81.A company can increase its growth rate by taking goods or services developed at home and selling them internationally. The returns from such a strategy are likely to be greater if: 

A. the product is already being offered by local companies in the nations that the company enters.

B. the product is a generic product that requires little differentiation.

C. indigenous competitors in the nations that the company enters lack comparable products.

D. there is a high inflation in the nations that the company enters.

E. the product is perceived to be very costly in the home country of the company.

82.Skills within a firm that competitors cannot easily match or imitate are referred to as _____. 

A. core competencies

B. barriers to entry

C. internalities

D. externalities

E. premium skills

83.How does possessing a core competence help a firm? 

A. It helps a firm to create value in such a way that premium pricing is impossible.

B. It reduces a firm's dependence on its logistics function.

C. It enables a firm to reduce the costs of value creation.

D. It reduces the scope of transfer of skills to foreign markets.

E. It reduces the need to replicate a business model in a foreign market.

84.If a value creation activity of a firm can take place in Mexico most effectively, then that activity of the firm must be based in Mexico. Firms that pursue such a strategy are most likely to realize: 

A. a position inside the efficiency frontier.

B. the experience curve.

C. economies of scale.

D. location economies.

E. demographic advantages.

85._____ are the economies that arise from performing a value creation activity in the optimal place for that activity, wherever in the world that might be. 

A. Diversification economies

B. Value-building economies

C. Location economies

D. Support economies

E. Core economies

86.Which of the following is most likely to be the advantage of locating a value creation activity in the optimal location for that activity? 

A. It increases the costs of value creation.

B. It decreases consumer surplus.

C. It helps the firm to achieve a high-cost position.

D. It nullifies all trade barriers.

E. It enable a firm to differentiate its product offering from those of competitors.

87.A firm creates a(n) _____ by dispersing different stages of its value chain to those locations around the world where the value added is maximized or where the costs of value creation are minimized. 

A. integral circle

B. dispersal chain

C. global web

D. international mesh

E. worldwide circle

88.In theory, which of the following advantages can be realized by a firm by implementing a global web of operations? 

A. It will be able to raise the perceived value of its goods and services.

B. It will be able to decrease consumers' reservation price for its products.

C. It will be able to decrease consumer surplus.

D. It will be able to increase the cost of value creation.

E. It will be able to sell its products at a price which is below its cost price in its home country.

89.Which of the following caveats is most likely to discourage global expansion of businesses? 

A. Economies of scale

B. High consumers' reservation prices

C. Trade barriers

D. Mass customization

E. Low transportation costs

90.The _____ refer(s) to systematic reductions in production costs that have been observed to occur over the life of a product. 

A. experience curve

B. learning effects

C. location economies

D. efficiency slope

E. economies of scale

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