International Business Strategy Test
Questions
Course Introduction
International Business Strategy explores the frameworks, tools, and analytical techniques used by organizations to compete effectively in global markets. The course covers topics such as globalization, market entry strategies, cross-cultural management, international risk assessment, and the formulation and implementation of strategies in multinational enterprises. Students will learn how external environments, government policies, and cultural differences impact business decisions and strategic planning. Through case studies and real-world examples, the course develops critical thinking and decision-making skills essential for navigating the complexities of international business operations.
Recommended Textbook
Strategic Management Theory An Integrated Approach 12th Edition by Charles
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896 Verified Questions
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Page 2
W. L. Hill
Chapter 1: Strategic Leadership: Managing the Strategy
Making Process for Competitive Advantage
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81 Verified Questions
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Sample Questions
Q1) To increase shareholder value,managers must try to venture into new markets whether the results are profitable or not.
A)True
B)False
Answer: False
Q2) The planning model suggests that a company's strategies are the result of a plan from a highly structured process orchestrated by top management.
A)True
B)False
Answer: True
Q3) Jeffrey Pfeffer believes that a manager's power comes from his or her:
A)ability to prioritize the well-being of the company over personal well-being.
B)ability to be emphatic and understanding of the feelings and emotions of subordinates.
C)control over important organizational resources.
D)ability to cut overhead costs.
E)personal rapport with the senior management.
Answer: C
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Chapter 2: External Analysis: The Identification of Opportunities and Threats
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Sample Questions
Q1) The competitive structure of an industry refers to the:
A)number of market segments in the industry.
B)number and size distribution of companies in the industry.
C)number of consumers in the industry.
D)number of manufacturing plants in the industry.
E)number of products produced in the industry.
Answer: B
Q2) Growing demand tends to reduce rivalry because all companies can sell more without taking market share away from each other.
?
A)True
B)False
Answer: True
Q3) Porter's Five Forces model did not recognize one force,which is:
A)the power of complement providers.
B)the risk of entry by potential competitors.
C)the intensity of rivalry among established companies within an industry.
D)the bargaining power of suppliers.
E)the threat of substitutes.
Answer: A
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Chapter 3: Internal Analysis: Resources and Competitive Advantage
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Sample Questions
Q1) Benchmarking is a practice in which a company's performance is compared against that of other companies in different industries.
A)True
B)False
Answer: False
Q2) At Adam's bicycle repair shop,the primary value chain activity of production occurs each time a customer's bicycle is repaired.
A)True
B)False
Answer: True
Q3) Absorptive capacity refers to the ability of an enterprise to identify,value,assimilate,and use new knowledge.
A)True
B)False
Answer: True
Q4) When a company has differentiated products,they have less pricing options.
A)True
B)False
Answer: False
Page 5
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Chapter 4: Building Competitive Advantage Through Functional Level Strategies
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Sample Questions
Q1) Diseconomies of scale are the unit cost increases associated with a large scale of output.
A)True B)False
Q2) While Information Systems have greatly improved productivity,they have had little impact on lowering costs.
A)True
B)False
Q3) The failure rate of innovative products is:
A)high.
B)low.
C)nil.
D)moderate.
E)too difficult to assess.
Q4) There is a negative relationship between the length of time that a customer stays with a company and profit per customer.
A)True
B)False
Page 6
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Chapter 5: Business Level Strategy
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Sample Questions
Q1) A low-cost company is often best positioned to survive price rivalry in its industry.
A)True
B)False
Q2) When a company decides to serve a limited number of segments,or just one segment,it is pursuing a segmentation strategy.
A)True
B)False
Q3) List the features that need to be included in functional strategies to improve differentiation.
Q4) Companies that follow a standardization strategy ignore the many different market segments in an industry and position their products to appeal to the average customer.
A)True
B)False
Q5) An efficiency frontier shows all of the different positions that a company can adopt with regard to differentiation and cost.
A)True
B)False
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Chapter 6: Business Level Strategy and the Industry Environment
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Sample Questions
Q1) Which of the following statements is true about horizontal mergers?
A)Horizontal mergers enable companies to achieve economies of scale.
B)Horizontal mergers result in the fragmentation of the industry.
C)The horizontal merger strategy has been very successful in businesses with zero cases of failure.
D)Companies that establish a network of distributor outlets to obtain the advantages of a low-cost postition are known as horizontal mergers.
E)Companies that adopt the strategy of centralization to gain control over all business units are known as horizontal mergers.
Q2) Which of the following statements is true of embryonic industries?
A)They are characterized by very a high initial customer demand.
B)They are characterized by well-developed distribution channels.
C)They involve low production costs because of large volumes of production.
D)They face the challenge of educating customers who are not familiar with their product benefits.
E)They enjoy the abundance of complementary products that help increase sales.
Q3) The franchisor typically owns and funds each of its franchisees.
