Exam 7: Strategies for Competing in International Markets

A) locating buyer related activities, such as sales, advertising, or technical assistance, close to buyers.
B) export strategies, entering into alliances and/or joint ventures with one or more foreign companies having globally competitive strengths, and/or cross-border transfer strategies.
C) export strategies, licensing strategies, franchising strategies, and cross-market coordination strategies.
D) using understanding of local customer preferences to create customized products or services, transferring the company's expertise to cross-border markets, and/or using acquisitions and rapid growth strategies to defend against expansion-minded multinationals.
E) offensives aimed at the global challengers' strengths, promoting anti-dumping legislation, and/or launching some type of guerilla warfare strategy.

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A) global low-cost, global differentiation, global best-cost, and global focus strategies.
B) maintaining a national (one-country) production base and exporting goods to foreign markets.
C) licensing foreign firms to produce and distribute one's products or to use the company's technology.
D) a custom-tailored country-by-country approach based on meeting the particular needs of particular buyers in each target country.
E) All of these.

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A) is competitively disadvantaged when the U.S. dollar declines in value against the currencies of the countries to which it is exporting.
B) is largely unaffected by fluctuating exchange rates; it would, however, be affected if its plants were in foreign countries.
C) becomes more competitive in foreign markets when the U.S. dollar gains in value against the currencies of the countries to which it is exporting.
D) becomes more competitive in foreign markets when the U.S. dollar declines in value against the currencies of the countries to which it is exporting.
E) has no interest in whether the dollar grows stronger or weaker versus foreign currencies unless it is competing only against companies located in foreign countries.

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A) A multi-country strategy is generally superior to a global strategy.
B) There are country-to-country differences in consumer buying habits and buyer tastes and preferences.
C) A company must contend with fluctuating exchange rates and country-to-country variations in host government restrictions and requirements.
D) Product designs suitable for one country are often inappropriate in another.
E) Market growth rates vary from country to country.

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A) best-cost provider, focused low cost, and low-cost leadership strategies.
B) export strategies, licensing strategies, and cross-border transfer strategies.
C) utilizing keen understanding of local customer needs and preferences to create customized products or services, developing business models to exploit shortcoming in local infrastructure, and using acquisitions and rapid growth to defend against expansion-minded multinationals.
D) franchising strategies, multidomestic strategies keyed to product superiority, global low-cost leadership strategies, and cross-border coordination strategies.
E) focused differentiation and broad differentiation strategies.

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The four generic strategic options for c...

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A) using a differentiation-based competitive strategy in those country markets with superior resources.
B) deliberately choosing not to compete in countries with high tariffs and high taxes (which then have to be passed along to buyers in the form of higher prices) , thus keeping costs and prices lower than rivals.
C) using an export strategy to circumvent the risks of adverse exchange rate fluctuations.
D) using location in a manner that lowers costs or else helps achieve greater product differentiation and allowing for the transfer of competitively valuable competencies and capabilities from its domestic operations to its operations in foreign markets.
E) employing a multidomestic strategy instead of a global strategy.

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A) a company can rank the competitive advantage opportunities in each industry.
B) a company possesses good strategic fit with other businesses and identifies the value chain where this fit occurs.
C) a company derives substantial profits because of its protected market position or unassailable competitive advantage.
D) a company creates substantial investment strategies because it is losing competitive advantage over competitors.
E) a company that invests its dividends in expanding its foreign market presence.

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A) hindering the use of cross-border coordination of a company's activities and increasing company vulnerability to adverse shifts in currency exchange rates.
B) making it very difficult to take into account significant country-to-country differences in distribution channels and marketing methods.
C) making it difficult and costly to be responsive to country-to-country differences in customer needs, buying habits, cultural traditions, and market conditions.
D) hindering transfer of a company's competencies and resources across country boundaries and hindering the pursuit of a single, uniform competitive advantage in all country markets where a company operates.
E) being unsuitable for competing in the markets of emerging countries and posing added difficulty in modifying a company's business model to compete on the basis of low price.

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A) fluctuating exchange rates, country-to-country variations in host government restrictions and requirements, and country-to-country variations in cultural, demographic, and market conditions.
B) important country-to-country differences in consumer buying habits and buyer tastes and preferences.
C) whether to customize the company's offerings in each different country market or whether to offer a mostly standardized product worldwide.
D) the fact that product designs suitable for one country are sometimes inappropriate in another.
E) All of these.

