Question :
121.A global car manufacturer wants to start production in China. While : 1299423
121.A global car manufacturer wants to start production in China. While catering to local responsiveness, what can the firm do to get scale economies?
A. Increase costs whenever possible
B. Use common vehicle platforms and components across many different models
C. Shorten the production runs for each component
D. Increase the duplication of functions required for each operation
E. Manufacture only one type of car and sell it in all the international markets
122.Which of the following strategies is a firm most likely to pursue when it simultaneously faces both strong cost pressures and strong pressures for local responsiveness?
A. Global standardization strategy
B. Localization strategy
C. International strategy
D. Transnational strategy
E. Nationalization strategy
123.Which of the following is an observation made by researchers Bartlett and Ghoshal regarding modern multinational enterprises?
A. Global logistics industry makes the concept of “location economies” redundant for international firms.
B. Core competencies and skills can develop in any of the firm’s worldwide operations.
C. Flow of skills between a firm and its global subsidiaries should be unidirectional.
D. Differentiating across geographic markets helps a firm in reducing costs.
E. Customer demands for local customization are on the decline worldwide.
124.Firms that pursue a(n) _____ strategy differentiate their product offering across geographic markets to account for local differences.
A. international
B. global standardization
C. transnational
D. multidomestic
E. nationalization
125.Which of the following is true of a transnational strategy?
A. It is easy to implement because it does not place any conflicting demands on a company.
B. It is used when the pressures for cost reductions are low.
C. It is usually used when the pressure for local responsiveness is relatively low.
D. It enables the one-way flow of core competencies.
E. It is used by firms that try to achieve low costs through location economies, economies of scale, and learning effects.
126.Firms that pursue a(n) _____ strategy take products first produced for their domestic market and sell them across various markets with only minimal local customization.
A. nationalization
B. transnational
C. global standardization
D. international
E. localization
127.Pursuing a(n) _____ strategy makes sense if a firm has a valuable core competence that indigenous competitors in foreign markets lack.
A. global standardization
B. international
C. nationalization
D. transnational
E. nationalization
128.Xerox had a monopoly on photocopiers for several years as the technology underlying the photocopier was protected by strong patents. As it served a universal need, this favorable position led Xerox to pursue a(n) _____ strategy.
A. global standardization
B. localization
C. international
D. transnational
E. nationalization
129.Mayer Life Systems, a manufacturer of surgical and medical appliances, invented and patented a new dialysis machine that radically reduced maintenance and operational issues. Responding to a global demand, it decided to sell the machines manufactured at its plant in the U.S. to various markets across the globe. Since the product features provided by Mayer were not provided by any other competitor, Mayer did not feel any pressure for cost reductions. Which of the following strategies is most likely being pursued by Mayer?
A. International strategy
B. Localization strategy
C. Global standardization strategy
D. Transnational strategy
E. Nationalization strategy
130.Which of the following statements is true about an international strategy?
A. International strategy typically involves taking products first produced for foreign markets and then customizing them for domestic markets.
B. International strategy should be pursued by a firm if it manufactures a product that satisfies local, rather than universal, needs.
C. When a firm pursues an international strategy, the head office of the firm retains fairly tight control over marketing and product strategy.
D. Firms pursuing the international strategy tend to outsource their development functions such as R&D.
E. International strategy should be pursued by a firm only if it faces strong competition in foreign markets.