A)True
B)False
Page 8
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Chapter 7: Strategy and Technology
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Sample Questions
Q1) The law of diminishing returns states that marginal costs fall as a company tries to expand output.
A)True
B)False
Q2) Even if they are constrained by a lack of capital,research shows that new entrants should avoid partnering with a larger company.
A)True
B)False
Q3) Consumers will bear the costs of switching technologies if:
A)the benefits of adopting the new technology outweigh the costs of switching.
B)switching costs are substantial.
C)the new products are packaged attractively.
D)there is a lack of complementary products.
E)the new technology is advertised subtly.
Q4) Computer software products have high marginal costs.
A)True B)False
Q5) One important advantage of being a first mover is that it guarantees success. A)True
B)False
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Chapter 8: Strategy in the Global Environment
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Sample Questions
Q1) Which of the following is not a necessity for leveraging the competencies of global subsidiaries?
A)Incentives for local managers to share knowledge and ideas
B)Awareness among managers that competencies can develop anywhere
C)Assertion of monopoly of the corporate center over subsidiaries
D)Transfer of competencies around the company
E)Incentives that encourage employees to take necessary risks
Q2) Black and Decker,Capitol One,Gillette,and Unilever are all companies that conduct business in two or more national markets.These companies are known as:
A)bimarket companies.
B)national companies.
C)domestic companies.
D)multinational companies.
E)localized companies.
Q3) Global standardization strategy emphasizes customization and product differentiation.
A)True
B)False
Q4) List and briefly describe each of the four basic global strategies.
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Chapter 9: Corporate-Level Strategy: Horizontal Integration,
Vertical Integration, and Strategic Outsourcing
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Sample Questions
Q1) Consider the case of a manufacturing firm that purchases subassemblies from a supplier,creates a finished product,and then sells that product to a wholesale distributor.What advantages might this firm gain from forward integration? From backward integration? What potential pitfalls of vertical integration might the firm face?
Q2) Vertical integration can raise costs if,over time,a company's leaders continue to purchase inputs from company-owned suppliers even when independent suppliers can supply the same inputs at lower cost.
A)True
B)False
Q3) Companies that outsource most or all of their value creation activities are often referred to as virtual corporations.
A)True
B)False
Q4) Transfer pricing refers to when a company is taken advantage of by another company it does business with after it has made an investment in expensive specialized assets to better meet the needs of the other company.
A)True
B)False
Page 11
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Chapter 10: Corporate Level Strategy: Related and Unrelated Diversification
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Sample Questions
Q1) Product bundling refers to:
A)preparation of products for shipment.
B)a complete package of related products.
C)a method of stocking products efficiently.
D)an inventory procedure for ensuring effective counting of products.
E)a package of unrelated products.
Q2) Which of the following reasons can make a diversification strategy an unwise course of action for a company to pursue?
A)Steady industry conditions
B)Varying firm-specific conditions
C)Diversification for pooling risks
D)Decreasing bureaucratic costs
E)Greater differentiation of products
Q3) Transferring competencies across industries involves taking a distinctive competency developed in one industry and implanting it in an existing business unit in another industry.
A)True
B)False
Q4) What are the two general types of diversification and when would one be preferred over the other?
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Chapter 11: Corporate Performance, Governance, and Business Ethics
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Sample Questions
Q1) The purpose of governance mechanisms in corporations is to:
A)centralize company resources to the top management.
B)reduce the scope and frequency of the agency problems.
C)satisfy the requirements of the Securities and Exchange Commission (SEC).
D)limit corporate growth to manageable rates.
E)monitor the performance of the Board of Directors.
Q2) When corporate CEOs and top managers use their power and control over funds to satisfy their personal desires for wealth or status,it is called:
A)on-the-job consumption.
B)greenmail.
C)information asymmetry.
D)self-dealing.
E)risk capital.
Q3) Financial statements can be a tool of effective governance only if they provide consistent,detailed,and accurate information.
A)True
B)False
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Chapter 12: Implementing Strategy Through Organization
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Sample Questions
Q1) A matrix structure would be the most appropriate for which of the following firms??
A)A company in which each employee is required to have only one boss
B)A company operating in the maturity stage of the industry life cycle
C)A company that is dependent on rapid mobilization of resources for competitive success
D)A company with a high level of vertical differentiation
E)A company in which the speed of product development is not crucial
Q2) Delayering is:?
A)a rethinking and radical redesign of a firm's business processes.
B)a radical readjustment of the organization's staffing and hierarchy.
C)a philosophy that states that mistakes, defects, and poor-quality materials are not acceptable and should be eliminated.
D)the shift that firms make from a functional to a more complex structure as the firm grows in complexity and size.
E)employed when a firm needs help in improving its functional strategies.
Q3) Organizational structure is at the core of an organizations architecture.
A)True
B)False
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