Which is factor in competing in market of foreign countries

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Reference no: EM131430151

Strategies for Competing in Foreign Markets

1
Companies opt to expand into foreign markets for such reasons as to
A)
boost returns on investment, increase the size of their product lines, avoid tariffs and trade restrictions, and escape having to rely on union labor.
B)
gain access to new customers, achieve lower costs and enhance the company's competitiveness, capitalize on its core competencies, and spread business risk across a wider market base.
C)
grow sales faster than the industry average, boost earnings per share, reduce the competitive threats from rivals, and increase their opportunities to enter into strategic alliances.
D)
avoid dependence on an export strategy, avoid the threat of cross-market subsidization, and get in position to use a global strategy instead of a multicountry strategy.
E)
raise the entry barriers for industry newcomers, neutralize the bargaining power of important suppliers, grow sales faster, and increase the number of loyal customers.

2
Which one of the following is not a factor in competing in the markets of foreign countries?
A)
Big variations in market growth rates from country to country and important country-to-country differences in consumer buying habits and buyer tastes and preferences
B)
Country-to-country variations in host government restrictions and requirements
C)
The fact that product designs suitable for one country are sometimes inappropriate in another
D)
Vulnerability to adverse fluctuations in exchange rates
E)
A need to convince shippers to keep cross-country transportation costs low

3
Which of the following statements concerning the effects of fluctuating exchange rates on companies competing in foreign markets is true?
A)
Domestic companies trying to combat competition from foreign imports are hurt even more when their government's currency grows weaker in relation to the currencies of the countries where the imported goods are being made.
B)
Domestic companies trying to combat competition from foreign imports are benefited when their government's currency grows weaker in relation to the currencies of the countries where the imported goods are being made.
C)
Manufacturers that are exporting much of what they produce lose out when their country's currency grows weaker relative to the currencies of the countries that the goods are being exported to.
D)
Manufacturers that are exporting much of what they produce are benefited when their home country's currency grows weaker relative to the currencies of the countries that the goods are being exported to.
E)
Both B and D.

4
A company is said to be an international (or multinational) competitor when
A)
it uses a multicountry strategy rather than a global strategy.
B)
it has operations on only one of the world's major continents.
C)
it competes in a select few foreign markets (and perhaps has only modest ambitions to enter additional country markets).
D)
it competes in 15 or fewer country markets and employs an international strategy.
E)
it employs something other than a global strategy.

5
A company is said to be a global competitor when
A)
it competes in more than half of the world's different country markets.
B)
it sells its products in most or all of world's major countries and is actively expanding its operations into additional country markets.
C)
it has long range strategic intentions to have a presence on every continent.
D)
it has a presence on three or more continents.
E)
it employs a global strategy.

6
One of the biggest strategic challenges to competing in the international arena is
A)
figuring out what kinds of strategic adjustments it will take to be responsive to cross-country differences in cultural, demographic, and market conditions.
B)
whether to charge the same price in all country markets.
C)
how many foreign firms to license to produce and distribute the company's products.
D)
whether to offer a mostly standardized product worldwide or whether to customize the company's offerings in each different country market.
E)
Both A and D.

7
The best way to distinguish between multicountry competition and global competition is that
A)
in multicountry competition, the market battle among rivals is mainly among companies in several neighboring countries whereas in global competition the market battle is among countries from many different parts of the world.
B)
in multicountry competition rivals battle for "national market championships" whereas in global competition rivals battle for the "world market championship."
C)
in multicountry competition rivals focus on competing in few country markets (2 to perhaps as many as 10) whereas in global competition companies stirve to compete in 50 to 100 or more country markets.
D)
in multicountry competition rivals are positioned in strategic groups consisting of companies from the same geographic area of the world (for example, Europe or Latin American or North America or the Asian-Pacific) whereas in global competition rival companies are positioned in global strategic groups.
E)
None of the above are really good ways of distinguishing between multicountry and global competition.

