Ebook Crafting and Executing Strategy Concepts and Readings The Quest For Competitive Advantage 20Th Edition Thompson Test Bank Full Chapter PDF

Crafting and Executing Strategy
Concepts and Readings The Quest for

Competitive Advantage 20th Edition
Thompson Test Bank
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Chapter 07 Test Bank
Student: ___________________________________________________________________________
1. The reason the world economy is globalizing at an accelerated pace is because:
A. countries previously open to foreign companies have closed their markets.

B. countries that previously had market or mixed economies now embrace planned economies.
C. information technology expands the importance of geographic distance.
D. growth-minded companies are racing to build stronger competitive positions in the markets of more countries.
E. countries opposed to market or mixed economies have stringent trade barriers in place.
2. The reasons why a company opts to expand outside its home market include all of the following EXCEPT:
A. gaining access to new customers for the company's products/services.

B. spreading its business risk across a wider market base.
C. achieving lower costs through economies of scale, experience, and increased purchasing power.
D. exploiting its core competencies and capabilities.
E. identifying resources and capabilities in the company's home market.
3. Exxon Mobil enters into a pact with Gazprom, the world's largest natural gas extractor, to set up a processing unit in Moscow.
Which of the following is most likely the reason for Exxon Mobil to opt for this strategic alliance?
A. To gain access to new customers

B. To scale back its core competencies
C. To restrict its factors of production
D. To gain access to low-cost inputs of production
E. To better compete with Gasprom
4. Why do companies decide to enter a foreign market?
A. To capture economies of scale in product development, manufacturing, or marketing

B. To raise input costs through greater pooled purchasing power
C. To decrease the rate at which they accumulate experience and move up the learning curve
D. To concentrate risk within a broader base of countries, especially when sales are down in one area and the company can
undermine sales elsewhere
E. To exploit the natural resources found within its home market
5. Which of the following is NOT a reason why a company decides to enter foreign markets?
A. To spread business risk across a wider geographic market base

B. To capitalize on company competencies and capabilities
C. To achieve lower costs through economies of scale, experience, and increased purchasing power
D. To impart technical knowledge to high-cost human resources in developing nations
E. To gain access to more buyers for the company's products/services
6. Which of the following is NOT a reason why crafting a strategy to compete in one or more foreign markets is inherently
complex?
A. Because factors that affect industry competitiveness vary from country to country
B. Because of the potential for location-based advantages to conducting value chain activities in certain countries
C. Because different government policies and economic conditions make the business climate more favorable in some countries
than others
D. Because of the risks for shifts in currency exchange rates
E. Because similarities in buyer tastes and preferences facilitate standardization of products and services
7. Which of the following is NOT an accurate statement as concerns competing in the markets of foreign countries?
A. Localizing a global company's product offerings country-by-country leads to low-cost advantage.

B. There are country-to-country differences in consumer buying habits and buyer tastes and preferences.
C. A company must contend with fluctuating exchange rates and country-to-country variations in host government restrictions
and requirements.
D. Product designs suitable for one country are often inappropriate in another.
E. Market growth rates vary from country to country.
8. The diamond framework is NOT LIKELY to answer which of the following questions about competing on an international
basis?
A. Where will the foreign entrants come from?

B. Which countries have the weakest foreign rivals?
C. What are the attributes of a country's business environment?
D. What location of value chain activities is most beneficial?
E. What are the disadvantages of allowing foreign competition?
9. Competing in the markets of foreign countries generally does NOT involve which of the following?
A. Country-to-country differences in consumer buying habits and buyer tastes and preferences
B. Country-to-country variations in host government restrictions and requirements and fluctuating exchange rates
C. Whether to customize the company's offerings in each different country market or whether to offer a mostly standardized
product worldwide
D. In which countries to locate company operations for maximum locational advantage, given country-to-country variations in
wage rates, worker productivity, energy costs, tax rates, and the like
E. Crafting a multidomestic strategy that works just as well in one country as in another and that also has the appeal of turning
the world market into a mostly homogeneous market
10. One of the biggest strategic challenges to competing in the international arena includes:
A. how to leverage the opportunities arising from shifting exchange rates.

B. how to charge the same price in all country markets.
C. how to identify foreign firms licensed to produce and distribute the company's products.
D. whether to offer a standardized product worldwide or a customized product offering in each different country market.
E. whether to pursue a franchising strategy or a joint venture strategy.
11. What aspect of the diamond framework is MOST LIKELY responsible for GlenmarkPharma setting up manufacturing facilities
in the United States, the world's largest market for pharmaceuticals?
A. Licensing strategies
B. Demand conditions
C. Joint venture strategies
D. Franchising strategies
E. Firm strategy, structure, and rivalry
12. Which of the following is NOT a factor analyzed and relied on by firms when developing competitive strength in a foreign
market?
A. The relative size of the market, its growth potential, and the nature of domestic buyers' needs and wants
B. The availability, quality, and cost of raw materials and other inputs that firms will require to produce their products and
services
C. The development of different styles of management, organization, and strategy
D. The degree of collaboration with key suppliers and the greater the knowledge sharing throughout the related-industry cluster
E. The level of industry-related support activities to foster customization of products and services
13. Which of the following exemplifies location-based advantage for the companies competing on an international basis?
A. Microsemi Corporation acquires California based Actel Corporation.

B. RBC Wealth Management closes operations in South Florida.
C. Samsung diversifies and ventures into textiles and food processing.
D. Hyundai signs a memorandum of understanding with the government of South Korea to halt exports.
E. De Beers sets up operations in the mining region of South Africa.
14. The diamond framework can be used to reveal the answers to all of the following that are important for competing on an
international basis EXCEPT:
A. where foreign entrants into an industry are most likely to come from.
B. how to formulate an exit strategy to push foreign competitors out of the market.
C. which countries' foreign rivals are likely to be the weakest.
D. how managers can decide which foreign markets to enter first.
E. where to locate different value chain activities so they are the most beneficial.
15. Apollo Tires sets up a manufacturing unit in Mexico. Following this, Renault-Nissan signs a supply contract with the tire
multinational. In which of the following ways is Renault-Nissan likely to gain from the pact?
A. Different styles of management, organization, and strategy

B. Knowledge sharing within same value chain system
C. Availability of natural resources at low cost
D. Growth potential and large size of the market
E. Government policies in the host country
16. Which of the following is LIKELY to be viewed as a pro-business government policy from the perspective of companies
competing on an international basis?
A. Argentina increases its interest rate on loans to foreign entrants from 15% to 19%.
B. The European Union imposes a 16% tariff on the import of agricultural produce.
C. Australia introduces a permanent employer-sponsored visa program for skilled manpower.
D. Denmark levies a per metric ton carbon tax on electricity.
E. The Chinese government favors partial local ownership of foreign-owned companies.
17. Which of the following is NOT a typical host government requirement that affects the operations of foreign companies?
A. Establishing local content requirement on goods made inside their borders by foreign companies
B. Having rules and policies that protect local companies from foreign competition
C. Placing restrictions on exports to ensure adequate local supplies
D. Requiring foreign companies to use vertical integration to support operations of local companies
E. Imposing burdensome tax structures and regulatory requirements upon foreign companies doing business within their borders
18. The difference between political risks and economic risks is that:
A. political risks stem from instability or weakness in national governments, while economic risks stem from the stability of a
country's monetary system, and its economic and regulatory policies.
B. political risks stem from stability in foreign business, while economic risks stem from an excess of property right protections.
C. political risks stem from hostility to foreign currencies, while economic risks stem from the instability of the monetary
system.
D. political risks stem from exchange rate fluctuations, while economic risks stem from hostility to foreign business.
E. political risks stem from the stability of a country's monetary system, while economic risks stem from instability in national
business.
19. A U.S. manufacturer that exports goods made at its U.S. plants for shipment to foreign markets:
A. is competitively disadvantaged when the U.S. dollar declines in value against the currencies of the countries to which it is
exporting.
B. is largely unaffected by fluctuating exchange rates. It would, however, be affected if its plants were in foreign countries.
C. becomes more competitive in foreign markets when the U.S. dollar gains in value against the currencies of the countries to
which it is exporting.
D. becomes more competitive in foreign markets when the U.S. dollar declines in value against the currencies of the countries to
which it is exporting.
E. has no interest in whether the dollar grows stronger or weaker versus foreign currencies unless it is competing only against
companies located in foreign countries.
20. A European manufacturer that exports goods made at its European plants to the United States:
A. is competitively disadvantaged when the euro declines in value against the U.S. dollar.
B. is largely unaffected by fluctuating exchange rates between the euro and the U.S. dollar. It would, however, be affected if its
plants were in the U.S.
C. becomes more competitive in the U.S. market when the euro declines in value against the U.S. dollar.
D. becomes more competitive in European markets when the euro declines in value against the U.S. dollar.
E. has no interest in whether the euro grows stronger or weaker versus the U.S. dollar unless its chief competitors are other
companies located in countries whose currency is also the euro.
21. A U.S. company that makes all of its goods at a plant in Brazil and then exports the Brazilian-made goods to country markets
across the world:
A. is competitively disadvantaged when the U.S. dollar declines in value against the Brazilian real.
B. is competitively advantaged when the Brazilian real declines in value against the currencies of the countries to which the
Brazilian-made goods are being exported.
C. becomes less competitive in foreign markets when the Brazilian real declines in value against the currencies of the countries
to which the Brazilian-made goods are being exported.
D. is competitively advantaged when the U.S. dollar appreciates in value against the Brazilian real.
E. is unaffected by changes in the valuation of foreign currencies against the Brazilian real—all that matters to a U.S. company is
the valuation of the U.S. dollar against the Brazilian real.
22. A European-based company that makes all of its goods at a plant in Brazil and then exports the Brazilian-made goods to country
markets in many different parts of the world:
A. is competitively disadvantaged when the euro declines in value against the Brazilian real.
B. is competitively disadvantaged when the Brazilian real declines in value against the currencies of the countries to which the
C. becomes less competitive in foreign markets when the Brazilian real gains in value against the currencies of the countries to
which the Brazilian-made goods are being exported.
D. is competitively advantaged when the euro appreciates in value against the Brazilian real.
E. has no interest in whether the euro grows stronger or weaker versus the Brazilian real unless its chief competitors are other
23. Why does a U.S. company exporting wooden furniture manufactured in Malaysia to the European Union benefit from the decline
in the value of ringgit against the euro?
A. Because decline in the value of ringgit against euro raises the cost of furniture manufactured in Malaysia, making it less
competitive in European markets
B. Because decline in the value of ringgit against euro reduces the cost of furniture manufactured in Malaysia, making it more
C. Because decline in the value of ringgit against euro has no impact on the cost of furniture manufactured in Malaysia, both in
Malaysian or European markets
D. Because decline in the value of ringgit against euro makes European goods more competitive as compared to Malaysian
goods
E. Because decline in the value of ringgit against euro makes Malaysian goods less competitive in the U.S. market
24. The advantages of manufacturing goods in a particular country and exporting them to foreign markets:
A. are largely unaffected by fluctuating exchange rates.

B. 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.
C. can be wiped out when that country's currency grows weaker relative to the currencies of the countries where the output is
being sold.
D. are weakened when that country's currency grows stronger relative to the currencies of the countries where the output is being
sold.
E. are multiplied by the potential for local government officials to raise tariffs on the imports of foreign-made goods into their
country.
25. Which of the following statements concerning the effects of fluctuating exchange rates on companies competing in foreign
markets is NOT accurate?
A. Fluctuating exchange rates pose significant risks to a company's competitiveness in foreign markets.
B. The advantages of manufacturing goods in a particular country are largely unaffected by fluctuating exchange rates.
C. Exporters win when the currency of the country from which the goods are being exported grows weaker relative to the
currencies of the countries that the goods are being exported to.
D. The advantages of manufacturing goods in a particular country can be undermined when that country's currency grows
stronger relative to the currencies of the countries where the output is being sold.
E. Domestic companies under pressure from lower-cost imports are benefited when their government's currency grows weaker in
relation to the currencies of the countries where the imported goods are being made.
markets is true?
A. Fluctuating exchange rates do not pose significant risks to a company's competitiveness in foreign markets.
C. Companies that are manufacturing goods in a particular country and are exporting much of what they produce are
disadvantaged when that country's currency grows weaker relative to the currencies of the countries that the goods are being
exported to.
D. Companies that are manufacturing goods in a particular country and are exporting much of what they produce are benefited
when that country's currency grows weaker relative to the currencies of the countries that the goods are being exported to.
E. Domestic companies under pressure from lower-cost imports are hurt even more when their government's currency grows
weaker in relation to the currencies of the countries where the imported goods are being made.
27. Which of the following statements about fluctuating exchange rates and the related effects on companies competing in foreign
markets is true?
C. Companies that are manufacturing goods in a particular country and are exporting much of what they produce lose out when
that country's currency grows weaker relative to the currencies of the countries that the goods are being exported to.
D. The advantages of manufacturing goods in a particular country improve when that country's currency grows stronger relative
to the currencies of the countries where the output is being sold.
E. Domestic companies under pressure from lower-cost imports are hurt even more when their government's currency grows
28. A weaker U.S. dollar is an economically favorable exchange-rate shift for manufacturing plants based in the United States.
A. This is a true statement.

