Reference no: EM132303599
1. In order to use location to build competitive advantage when competing on domestic and international level, a company must
A. transfer company expertise to cross-border markets and initiate actions to contend on an international level.
B. pursue blue-ocean opportunities both in the company’s home country market and in global markets.
C. use acquisition and rapid-growth strategies to better defend against expansion-minded international rivals.
D. use acquisition and rapid-growth strategies to better defend against expansion-minded international rivals.
E. consider whether to concentrate each activity it performs in a few select countries or disperse the performance of the activity to many nations, and determine in which countries it should locate particular activities.
2. Dispersing the performance of value chain activities to many different countries rather than concentrating them in a few country locations tends to be advantageous
A. when high transportation costs make it expensive to operate from central locations.
B. whenever buyer-related activities are best performed in locations close to buyers.
C. if economies of scale are essential to achieving acceptable production costs.
D. Two answers are correct when high transportation costs make it expensive to operate from central locations and whenever buyer-related activities are best performed in locations close to buyers.
E. if trade barriers and transportation costs fall, making it more profitable to operate from a central location in the company’s home market.
3. Multinational competitors tend to concentrate activities in a limited number of locations when
A. prices and competitive conditions are strongly linked across country markets to form a world market.
B. there are significant scale economies and/or steep learning curve effects associated with performing certain activities in a single location, costs of performing the activity are lower in particular geographic locations, and certain locations have superior resources, allow better coordination of related activities, or offer other valuable advantages.
C. the risk of fluctuating exchange rates is very high.
D. host-country governments can be persuaded to erect high tariff barriers to protect the company’s operations from foreign competitors and it is not imperative to be responsive to buyer needs and competitive conditions in each country.
E. competitive conditions make it infeasible to employ a profit sanctuary strategy or an export strategy.
4. Which of the following is an example of cross-border alliance?
Facebook took over App for $19 billion in February 2014
Hyundai Motor Company plans to open a new manufacturing plant in Czech Republic
The insurance company Geico is a wholly owned subsidiary of Berkshire Hathaway
Renault Nissan sells more than one in ten cars worldwide
Carrefour, a French grocery chain, established a new wholly owned venture in Poland
5. The multidomestic strategy of "think local, act local"
A. is most appropriate when the need for local responsiveness is low.
B. is most appropriate when the need for local responsiveness is low.
C. facilitates the transfer of a company's capabilities, knowledge, and other resources across country borders.
D. is the only global market entry strategy conducive to building a single worldwide competitive advantage.
E. becomes more appealing when country-to-country differences in buyer tastes, cultural traditions, and market conditions vary significantly.