Strategic Management and Study Question

6617 Words Feb 9th, 2011 27 Pages
Monday, October 01, 2007

Chapter 11
Strategy in International Business

Multiple Choice Questions

STUDY QUESTION 1: What are some of the general features of the challenge and importance of strategy in international business?

1. Generally, managers planning strategy in the global marketplace consider it more complex due to all of the following except _____. a. the steady reduction in trade barriers creates fewer opportunities in previously protected markets (interpretation, page 363) b. they often must compete with cost-efficient overseas rivals c. many overseas competitors operate with greater economies of scale d. the challenge of configuring and coordinating globally dispersed operations

2. Forces that represent the
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it makes innovation partners more predictable d. requires companies have low costs in order to compete

10. The profile of change in the global financial services industry showed that industry conditions change because _____. a. of the predictable progression of an industry through successive stages of its life cycle b. consumers demand more low-cost service options because of the arrival of new industry competitors (interpretation, page 367) c. the opportunity to change markets to exploit less favorable location economies d. the role of governments in spurring more competition in an industry

11. The stronger the collective impact of the five competitive forces, the _____. a. greater the degree of stability in product innovation b. larger the number of market opportunities for c. lower the combined profitability of industry members (interpretation, page 366) d. greater the predictability of industry evolution

12. The Five Fundamental Forces Model presumes which of the following:Â a. Imperfect Competition and rational decision making b. Rational decision making and perfect demand c. Imperfect demand and perfect competition d. Perfect competition and rational decision making

STUDY QUESTION 4: How does a firm create value in terms of low-cost leadership?

13. The company that successfully becomes the low-cost provider in an industry _____. a. will sell more of its