B. No, the U.S. dollar must be stronger.
C. Yes, because it provides for a weakened foreign demand for U.S.-made goods.
D. Yes, because it makes such plants less cost competitive with foreign plants.
E. Yes, because it provides incentives of foreign companies to locate manufacturing facilities in the U.S. to make goods for U.S.
consumers.
29. Which of the following exemplifies cross-country differences in demographic, cultural, and market conditions?
A. Nike produces its own line of skate shoes.

B. Starbucks acquires a large coffee farm in Costa Rica.
C. Ireland provides low-costs loans to foreign entrants to stimulate capital investment.
D. Intel's silicon chips are identical across the world.
E. McDonald's offers 100% beef-free products in its outlets in India.
30. Companies operating in an international marketplace have to respond to all of the following, EXCEPT:
A. whether to customize their offerings in each different country market to match the tastes and preferences of local buyers.
B. whether to pursue a strategy of offering a mostly standardized product worldwide.
C. how much to customize their offerings in each different country market to match the tastes and preferences of local buyers.
D. the tensions between market pressures to localize a company's product offerings country by country and the competitive
pressures to lower costs through greater product customization.
E. whether to buy a struggling competitor at a bargain price or pay a premium to gain entry to the local market.
31. Which of the following factors does NOT determine whether to employ entry strategy options?
A. Cross-border transfer activities and home country advantages

B. The nature of the firm's objectives
C. Whether the firm has a full range of resources and capabilities needed to operate abroad
D. Country-specific factors such as trade barriers
E. Transaction costs involved (the cost of contracting with a partner and monitoring compliance with the terms of the contract)
32. Using domestic plants as a production base for exporting goods to selected foreign country markets:
A. can be an excellent initial strategy to test the international waters and learn if attractive market positions can be established in
foreign markets.
B. can be a 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.
C. can be a powerful strategy since a company can maintain a one-country production base allowing it to capitalize on company
competencies and capabilities.
D. can be a weak strategy when competitors are pursuing multi-country strategies.
E. can be a powerful strategy because a company is not vulnerable to fluctuating exchange rates.
33. Which of the following is an example of an export strategy?
A. The popular Disney character Mickey Mouse can only be leased or rented for use by companies.
B. Subway allows small-business owners to use its trademarks, services, and products for a fee.
C. The Unites States is the world's largest producer and supplier of artificial fur.
D. American Airlines' common stock, owned by AMR Corp., is not available for public purchase.
E. Walmart earns a quarter of its revenue outside the United States.
34. The advantages of using a licensing strategy to participate in foreign markets include:
A. being especially well-suited to achieve scale economies.

B. being able to charge lower prices than rivals.
C. being able to achieve first-mover advantages quickly and easily.
D. being able to leverage the company's technical know-how, appealing brand, or patents without committing their resources or
capabilities to foreign markets.
E. being able to achieve higher product quality and better product performance than with an export strategy.
35. The advantages of using a franchising strategy to pursue opportunities in foreign markets include:
A. having franchisees bear most of the costs and risks of establishing foreign locations and requiring the franchisor to expend
only the resources to recruit, train, and support and monitor franchisees.
B. being particularly well-suited to the global expansion efforts of companies with multidomestic strategies.
C. allowing a company to achieve scale economies.
D. being well suited to companies who employ cross-border transfer strategies.
E. being well suited to the global expansion efforts of manufacturers.
36. The big problem a franchisor faces is:
A. allowing franchisees to achieve scale economies.

B. maintaining quality control due to a lack of commitment to consistency and standardization.
C. eliminating the costs and risks associated with establishing a foreign business location.
D. sharing foreign facilities and marketing strategies with local businesses.
E. achieving higher product quality and better product performance than with an export strategy.
37. The advantages of using an acquisition strategy to pursue opportunities in foreign markets include:
A. having a high level of control and speed as an entry strategy to overcome trade barriers.
B. allowing a company to achieve scalable economies.
C. eliminating the costs and risks associated with establishing a foreign business location.
D. achieving variable product quality and competitive product performance.
E. exporting goods at higher costs than rivals in those locations.
38. The big issue an acquisition-minded firm must consider is whether:
A. to acquire the firm at a price that cannot recapture the investment.

B. to require the acquired firm's resources and management capability to sustain the ongoing struggling operation.
C. to pay a premium price for a successful local company or to buy a struggling firm at a discount price.
D. to pay a price that builds in all the synergistic advantages to the acquired firm.
E. to pay a very high premium price that sends a signal to the market that the new firm has arrived.
39. A greenfield venture in a foreign market is one:
A. where the company creates a wholly owned subsidiary business by setting up all aspects of the operation upon entering the
market from the ground up.
B. where foreign facilities and marketing strategies are shared with local businesses.
C. where the company learns through training by the foreign entity on how to compete.
D. that supports exports into a foreign market by marketing indirectly thru local rivals.
E. that offers lower risk and a faster path to financial returns.
40. Greenfield ventures, like all market entry strategies can pose serious problems to achieving foreign market entry success. What is
NOT deemed a barrier to success?
A. Such ventures can require costly capital investments.

B. Such ventures can have a tendency to divert valuable resources from current business.
C. Such ventures really need well-functioning strong markets.
D. Such ventures are the fastest entry route to achieve a sizeable market share.
E. Such ventures require legal protections of foreign investors.
41. Which of the following is a condition that makes an internal startup strategy appealing over an acquisition?
A. When an internal startup is more costly.

B. When an internal startup affects the supply-demand balance by increasing production capacity
C. When an internal startup is unable to gain distribution access advantages
D. When an internal startup has the necessary scale and resource strengths to compete with rivals
E. When an internal startup lacks the experience in establishing new subsidiaries
42. Which of the following is NOT an advantage of strategic alliances, joint ventures, and cooperative agreements between domestic
and foreign firms?
A. Competing on a more global scale while still preserving their independence

B. Gaining better access to scale economies in production and/or marketing
C. Filling competitively important gaps in their technical expertise and/or knowledge of local markets
D. Sharing distribution facilities and dealer networks, thus mutually strengthening their access to buyers
E. Creating permanent arrangements between the domestic and foreign firms
43. Which of the following is an example of a cross-border alliance?
A. Facebook took over WhatsApp for $19 billion in February 2014.

B. Hyundai Motor Company plans to open a new manufacturing plant in the Czech Republic.
C. The insurance company Geicois a wholly owned subsidiary of Berkshire Hathaway.
D. Renault-Nissan sells more than one in ten cars worldwide.
E. Carrefour, a French grocery chain, established a new wholly-owned venture in Poland.
44. Which of the following is NOT a risk of cross-border alliances between domestic and foreign firms?
A. Overcoming language and cultural barriers

B. Launching new initiatives to stay abreast of shifting market conditions
C. Developing mutually agreeable ways of dealing with key issues or differences
D. Disengaging from the alliance once its purpose has been served
E. Becoming overly dependent on foreign partners for essential expertise
45. The risks of strategic alliances often include all of the following EXCEPT:
A. conflicting objectives and strategies.

B. deep differences of opinion about how to proceed operationally and strategically.
C. important differences in corporate values.
D. misunderstandings about appropriate ethical standards.
E. potential for royalty from trustworthy firms.
46. What is the foremost strategic issue that must be addressed by firms when operating in two or more foreign markets?
A. Deciding on the degree to vary its competitive approach to fit the specific market conditions and buyer preferences in each
host country
B. Deciding on the appropriate level of sustainable profitability
C. Deciding on the relative cost competitiveness of the home country
D. Deciding on the degree of globalization to maintain expansion capabilities
E. Deciding on the resources and capabilities of allies
47. Which of the following is NOT one of the strategy options for competing in the markets of foreign countries?
A. A profit sanctuary strategy

B. An international strategy
C. A global strategy.
D. A multidomestic strategy
E. A transnational strategy
48. Which of the following statements regarding multidomestic competition is false?
A. Buyers in different countries are attracted to different product attributes.

B. The benefits from global integration and standardization are high.
C. Industry conditions and competitive forces in each national market differ in important respects.
D. The mix of competitors in each country market varies from country to country.
E. Winning in one country market does not necessarily signal the ability to fare well in other countries.
49. Which of the following strategies identifies a multidomestic approach?
A. Texas Instruments strongly encourages its trading partners to use the UN/EDIFACT standard.
B. Hard Rock Cafes in Hawaii offer fish tacos and ahi tuna sandwich.
C. Coca Cola's general market approach is controlled from Atlanta.
D. Nestle established its own distribution network in China.
E. Air Asia adapts its price to industry pressures.
50. When is a think-local, act-local approach to strategy making appropriate?
A. When the need for local responsiveness is minimal and when potential efficiency gains from standardization is unrestricted by
cross-country opportunities
B. When the local manager is intellectually savvy
C. When the local market provides strong opportunity for growth and profitability
D. When the need for local responsiveness is high due to significant cross-country differences in demographic, cultural, and
market conditions and where benefits from standardization is limited
E. When the need for centralized decision making is relevant due to various macroeconomic and market conditions
51. Which of the following statements regarding global competition is false?
A. In global competition, rivals vie for worldwide market leadership.

B. In globally competitive industries, the power and strength of a company's strategy and resource capabilities in one country
significantly enhance its competitiveness in other country markets.
C. In global competition, a firm's overall competitive advantage (or disadvantage) grows out of its entire worldwide operations.
D. In global competition, there's more cross-country variation in industry conditions and competitive forces than there is in
industries where multidomestic competition prevails.
E. In global competition, many of the same rival companies compete against each other in many different countries, but
especially so in countries where sales volumes are large and where having a competitive presence is strategically important to
building a strong global position in the industry.
52. Which of the following statements regarding multidomestic and global competition is false?
A. In global competition, rivals vie for worldwide market leadership and the leading competitors compete head-to-head in the
markets of many different countries.
B. In globally competitive industries, a company's competitive position in one country both affects and is affected by its position
in other countries.
C. In multidomestic competition, there is greater cross-country variation in market conditions and the nature of the competitive
contest among rivals than tends to be the case in globally competitive markets.
D. With multidomestic competition, the competitive contest is localized, with rivals battling for national market leadership;
moreover, winning in one country market does not necessarily signal that a company has the ability to fare well in the markets
of other countries.
E. In global competition, the size of a firm's worldwide competitive advantage (or disadvantage) equals the sum of the
competitive advantages (or disadvantages) it has in each country market where it competes.
53. Which of the following is the most unlikely element of a localized multidomestic strategy?
A. Granting country managers fairly wide strategy-making latitude

B. Scattering plants across many host countries, each producing product versions for local area markets
C. Adapting marketing and distribution to the buying habits, customs, and culture of each host country
D. Considering the preference for local suppliers (use of some local suppliers may be mandated by host governments)
E. Selling directly to buyers (perhaps via the company's website) to avoid having to establish networks of wholesale/retail
dealers in each country market
54. A "think local, act local" multidomestic type of strategy:
A. is very risky, given fluctuating exchange rates and the propensity of foreign governments to impose tariffs on imported goods.
B. is usually defeated by a "think global, act global" type of strategy.
C. is more appealing when the country-to-country differences in buyer tastes, cultural traditions, and market conditions are
diverse.
D. is generally an inferior strategy when one or more foreign competitors are pursuing a global low-cost strategy.
E. can defeat a global strategy if the "think local, act local" multicountry strategist concentrates its efforts exclusively in those
foreign markets which have superior resources.
55. The strength of a "think local, act local" multidomestic strategy is that:
A. it matches a company's competitive approach to prevailing market and competitive conditions in each country market, country
by country.
B. it employs strategies that are almost totally different from and also unrelated to its strategies in other countries.
C. it operates independent plants, located in different countries, thus promoting greater achievement of scale economies.
D. it avoids host country ownership requirements and import quotas.
E. it eliminates the costs and burdens of trying to coordinate the strategic moves undertaken in one country with the moves
undertaken in the other countries.
56. A "think local, act local" multidomestic strategy works particularly well in all of the following situations, EXCEPT when there
are:
A. regulations enacted by the host governments requiring that products sold locally meet strictly defined manufacturing
specifications or performance standards.
B. significant country-to-country differences in customer preferences and buying habits.
C. diverse and complicated trade restrictions of host governments preclude the use of a uniform strategy from country-to-
country.
D. significant country-to-country differences in distribution channels and marketing methods.
E. large demands to pursue conflicting objectives simultaneously.
57. A "think-local, act local" multidomestic strategy entails:
A. offering a narrow product line aimed at serving buyers in the same segments of country markets worldwide.
B. giving local managers considerable strategy-making latitude and often producing different product versions for different
countries.
C. adopting aggressive efforts to locate facilities in those country markets that have superior resources.
D. pursuing strong product differentiation and competing in many buyer segments.
E. extensive efforts to transfer a company's competencies and resource strengths from one country to another so as to keep entry
costs into new country markets low.
58. In which of the following situations is employing a "think local, act local" multidomestic strategy highly questionable?
A. When a company desires to transfer competencies and resources across country boundaries and is striving to build a single,
uniform competitive advantage worldwide
B. When there are significant country-to-country differences in customer preferences and buying habits industry is characterized
by big economies of scale and strong experience curve effects
C. When the trade restrictions of host governments are diverse and complicated
D. When there are significant country-to-country differences in distribution channels and marketing methods
E. When host governments enact regulations requiring that products sold locally meet strictly defined manufacturing
specifications or performance standards
59. What is a primary drawback of a localized multidomestic strategy?
A. It hinders the use of cross-border coordination of a company's activities and increases a company's vulnerability to adverse
shifts in currency exchange rates.
B. It makes it very difficult to take into account significant country-to-country differences in distribution channels and marketing
methods.
C. It makes it difficult and costly to be responsive to country-to-country differences in customer needs, buying habits, cultural
traditions, and market conditions.
D. It hinders the transfer of a company's competencies and resources across country boundaries and hinders the pursuit of a
single, uniform competitive advantage in all country markets where a company operates.
E. It is unsuitable for competing in the markets of emerging countries and posing added difficulty in modifying a company's
business model to compete on the basis of low price.
60. A global strategy allows for:
A. the leading companies to compete for the biggest share of the world market, but only occasionally compete head-to-head in
different countries.
B. the markets in various countries to be part of the world market and competitive conditions across country markets to be
strongly linked.
C. a company's overall market strength to be the sum of its market shares in each country market where it has a presence.
D. the industry leaders to be foreign companies, while domestic companies are relegated to runner-up status.
E. a firm's overall competitive advantage to be determined by the size of the competitive advantage it has in each of its profit
sanctuaries.
61. A global strategy is one in which a company performs all of the following tasks, EXCEPT:
A. employs the same basic competitive approach in all countries where it operates.
B. sells much of the same products everywhere.
C. strives to build global brands.
D. coordinates its actions worldwide with strong headquarters control represents a think-global, act-global approach.
E. uses local brand names to cater to a country's specific needs.
62. A think-global, act-global strategic theme puts emphasis on:
A. executing a global domination strategy that focuses the company's resource strengths on entry strategies across all country
boundaries.
B. ensuring that value chain activities are defined by country-specific attributes to capitalize on economies of scale.
C. building a global brand name and aggressively pursuing opportunities to transfer ideas, products, and capabilities from one
country to another.
D. elevating resources and capabilities developed on a country-by-country basis so as to capitalize on a country's uniqueness.
E. implementing mass-customization techniques that can address local preferences efficiently.
63. What is the best way to achieve the efficiency potential of a global strategy?
A. It demands managerial attention to be focused on objective-setting specifically oriented toward production practices.
B. It requires that resources and best practices be shared, value chain activities be integrated, and capabilities be transferred from
one location to another as they are developed.
C. It requires that the best identified resources and capabilities be centralized at headquarters.
D. It requires value chain activities to be dispersed across many countries to elevate cost control management as a primary focus
in all countries.
E. It requires giving local managers considerable latitude for executing strategies for the country markets they are responsible
for.
64. During the 1980s, the YKK Group developed and manufactured all its fastening products within Japan. Which of the following
aspects of the global strategy was YKK trying to achieve?
A. YKK catered to homogenous buyer needs across countries and regions.

