Part 2-Ch 12: International Business Strategy

What is the primary goal of a global standardization strategy?

• To increase profitability through cost reductions

• To enhance local responsiveness

• To customize products for local markets

• To focus solely on domestic markets

Which company is highlighted for its transnational strategy in the opening case?

• Coca-Cola

• 3 M

• Apple

• Microsoft

What does the experience curve refer to?

• The increase in production costs over time

• The systematic reductions in production costs as output increases

• The relationship between marketing and sales

• The decline in product quality with increased production

What is a key factor that influences a firm's strategic choice in international markets?

• The number of employees

• Pressures for cost reductions and local responsiveness

• The color of the product packaging

• The location of the headquarters

Which strategy is best suited for firms facing strong pressures for local responsiveness?

• International strategy

• Transnational strategy

• Global standardization strategy

• Localization strategy

What is meant by 'location economies'?

• Cost advantages from performing value creation activities in optimal locations

• The need to hire local employees

• The benefits of local advertising

• The requirement to follow local laws

What is the main focus of a localization strategy?

• To standardize products globally

• To reduce production costs

• To achieve economies of scale

• To customize products to match local tastes

Which of the following is NOT a primary activity in the value chain?

• Marketing and sales

• Human resources

• Customer service

• Research and development

What does the term 'profit growth' refer to?

• The percentage increase in net profits over time

• The cost of production

• The market share of a firm

• The total revenue generated by a firm

What is a significant challenge when implementing a transnational strategy?

• Focusing only on domestic markets

• Standardizing all products globally

• Achieving low costs while differentiating products

• Reducing the number of employees