8
Which of the following statements is false?
A)
Export strategies are favored by most participants in foreign markets because domestic plants tend to be more cost efficient than foreign plants, because using domestic plants as a production base for exporting goods to foreign markets is less risky and entails lower capital requirements, and because it is a lot easier to establish distribution capabilities in foreign markets than it is to establish production capabilities.
B)
Profitability in emerging country markets rarely comes quickly or easily-new entrants have to be sensitive to local conditions, be willing to invest in developing the market for their products over the long-term, and be patient in earning a profit.
C)
Using franchising strategies to pursue global expansion is often attractive to service and retailing enterprises.
D)
Using a licensing strategy to participate in foreign markets often makes good sense when a firm with valuable technical know-how or a unique patented product lacks the organizational capability or resources to enter foreign markets on its own.
E)
With multicountry competition, there is no international or global market, just a collection of self-contained country markets.

9
Which of the following is/are not "valid" strategy options for entering and/or competing in foreign markets?
A)
An import strategy, a strategic alliance strategy, a profit sanctuary strategy, and a cross-market subsidization strategy
B)
A global strategy keyed to focused differentiation or focused low-cost.
C)
A multicountry strategy, an export strategy, and a strategy of licensing foreign firms to use the company's technology or to produce and distribute the company's products
D)
A global strategy keyed to low cost leadership or broad differentiation
E)
An export strategy, a franchising strategy, and a global strategy keyed to being a best-cost provider

10
A multicountry strategy
A)
is generally preferable to a global strategy in situations where buyers are price sensitive because a multicountry strategy is better suited to achieving low unit costs than a global strategy.
B)
is well-suited for situations where a low degree of local responsiveness is competitively imperative.
C)
has two big drawbacks: (1) the bigger the country-to-country variations in strategy, the harder it is difficult to transfer a company's competencies and resources across country boundaries and (2) it does not promote building a single, unified competitive advantage.
D)
is generally inferior to a global strategy when it comes to pursuing product differentiation.
E)
Both B and C.

11
Which of the following does not accurately characterize the difference between a global strategy and a multicountry strategy?
A)
With a global strategy a firm's product line is mostly standardized from country to country whereas with a multicountry strategy a firm's product line is adapted to the particular needs and expectations of local buyers.
B)
With a global strategy a firm's marketing and distribution approaches are mostly uniform and coordinated worldwide (with minor adaptations to host-country situations where required) whereas with a multicountry strategy a firm's marketing and distribution approaches are adapted to the practices and culture of each host country.
C)
With a global strategy a firm's strategic arena consists of countries where there is high demand for the product whereas with a multicountry strategy a firm's strategic arena is only selected high-demand countries and trading areas.
D)
With a global strategy a firm tends to use the most attractive suppliers from anywhere in the world whereas with a multicountry strategy a firm tends to prefer using suppliers located in the host country.
E)
With a global strategy a firm's production approach is usually to scatter plants across many different countries so as to achieve balanced geographic distribution and minimize shipping costs whereas with a multicountry strategy plants are located in those countries offering the lowest unit production costs and offering the best tariff protection.

12
The ways in which a company can pursue competitive advantage by expanding outside its domestic market and competing multinationally include
A)
deploying value chain activities among various countries in a manner that lowers costs.
B)
efficient and effective transfer of competitively valuable competencies and capabilities from the company's domestic market to the targeted foreign markets.
C)
deploying value chain activities among various countries in a manner that helps achieve greater product differentiation.
D)
seeking to deepen or broaden its resource strengths and capabilities and to coordinate dispersed activities in ways that a single-country competitor cannot.
E)
All of the above.

13
To use location to build competitive advantage, a company must
A)
scatter its value chain activities in a manner that minimizes shipping costs and the costs of customer service.
B)
scatter its value chain activities in a manner that minimizes the risks of exchange rate fluctuations.
C)
scatter its value chain activities in a manner that minimizes the impact of tariffs and host government trade restrictions.
D)
consider whether to concentrate each value chain activity it performs in a few select countries or to disperse performance of the activity to many nations and, further, choose the countries in which to locate particular activities.
E)
concentrate production in the fewest possible locations and scatter distribution and customer service activities widely.

14
Multinational competitors tend to concentrate activities in a limited number of locations when
A)
prices and competitive conditions are strongly linked across country markets to form a world market.
B)
there are significant scale economies and/or experience curve effects in performing certain activities, certain locations have superior resources, and costs of performing the activity are lower in particular geographic locations.
C)
the risk of fluctuating exchange rates is very high.
D)
host country governments can be persuaded to erect high tariff barriers to protect the company's operations from foreign competitors and when it is not imperative to be responsive to buyer needs and competitive conditions in each country.
E)
it is not feasible to employ a profit sanctuary strategy or an export strategy.