B. YKK centralized its value chain thereby facilitating centralized control.
C. YKK engaged in higher levels of R&D by spreading risks over higher-volume output.
D. YKK sold the same products under the same brand name everywhere.
E. YKK established a single plant to produce different versions of the same product.
65. Which of the following does NOT accurately characterize the differences between a localized multidomestic strategy and a
global strategy?
A. A global strategy entails extensive strategy coordination across countries and a multidomestic strategy entails little or no
strategy coordination across countries.
B. A global strategy often entails use of the best suppliers from anywhere in the world, whereas a multidomestic strategy may
entail fairly extensive use of local suppliers (especially where use of local sources is required by host governments).
C. A global strategy tends to involve use of similar distribution and marketing approaches worldwide, whereas a multidomestic
strategy often entails adapting distribution and marketing to local customs and the culture of each country.
D. A global strategy involves striving to be the global low-cost provider by economically producing and marketing a mostly
standardized product worldwide, whereas a multidomestic strategy entails pursuing broad differentiation and striving to
strongly differentiate its products in one country from the products it sells in other countries.
E. A global strategy relies upon the same technologies, competencies, and capabilities worldwide, whereas a multidomestic
strategy often entails the use of somewhat different technologies, competencies, and capabilities as may be needed to
accommodate local buyer tastes, cultural traditions, and market conditions.
66.
Which of the following is the most UNLIKELY element of a “think global, act global” approach to crafting a global strategy?
A.
Having minimal responsiveness to buyer tastes, cultural traditions, and market conditions in each country market
B.
Scattering plants across many countries, with each plant producing product versions for local area markets
C.
Utilizing the same competitive capabilities, distribution channels, and marketing approaches worldwide
D.
Requiring local managers in host countries to stick close to the chosen global strategy
E.
Selling much the same products under the same brand names worldwide
67. The approach of a firm using a "think global, act local" version of a transnational strategy entails:
A. producing and marketing a variety of product versions under the same brand name, with each different version being designed
specifically to accommodate the needs and preferences of buyers in a particular country.
B. having little or no strategy coordination across countries.
C. pursuing the same basic competitive strategy theme (low cost, differentiation, best cost, focused) in all countries where the
firm does business but giving local managers some latitude to adjust product attributes to better satisfy local buyers and to
adjust production, distribution, and marketing to be responsive to local market conditions.
D. selling the company's products under a wide variety of brand names (often one brand for each country or group of
neighboring countries) so buyers in each country market will think they are buying a locally made brand.
E. selling numerous product versions (each customized to buyer tastes in one or more countries and sometimes branded for each
country),but opting to only sell direct to buyers at the company's website so as to bypass the costs of establishing networks of
wholesale/retail dealers in each country market.
68. The essential difference between a "think global, act global" and a "think global, act local" approach to strategy-making is that:
A. a "think global, act global" approach entails extensive strategy coordination across countries and a "think global, act local"
approach entails little or no strategy coordination across countries.
B. the former aims at implementing the same business model worldwide, whereas the latter aims at implementing customized
business models to better match local market circumstances.
C. the "think global, act local" approach gives local managers more latitude to make minor strategy variations where necessary to
better satisfy local buyers and to better match local market conditions.
D. a "think global, act global" approach involves selling a mostly standardized product worldwide, whereas a "think global, act
local" approach entails selling products that are highly differentiated from country to country.
E. a "think global, act global" approach involves selling under a single brand name worldwide, whereas a "think global, act
local" approach entails utilizing multiple brands (typically one for each different country or group of neighboring countries).
69. A primary drawback of a global strategy is that it:
A. allows firms to address local needs as precisely as locally based rivals can.
B. permits firms to be more responsive to changes in local market conditions, either in the form of new opportunities or
competitive threats.
C. provides for lower transportation costs and also may involve higher tariffs.
D. involves higher coordination costs due to more complex tasks of managing a globally integrated enterprise.
E. raises production costs due to the greater variety of designs and components.
70. A strategy that incorporates elements of both multidomestic and global strategies is termed a "transnational" strategy, but
sometimes it is referred to as a(n):
A. glocalization strategy.
B. international strategy.
C. think-local, act-global strategy.
D. cross-border integrated strategy.
E. standardized integrated strategy.
71. Companies often implement a transnational strategy because it:
A. combines flexible coordination with the pursuit of conflicting objectives simultaneously.

B. provides an easy mode of operating to transfer and share resources and capabilities across borders.
C. is conducive to mass customization techniques that enable companies to address local preferences in an efficient semi-
standard manner.
D. is the least complex and easiest to implement of all the strategy choices.
E. is capable of achieving an efficiency potential through centralized decision making and strong headquarter control.
72. What strategy is considered more conducive to transferring and leveraging subsidiary skills and capabilities across borders?
A. A transnational strategy
B. An international strategy
C. A think-local, act-global strategy
D. A cross-border integrated strategy
E. A standardized integrated strategy
73. Companies that compete internationally can pursue competitive advantage in world markets(or offset domestic disadvantages)
by:
A. using a differentiation-based competitive strategy in those country markets with superior resources.
B. choosing not to compete in countries with high tariffs and high taxes (which then have to be passed along to buyers in the
form of higher prices), thus keeping costs and prices lower than rivals.
C. using an export strategy to circumvent the risks of adverse exchange rate fluctuations.
D. locating value chain activities in whatever nations prove most advantageous in a manner that uses location to lower costs or
achieve greater product differentiation, allow for the transfer of competitively valuable competencies and capabilities from
one country to another, and allow for cross-border coordination.
E. employing a multidomestic strategy instead of a global strategy.
74. In expanding into foreign markets, a company can strive to gain competitive advantage (or offset domestic disadvantages) by:
A. building a state-of-the-art facility to fully capture scale economies via an export strategy.
B. using export, licensing, or franchising strategies so as to minimize risk and capital investment.
C. locating buyer-related activities in all countries where it sells its product.
D. dispersing its activities among various countries in a manner that lowers costs or else helps achieve greater product
differentiation and transferring competitively valuable competencies and capabilities from its domestic operations to its
operations in foreign markets.
E. avoiding the use of strategies that entail coordinating its domestic strategic moves with its strategic moves in the various
foreign markets it enters.
75. To use location to build competitive advantage, a company that operates transnationally or globally must:
A. employ either an export strategy or a franchising strategy.

B. scatter its production plants across many countries in different parts of the world so as to minimize transportation costs.
C. consider whether to concentrate each activity it performs in a few select countries or disperse performance of the activity to
many nations and consider in which countries to locate particular activities.
D. locate production plants in those countries having suppliers that can supply all the necessary raw materials and components so
as to avoid inbound shipping costs.
E. concentrate all of its value chain activities in the one country that has the best combination of low wage rates, low shipping
costs, and low tax rates on profits.
76. In competing in foreign markets, companies find it advantageous to concentrate their activities in a limited number of locations
in all of these situations, EXCEPT when:
A. there are significant scale economies in performing an activity.

B. the costs of manufacturing or other activities are significantly lower in some geographic locations than in others.
C. when there is a steep learning or experience curve associated with performing an activity in a single location (thus making it
economical to serve the whole world market from just one or maybe a few locations).
D. certain locations have superior resources, allow better coordination of related activities, or offer other valuable advantages.
E. the addition of new production capacity will not adversely impact the supply-demand balance in the local market.
77. When concentrating production in a few locations, which of the following can allow a manufacturer to lower unit costs, boost
quality, or master a new technology more quickly?
A. Significant scale economies

B. Learning-curve effects
C. Superior resources
D. Profit sanctuaries
E. Supporting industries
78. Dispersing the performance of value chain activities to many different countries rather than concentrating them in a few country
locations tends to be advantageous in all of the following situations, EXCEPT:
A. when high transportation costs make it expensive to operate from central locations.
B. whenever buyer-related activities are best performed in locations close to buyers.
C. if diseconomies of large size exist, thereby making it more economical to perform an activity on a smaller scale in several
different locations.
D. when it is desirable to hedge against (1) the risks of fluctuating exchange rates, (2) supply interruptions or (3) adverse
political developments.
E. if resources retain their foreign contexts so there is competitive advantage over a broader domain.
79. The competitive advantage opportunities that a global competitor can gain by dispersing performance of its activities across
many nations include all of the following, EXCEPT:
A. being able to shift production from one country to another to take advantage of exchange rate fluctuations, differing wage
rates, differing energy costs, or differing trade restrictions.
B. being in better position to choose where and how to challenge rivals.
C. shortening delivery times to customers by having geographically scattered distribution facilities.
D. locating buyer-related activities (such as sales, advertising, after-sale service and technical assistance) close to buyers.
E. centralizing value chain activities to foster just-in-time inventory activities.
80. Dispersing particular value chain activities across many countries rather than concentrating them in a select few countries can be
more advantageous, EXCEPT when:
A. buyer-related activities (such as sales, advertising, after-sale service and technical assistance) need to take place close to
buyers.
B. buyers demand short delivery times and/or high transportation costs make it uneconomical to operate from one or just a few
locations.
C. it helps hedge against the risks of exchange rate fluctuations, supply disruptions, and adverse political developments.
D. there are diseconomies of scale in trying to operate from a single location.
E. there are reasons to decouple buyer-related activities in favor of locational advantages.
81. Transferring core competencies and resource strengths from one country market to another is:
A. a good way for companies to develop broader or deeper competencies and competitive capabilities that can become a strong
basis for sustainable competitive advantage.
B. best accomplished with a multidomestic strategy as opposed to a global strategy.
C. feasible only with a global strategy; it can't be done with a multidomestic strategy.
D. unlikely to result in a competitive advantage.
E. nearly always the easiest and most sure-fire way to build competitive advantage in trying to compete successfully in foreign
markets.
82. A key approach for a company to grow sales and profits in several country markets is to:
A. transfer its valuable competencies and resource strengths among these markets to aid in the development of broader
competencies and capabilities.
B. employ a multidomestic strategy rather than a global strategy.
C. locate technical after-sale services close to buyers.
D. minimize transportation costs among these markets.
E. take advantage of less restrictive restrictions and requirements of host governments.
83. Companies that compete on an international basis have a competitive advantage over their purely domestic rivals:
A. to achieve a larger domestic interest by developing sufficient resource strengths and competitive capabilities for success.
B. to benefit from coordinating activities across different countries' domains.
C. solely for the benefit of their shareholders.
D. that guarantees the generation of big profits, big returns on investment, and big cash surpluses after dividends are paid.
E. to give full access to the proprietary technological expertise or other competitively valuable capabilities.
84. Sharing and transferring resources and capabilities across borders may also contribute to the development of broader or deeper
competencies and capabilities, thereby helping a company achieve:
A. control over its resource capabilities.

