not necessarily increase shareholder value?

Hubris.

54

Corporate scope is shaped by:


A
Industry conditions.
B
Firm capabilities.
C
Institutional constraints.
D
Opportunities in both developed and emerging economies.
E
All of the above.

55

Product-related diversification involves all of the following except:

A single business strategy.

56

he following managerial motives for conglomerations do not benefit shareholders except:

Organizational stability.

57

Which of the following is true regarding M&As?

70% fail

58

To ensure the success of the M&A, managers need to make sure of all the following except:

Seek organizational contrast and variety rather than organizational fit.

59

Which is true regarding restructuring?

Corporate restructuring is not widely embraced around the world.

60

Which is true of relatedness?

Relatedness can be a common underlying dominant logic that connects various businesses in a diversified firm.