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A) A global strategy entails extensive strategy coordination across countries and a multidomestic strategy entails little or no strategy coordination across countries.
B) A global strategy often entails use of the best suppliers from anywhere in the world whereas a multidomestic strategy may entail fairly extensive use of local suppliers (especially where use of local sources is required by host governments) .
C) A global strategy tends to involve use of similar distribution and marketing approaches worldwide whereas a multidomestic strategy often entails adapting distribution and marketing to local customs and the culture of each country.
D) A global strategy involves striving to be the global low-cost provider by economically producing and marketing a mostly standardized product worldwide whereas a multidomestic strategy entails pursuing broad differentiation and striving to strongly differentiate its products in one country from the products it sells in other countries.
E) A global strategy relies upon the same technologies, competencies, and capabilities worldwide whereas a multidomestic strategy often entails the use of somewhat different technologies, competencies, and capabilities as may be needed to accommodate local buyer tastes, cultural traditions, and market conditions.

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A) In global competition, rivals vie for worldwide market leadership and the leading competitors compete head-to-head in the markets of many different countries.
B) In globally competitive industries, a company's competitive position in one country both affects and is affected by its position in other countries.
C) One of the features of multidomestic competition is there is greater cross-country variation in market conditions and the nature of the competitive contest among rivals than tends to be the case in globally competitive markets.
D) With multidomestic competition, the competitive contest is localized, with rivals battling for national market leadership; moreover, winning in one country market does not necessarily signal that a company has the ability to fare well in the markets of other countries.
E) In global competition, the size of a firm's worldwide competitive advantage (or disadvantage) equals the sum of the competitive advantages (or disadvantages) it has in each country market where it competes.

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A) When a company wished to transfer competencies and resources across country boundaries and is striving to build a single, uniform competitive advantage worldwide
B) When there are significant country-to-country differences in customer preferences and buying habits industry is characterized by big economies of scale and strong experience curve effects
C) When the trade restrictions of host governments are diverse and complicated
D) When there are significant country-to-country differences in distribution channels and marketing methods
E) When host governments enact regulations requiring that products sold locally meet strictly-defined manufacturing specifications or performance standards

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A) being able to shift production from one country to another to take advantage of exchange rate fluctuations, differing wage rates, differing energy costs, or differing trade restrictions.
B) being in better position to choose where and how to challenge rivals.
C) shortening delivery times to customers by having geographically scattered distribution facilities.
D) locating buyer-related activities (such as sales, advertising, after-sale service and technical assistance) close to buyers.
E) All of these.

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A) there are significant scale economies in performing an activity.
B) the costs of manufacturing or other activities are significantly lower in some geographic locations than in others.
C) when there is a steep learning or experience curve associated with performing an activity in a single location (thus making it economical to serve the whole world market from just one or maybe a few locations) .
D) certain locations have superior resources, allow better coordination of related activities, or offer other valuable advantages.
E) All of these.

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A) that it is especially vulnerable to fluctuating exchange rates and that it can usually be defeated by companies employing cross-border coordination techniques.
B) excessive vulnerability to fluctuating exchange rates and having to craft a separate strategy for each country market in which the company competes.
C) hindering a company's transfer of competencies and resources across country boundaries (since somewhat different competencies and capabilities are likely to be employed in different host countries) and not promoting the building of a single, unified competitive advantage in all country markets where a company competes.
D) greater exposure to both increases in tariffs and restrictive trade barriers and added difficulty in accommodating the diverse trade restrictions and regulatory requirements of host governments.
E) not being able to export products manufactured in one country to markets in other countries and being largely unsuitable for competing in the markets of emerging countries.

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A) convincing shippers to keep cross-country transportation costs low enough that the company can export its goods to foreign countries cheaply.
B) whether it will have to integrate forward into wholesale and/or retail activities in order to gain visibility for its products in foreign countries.
C) how it can gain competitive advantage based on where it locates its various value chain activities.
D) how to convince local government officials to reduce tariffs on the imports of its goods into their country.
E) developing the expertise to avoid the impact of fluctuating exchange rates.

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