B. dominating depth in some competitively valuable area
C. intensity of resource diversification.
D. precision and compliance in resource agility and responsiveness
E. direct investments in foreign countries.
85. Profit sanctuaries are country markets or geographic regions where:
A. a company can rank the competitive advantage opportunities in each industry.

B. a company possesses good strategic fit with other businesses and identifies the value chain where this fit occurs.
C. a company derives substantial profits because of its protected market position or unassailable competitive advantage.
D. a company creates substantial investment strategies because it is losing competitive advantage over competitors.
E. a company invests its dividends in expanding its foreign market presence.
86. Profit sanctuaries are found to differ by a company's strategy, such that a(n):
A. domestic-only company has access to many profit sanctuary locations worldwide.

B. international competitor usually has a profit sanctuary in its home market and may have other sanctuaries in countries where it
has a strong position and market share.
C. globally competitive company generally has a profit sanctuary outside its home market in countries where it is a market leader
and enjoys a strong competitive position.
D. transnational company has profit sanctuaries in every country where it operates.
E. company competing in a few country markets has more profit sanctuaries.
87. What supports competitive offensives in one market with resources and profits diverted from operations in another market?
A. Cross-market subsidization
B. A foreign market strategy
C. A domestic-only company
D. A home market offensive
E. A multidomestic company
88. What does the World Trade Organization (WTO) NOT do primarily?
A. Promotes fair trade practices

B. Actively polices dumping
C. Deals with the rules of trade between nations
D. Helps producers, exporters, and importers conduct business
E. Sets countries' tariff rates
89. What is it called when a company sells its goods in foreign markets at prices that are below the prices at which it normally sells
in its home market or well below its full costs per unit?
A. Dumping practices
B. Price-clearing system
C. Clearance sale
D. Discounting practices
E. Competitive advantage
90. What can happen when international rivals compete against one another in multiple-country markets?
A. It could create attractive industries that would have otherwise badly deteriorated.
B. It could produce a business lineup consisting of too many slow-growth, declining, low-margin, or competitively weak
businesses.
C. It could create a greater diversity in the types of value chain activities between each business.
D. It could initiate a deterrence effect that encourages mutual restraint in taking aggressive action against one another due to the
fear of a retaliatory response that might escalate the battle into a cross-border competitive war.
E. It could increase shareholder interests by concentrating corporate resources on foreign business activities to contend for
market leadership.
91. Companies racing for global market leadership:
A. generally have to consider establishing competitive positions in the markets of emerging countries.
B. are well-advised to avoid all the risks and problems of competing in emerging country markets.
C. seldom have the resource capabilities it takes to be effective in competing in emerging country markets and usually are at a
strong competitive disadvantage to the domestic market leaders.
D. can usually be expected to earn sizable profits quickly in emerging country markets.
E. usually encounter very low barriers in entering the markets of emerging countries.
92. Which of the following is NOT a typical option that companies have to consider to tailor their strategy to fit the circumstances of
emerging country markets?
A. Prepare to compete on the basis of low price.

B. Modify aspects of the company's business model to accommodate local circumstances (but not so much that the company
loses the advantage of global scale and global branding).
C. Change the local market to better match the way the company does business elsewhere.
D. Develop a strategy for the short-term and forget about a long-term strategy because conditions in emerging country markets
change so rapidly.
E. Stay away from those emerging markets where it is impractical or uneconomic to modify the company's business model to
accommodate local circumstances.
93. Viable strategic options companies should consider in tailoring their strategy to fit circumstances of emerging country markets
include all of the following, EXCEPT:
A. trying to change the local market to better match the way the company does business elsewhere.
B. being prepared to modify aspects of the company's business model to accommodate local circumstances.
C. preparing to compete on the basis of low price.
D. staying away from those emerging markets where it is impractical to modify the company's business model to accommodate
local circumstances.
E. focusing on local markets whose circumstances will be most challenging to the company's business model.
94. Which of the following is an example of a modification in the company's business model to accommodate the unique local
circumstances of developing countries?
A. Mahindra and Mahindra ranked number one in J. D. Power Asia Pacific's new-vehicle overall quality category.
B. Home Depot could rely on its value propositions only in some developing countries.
C. Unilever developed a low-cost detergent, named Wheel, for the Indian market.
D. Japan is known for its competitive strength in consumer electronics.
E. In China, Dell moved from its traditional Internet-based orders to orders over phone and fax.
95. The basic strategy options for local companies in competing against global challengers include:
A. best-cost provider and focused low-cost provider and low-cost leadership strategies.
B. export strategies, licensing strategies, and cross-border transfer strategies.
C. utilizing understanding of local customer needs and preferences to create customized products or services, developing
business models to exploit shortcoming in local infrastructure, and using acquisitions and rapid growth to defend against
expansion-minded multinationals.
D. franchising strategies, multidomestic strategies keyed to product superiority, global low-cost leadership strategies, and cross-
border coordination strategies.
E. focused differentiation and broad differentiation strategies.
96. Televisa, a Mexican media company, became the world's most prolific producer of Spanish-language soap operas owing to its
expertise in Spanish culture and linguistics. Which of the following strategies did Televisa employ to defend against global
giants?
A. Develop business models that exploit shortcomings in local distribution networks or infrastructure.
B. Utilize keen understanding of local customer needs and preferences to create customized products or services.
C. Take advantage of aspects of the local workforce with which large international companies may be unfamiliar.
D. Transfer company expertise to cross-border markets and initiate actions to contend on an international level.
E. Use acquisition and rapid-growth strategies to better defend against expansion-minded internationals.
97. Which of the following is NOT a viable strategy option for a local company in competing against global challengers?
A. Using cross-market transfer strategies to hedge against the risks of exchange rate fluctuations and adverse political
developments
B. Developing business models to exploit shortcomings in local distribution networks or infrastructures
C. Taking advantage of low-cost labor and other competitively important local workforce qualities
D. Transferring a company's expertise to cross-border markets and initiating actions to contend on a global scale
E. Using acquisitions and rapid growth strategies to defend against expansion-minded multinationals
98. Identify and briefly discuss the key reasons why a company may consider expanding outside its domestic market.
99. Explain why the strategies of firms that expand internationally are usually grounded in home-country advantages or core
competencies.
100. Briefly identify the special features of competing in foreign markets.
101. Explain how exchange rate fluctuations pose a risk to manufacturing companies that rely upon an export strategy to compete in
foreign markets.
102. Identify and explain the significance of each of the following terms and concepts:
a. global strategy
b. export strategy
c. licensing strategy
d. franchising strategy
103. Compare and contrast the advantages for entering and competing in foreign markets for the strategic options of exporting,
licensing, and franchising.
104. Explain why an acquisition is better than a greenfield venture.
105. What are the pros and cons of using strategic alliances to try to enhance a company's ability to compete in foreign markets?
106. Discuss in some detail the difference between a multidomestic strategy and a global strategy. Give the pros and cons of each.
107. What circumstances call for use of a multidomestic strategy for competing in international markets?
108. When is a global strategy "superior" to a multidomestic strategy?
109. How does a transnational strategy differ from a multidomestic or a global strategy?
110. When should a company choose to set up operations from the ground up?
111. A global strategy embraces the theme "think global, act global," whereas a multidomestic strategy relies more on a "think local,
act local" mentality. True or false? Explain.
112. Explain the differences between a "think global, act global" strategy and a "think global, act local" strategy.
113. Explain why a company desirous of competing in foreign markets needs to pay careful attention to where it locates it value chain
activities.
114. Under what circumstances is it advantageous for a company competing in foreign markets to concentrate its value chain
activities in a select few locations?
115. Under what circumstances is it advantageous for a company competing in foreign markets to disperse certain value chain
activities across many countries?
116. Discuss why a company desirous of competing in foreign country markets needs to pay close attention to the advantages of the
cross-border transfer of competencies and capabilities. Are these transfers often a key to competitive advantage? Why or why
not?
117. Identify and briefly describe the strategic options for tailoring a company's strategy to compete in emerging country markets.
118. Identify and briefly describe a local company's strategic options in competing against global challengers.
Chapter 07 Test Bank Key
1. The reason the world economy is globalizing at an accelerated pace is because:
A. countries previously open to foreign companies have closed their markets.

B. countries that previously had market or mixed economies now embrace planned economies.
C. information technology expands the importance of geographic distance.
D. growth-minded companies are racing to build stronger competitive positions in the markets of more countries.
E. countries opposed to market or mixed economies have stringent trade barriers in place.
The world economy is globalizing at an accelerating pace as ambitious, growth-minded companies race to build stronger
competitive positions in the markets of more and more countries, as countries previously closed to foreign companies open
up their markets, and as information technology shrinks the importance of geographic distance.
AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-01 The primary reasons companies choose to compete in international markets.
Topic: Why Compete Abroad? - The Advantages and Disadvantages of a Global Strategy
2. The reasons why a company opts to expand outside its home market include all of the following EXCEPT:
A. gaining access to new customers for the company's products/services.

B. spreading its business risk across a wider market base.
C. achieving lower costs through economies of scale, experience, and increased purchasing power.
D. exploiting its core competencies and capabilities.
E. identifying resources and capabilities in the company's home market.
A company may opt to expand outside its domestic market for any of five major reasons:(i) To gain access to new
customers; (ii) To achieve lower costs through economies of scale, experience, and increased purchasing power; (iii) To gain
access to low-cost inputs of production; (iv) To further exploit its core competencies; (v) To gain access to resources and
capabilities located in foreign markets. Cross-border strategic alliances create value through resource sharing and risk
spreading.

Blooms: Remember
Difficulty: 1 Easy
3. Exxon Mobil enters into a pact with Gazprom, the world's largest natural gas extractor, to set up a processing unit in
Moscow. Which of the following is most likely the reason for Exxon Mobil to opt for this strategic alliance?
A. To gain access to new customers

B. To scale back its core competencies
C. To restrict its factors of production
D. To gain access to low-cost inputs of production
E. To better compete with Gasprom
A company may opt to expand outside its domestic market for any of five major reasons: (i) To gain access to new
customers; (ii) To achieve lower costs through economies of scale, experience, and increased purchasing power; (iii) To gain
access to low-cost inputs of production; (iv) To further exploit its core competencies; (v) To gain access to resources and
capabilities located in foreign markets. Companies in industries based on natural resources (e.g., oil and gas, minerals,
rubber, and lumber) often find it necessary to operate in the international arena since raw-material supplies are located in
different parts of the world and can be accessed more cost-effectively at the source.

Blooms: Apply
Difficulty: 2 Medium
Topic: Strategies for Global Competition
4. Why do companies decide to enter a foreign market?
A. To capture economies of scale in product development, manufacturing, or marketing

B. To raise input costs through greater pooled purchasing power
C. To decrease the rate at which they accumulate experience and move up the learning curve
D. To concentrate risk within a broader base of countries, especially when sales are down in one area and the company can
undermine sales elsewhere
E. To exploit the natural resources found within its home market
Many companies are driven to sell in more than one country because domestic sales volume alone is not large enough to
capture fully economies of scale in product development, manufacturing, or marketing. Similarly, firms expand
internationally to increase the rate at which they accumulate experience and move down the learning curve. International
expansion can also lower a company's input costs through greater pooled purchasing power. Companies often expand
internationally to extend the life cycle of their products. An increasingly important motive for entering foreign markets is to
acquire resources and capabilities that may be unavailable in a company's home market.

Blooms: Understand
5. Which of the following is NOT a reason why a company decides to enter foreign markets?
A. To spread business risk across a wider geographic market base

B. To capitalize on company competencies and capabilities
C. To achieve lower costs through economies of scale, experience, and increased purchasing power
D. To impart technical knowledge to high-cost human resources in developing nations
E. To gain access to more buyers for the company's products/services
Cross-border strategic alliances create value through resource sharing and risk spreading. A company may opt to expand
outside its domestic markets to gain access to new customers; to achieve lower costs through economies of scale, experience,
and increased purchasing power; and to further exploit its core competencies. Companies also choose to establish operations
in other countries to utilize local distribution networks, gain local managerial or marketing expertise, or acquire technical
knowledge.

Blooms: Understand
6. Which of the following is NOT a reason why crafting a strategy to compete in one or more foreign markets is inherently
complex?
A. Because factors that affect industry competitiveness vary from country to country
B. Because of the potential for location-based advantages to conducting value chain activities in certain countries
C. Because different government policies and economic conditions make the business climate more favorable in some
countries than others
D. Because of the risks for shifts in currency exchange rates
E. Because similarities in buyer tastes and preferences facilitate standardization of products and services
Crafting a strategy to compete in one or more countries of the world is inherently more complex for five reasons. First,
different countries have different home-country advantages in different industries. Second, there are location-based
advantages to conducting particular value chain activities in different parts of the world. Third, different political and
economic conditions make the general business climate more favorable in some countries than in others. Fourth, companies
face risk due to adverse shifts in currency exchange rates when operating in foreign markets. And fifth, differences in buyer
tastes and preferences present a challenge for companies concerning customizing versus standardizing their products and
services.

Blooms: Remember
Learning Objective: 07-02 How and why differing market conditions across countries influence a company's strategy choices in international markets.
7. Which of the following is NOT an accurate statement as concerns competing in the markets of foreign countries?
A. Localizing a global company's product offerings country-by-country leads to low-cost advantage.