15
Profit sanctuaries are valuable competitive assets because
A)
a domestic-only competitor with a home market profit sanctuary is well protected against foreign competitors trying to invade its home market.
B)
a competent domestic competitor with multiple profit sanctuaries in its home market can wage and generally win a competitive offensive against a global competitor whose profits are equally distributed across many different countries.
C)
companies with multiple profit sanctuaries that are racing for global market leadership can use cross-market subsidization to support competitive offensives against one-country competitors.
D)
without having at least two profit sanctuaries a company is virtually precluded from competing globally.
E)
they enable a company pursuing a multicountry strategy to compete on an equal footing with companies employing either an export strategy or a global strategy.

16
Cross-market subsidization
A)
is easier to employ and more likely to succeed if a company is pursuing an export strategy rather than a multicountry strategy.
B)
is better suited for one-country domestic competitors than multinational competitors.
C)
can be a competitively potent tactic when it is employed by companies having multiple profit sanctuaries.
D)
is easier to employ and more likely to succeed if a company is pursuing a multicountry strategy rather than a global strategy.
E)
is an attractive competitive tactic for defending a company's position against rivals but is rarely useful as an offensive weapon.

17
With a global approach to competing, the achievement of competitive advantage depends on
A)
deploying and locating its value chain activities (R&D, manufacturing, distribution centers, sales and marketing, after-the-sale service, and so on) among the various countries so as to achieve lower costs or greater differentiation than rivals and, further, coordinating its activities and strategic moves worldwide.
B)
having more profit sanctuaries than rivals and using cross-market subsidization.
C)
having a widely recognized brand name and using an export strategy so as to better avoid the risks of fluctuating exchange rates.
D)
competing in more national markets than key rivals, achieving global brand name recognition, and having both manufacturing and distribution facilities in most all countries where there is a high demand for the company's products.
E)
having more manufacturing plants and distribution centers worldwide than key rivals.

18
Strategic alliances and joint ventures with foreign partners
A)
are generally the least risky, most likely to succeed, and most profitable approaches to competing internationally.
B)
often offer an attractive avenue for building valuable profit sanctuaries.
C)
are a favorite and potentially fruitful means of entering a foreign market or strengthening a firm's competitiveness in world markets, but they run the risk of becoming too dependent on another company for essential expertise and needed capabilities.
D)
are the most frequently used approach to competing successfully in foreign markets and gaining competitive advantage via low-cost leadership.
E)
are attractive partly because they make it easier to employ cross-market subsidization tactics and to locate value chain activities in the most favorable country locations.

19
To make the most of strategic alliances between domestic and foreign firms, companies need to consider such factors as
A)
how to divide profits and how long the alliance should last,
B)
what partner to pick, how to make the alliance mutually beneficial, how to build in assurances that each partner will live up to its commitments, and how best to manage the learning process.
C)
which partner should be in total control and where the headquarters for the alliance should be located.
D)
which countries to focus marketing attention on and whether to pursue a multi-country strategy or a global strategy , whether to concentrate on profits or market share,.
E)
how many countries to compete in and which rivals to target.

20
Strategies for local companies in defending against global challengers include
A)
transferring company expertise to cross-border markets, dodging rivals by shifting to a new business model or market niche, using home-field advantages as defenses, and moving to contend on a global level itself.
B)
building multiple profit sanctuaries, employing defensive rather than offensive strategies, entering into strategic alliances with other local companies to defeat the challengers, and not using an import strategy.
C)
acquiring or merging with other local companies to form a domestic giant capable of competing on even terms with large foreign companies.
D)
developing a core competence in as many value chain activities as possible, employing cross-market subsidization, and pursuing a multicountry strategy to quickly build new profit sanctuaries.
E)
Using an export strategy to build multiple profit sanctuaries, forming strategic alliances with global giants, using home-run strategies to enter nearby foreign markets, and relying on patriotic themes in local advertising to defeat global challengers trying to enter their home markets.

Reference no: EM131430151

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