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B. Be locally responsive
D. Reduce costs
Companies typically face two types of competitive pressures when entering global markets. What are these two pressures?
A. Use foreign currency
B. Be locally responsive
C. Use local employees
D. Reduce costs
increase
Differentiation across countries is more likely to ________(decrease or increase?) costs for a company.
B. value
When a company is pressured to reduce costs of its products, it will lead to lower costs of ______ creation.
A. resource
B. value
C. production
D. quality
B. personal computers and hand-held calculators
D. bulk chemicals, petroleum and steel
Select all that apply
Universal needs exist with which two of these product groups? Choose all that apply.
A. sports apparel for local teams
B. personal computers and hand-held calculators
C. high fashion clothing
D. bulk chemicals, petroleum and steel
A. Host-government demands
D. Accepted business practices
E. Differences in consumer tastes
Select all that apply
Choose three factors that pressure a firm to respond locally when they enter the global marketplace.
A. Host-government demands
B. Common global business practices
C. Homogeneous consumer preferences
D. Accepted business practices
E. Differences in consumer tastes
D. locally responsive
Firms face competitive pressures when they venture into the global marketplace. Companies face pressure for cost reductions and to be ______.
A. free from subsidiaries
B. a greenfield venture
C. politically connected
D. locally responsive
more
When customer preferences differ significantly between countries, there is ________(less or more?) pressure for local responsiveness.
True
(True or false) Being locally responsive tends to raise costs for a company.
B. political demands
What is the source of local responsiveness when federal law mandates that all pharmaceutical products meet specific standards?
A. customer preference
B. political demands
C. distribution channels
D. technology
False
(True or false) Competitive pressures are present if a firm produces a specialty product that can be differentiated by non-price factors.
A. universal
Consumers throughout the world have the same use for sugar -- it is used as a sweetener in every country. Sugar is an example of a(n) ______ need.
A. universal
B. secondary
C. traditional
D. liberal
A. location economies
B. learning effects
D. economies of scale
Select all that apply
What are three areas of a company's strategy that can be impacted by pressures for local responsiveness? Choose all that apply.
A. location economies
B. learning effects
C. currency exchange
D. economies of scale
E. capital markets
D. local responsiveness
Marta's company wants to sell coffee products in Mexico but in order to do so they need to adjust their products to reflect the desires of customers in Mexico. In other words, her company feels the pressure of ______.
A. tragedy of the commons
B. economies of scale
C. core competencies
D. local responsiveness
D. cost reductions
A global standardization strategy aims to increase profits by implementing ______.
A. more advertising
B. research and development
C. customized products
D. cost reductions
B. the firm’s foreign subsidiary
Production and marketing responsibilities are typically delegated to Blank______ when customer preferences create a strong pressure for local responsiveness.
A. an outside party
B. the firm's foreign subsidiary
C. the firm's home office
False
(True or False) A global standardization strategy should be used when there are pressures for providing customized products for local demands.
A. a certain percentage of a product should be manufactured locally
Local content rules dictate that ______.
A. a certain percentage of a product should be manufactured locally
B. a product should be manufactured in the location providing the greatest cost savings
C. a product should be manufactured in the location where it creates the least environmental damage
D. the entirety of a product should be manufactured locally
C. Localization
What strategy increases the value of a product in the local market through customization for different national tastes and preferences?
A. International
B. Transnational
C. Localization
D. Global standardization
True
(True or false) If a company is pressured to make a custom product to serve a local market, this process might jeopardize the company's overall strategy of marketing a standardized product that can be sold worldwide.
D. global standardization
When a firm adopts a low-cost strategy on a global scale that comes from economies of scale, learning effects, and location economies it is using a ______ strategy.
A. localization
B. home-country
C. international
D. global standardization
A. strong pressure to reduce costs
C. low demand for local responsiveness
Select all that apply
What two factors would lead a company to use a global standardization strategy?
A. strong pressure to reduce costs
B. high demand for local responsiveness
C. low demand for local responsiveness
D. minimal pressure to reduce costs
greater
The value of a product would be ________(lesser or greater?) to a local market that is the result of a localization strategy.
D. Localization
Lillian's company makes chocolate candy bars. They make one type of candy for the US market and make another type of candy that isn't quite as sweet for the European market because consumers there prefer that. What type of strategy does Lillian's company use to sell its products?
A. Global standardization
B. Transnational
C. International
D. Localization
A. cost reductions
D. local responsiveness
Select all that apply
A firm should follow the transnational strategy when it is faced with which two pressures?
A. cost reductions
B. foreign exchange balance
C. a standardized commodity
D. local responsiveness
B. When there are differences across nations in tastes and preferences
D. When cost pressures are not too intense
Select all that apply
Which two situations make a localization strategy the best choice? (check all that apply)
A. When it is most profitable to offer a standardized product
B. When there are differences across nations in tastes and preferences
C. When there is potential for economies of scale
D. When cost pressures are not too intense
A. do not have significant competition
The distinguishing feature of a firm following an international strategy is that they ______.
A. do not have significant competition
B. do not serve a universal need
C. feel pressured to customize their products
D. feel pressured to reduce their cost structure
A. does not face cost pressures
C. does not face pressures to customize a product based on local preference
Select all that apply
A business should follow an international strategy when it finds itself in which two situations?
A. does not face cost pressures
B. when it cannot achieve economies of scale
C. does not face pressures to customize a product based on local preference
D. when it cannot participate in foreign capital markets
C. transnational
A business should follow the Blank______ strategy when it experiences pressures for cost reduction AND local responsiveness.
A. localization
B. global standardization
C. transnational
D. international
The strategy where a company takes a product produced for the domestic market and then makes very minor changes to customize the product for global markets is the ______ strategy.
A. localization
B. global standardization
C. transnational
D. international
D. it did not have any competition
When Xerox first introduced the photocopier, it was able to implement an international strategy because ______.
A. it made a desktop model
B. photocopiers were needed by every company
C. it offered the product at the lowest price
D. it did not have any competition