B. There are country-to-country differences in consumer buying habits and buyer tastes and preferences.
C. A company must contend with fluctuating exchange rates and country-to-country variations in host government
restrictions and requirements.
D. Product designs suitable for one country are often inappropriate in another.
E. Market growth rates vary from country to country.
Differences in buyer tastes and preferences present a challenge for companies concerning customizing versus standardizing
their products and services. Greater standardization of a global company's product offering can lead to scale economies and
learning-curve effects, thus contributing to the achievement of a low-cost advantage. Differing population sizes, income
levels, and other demographic factors give rise to considerable differences in market size and growth rates from country to
country. Sometimes, product designs suitable in one country are inappropriate in another because of differing local
standards. When companies produce and market their products and services in many different countries, they are subject to
the impacts of sometimes favorable and sometimes unfavorable changes in currency exchange rates.

Blooms: Understand
8. The diamond framework is NOT LIKELY to answer which of the following questions about competing on an international
basis?
A. Where will the foreign entrants come from?

B. Which countries have the weakest foreign rivals?
C. What are the attributes of a country's business environment?
D. What location of value chain activities is most beneficial?
E. What are the disadvantages of allowing foreign competition?
The diamond framework can be used to reveal the answers to several questions that are important for competing on an
international basis. First, it can help predict where foreign entrants into an industry are most likely to come from. Second, it
can reveal the countries in which foreign rivals are likely to be weakest. And third, because it focuses on the attributes of a
country's business environment that allow firms to flourish, it reveals something about the advantages of conducting
particular business activities in that country. Thus the diamond framework is an aid to deciding where to locate different
value chain activities most beneficially.

Blooms: Understand
Difficulty: 1 Easy
Topic: Tools to Assess the Impact of Internationalization
9. Competing in the markets of foreign countries generally does NOT involve which of the following?
A. Country-to-country differences in consumer buying habits and buyer tastes and preferences
B. Country-to-country variations in host government restrictions and requirements and fluctuating exchange rates
C. Whether to customize the company's offerings in each different country market or whether to offer a mostly standardized
product worldwide
D. In which countries to locate company operations for maximum locational advantage, given country-to-country variations
in wage rates, worker productivity, energy costs, tax rates, and the like
E. Crafting a multidomestic strategy that works just as well in one country as in another and that also has the appeal of
turning the world market into a mostly homogeneous market
Crafting a strategy to compete in one or more countries of the world is inherently more complex for five reasons. First,
different countries have different home-country advantages in different industries. Second, there are location-based
advantages to conducting particular value chain activities in different parts of the world. Third, different political and
economic conditions make the general business climate more favorable in some countries than in others. Fourth, companies
face risk due to adverse shifts in currency exchange rates when operating in foreign markets. And fifth, differences in buyer
tastes and preferences present a challenge for companies concerning customizing versus standardizing their products and
services.

Blooms: Understand
Difficulty: 1 Easy
Topic: Implementation of International Strategies
10. One of the biggest strategic challenges to competing in the international arena includes:
A. how to leverage the opportunities arising from shifting exchange rates.

B. how to charge the same price in all country markets.
C. how to identify foreign firms licensed to produce and distribute the company's products.
D. whether to offer a standardized product worldwide or a customized product offering in each different country market.
E. whether to pursue a franchising strategy or a joint venture strategy.
Differences in buyer tastes and preferences present a challenge for companies competing in one or more countries of the
world concerning customizing versus standardizing their products and services.

Blooms: Understand
11. What aspect of the diamond framework is MOST LIKELY responsible for GlenmarkPharma setting up manufacturing
facilities in the United States, the world's largest market for pharmaceuticals?
A. Licensing strategies
B. Demand conditions
C. Joint venture strategies
D. Franchising strategies
E. Firm strategy, structure, and rivalry
The four major factors in the diamond framework are: (i) demand conditions, (ii) factor conditions, (iii) related and
supporting industries (i.e. industries within the same value chain system); and (iv) firm strategy, structure and rivalry
(indicating country environments fostering development of different styles of management, organization and strategy).The
demand conditions in an industry's home market include the relative size of the market, its growth potential, and the nature
of domestic buyers' needs and wants. Industry sectors that are larger and more important in their home market tend to attract
more resources and grow faster than others.

Blooms: Apply
12. Which of the following is NOT a factor analyzed and relied on by firms when developing competitive strength in a foreign
market?
A. The relative size of the market, its growth potential, and the nature of domestic buyers' needs and wants
B. The availability, quality, and cost of raw materials and other inputs that firms will require to produce their products and
services
C. The development of different styles of management, organization, and strategy
D. The degree of collaboration with key suppliers and the greater the knowledge sharing throughout the related-industry
cluster
E. The level of industry-related support activities to foster customization of products and services
Where industries are more likely to develop competitive strength depends on a set of factors summarized in the Diamond of
National Competitive Advantage. The factors include:
1. Demand conditions: The demand conditions in an industry’s home market include the relative size of the market, its
growth potential, and the nature of domestic buyers’ needs and wants.
2. Factor conditions: Factor conditions include the availability, quality, and cost of raw materials and other inputs (called
factors of production) that firms in an industry require for producing their products and services.
3. Related and supporting industries: The advantage to firms that develop as part of a related-industry cluster comes from the
close collaboration with key suppliers and the greater knowledge sharing throughout the cluster, resulting in greater
efficiency and innovativeness.
4. Firm strategy, structure, and rivalry: Different country environments foster the development of different styles of
management, organization, and strategy.

Blooms: Understand
13. Which of the following exemplifies location-based advantage for the companies competing on an international basis?
A. Microsemi Corporation acquires California based Actel Corporation.

B. RBC Wealth Management closes operations in South Florida.
C. Samsung diversifies and ventures into textiles and food processing.
D. Hyundai signs a memorandum of understanding with the government of South Korea to halt exports.
E. De Beers sets up operations in the mining region of South Africa.
Increasingly, companies are locating different value chain activities in different parts of the world to exploit location-based
advantages that vary from country to country. This is particularly evident with respect to the location of manufacturing
activities. By locating its plants in certain countries, firms in some industries can reap major manufacturing cost advantages
because of lower input costs, relaxed government regulations, the proximity of suppliers and technologically related
industries, or unique natural resources. South Africa is the world leader in diamond production and De Beers dominate
diamond mining and trading. Therefore, by setting up operations in South Africa, De Beers is likely to gain on account of
proximity to suppliers.
AACSB: Application of Knowledge

Blooms: Apply
Difficulty: 3 Hard
14. The diamond framework can be used to reveal the answers to all of the following that are important for competing on an
international basis EXCEPT:
A. where foreign entrants into an industry are most likely to come from.
B. how to formulate an exit strategy to push foreign competitors out of the market.
C. which countries' foreign rivals are likely to be the weakest.
D. how managers can decide which foreign markets to enter first.
E. where to locate different value chain activities so they are the most beneficial.
The diamond framework can be used to reveal the answers to several questions that are important for competing on an
international basis. First, it can help predict where foreign entrants into an industry are most likely to come from. This can
help managers prepare to cope with new foreign competitors, since the framework also reveals something about the basis of
the new rivals' strengths. Second, it can reveal the countries in which foreign rivals are likely to be weakest and thus can help
managers decide which foreign markets to enter first. And third, because it focuses on the attributes of a country's business
environment that allow firms to flourish, it reveals something about the advantages of conducting particular business
activities in that country.

Blooms: Understand
15. Apollo Tires sets up a manufacturing unit in Mexico. Following this, Renault-Nissan signs a supply contract with the tire
multinational. In which of the following ways is Renault-Nissan likely to gain from the pact?
A. Different styles of management, organization, and strategy

B. Knowledge sharing within same value chain system
C. Availability of natural resources at low cost
D. Growth potential and large size of the market
E. Government policies in the host country
Robust industries often develop in locales where there is a cluster of related industries, including others within the same
value chain system (e.g., suppliers of components and equipment, distributors) and the makers of complementary products or
those that are technologically related. The advantage to firms that develop as part of a related-industry cluster comes from
the close collaboration with key suppliers and the greater knowledge sharing throughout the cluster, resulting in greater
efficiency and innovativeness.
AACSB: Application of Knowledge

Blooms: Apply
Difficulty: 3 Hard
16. Which of the following is LIKELY to be viewed as a pro-business government policy from the perspective of companies
competing on an international basis?
A. Argentina increases its interest rate on loans to foreign entrants from 15% to 19%.
B. The European Union imposes a 16% tariff on the import of agricultural produce.
C. Australia introduces a permanent employer-sponsored visa program for skilled manpower.
D. Denmark levies a per metric ton carbon tax on electricity.
E. The Chinese government favors partial local ownership of foreign-owned companies.
The governments of some countries are anxious to attract foreign investments, and thus they go all out to create a business
climate that outsiders will view as favorable. Such governments may provide incentives such as reduced taxes, low-cost
loans, site location and site development assistance, and government-sponsored training for workers to encourage companies
to construct production and distribution facilities. On the other hand, governments sometimes enact policies that, from a
business perspective, make locating facilities within a country's borders less attractive. For example, the nature of a
company's operations may make it particularly costly to achieve compliance with a country's environmental regulations. To
discourage foreign imports, governments may impose tariffs or quotas on imports. Additionally, they may require partial
ownership of foreign company operations by local companies or investors.

Blooms: Apply
17. Which of the following is NOT a typical host government requirement that affects the operations of foreign companies?
A. Establishing local content requirement on goods made inside their borders by foreign companies
B. Having rules and policies that protect local companies from foreign competition
C. Placing restrictions on exports to ensure adequate local supplies
D. Requiring foreign companies to use vertical integration to support operations of local companies
E. Imposing burdensome tax structures and regulatory requirements upon foreign companies doing business within their
borders
Governments in host countries sometimes enact policies that, from a business perspective, make locating facilities within a
country's borders less attractive. Some governments provide subsidies and low-interest loans to domestic companies to
enable them to better compete against foreign companies. To discourage foreign imports, governments may enact
deliberately burdensome procedures and requirements regarding customs inspection for foreign goods and may impose
tariffs or quotas on imports. Additionally, they may specify that a certain percentage of the parts and components used in
manufacturing a product be obtained from local suppliers, require prior approval of capital spending projects, limit
withdrawal of funds from the country, and require partial ownership of foreign company operations by local companies or
investors. There are times when a government may place restrictions on exports to ensure adequate local supplies and
regulate the prices of imported and locally produced goods.

Blooms: Understand
18. The difference between political risks and economic risks is that:
A. political risks stem from instability or weakness in national governments, while economic risks stem from the stability of
a country's monetary system, and its economic and regulatory policies.
B. political risks stem from stability in foreign business, while economic risks stem from an excess of property right
protections.
C. political risks stem from hostility to foreign currencies, while economic risks stem from the instability of the monetary
system.
D. political risks stem from exchange rate fluctuations, while economic risks stem from hostility to foreign business.
E. political risks stem from the stability of a country's monetary system, while economic risks stem from instability in
national business.
Political risks stem from instability or weakness in national governments and hostility to foreign business, whereas economic
risks stem from the stability of a country's monetary system, economic and regulatory policies, and the lack of property
rights protections.

Blooms: Understand
Difficulty: 3 Hard
19. A U.S. manufacturer that exports goods made at its U.S. plants for shipment to foreign markets:
A. is competitively disadvantaged when the U.S. dollar declines in value against the currencies of the countries to which it
is exporting.
B. is largely unaffected by fluctuating exchange rates. It would, however, be affected if its plants were in foreign countries.
C. becomes more competitive in foreign markets when the U.S. dollar gains in value against the currencies of the countries
to which it is exporting.
D. becomes more competitive in foreign markets when the U.S. dollar declines in value against the currencies of the
countries to which it is exporting.
E. has no interest in whether the dollar grows stronger or weaker versus foreign currencies unless it is competing only
against companies located in foreign countries.
The products made in the U.S. plants are more cost-competitive when the dollar is weaker than the currency of the countries
where the goods are being exported. In other words, if the currency of the countries where goods are being exported are
stronger against dollar, the cost of production in the U.S. manufacturing units fall. This clearly puts the manufacturer at an
advantage and in a better position to compete with other market players in the countries where the products are being
exported. On the other hand, if the U.S. dollar gets stronger than the currencies of the countries where the products are being
exported, the U.S. based manufacturing plants will be generating the same quantity of products at a higher cost, putting the
manufacturer at a disadvantage. Clearly, the attraction of manufacturing a good in the U.S. and exporting it to foreign
countries is greater when the currencies of the foreign countries are stronger than when they are weaker than the U.S. dollar.

Blooms: Apply
Difficulty: 3 Hard
20. A European manufacturer that exports goods made at its European plants to the United States:
A. is competitively disadvantaged when the euro declines in value against the U.S. dollar.
B. is largely unaffected by fluctuating exchange rates between the euro and the U.S. dollar. It would, however, be affected if
its plants were in the U.S.
C. becomes more competitive in the U.S. market when the euro declines in value against the U.S. dollar.
D. becomes more competitive in European markets when the euro declines in value against the U.S. dollar.
E. has no interest in whether the euro grows stronger or weaker versus the U.S. dollar unless its chief competitors are other
The attraction of manufacturing a good in Europe and exporting it to the U.S. is greater when the euro declines, as products
become cost-competitive in the U.S. market. On the contrary, if the U.S. dollar is stronger than the euro, the cost of
manufacturing goods in European plants will be higher and therefore puts manufacturers at a disadvantage. In other words,
the products manufactured in Europe become cost-competitive when the euro declines in value against the U.S. dollar.

