PRESIDENT UNIVERSITY

MID-TERM SEMESTER EXAMINATION

ACADEMIC YEAR 2021/2022 / 1st SEMESTER
SUBJECT : International Strategy and Policy
LECTURER : FILDA RAHMIATI
STUDY PROGRAM : INTERNATIONAL BUSINESS
Instructions to Students
1. This examination consists of 5 pages.
2. Time allowed for this examination due on 09.00 pm.
3. Sanctions will be given to those students who are not following the examination rules
4. All answers to be written in answer sheet provided. The number of the corresponding
question must be written correctly.
5. Students are to use proper English and are required to write neatly and clearly

Part 1. Multiple Choice questions:

1. A company which operates in a number of countries, and adjusts its products and
processes in each, at high relative cost is a definition of:
a. Global corporation b. International Company c. Multinational Company d. Domestic
Company
2. What are populous countries with emerging economies that are experiencing rates of
growth in Gross Domestic Product (GDP), trade, and disposable income that are
unprecedented in the developed world?
a. BRIC (Belgium, Romania, India, and Canada)
b. BRIC (Belgium, Russia, Italy, and China)
c. BRIC (Brazil, Russia, India, and China)
d. BRIC (Brazil, Romania, Italy, and Canada)
3. We define corporate globality in terms of 4 dimensions, except:
a. Market presence b. Demand base c. Capital base d. corporate mindset

4. Analysts frequently divide political risk into 2 subcategories, there are:

a. Global risk and regional-specific risk b. Multinational risk and country-specific risk
c. Global risk and Multinational risk d. Global risk and country-specific risk
5. Five stages of going global are:
a. Market entryProduct SpecializationValue chain disaggregationValue chain re-
engineeringthe creation of new markets
b. Market entryValue chain disaggregationValue chain re-engineeringProduct
SpecializationThe creation of new markets
c. The creation of new marketsProduct specializationValue chain re-engineeringValue
chain disaggregationMarket entry
d. Product specializationValue chain re-engineeringValue chain disaggregationMarket
entry
6. In which stage of globalization that companies start to disaggregate the production
process and focus each activity in the most advantageous location?
a. Value chain aggregation b. Value added aggregation c. Value added disaggregation
d. Value chain disaggregation
7. Which stage of globalization that focus on market expansion?
a. The creation of market expansion b. The creation of new market c. The new market
expansion
d. The creation of market entry
8. There are six components under Porters’ National Diamond:
a. factor conditions, host-country demand, related and supporting industries, comparativeness of
the home industry, public policy, and chance
b. factor conditions, home-country demand, related and supporting industries,
competitiveness of the home industry, public policy, and chance
c. socio-economic conditions, home-country demand, related and supporting companies,
competitiveness of the home industry, private policy, and chance
d. socio-economic conditions, home-country supply, related and supporting companies,
competitiveness of the home industry, private policy, and cultural
9. Government drivers in globalization is important in shaping the global competitive
environment in an industry. Examples of government drivers are mention below, except:
a. the presence of favorable trade policies b. electrical standards
c. policies and regulations d. government operated or subsidized competitors or customers
10. Competition consists of few large corporations is called:
a. monopolistic b. homopolistic c. oligopolisticd.pure competition
11. Ghemawat’s AAA global strategy framework are:
a. Adoptation strategies, Aggregation strategies, Arbitrage strategies
b. Adaptation strategies, Aggregation strategies, Arbitrage strategies
c. Adaptation strategies, Agreement strategies, Alocation strategies
d. Adoptation strategies, Agreement strategies, Alocation strategies
12. Seek to increase revenues and market share by response to local preferences is a
definition of?
a. Adoptation strategies b. Aggregation strategies c. Adaptation strategies

d. Arbitrage strategies

13. Ghemawat subdivides adaptation strategies into five categories, except:

a. variation b. focus c. design d. economies of scale
14. IKEA’s flat-pact design is one of categories under adaptation strategies, which is:
a. focus b. design c. innovation d. externalization
15. Which is the best strategy for companies which need more on R&D?
a. aggregation b. adaptation c.adoptation d.arbitrage
16. What is the strategy used by TOYOTA which focusing on similarities among
geographic without compromising local responsiveness?
a. Aggregation b. Adoptation c. Adaptation d. Arbitrage
17. In Arbitrage strategy, there are several advantages, except:
a. creation and sharing knowledge b. absolute advantage c. differentiation d. increase
supply chain risks
18. Companies like fashion industry need to use arbitrage strategy because focus on:
a. branding and advertising b. labor intensive c. consumer intensive d. R&D

19. One of companies implementing two “A”s is P&G company which use strategies of:
a. Adoptation and Aggregation Strategies
b. Adaptation and Arbitrage Strategies
c. Adaptation and Aggregation Strategies
d. Aggregation and Arbitrage Strategies
20. There are considerations in applying the AAA Framework, except:
a. Focus on one or two of the as to build competitive advantage
b. Make sure the new elements of a strategy are a good fit organizationally
c. Employ multiple integration mechanism
d. companies should always do integration to be better
Part 2. True and False Questions.
1. Efficiencies associated with supply-side changes, such as increasing or decreasing the scale of
production is definition of Economies of scope. (T/F)
False, Efficiencies associated with supply-side changes, such as increasing or decreasing the
scale of production is definition of Economies of scale.
2. Ghemawat analyzes distance between countries or regions in terms of four dimensions, there
are cultural, administrative, geographic, and economic which influences business in different
ways. (T/F)
TRUE.
3. In the stage of market entry, companies tend to enter new countries using business model that
are very different to the ones they deploy in their home markets. (T/F)
False, Companies tend to enter new countries with business models that are very similar to those
they employ in their own markets.

4. The theory of competitive economic advantage holds that as a result of natural endowments,
some countries or regions of the world are more efficient than others in producing particular
goods. (T/F)
False, the theory of comparative economic advantage holds that as a result of natural
endowments, some countries or regions of the world are more efficient than others in
producing particular goods
5. Government policy can through infrastructure, incentives, subsidies or temporary protection
which is the nurture of global industries. (T/F)
TRUE.
6. Industry globalization drivers are market drivers, socio drivers, government drivers, and
competitive drivers. (T/F)
False, Industry globalization drivers are market drivers, Government drivers, competitive
drivers, and cost drivers.
7. In the product specialization stage, companies transfer some amount of production process of
a particular product to a single, low-cost location and export the goods to various consumer
markets. (T/F)
False, companies transfer the full production process of a particular product to a single,
low-cost location and export the goods to various consumer markets.
8. Adaptation, aggregation, and arbitrage strategies are the AAA framework created by
Ghemawat. (T/F)
TRUE.
9. Ghemawat subdivides adaptation strategies into five categories: variation, differentiation,
internalization, design, and innovation. (T/F)
False, Ghemawat subdivides adaptation strategies into five categories: Variation, focus,
externalization, design, innovation.
10. Aggregation strategies is focusing on economies of scale and economies of scope. (T/F)
False, focus on achieving economies of scale or scope