ch 7 MGT

China is pressuring Airbus to increase its productions facilities in China by using which technique?

Using political favors in exchange for influence

Building production capacity in locations outside of Europe can threaten ________, an issue typically raised when investing in China.

Intellectual Property rights protection

indian Coke, a subsidiary of Coca-Cola, offers a drink called Maaza Chunky. Production required modification of the production technique and the introduction of newly designed cans. These represent aspects of a ________ strategy.

multidomestic

One of the reasons Ford found it difficult to increase sales in China is that

Its cars did not meet customer expectations

 Community hospitals in Mississippi can video conference with the specialists at the University of Mississippi Medical Center thus lowering health care delivery costs and increasing the quality of medical care. This system mirrors that of the Indian health care delivery system for reaching rural areas. This is an example of

reverse innovation

According to Michael Porter, firms that have experienced intense domestic competition are

more likely to design strategies that will allow them to successfully compete abroad.

In reviewing the Indian software industry and the diamond of national advantage, which of the following is a relatively weak set of factors in the national competitive advantage in this industry?

Domestic demand conditions

Which of the following is   not a source of political risk in many countries?

The presence of the rule of law

When the U.S. dollar appreciates against other currencies, U.S. goods can be ________ to consumers in foreign countries but can have ________ implications for American companies with branch operations overseas.

More expensive; negative

The sale of Boeing commercial aircrafts and Microsoft operating systems in many countries enables these companies to benefit from

economies of scale

 Exemplifying the phenomenon of ________, companies like GE have committed significant resources to developing products that meet the needs of developing nations, products that deliver adequate functionality at a fraction of the cost. Interestingly, these products have subsequently found considerable success in value segments in wealthy countries as well.

reverse innovation

renault paid 1 billion USD to acquire a 25 percent ownership stake in the Russian automaker AvtoVAZ in 2008. Just one year later, Russian Prime Minister Vladimir Putin threatened to dilute the Renault ownership stake unless it contributed more money to prop up AvtoVAZ, which was then experiencing a significant slide in sales. This is an example of ________ risk.

political

When firms expand into global markets, they are faced with the choice of reducing costs and/or adapting to the local market. When high pressures exist to lower costs, companies should choose a(n) ________ strategy or ________ strategy in order to compete in the global marketplace.

global;transnational

To be responsive to local pressures, companies must ________ their offerings and strategies from country to country to reflect local consumer preferences.

differentiate

Which would be the appropriate strategy for companies to use to compete in the global marketplace if both the pressures to lower costs and adapt locally are low?

international strategy

Firms following a global strategy strive to offer ________ products and services as well as locate manufacturing, research and development, and marketing activities in a limited number of locations.

standardized

Which one of the following is   not a limitation of a global strategy?

the ability to locate activities in optimal locations

 Which one of the following is   not a strength of transnational strategies?

 ability to decrease knowledge flows and learning 

Which of the following is a reason for the rise in regional expansion?  

increase in the number of trading blocs and free trade zones

Regionalization is most important because it permits companies to organize their activities based upon

 the true distance between the home country office and the foreign country.

  Which of the following describes the most typical order of entry into foreign markets?

  exporting, licensing, franchising, joint venture, and wholly owned subsidiary 

What agreement entails the creation of a third-party legal entity?

joint venture