Blooms: Apply
Difficulty: 3 Hard
21. A U.S. company that makes all of its goods at a plant in Brazil and then exports the Brazilian-made goods to country markets
across the world:
A. is competitively disadvantaged when the U.S. dollar declines in value against the Brazilian real.
B. is competitively advantaged when the Brazilian real declines in value against the currencies of the countries to which the
C. becomes less competitive in foreign markets when the Brazilian real declines in value against the currencies of the
countries to which the Brazilian-made goods are being exported.
D. is competitively advantaged when the U.S. dollar appreciates in value against the Brazilian real.
E. is unaffected by changes in the valuation of foreign currencies against the Brazilian real—all that matters to a U.S.
company is the valuation of the U.S. dollar against the Brazilian real.
Goods manufactured in Brazil become cost-competitive if the real (the Brazilian currency) declines in value against the
currencies of the markets where these goods are being exported. In other words, as the real declines, the cost of
manufacturing the same quantity of goods becomes lesser than what it was when the real had a greater value, or when it was
stronger against the currencies of the countries where the goods are being exported. Therefore, the U.S. company is
competitively advantaged when the Brazilian currency declines in value.

Blooms: Apply
Blooms: Understand
Difficulty: 3 Hard
22. A European-based company that makes all of its goods at a plant in Brazil and then exports the Brazilian-made goods to
country markets in many different parts of the world:
A. is competitively disadvantaged when the euro declines in value against the Brazilian real.
B. is competitively disadvantaged when the Brazilian real declines in value against the currencies of the countries to which
the Brazilian-made goods are being exported.
C. becomes less competitive in foreign markets when the Brazilian real gains in value against the currencies of the countries
to which the Brazilian-made goods are being exported.
D. is competitively advantaged when the euro appreciates in value against the Brazilian real.
E. has no interest in whether the euro grows stronger or weaker versus the Brazilian real unless its chief competitors are
other companies located in countries whose currency is also the euro.
Goods manufactured in Brazil become cost-competitive in the markets where they are being exported to when the Brazilian
currency declines against the currencies of the markets to which these goods are being exported. On the other hand, if the
currencies of the markets where these goods are being exported get weaker than the real and real gets stronger against these
currencies, the cost of manufacturing the goods in Brazil becomes higher. Therefore, the goods manufactured in Brazil
become less competitive when the real gains against the currencies of the countries to which these Brazilian-made goods are
being exported.

Blooms: Apply
Blooms: Understand
Difficulty: 3 Hard
23. Why does a U.S. company exporting wooden furniture manufactured in Malaysia to the European Union benefit from the
decline in the value of ringgit against the euro?
A. Because decline in the value of ringgit against euro raises the cost of furniture manufactured in Malaysia, making it less
B. Because decline in the value of ringgit against euro reduces the cost of furniture manufactured in Malaysia, making it
more competitive in European markets
C. Because decline in the value of ringgit against euro has no impact on the cost of furniture manufactured in Malaysia, both
in Malaysian or European markets
D. Because decline in the value of ringgit against euro makes European goods more competitive as compared to Malaysian
goods
E. Because decline in the value of ringgit against euro makes Malaysian goods less competitive in the U.S. market
Fluctuating exchange rates pose significant economic risks to a company's competitiveness in foreign markets. Exporters are
disadvantaged when the currency of the country where goods are being manufactured grows stronger relative to the currency
of the importing country. On the contrary, the exporters stand to gain when the currency of the country where goods are
being manufactured declines relative to the currency of the importing country.

Blooms: Apply
Blooms: Understand
24. The advantages of manufacturing goods in a particular country and exporting them to foreign markets:
A. are largely unaffected by fluctuating exchange rates.

B. 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.
C. can be wiped out when that country's currency grows weaker relative to the currencies of the countries where the output
is being sold.
D. are weakened when that country's currency grows stronger relative to the currencies of the countries where the output is
being sold.
E. are multiplied by the potential for local government officials to raise tariffs on the imports of foreign-made goods into
their country.
Fluctuating exchange rates pose significant economic risks to a company's competitiveness in foreign markets. Exporters are
disadvantaged when the currency of the country where goods are being manufactured grows stronger relative to the currency
of the importing country.

Blooms: Understand
Difficulty: 3 Hard
markets is NOT accurate?
C. Exporters win when the currency of the country from which the goods are being exported grows weaker relative to the
currencies of the countries that the goods are being exported to.
D. The advantages of manufacturing goods in a particular country can be undermined when that country's currency grows
stronger relative to the currencies of the countries where the output is being sold.
E. Domestic companies under pressure from lower-cost imports are benefited when their government's currency grows
Sizable shifts in exchange rates pose significant risks for two reasons: (i) They are hard to predict because of the variety of
factors involved and the uncertainties surrounding when and by how much these factors will change; (ii) They shuffle the
cards of which countries represent the low-cost manufacturing locations and which rivals have the upper hand in the
marketplace. When the currency of the country where the goods are being manufactured becomes weak, the cost of
producing the same quantity of goods declines, making these goods cost-competitive in the countries where they are being
exported. Therefore, the companies exporting goods being manufactured in countries with weak currencies are likely to
benefit rather than be disadvantaged by such a shift in exchange rates. On the contrary, if the currency of the country where
the goods are being manufactured gets stronger vis-à-vis currencies of the country where the good are being exported, the
cost of manufacturing goes up, making these goods less cost competitive in the countries where they are being exported.
Also, domestic companies facing competitive pressure from lower-cost imports benefit when their government's currency
grows weaker because the imports get expensive and therefore, the demand for imported goods decline.

Blooms: Understand
markets is true?
A. Fluctuating exchange rates do not pose significant risks to a company's competitiveness in foreign markets.
C. Companies that are manufacturing goods in a particular country and are exporting much of what they produce are
disadvantaged when that country's currency grows weaker relative to the currencies of the countries that the goods are
being exported to.
D. Companies that are manufacturing goods in a particular country and are exporting much of what they produce are
benefited when that country's currency grows weaker relative to the currencies of the countries that the goods are being
exported to.
E. Domestic companies under pressure from lower-cost imports are hurt even more when their government's currency
grows weaker in relation to the currencies of the countries where the imported goods are being made.
Sizable shifts in exchange rates pose significant risks for two reasons:(i)They are hard to predict because of the variety of

Blooms: Understand
Difficulty: 3 Hard
27. Which of the following statements about fluctuating exchange rates and the related effects on companies competing in
foreign markets is true?
C. Companies that are manufacturing goods in a particular country and are exporting much of what they produce lose out
when that country's currency grows weaker relative to the currencies of the countries that the goods are being exported
to.
D. The advantages of manufacturing goods in a particular country improve when that country's currency grows stronger
relative to the currencies of the countries where the output is being sold.
E. Domestic companies under pressure from lower-cost imports are hurt even more when their government's currency
grows weaker in relation to the currencies of the countries where the imported goods are being made.
Sizable shifts in exchange rates pose significant risks for two reasons:(i)They are hard to predict because of the variety of

Blooms: Understand
28. A weaker U.S. dollar is an economically favorable exchange-rate shift for manufacturing plants based in the United States.
A. This is a true statement.

B. No, the U.S. dollar must be stronger.
C. Yes, because it provides for a weakened foreign demand for U.S.-made goods.
D. Yes, because it makes such plants less cost competitive with foreign plants.
E. Yes, because it provides incentives of foreign companies to locate manufacturing facilities in the U.S. to make goods for
U.S. consumers.
A weaker U.S. dollar is an economically favorable exchange rate shift for manufacturing plants based in the United States
because a decline in the value of the U.S. dollar strengthens the cost competitiveness of U.S.-based manufacturing plants and
boosts buyer demand for U.S.-made goods.

Blooms: Understand
29. Which of the following exemplifies cross-country differences in demographic, cultural, and market conditions?
A. Nike produces its own line of skate shoes.

B. Starbucks acquires a large coffee farm in Costa Rica.
C. Ireland provides low-costs loans to foreign entrants to stimulate capital investment.
D. Intel's silicon chips are identical across the world.
E. McDonald's offers 100% beef-free products in its outlets in India.
Buyer tastes for a particular product or service sometimes differ substantially from country to country. Because cows are
considered sacred in India, offering beef burgers is not a viable strategy in the country.

Blooms: Apply
Difficulty: 3 Hard
30. Companies operating in an international marketplace have to respond to all of the following, EXCEPT:
A. whether to customize their offerings in each different country market to match the tastes and preferences of local buyers.
B. whether to pursue a strategy of offering a mostly standardized product worldwide.
C. how much to customize their offerings in each different country market to match the tastes and preferences of local
buyers.
D. the tensions between market pressures to localize a company's product offerings country by country and the competitive
pressures to lower costs through greater product customization.
E. whether to buy a struggling competitor at a bargain price or pay a premium to gain entry to the local market.
companies operating in an international marketplace have to wrestle with whether and how much to customize their offerings
in each country market to match local buyers' tastes and preferences or whether to pursue a strategy of offering a mostly
standardized product worldwide. The tension between the market pressures to localize a company's product offerings country
by country and the competitive pressures to lower costs is one of the big strategic issues that participants in foreign markets
have to resolve.

Blooms: Understand
Another random document with
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184.
Il bel verde, sottil marmo caristo,

L’agata, il tasio e la gentil corniola,
Non han qui luogo, e di restarne escluso
Lagnasi ancora il serpentin più raro:
Sol qui fan pompa e il porporin granito
Porfido di Numidia e il marmo frigio
Cui d’Ati il sangue colorì la vena;
E i più preziosi di Sidonia e Tiro.
Per ornamento delle porte, appena
S’ammette il verde di Laconia unito
Al sinadico marmo in lunghe strisce,
Onde si forma un color misto e vago.
De’ chiari vetri al vario raggio opposte
Splendon le stanze e gli archi d’or fregiati,
E di chi parte od entra in essi i volti
Stupido il foco stesso in tante avvolto
Lucide spoglie men superbo impera;
Il sole allor che l’ampia casa investe
Sè stesso adorna e fa più chiaro il giorno,
E nel passar fra queste fiamme ardenti
Acquista forza, e ’l proprio foco accresce.
Nulla v’è di plebeo, nè qui si vide
Faticar l’arte in liquefar metalli.
Son d’argento i canali, ove felice
Ha l’onda il corso e son d’argento i vasi
Ov’ella cade, e di sè stessa amante
Si specchia in essi e di partir ricusa.
Trad. dell’ab. Fr. Maria Biacca.
185.
Chi di Neron peggiore?

E quale di sue terme opra migliore?
Trad. Magenta.
186.
Di Tigellin nei bagni, o in quei si pone

D’Agrippa o Tito?
187. Roma. Amstelodami apud Io. Wolters 1689, p. 491.

188. Diz. delle antich. Greche e Rom. Vol. 2 p. 342.
189. «Che mai convenga provvedere nelle pubbliche terme e ne’ ninfei per
l’abbondanza de’ cittadini.» — Impp. Theodos. et Valent. Cod. II. 42. 5 e
al n. 6: «Amiam meglio che l’acquedotto del nostro palazzo abbia a
servire alle commodità delle pubbliche terme e de’ ninfei.»
190. «Se diligentemente alcuno avesse a tener conto delle copiose acque
pubbliche nei bagni, nelle piscine, nelle case, negli sbocchi, nelle ville
suburbane, e la grandezza degli archi costruiti per condurre, i monti
scavati, le convalli appianate, confessar dovrebbe nulla esservi di più
maraviglioso nell’universo.»
191. «Agrippa, nella sua edilità, annessa l’Acqua Vergine, le altre regolate ed
emendate, fece 700 laghi (grandi serbatoj), oltre 105 salti, 130 castelli e
molte altre cose magnifiche di manutenzione. Alle opere impose 300
statue tra di bronzo e di marmo e 400 colonne marmoree e tutte queste
cose nel solo spazio di un anno.»
192. «E il soprintendente delle acque debbe pertanto essere non solo diretto
dalla scienza del periti, ma eziandio dalla propria esperienza, e non
deve servirsi dei soliti architetti che s’impiegano in quella tal parte, ma
ancora consultare non meno la fedeltà che l’acutezza dell’ingegno di
altri per conoscere quali cose domandino un pronto riparo, quali
ammettano dilazione; quali opere debbansi compire dagli appaltatori,
quali si abbiano a far eseguire dagli artefici delle famiglie.»
Frontin. De Aquæduct. CXIX. Tr. di Baldassare Orsini.
193. Pompejanarum Antiquitatem Historia Curante, J. Fiorelli edita. Neapoli

1860. I. 8.
194. «Nelle Terme di Marco Frugio, da bagni di acqua marina e di acqua

dolce, Gennaro Liberto.»
195. «Per la dedicazione delle terme, a spesa di Cneo Allejo Nigidio Majo, vi
saranno caccia, atleti, spargimento di profumi e velario. Viva Majo
principe della Colonia!»
196.
Per finirla, tu re, mentre ne andrai

Al bagno d’un quattrin. [197]
Trad. Gargallo.
197. Quadrante più propriamente, ed era una piccola moneta di rame pari in
valore di un asse.
198.
Dopo i torridi bagni vi tuffate

