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Exam 7: International Strategy: Creating Value in Global Markets

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Question 1

True/False

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Dispersion of value chains across different countries mainly occurs through offshoring and outsourcing.

A) True
B) False

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Question 2

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___________ occurs when a firm decides to utilize other firms to perform value-creating activities that were previously performed in-house.

A) Offshoring
B) Strategic alliance
C) Outsourcing
D) Wholly owned subsidiary

E) A) and D)
F) None of the above

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Question 3

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Microsoft decided to establish a corporate research laboratory in Cambridge, England

Explain Michael Porter's "diamond of national advantage."

By the end of the 20^th century, the world's population exceeded 6 billion, with Canada representing

High pressure for local adaptation combined with low pressure for lower costs would suggest what type of international strategy?

Discuss why international expansion is a viable diversification strategy that is being pursued by many firms.

The need to attain economies of scale encourages multinational firms to operate under a multidomestic strategy.

International expansion can extend the life cycle of a product that is in its maturity stage in a firm's home country.

Industries in which proportionally more value is added in upstream activities are more likely to benefit from a global strategy than those in which more value is added downstream (closer to the customer).

Low pressure for local adaptation combined with low pressure for lower costs would suggest what type of strategy?

A key tenet of a transnational strategy is improved adaptation to all competitive situations as well as flexibility by capitalizing on communication and knowledge flows throughout the organization.

Corporations with multiple foreign operations that act very independently of one another are following a multidomestic strategy.

What are some of the primary benefits of transnational strategies?

Many international firms are increasing their efforts to market their products and services to countries such as India and China as the ranks of their middle class continue to increase.

All of the following are limitations of a global strategy except

Multinational firms following a transnational strategy strive to optimize the trade-offs associated with efficiency, local adaptation, and learning.

Units coordinate their activities with headquarters and with one another, units adapt to special circumstances only they face, and the entire organization draws upon relevant corporate resources. These are all attributes of which type of strategy?

According to Theodore Levitt, what are the three assumptions that favour the pursuit of a "pure" global strategy?

Since Molson's investment in Kaiser in Brazil, that company's market share in Brazil has