Chapter 8—International StrategyTRUE/FALSE3. A traditional motive for internationalization has been to secure needed resources, especially mineralsand energy.4. In order to achieve economies of scale, some manufacturing industries in nations (such as Korea) withsmall domestic markets must globalize.7. To the extent that a firm is able to standardize products across country borders, use the same or similarproduction facilities, and coordinate critical resource functions, the more likely it is to achieveeconomies of scale.10. The requirement for local repair and service capabilities has discouraged manufacturers of householdappliances, such as General Motors and Toyota, from diversifying internationally.13. When a firm initially pursues an international business-level strategy, its home country of operationmay be its most important source of competitive advantage.14. Both the size and the nature of a country’s domestic demand for a particular industry’s good or serviceare important in Port er’s model of national competitive advantage.19. A major advantage of multidomestic strategies is the ability to customize for the specific market,although this sacrifices economies of scale.20. A global strategy assumes that the strategic business units operating in each country areinterdependent.22. A transnational strategy is difficult to achieve because the multiple objectives involved arecontradictory.26. Exporting and licensing are the most appropriate ways for smaller firms to first enter internationalmarkets.29. Although licensing is the least costly method to enter a foreign market, its disadvantages include highcosts of transportation and low control over the marketing and distribution of goods.30. Strategic alliances tend to increase the risk associated with international expansion for the U.S. partnerbecause of the greater dependence on the foreign firm.31. Establishing a wholly-owned subsidiary provides the quickest access to a new market.35. International diversification ca n help to reduce a firm’s overall risk through the stabilization of returns.39. International strategies are complex and can therefore produce greater uncertainty for the firm.46. If a firm chooses to expand internationally, it must attempt to compete in all the major world markets,or else lose its competitive advantage.MULTIPLE CHOICE1. Shanghai Automotive Industry Corporation (SAIC) exports few cars outside of the Chinese market.Why might established automakers monitorSAIC closely?a. SAIC is presently exporting cars to developing economies where these firms alsocompete.b. SAIC is growing in the Chinese market where these firms also compete.c. SAIC is expected to seek entry into these firms’ home markets in the future.d. All of the above reasons are accurate.2. Chinese firms are becoming more competitive globally due to all of the following EXCEPTa. emerging technological capabilities gained from foreign partners.b. the development of their own branded products.c. greater ability to export product due to the weakening of their currency relative to thedollar and euro.d. increased managerial capabilities.3. International strategy refers to a(an)a. action plan pursued by American companies to compete against foreign companiesoperating in the United States.b. strategy through which the firm sells products in markets outside the firm’s domesticmarket.c. political and economic action plan developed by businesses and governments to cope withglobal competition.d. strategy American firms use to dominate international markets.7. The motivations for expanding into international markets include each of the following opportunitiesEXCEPTa. increasing the size of the firm’s potential markets.b. increased return on investment.c. gaining a competitive advantage through location.d. favorable tax concessions and economic incentives by home-country governments.11. Moving into international markets is a particularly attractive strategy to firms whose domestic marketsa. demand a differentiation strategy for success.b. are limited in opportunities for growth.c. have developed unfriendly business attitudes toward the industry.d. have too much regulation.15. Firms with core competencies that can be exploited across international markets are able toa. achieve synergies and produce high quality goods at lower costs.b. enter new markets more quickly.c. enhance their market image and brand loyalty among local consumers.d. meet local government requirements more quickly than their international competitors.20. A fundamental reason for a country’s development of advanced and specialized factors of productionis often itsa. lack of basic resources.b. monetary wealth.c. small workforce.d. protective tariffs.22. Which pair of industries would NOT be considered as “related and supporting” under Porter’sdiamond model?a. Japanese cameras and copiersb. Italian leather and shoesc. U.S. computers and softwared. All of the above are related and supporting27. All of the following are international corporate-level strategies EXCEPT the ____ strategy.a. multidomesticb. universalc. globald. transnational28. International corporate-level strategy focuses ona. the scope of operations through both product and geographic diversification.b. competition within each country.c. economies of scale.d. sophistication of monitoring and controlling systems.31. A multidomestic corporate-level strategy has ____ need for global integration and ____ need for localmarket responsiveness.a. low; lowb. low; highc. high; lowd. high; high33. A global corporate-level strategy emphasizesa. differentiated products.b. economies of scale.c. sensitivity to local product preferences.d. decentralizing control and limited monitoring.36. A transnational corporate-level strategy seeks to achievea. customization for the local market.b. economies of scale and centralized strategic control.c. global efficiency and local responsiveness.d. standardization of products across countries.38. Increasingly, customers worldwide are demanding emphasis on local requirements and companies areneeding efficiency as global competition increases. This has triggered an increase in the number of firms using the ____ strategy.a. multidomesticb. transnationalc. universald. global43. Multinational trade agreements such as the European Union, Organization of American States, and theNorth American Free Trade Association, encouragea. globalization.b. domestication.c. regionalization.d. nationalization.46. Most firms enter international markets sequentially, introducing their ____ first.a. most innovative productsb. largest and strongest lines of businessc. most generic products, which will be more likely to generate universal product demand,d. products customized to the region48. The choices that a firm has for entering the international market include all of the following EXCEPTa. exporting.b. licensing.c. leasing.d. acquisition.49. The problems associated with exporting includea. merging corporate cultures.b. a partner’s incompatibility.c. difficulty in negotiating relationships.d. high transportation costs.52. Which of the following is NOT a typical disadvantage of licensing?a. little control over the marketing of the productsb. licensees may develop a competitive product after the license expiresc. lower potential returns than the use of exporting or strategic alliancesd. incompatibility of the licensing partners54. One of the primary reasons for failure of cross-border strategic alliances isa. the incompatibility of the partners.b. conflict between legal and business systems.c. security concerns and terrorism.d. high debt financing.56. Which of the following is NOT a disadvantage of international acquisitions?a. They are very expensive and often require debt financing.b. The acquiring firm has to deal with the regulatory requirements of a host country.c. Merging the acquired and acquiring firm is difficult.d. It is the slowest way to enter a new market.70. The positive results associated with increasing international diversification have been shown toa. continue as the level of international diversification increases.b. level off and become negative as diversification increases past some point.c. become negative quickly.d. be centered in only one or two industries.ESSAY1. What are the motives for firms to pursue international diversification? What are the four basic benefitsfirms can derive by moving into international markets?2. What are the four factors that provide a basis for international business-level strategies?3. Discuss the three international corporate-level strategies. On what factors are these strategies based?4. Identify and describe the modes of entering international markets. What are their advantages anddisadvantages?6. Identify and describe the major risks of international diversification.trategic & systems skills。