Nell’onda algente, onde così col gelo
La calda cute più in vigor rendiate
Carm. IX.
Petronio afferma la stessa cosa.
199. «Marco Nigidio Vaccula con denaro proprio.»
200. «Gneo Melisseo Apro; figlio di Gneo, e Marco Stajo Rufo, figlio di Marco,
Duumviri incaricati di nuovo della giustizia, hanno per decreto de’
decurioni e con pecunia publica fatto fare questo bacino che costa
settecentocinquanta sesterzi.» [201]
201. Circa 160 lire Italiane.
202. Era una stanza ove apprendevano i giovani i primi rudimenti degli
esercizi ginnastici.
203. Forse luogo dove giuocavasi alla palla. Alcuni lo vorrebbero destinato
agli esercizi ginnastici per le fanciulle.
204. Ho già spiegato altrove il valore di questa parola: indicava cioè il luogo
ove stava la polvere di cui servivansi i lottatori onde detergere il sudore
e involgere l’avversario per poterlo meglio abbrancare.
205. Era la stanza delle unzioni. Vi si conservavano a tal uopo olj ed

unguenti, sia per ungersi prima della lotta e rendere così le membra
sfuggevoli; sia dopo la lotta a ristoro delle membra scalfitte, sia come
cura prima di entrare nel bagno. Il P. Ilario Casarotti, dotto e purgato
scrittore e mio maestro nel milanese Collegio Calchi-Taeggi, solevami
dire essere da questa antica consuetudine originata l’unzione della
cresima cristiana, quasi a simbolo della lotta coll’avversario eterno.
206. Forse sinonimo di hypocausis, più latinamente præfurnium, luogo della

fornace per riscaldare le stanze e i bagni.
207. Ricordo che lo stadio denota una lunghezza di 125 passi; ma vale altresì
come luogo atto agli esercizi atletici e per gli spettatori dei medesimi.
208. Non isfuggirà al lettore che Vitruvio usa della parola sisto per esprimere
l’opposto del suo valore primitivo greco. Infatti i latini chiamarono sisto
un luogo scoperto mentre per i greci significava un luogo coperto.
209. De Architect. L. V. c. XI. Trad. Galiani.
210. «Cajo Vulio figlio di Cajo, Publio Aninio figlio di Cajo, duumviri, incaricati
della giustizia, han fatto eseguire un laconico e un districtario e rifare i
portici e la palestra col denaro che, per decreto dei decurioni, dovevano
spendere in giuochi od in monumento, e i decurioni hanno approvato.»
Pompejan. Antiqu. Hist. V. 648. È testuale l’error grammaticale
nell’iscrizione pequnia quod invece di pecunia quam; ma non è il primo,
nè forse sarà l’ultimo che avrò a notare.
211. «Mi pare ora, ancorchè non sieno di moda italiana, dovere spiegare la
forma della palestra, e dimostrare come la costruiscano i Greci.» De
Arch. c. XI.
212. «Mario Atinio figlio di Mario, questore, fece fare per decreto
dell’Assemblea col denaro prodotto dalle multe.»
213. «All’imperatore Cesare Augusto, figlio del divo Cesare, comandante per
la tredicesima, tribuno per la decimaquinta, padre della patria, console
per l’undicesima volta.» [214]
214. Il XV tribunato e l’XI consolato d’Augusto corrispondono all’anno di

Roma 755 e 2 dell’Era Volgare.
215.
. . . : Va recami, garzone,
Le stregghie al bagno di Crispin.
Sat. V. v. 126. Trad. di Vinc. Monti.
216.
Il Sarno ondoso i pingui colti irriga

E col placido corso al mar sospira.
Jacobi Sannazzarii Poemata. Patavii 1751.
Trajano Cabanilio Salices.
217. «Verna co’ suoi discepoli vi prega di eleggere Cajo Capella duumviro di
giustizia.»
218. Pompejan. Antiqu. Hist. Vol. III, 169.

219. «Valentino e i suoi scolari invocano Sabino e Rufo edili degni della
Republica.»
220. Epist. Lib. II, I. 70.
221.
E ancor noi finalmente abbiam sottratto

La mano alle spalmate.
222. Lib. VII. c. 3.
223. Del Commercio dei Romani, Cap. III.
224. Hist. Nat. Lib. VI. c. 60.
225. Vedi Cicero, De Oratore, 37.
226. Cic. Pro Flacco. 15. Dionis. Alicarnas. VII. 70.
227. Plin. Nat. Hist. XIII. 13. «Abbruciati, perchè fossero scritti di filosofia.»
228. Epist. II. 1.
229.
Questi Greci, ravvolti in lor mantello,

Colla testa coperta, intorno vanno:
Son carichi di libri e ne’ panieri
Hanno i rilievi della mensa: or questi
Disertor’ ch’hanno l’aria di trattare
Fra lor di cose gravi, ora s’arrestano,
Ora vanno, sputando lor sentenze;
Ma poi li trovi sempre al termopolio [230]
Che trincan e così, coperto il capo,
Bevono caldo quel ch’hanno rubato,
Poi tristi e brilli incedono.
Curculio. Atto II. Sc. 3. Mia trad.
230. Venditorio di bevande calde, come vedremo nel capitolo venturo delle
Tabernæ.
231. «Essere i nostri uomini simili agli schiavi siri, che quanto son più periti
del greco, tanto sono più nequitosi.»
232.
Chi loda il carme salïar di Numa

E dotto ei solo in quel, che meco ignora,
Vuolsi ostentar, non favorisce, e applaude
Gli estinti ingegni; ma nostr’opre impugna,
Le cose nostre, e noi livido adonta.
Che se stata odïosa a’ Greci fosse
Novità, quanto a noi, che avrian di antico?
Degli uomini a ciascuno il public’uso
Or che darebbe a logorar, leggendo?
Epist. lib. II. Epist. I.
233. Divina Comm. Inf. c. IV.
234. In Bruto.
235.
Voi su greci esemplar’ la man stancate

La notte, voi le man stancate il giorno.
De Arte Poetica. Tr. id.
236. Lib. 11.
237. Satira I.
238. Epigr. Lib. 2.
239. Lib. 3, epist. 5.
240. Lib. 1, cap. 9.
241.
Medico fosti, gladiator se’ omai;

E medico facevi
Appunto quel che gladiatore or fai.
Epigr. VIII. Lib. 74. — Tr. Magenta.
242. Primum e medicis venisse Romam Peloponneso Archagatum Lysaniæ

filium anno urbis DXXXV... Vulnerarium eum fuisse e re dictum, etc. Hist.
Nat. lib. XX. c. 6.
Tum primum artis medicæ nomen auditum Romæ agnitumque est. Tit.
Liv. Lib. XXV. 2.
243. «Giurarono fra loro i Barbari (chiamavano i Romani barbari i forestieri) di

uccider tutti colla medicina. E questo fanno, ripetendo per sopraggiunta
la mercede, onde acquistar maggior credenza e più agevolmente
sperdere. Vanno inoltre dicendo noi barbari e più sporcamente con
siffatta appellazione noi insozzano che non gli altri Opici. In quanto a
me, mi sono interdetto i medici.» Hist. Nat. XXIX. 1.
244. I libri superstiti sono dal VI al XIV e sono una compilazione per via
d’estratti, di cui avanza tuttavia una parte sulla medicina e la chirurgia;
abbracciava molte scienze, come la giurisprudenza, la filosofia, la
rettorica, l’economia, l’arte militare. Sono scritti con purità di stile e sono
di gran pregio segnatamente le istruzioni dietetiche e la parte che ha
riferimento alla chirurgia.
245.
E ormai da un pezzo
Tua vota zucca le ventose invoca.
Sat. XIV. v. 58, trad. Gargallo.
246. Celsus, lib. 11.
247. Storia degli Italiani, I. 1, c. XLI.
248. «Udite per tanto, ma non ascoltate come fareste d’un farmacista.
Imperocchè le parole di costui si odono, ma nessuno che malato sia gli
si commette in cura.» Gell. Notti Att. 1. 15.
249. Vedi tutta l’ultima Ode degli Epodi di Orazio, che è appunto rivolta a
Canidia.
250. Pompei, pag. 350.
251. «I nostri maggiori così lodavano l’uomo dabbene, chiamandolo buon

agricoltore, buon colono, e stimavasi essere amplissimamente lodato
colui che così chiamavasi.»
252. Lib. III. 22:
Terra più ch’alla offesa, all’armi adatta.

253. «Razza d’uomini agreste, senza legge e comando, libero e
indipendente.»
254. «Ire incontro ai nemici, e coprire dagli avversi attacchi la libertà, la

patria, ed i parenti.» Catilin. 6.
255. Epoca Prima. Capitolo I.
256. «Il valor militare va innanzi a tutte l’altre virtù: esso procacciò eterna
gloria al popolo romano ed a codesta città.» Or. pro Murena.
257. «Rimase chiusa in casa e filò la lana.»
258. Lib. III. c. 22. 23. 24.
259. Zonara. Lib. VIII. c. 6.
260. Or. Pro Lege Manilia.
261. Freret le assegna 13,549 piedi geometrici di circonferenza, che sarebbe

maggiore di quella dell’odierna Parigi. Jacob vuole che avesse solo
1,200,000 abitanti; ma altri eruditi pretesero ampiezza e popolazione
maggiori e com’io scrissi.
262.
Mandaci o Nil, le messi tue copiose,

Da noi ricevi le fragranti rose.
263.
Degli Etiopi le selve, ove la lana

Morbida cresce.
264. «In tutta guisa estorcono denaro e molestano; ma per quanta libidine
spieghino, non giungono ad esaurire mai la ricchezza loro.» De Bello
Catilin.
265. «Pessima cosa è il coltivarsi i campi da gente d’ergastolo, perchè tutto vi

si fa da uomini che non hanno speranza alcuna.» Hist. Natur. Ho già
altrove detto che gli schiavi assegnati alla coltura delle terre si tenessero
duramente e incatenati negli ergastoli.
266.
Gli arditi rivenduglioli
Avean già tutte le contrade invase,
E sin gli usci turavano alle case.
Tu, di sgombrar, Germanico,
Quegli spazii ordinasti, e in larga via
Si cangiarono i vicoli di pria.
Da incatenate bombole
Or più nessun pilastro interno è stretto;
Nè più il pretor nel fango è agir costretto.
Fra densa moltitudine
Non più il cieco rasojo alzasi, e tutti
Da bettole non sono i calli ostrutti.
Ebbe il barbier suoi limiti,
L’oste, il cuoco, il beccajo: in Roma or stanzi:
In una gran taverna eri poc’anzi.
Epig. Lib. VII 61. Trad. Magenta.
267. Pœnulus. 4. 2. 13:
E si mangia e si bee come in popina.
268.
Siccome il pan dal panattier cerchiamo,

Dall’enopolio il vino, e se il denaro
Loro si dà, cedon la merce.
Act. 1. x. 3.
269. «Qui dimora la felicità.»
270. Paris, Michel Lévy Frères, 1872.
271. Cic. Philip. XII, 9, De Senectute 23. — T. Liv. 28.
272. Cic. Philip. II, 28; Plaut. Pœnulus, att. IV, sc. 2.
273. Descrizione delle Rovine di Pompei, dell’arch. Gaspare Vinci. Terza

edizione, Napoli, pag. 68.
274. «Sittio riparò l’Elefante.» Nell’iscrizione è scorrettamente ommessa la

lettera H in capo alla parola elephantum. Qui poi mal si comprende se
Sittio sia stato il proprietario dell’Albergo o il pittore che ne ristorasse
l’insegna. Par più probabile la prima ipotesi.
275. «Albergo: qui si dà in affitto un triclinio con tre letti e colle relative
commodità.»
276. «Marco Furio Pila invita Marco Tullio.» Altri legge tvtillvm.
277.
PSEUDOLO
V’hanno dolci bevande ad abbondanza?
CARINO
E tu il domandi? Havvi del vin mirrato,

Del vin cotto, idromele e d’ogni miele:
Anzi, già un dì fin nel suo cuore aveva
Un termopolio aperto.
Pseudolus Act. II Sc. IV.
278. Pallad. 1. 42.
279. «Nè di giorno soltanto, ma quasi tutta l’intera notte con non interrotto
volger di macchine producevano continua farina.» Apulej. Metam. Lib.
IX.
280. Così ce li descrive Apulejo. Metam. Lib. I. X.
281.
LIBANO
Forse mi meni là dove una pietra

Stritola l’altra pietra?
DEMENETO
Or che è codesto?
Dove è mai questo luogo in su la terra?
LIBANO
Dove piangon quegli uomini infelici,

Che di polenta cibansi.
Asinaria At. I. 4. 1. V. 16-18.
282. «Plauto fu pistore, avendo locato la propria opera a gran mole a mano.
Perocchè codesto pestamento e fatica di stritolar grani fosse la più
grave di tutte, e si dicesse il pistrino un luogo pieno di fatica e travaglio e
che distruggeva le forze.»
283. Pur ne’ tempi moderni v’ebbero e v’hanno re, che attesero a mestieri
volgari. Si sa di Luigi XVI abilissimo nell’orologeria e fabbro
espertissimo; e il Principe ereditario dell’attuale imperatore di Germania
si perfezionò ne’ rudi lavori fabbrili, e i giornali di questi giorni recarono
che il di lui fratello minore s’applicò all’arte di legare i libri.
284. Nuova serie, n. 3 ottobre 1868, colonna 57.
285. «Talamo cliente invoca P. Paquio Proculo duumviro incaricato della

Giustizia.»
286. Anche nelle Metamorfosi d’Ovidio, così vien immaginata dal Poeta la
sua Bibli nell’atto che medita la propria lettera a Cauno:
Dextra tenet ferrum, vacuam tenet altera ceram.

