QUESTION 1

1. ExxonMobil enters into a pact with Gazprom, the world's largest natural gas extractor, to set
up a processing unit in Baku, Azerbaijan. Which of the following is most likely the reason for
ExxonMobil to opt for this strategic alliance?
to gain access to new customers
to scale back its core competencies
to restrict its factors of production
to gain access to low-cost inputs of production
to better compete with Gazprom

1 points   
QUESTION 2
1. A weaker U.S. dollar is an economically favorable exchange-rate shift for manufacturing
plants based in the United States.
This is a true statement.
No, the U.S. dollar must be stronger.
Yes, because it provides for a weakened foreign demand for U.S.-made goods.
Yes, because it makes such plants less cost competitive with foreign plants.
Yes, because it provides incentives of foreign companies to locate manufacturing
facilities in the U.S. to make goods for U.S. consumers.

1 points   
QUESTION 3
1. Which statement is not a reason BP implemented a multidomestic competitive strategy to
market its Castrol oil lubricants around the world?
Buyers in different countries are attracted to different product attributes.
The benefits from global integration and standardization are high.
Industry conditions and competitive forces in each national market differ in important
respects.
The mix of competitors in each country market varies from country to country.
Winning in one country market does not necessarily signal the ability to fare well in
other countries.

1 points   
QUESTION 4
1. Why do companies decide to enter a foreign market?
to capture economies of scale in product development, manufacturing, or marketing
to raise input costs through greater pooled purchasing power
to decrease the rate at which they accumulate experience and move up the learning
curve
 to concentrate risk within a broader base of countries, especially when sales are down
in one area and the company can undermine sales elsewhere
to exploit the natural resources found within its home market

1 points   
QUESTION 5
1. Crafting a strategy to compete in one or more foreign markets can be considered complex
because
factors that affect industry competitiveness are the same from country to country.
the potential for location-based advantages to conducting value chain activities in
certain countries.
different government policies and economic conditions make the business climate
more favorable in some countries than in others.
currency exchange rates among countries are generally fixed and rarely change.
buyer tastes and preferences differ among countries and present a challenge for
companies concerning. customizing versus standardizing their products and services.

1 points   
QUESTION 6
1. A "think-local, act-local" multidomestic strategy works particularly well in all of the following
situations, except when there are
regulations enacted by the host governments requiring that products sold locally meet
strictly defined manufacturing specifications or performance standards.
significant country-to-country differences in customer preferences and buying habits.
diverse and complicated trade restrictions of host governments preclude the use of a
uniform strategy from country-to-country.
significant country-to-country differences in distribution channels and marketing
methods.
large demands to pursue conflicting objectives simultaneously.

1 points   
QUESTION 7
1. The advantages of manufacturing goods in a particular country and exporting them to
foreign markets
are largely unaffected by fluctuating exchange rates.
are greatest when local distributors and dealers in that country can be convinced not to
carry products that are made outside the country's borders.
can be wiped out when that country's currency grows weaker relative to the currencies
of the countries where the output is being sold.
are weakened when that country's currency grows stronger relative to the currencies of
the countries where the output is being sold.
are multiplied by the potential for local government officials to raise tariffs on the
imports of foreign-made goods into their country.
 1 points   
QUESTION 8
1. Why does a U.S. company exporting wooden furniture manufactured in Malaysia to the
European Union benefit from the decline in the value of the ringgit against the euro?
Because decline in the value of the ringgit against the euro raises the cost of furniture
manufactured in Malaysia, making it less competitive in European markets.
Because decline in the value of the ringgit against the euro reduces the cost of furniture
manufactured in Malaysia, making it more competitive in European markets.
Because decline in the value of the ringgit against the euro has no impact on the cost of
furniture manufactured in Malaysia, both in Malaysian or European markets.
Because decline in the value of the ringgit against the euro makes European goods
more competitive as compared to Malaysian goods.
Because decline in the value of the ringgit against the euro makes Malaysian goods less
competitive in the U.S. market.

1 points   
QUESTION 9
1. One of the biggest strategic challenges to competing in the international arena includes
how to leverage the opportunities arising from shifting exchange rates.
how to charge the same price in all country markets.
how to identify foreign firms licensed to produce and distribute the company's
products.
whether to offer a standardized product worldwide or a customized product offering in
each different country market.
whether to pursue a franchising strategy or a joint venture strategy.

1 points   
QUESTION 10
1. Using domestic plants as a production base for exporting goods to selected foreign country
markets can be a(n)
excellent initial strategy to test the international waters and learn if attractive market
positions can be established in foreign markets.
competitively successful strategy when a company is focusing on vacant market niches
in each foreign country and does not have to compete head-to-head against strong
host country competitors.
powerful strategy since a company can maintain a one-country production base
allowing it to capitalize on company competencies and capabilities.
weak strategy when competitors are pursuing multicountry strategies.
powerful strategy because a company is not vulnerable to fluctuating exchange rates.