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Multiple Choice Quiz
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1
Two basic strategies for improving a firm's profitability are a(n) __________ strategy and a(n) __________ strategy.
A)differentiation; low-cost
B)volume creation; volume reduction
C)marketing; finance
D)operations; personnel
E)structure; leadership
2
All of these are support activities when viewing a firm as a value chain except:
A)materials management.
B)human resources.
C)research and development.
D)infrastructure.
E)marketing.
3
During the period after WWII Canada became a branch plant of the U.S. and:
A)was an exporter of raw materials and an exporter of finished products.
B)was an exporter of raw materials and an importer of finished products.
C)was an importer of raw materials and an exporter of finished products.
D)was an importer of raw materials and an importer of finished products.
E)none of these answers is correct
4
In the 1980s Canadian firm Canarm Ltd. expanded its ceiling fan business by:
A)importing from Korea and Russia.
B)importing from China and Taiwan.
C)investing in a plant in the Philippines.
D)manufacturing in Japan.
E)selling to Indonesia.
5
Firms that operate internationally are able to do all of the following except:
A)realize greater cost economies from watching others by serving an expanded global market from various locations around the world.
B)realize location economies by dispersing individual value creation activities to those locations around the globe where they can be performed most efficiently and effectively.
C)earn a greater return by leveraging any valuable skills developed in foreign operations and transferring them to other entities within the firm's global network of operations.
D)earn a greater return from the firm's distinctive skills or core competencies by leveraging those skills and applying them to new geographic markets.
E)All of these answers are things that international firms are able to do.
6
A(n)_______ is the result when different stages of the value chain are dispersed around the globe where value added is maximized or costs are minimized.
A)global web
B)core competency
C)low-cost strategy
D)differentiated strategy
E)organizational experience curve
7
The systematic reductions in production costs that have been observed to occur in the life of a product is called the:
A)core competency.
B)low-cost strategy choice.
C)experience curve.
D)learning effects.
E)economies of scale.
8
The term __________ refers to reductions in unit cost achieved by producing a large volume of a product.
A)core competency
B)low-cost strategy choice
C)experience curve
D)learning effects
E)economies of scale
9
Economies of scale refers to:
A)reductions in unit costs by producing large volumes.
B)increases in unit costs by producing large volumes.
C)increases in unit costs by producing small volumes.
D)reductions in unit costs by producing small volumes.
E)reductions in unit costs by operating in scaled economies.
10
Which of these is the key to progressing downward on the experience curve quickly?
A)Increase the volume produced by a single plant as rapidly as possible.
B)Increase the number of employees per plant in short-term.
C)Increase the number of products in a firm's portfolio rapidly.
D)Reduce the number of machines producing products in each plant as quickly as possible.
E)None of these.
11
Skills within the firm that competitors cannot easily match or imitate are referred to as the firm’s:
A)vision.
B)core competence.
C)goals and objectives.
D)strategy.
E)all of these.
12
When the tastes and preferences of consumers in different nations are similar, _______ exists.
A)local responsiveness
B)universal needs
C)transnational strategy
D)differentiated product strategy
E)multidomestic strategy
13
Pressures for local responsiveness arises from all of these except:
A)differences in consumer tastes and preferences.
B)differences in distribution channels.
C)host government demands.
D)universal needs.
E)differences in infrastructure and traditional practices.
14
What type of strategy do firms pursue when trying to create value by transferring valuable skills and products to foreign markets where indigenous competitors lack skills and products?
A)Global strategy
B)Multidomestic strategy
C)International strategy
D)Transnational strategy
E)Alliance strategy
15
When orienting themselves toward achieving maximum local responsiveness, firms are seen as pursuing a(n) __________ strategy.
A)global
B)multidomestic
C)international
D)transnational
E)alliance
16
In terms of the Canadian government’s role in facilitating trade, Team Canada refers to:
A)Canadians working in foreign export teams.
B)Canadians going on trade missions with high level politicians.
C)Canadians teaming up with European companies.
D)Teams of Canadian trade experts available for consultations.
E)Canadian teams of exporters and importers.
17
Firms that pursue a(n) __________ strategy focus on increasing profitability by reaping the cost reductions that come from experience curve effects and location economies.
A)global
B)multidomestic
C)international
D)transnational
E)alliance
18
Which type of strategy makes sense when a firm faces high pressures for cost reductions, local responsiveness, and opportunities for leveraging in a global network?
A)Global strategy
B)Multidomestic strategy
C)International strategy
D)Transnational strategy
E)Alliance strategy
19
Which of these represent a disadvantage for the transnational strategy?
A)Lack of local responsiveness
B)Difficult to implement due to organizational problems
C)Failure to exploit experience curve effects
D)Inability to realize location economies
E)Failure to transfer distinctive competencies to foreign markets
20
In which of these strategies, the flow of skills and product offerings are from home firm to foreign subsidiary only?
A)International
B)Global
C)Transnational
D)Multidomestic
E)Alliance
21
Which term refers to cooperative agreements between potential or actual competitors?
A)Transnational agreement
B)Multidomestic strategy
C)Strategic alliance
D)Value chain creation
E)Global web





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