Lib. IX v. 520.
287. Metam. Lib. X.
288. Giornale degli Scavi, 1861, p. 106.
289. «Tutti i fruttivendoli con Elvio Vestale supplicano Marco Olconio Prisco
duumviro di Giustizia.»
290. Lib. XIII. 55, Svet. in Augustum, 4.
291. Storia della Prostituzione, Cap. XXI.
292.
Perchè, per fede mia, olezza bene

La donna allor che di niente olezza.
Però che quelle vecchie che sè stesse
Vanno d’unguenti ognor impiastricciando,
Decrepite, sdentate e di lor corpo,
Col belletto occultando i rei difetti,
Quando il sudor sen mischia, incontanente
Putono al par d’intingolo malvagio
In cui confuse molte salse il cuoco.
Di che odoran non sai, se non di questo
Che di pessimo odor puton, comprendi.
Atto I, Sc. 3, v. 116 e segg.
293.
Numi immortali, almen trovassi in casa

Perifane, mi son quasi disfatto
A cercarlo per tutta la città:
Nelle botteghe mediche ed in quelle
Del barbier, nel ginnasio, in tutto il foro,
Da’ profumieri, da beccai, dappresso
I banchieri e, col chiederne, la voce
Ho fatta rauca.
Atto II. Sc. 2, 12 e segg.
294.
Tu conoscesti la barbiera nostra,

Sura, ch’ora soggiorna appresso a quelle
Case.
Atto II, Sc. 4, v. 51.
295.
. . . . ma non mai
Tal barbiera, Ammian, rade. — Mi svela
Che fa ella dunque se non rade? — Pela.
Mart. Epigr. lib. II, ep. 17. Tr. Magenta.
296.
Pria che la man d’Eutrapelo sia giunta

Le guance e il mento di Luperco a radere,
In volto a questo un’altra barba spunta.
Id., ibid.
297. Pompei, étude sur l’art antique.
298. Bucolica VII, 32.
299. Vellej. Paterc. II, 82.
300. Philip. III, 6.
301. Philip. XIII, 13.

302. Nat. Hist. IX, 56.
303. Sen. Fra. III, 18. Cic. Decr. II, 5, 33.
304. «Quelli che tingono la lana d’altro colore: gli offectores quelli che la
ritingono dello stesso colore.» — Insomma i primi lo mutano, i secondi lo
conservano.
305. P. 278, n. 170 e 171.
306.
Sì puzzolente è Taide,
Che putir non suol tanto
Di tintor gretto un vecchio
vaso dïanzi infranto.
Trad. di Magenta.
Ora, in talun luogo si usufrutta delle orine per ragione di ingrasso. Già
Vittor Hugo nei Miserabili mostrò di quanta utilità sarebbe il trar profitto
in Parigi degli égouts: in Milano si è stabilita una società con tale intento
sotto la denominazione di Vespasiano, dall’Imperatore di tal nome, che
primo impose la tassa sugli orinatoi. Vedi Svetonio nella vita di questo
Cesare.
307. Metam. L. IX, Plin. XXXV, 57.
308. Pompeja, Pag. 279.
309. Magenta tradusse:
Il nostral rosso ti versar le botti.
Ma come facilmente vedrà il lettore, il traduttore assegnò al vino il colore

che il Poeta assegna al cadus; onde più fedelmente sarebbesi detto:
non peregrini
Il rosso caratel diffonde i vini.
Epig. Lib. IV, 66.
310.
E il flavo mele da rubiconda

Fiala versare.
Epig. Lib. I, 56, trad. Magenta.
311. Petron. Satyricon, 34.
312. V. 31.
Anfora a far s’imprende; ond’è che poi

Gira la ruota, e n’esce orciuol?
Trad. Gargallo.
313. Ruines de Pompei, 4 vol. in folio. Parigi presso Firmin Didot. Il 4 volume
fu compilato da L. Barré.
314. Museo Borbonico, 1 vol. in 4 ogni anno con tavole a bulino.
315. Ercolano e Pompei, Venezia 1841, Tip. Antonelli.
316. Vi furono dotti che congetturarono che le vôlte della Cloaca Massima
facessero parte di canali coperti di un’antica città, forse Pallantea, sulle
cui ruine si pretese fabbricata Roma; ma se così fosse Tarquinio non
avrebbe fatto altro che restaurare quanto rimaneva dei vecchi
acquedotti. Infatti le rendite del suo piccolo regno non avrebbero per
avventura bastato a tanta opera. I lavori di essa ingranditi
successivamente in diverse epoche, furono poi così spinti da Agricola,
genero di Augusto, che, al dir di Plinio, formò, per così esprimersi, sotto
il recinto di Roma una città navigabile.
317. Storia dell’Architettura di Tommaso Hope, pag. 25. Milano, 1840. Tip.
Lampato.
318. Le Drame de Vésuve, chap. Herculanum.
319. Non voglio defraudare i lettori de’ venturi anni di conoscere l’autore di
questa teorica, che lascia addietro ed eclissa ogni economista: essa
appartiene al piemontese Quintino Sella, ministro più volte del Regno
Subalpino e d’Italia.
320. Pompei qual era e qual è. Per Gustavo Luzzati. — Napoli, 1872.
321. Æneid., Lib. VI, v. 847 — 853.
Abbinsi gli altri de l’altre arti il vanto;

Avvivino i colori e i bronzi e i marmi;
Muovano con la lingua i tribunali;
Mostrin con l’astrolabio e col quadrante
Meglio del ciel le stelle e i moti loro;
Chè ciò meglio saprem forse di voi.
Ma voi, Romani miei, reggete il mondo
Con l’imperio e con l’armi, e l’arti vostre
Sien l’esser giusti in pace, invitti in guerra;
Perdonare a’ soggetti, accor gli umili,
Debellare i superbi.
Trad. di Annibal Caro.
322. Epist. Lib. II, ep. 1, 32.
Tutto sorte ci diè; pittor, cantori,

Lottator siam degli unti Achei più dotti.
Trad. Gargallo.
323. Id. Ibid. 94-98:
Grecia, scinta dall’arme, ove agli ameni

Studj si volse, e l’aura di fortuna
Nel vizio a dar la spinse; or di corsieri
Infiammossi, or di atleti, i marmi, i bronzi,
Gli sculti avori amò; talor dipinta
Tavola gli occhi le rapiva e il core.
Trad. Gargallo.
324. «Era presso di Ejo un larario antichissimo, lasciato dai maggiori e

guardato nella casa con assai dignità, nel quale si trovavano quattro
splendidissime statue, condotte con mirabile artificio e con somma
nobiltà; le quali non solo costui (Verre) ingegnoso e intelligente, ma
anche chiunque di noi ch’egli chiama idioti, vi si potesse deliziare: una di
marmo raffigurante Cupido di Prassitele, perocchè molti nomi di artefici,
appresi in codesta mia investigazione... Eranvi due statue di bronzo non
grandissime, ma in ricambio di una esimia venustà, in abito e veste
verginali, che sostenevano colle mani in aria levate sovra il capo certi
sacri arredi, secondo il costume delle fanciulle ateniesi. Canefore queste
si chiamavano: ma chi era l’artefice di essi? chi mai? si domanderà
giustamente. Dicevano che fossero di Policleto.» In Verrem, Lib. IV, De
Signis.
325. Vedi Plin. Nat. Hist. XXXV, 7, che enumera questi colori e li dice alieno
parietibus genere, cioè stranieri alle muraglie... udoque illini recusant, e
rifiutano di appigliarsi agli intonachi umidi.
326. Dizion. delle Antichità.
327. Pompeja, Pag. 425, nota 2.

328. Opere, Ediz. Silvestri di Milano vol. secondo, p. 305.
329. «Aver l’effigie di Epicuro non nelle tavole (quadri) soltanto, ma ne’
bicchieri eziandio e negli anelli.» Fin. 5. 1. extr.
330. «Le tavole ben dipinte collocare in buona luce.» In. Brut. 75.
331. Natur. Hist. XXXV, 2.
332. «Nerone principe aveva ordinato lo si pingesse colossalmente della

grandezza di 120 piedi sopra tela, genere fin allora sconosciuto; ma
appena ultimata, una folgore piombata negli orti di Maja, la incendiò in
un colla parte migliore degli orti.» Id. Ibid. 7.
333. Nat. Hist. XXXV, 135.
334. Pompéi et les Pompéiens. Paris 1867, p. 207.
335. Vedi Beulé, pag. 301, e La Peinture de genre, di M. Gebhart.
336. «Io in questo sol uomo trovo accogliersi qualunque vizio che immaginar
si possa in uom perduto e scellerato: non v’è alcun tratto, io ritengo, di
libidine, di scelleratezza e di audacia che voi non possiate vedere nella
vita di questo solo.»
337. Sen. In Suasoriis. Lib. 1; in Lactan. Lib. 2, c. 4.
338. «Nerone ebbe non mediocre abilità tanto nel pingere che nello scolpire.»
339. «Opere da anteporsi a tutte l’altre sì di pittura che di scultura.»
340. Così chiamata perchè il 3 novembre 1753 vi si scoprirono 1756 volumi,

o papiri, che, comunque in apparenza ridotti allo stato di carbone,
poterono tuttavia essere svolti e letti, come già dissi a suo luogo.
341. Vol. I, pag. 267.
342. «I pavimenti di pietruzze passarono dal suolo alle camere e si fecero di

vetro: è questa nuova invenzione. Agrippa (del tempo d’Augusto),
certamente nelle Terme da lui fabbricate in Roma, dipinse all’encausto
quant’era di terra cotta, nelle altre opere si valse degli stucchi: ma egli
indubbiamente avrebbe fatto le camere co’ musaici di vetro, se il
musaico allora fosse stato conosciuto, od anche dalle pareti della scena
del teatro di Scauro sarebbero passati alle camere.» Histor. Natur. Lib.
XXXVI, 25.
343. Senofonte, Ciropedia IV, 7.
344. Idem, VII, 3, 7.
345. Napoli, novembre 1831.

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Crafting and Executing Strategy

Concepts and Readings The Quest for

1. The reason the world economy is globalizing at an accelerated pace is because:

A. countries previously open to foreign companies have closed their markets.

A. gaining access to new customers for the company's products/services.

A. To gain access to new customers

4. Why do companies decide to enter a foreign market?

A. To capture economies of scale in product development, manufacturing, or marketing

A. To spread business risk across a wider geographic market base

A. Localizing a global company's product offerings country-by-country leads to low-cost advantage.

A. Where will the foreign entrants come from?

A. how to leverage the opportunities arising from shifting exchange rates.

A. Microsemi Corporation acquires California based Actel Corporation.

A. Different styles of management, organization, and strategy

A. are largely unaffected by fluctuating exchange rates.

A. This is a true statement.

A. Nike produces its own line of skate shoes.

A. Cross-border transfer activities and home country advantages

33. Which of the following is an example of an export strategy?

A. being especially well-suited to achieve scale economies.

36. The big problem a franchisor faces is:

A. allowing franchisees to achieve scale economies.

38. The big issue an acquisition-minded firm must consider is whether:

A. to acquire the firm at a price that cannot recapture the investment.

39. A greenfield venture in a foreign market is one:

A. Such ventures can require costly capital investments.

A. When an internal startup is more costly.

A. Competing on a more global scale while still preserving their independence

43. Which of the following is an example of a cross-border alliance?

A. Facebook took over WhatsApp for $19 billion in February 2014.

A. Overcoming language and cultural barriers

A. conflicting objectives and strategies.

A. A profit sanctuary strategy

48. Which of the following statements regarding multidomestic competition is false?

A. Buyers in different countries are attracted to different product attributes.

49. Which of the following strategies identifies a multidomestic approach?

51. Which of the following statements regarding global competition is false?

A. In global competition, rivals vie for worldwide market leadership.

A. Granting country managers fairly wide strategy-making latitude

57. A "think-local, act local" multidomestic strategy entails:

59. What is a primary drawback of a localized multidomestic strategy?

60. A global strategy allows for:

A. YKK catered to homogenous buyer needs across countries and regions.

71. Companies often implement a transnational strategy because it:

A. combines flexible coordination with the pursuit of conflicting objectives simultaneously.

A. employ either an export strategy or a franchising strategy.

A. there are significant scale economies in performing an activity.

A. Significant scale economies

A. control over its resource capabilities.

85. Profit sanctuaries are country markets or geographic regions where:

A. a company can rank the competitive advantage opportunities in each industry.

A. domestic-only company has access to many profit sanctuary locations worldwide.

A. Promotes fair trade practices

91. Companies racing for global market leadership:

A. Prepare to compete on the basis of low price.

1. The reason the world economy is globalizing at an accelerated pace is because:

A. countries previously open to foreign companies have closed their markets.

AACSB: Analytical Thinking

A. gaining access to new customers for the company's products/services.

AACSB: Analytical Thinking

A. To gain access to new customers

AACSB: Analytical Thinking

4. Why do companies decide to enter a foreign market?