A) Gaining wider access to attractive country markets
B) Gaining better access to scale economies in production and/or marketing
C) Filling competitively important gaps in technical expertise and/or knowledge of local markets
D) Safeguarding the company's dependence, allowing for positive engagement once the purpose has been served and ensuring products of important technical standardization requirements are not developed
E) Sharing distribution facilities and dealer networks, thus mutually strengthening access to buyers
G) B) and E)
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A) Fluctuating exchange rates do not 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) 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.
G) B) and D)
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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 seriously compromised by the potential for local government officials to raise tariffs on the imports of foreign-made goods into their country.
G) A) and C)
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A) population sizes, income levels and cultural influences, the current state of the infrastructure and distribution and retail networks available.
B) the ability of management to tailor a strategy to take into consideration all the country difference.
C) the large size of emerging markets such as China and India.
D) competitive rivalry that is only moderate in some countries.
E) All of these.
G) A) and C)
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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.
G) A) and E)
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A) Maintaining a national (one-country) production base and exporting goods to foreign markets.
B) Establishing a subsidiary in a foreign market.
C) Franchising and licensing strategies.
D) Forming strategic alliances or joint ventures with foreign partners.
E) All of these.
G) All of the above
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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 wages rates, worker productivity, energy costs, tax rates, and the like)
E) Crafting a multicountry strategy that works just as well in one country as in another and that also has the appeal of turning the world market into one big profit sanctuary
G) A) and C)
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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 (such risks are greater when activities are concentrated in a single location) or (2) supply interruptions (due to strikes, mechanical failures, or transportation delays) or (3) adverse political developments.
E) All of the above.
G) B) and D)
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E
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A) it matches a company's competitive approach to prevailing market and competitive conditions in each country market.
B) each of a company's country strategies is almost totally different from and unrelated to its strategies in other countries.
C) the plants located in different countries can be operated independent of one another, 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.
G) A) and C)
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A) To gain access to new customers
B) To strengthen its capability to employ offensive strategies, especially those that involve preemptive strikes
C) To achieve lower costs and enhance the firm's competitiveness
D) To capitalize on company competencies and capabilities
E) To spread business risk across a wider geographic market base
G) A) and D)
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A) pursuing the same basic competitive strategy theme (low-cost, differentiation, best-cost, focused) in all countries where the firm does business.
B) selling much the same products under the same brand names everywhere and expanding into most, if not all, nations where there is significant buyer demand.
C) integrating and coordinating the company's strategic moves worldwide.
D) utilizing the same competitive capabilities, distribution channels, and marketing approaches worldwide.
E) All of the above.
G) None of the above
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E
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A) When creating an internal start-up is cheaper than making an acquisition
B) When adding new production capacity will adversely impact the supply-demand balance in the local market
C) Having the ability to gain good distribution access
D) Having scale economies to compete against local rivals
E) All of these
G) C) and D)
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A) being able to minimize shipping costs, avoid tariffs, and curb the effects of fluctuating exchange rates.
B) minimizing capital requirements and involvement in foreign markets.
C) being cheaper and more cost effective than licensing and franchising.
D) being cheaper and more cost effective than a multicountry strategy.
E) facilitating the establishment of profit sanctuaries in foreign countries and being more suited to accommodating local buyer tastes than a global strategy.
G) D) and E)
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A) Prepare to compete on the basis of low price
B) Be prepared to 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) Try to 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
G) B) and D)
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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 the bigger the country-to-country differences in buyer tastes, cultural traditions, and marketing methods.
D) is generally an inferior strategy when one or more foreign competitors is pursuing a global low-cost strategy.
E) can defeat a global strategy if the "think local, act local" multidomestic strategist concentrates its efforts exclusively in those foreign markets where it has profit sanctuaries.
G) B) and E)
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A) A profit sanctuary strategy
B) An export strategy
C) A licensing strategy
D) Establish a subsidiary in a foreign market strategy
E) A franchising strategy
G) C) and D)
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A) fluctuating exchange rates, country-to-country variations in host-government restrictions and requirements, and variations in cultural, demographic, and market conditions.
B) important country-to-country differences in consumer buying habits and buyer tastes and preferences.
C) whether to customize the company's offerings in each different country market or whether to offer a mostly standardized product worldwide.
D) the fact that product designs suitable for one country are sometimes inappropriate in another.
E) All of these.
G) A) and B)
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E
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A) being especially well suited to the use of cross-market subsidization.
B) being able to charge lower prices than rivals.
C) enabling a company to achieve competitive advantage quickly and easily.
D) being able to leverage the company's technical know-how or patents without committing significant additional resources to markets that are unfamiliar, politically volatile, economically uncertain, or otherwise risky.
E) being able to achieve higher product quality and better product performance than with an export strategy.
G) A) and D)
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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 (1) whether to concentrate each activity it performs in a few select countries or disperse performance of the activity to many nations and (2) 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 a single country-the one that has the best combination of low wage rates, low shipping costs, and low tax rates on profits.
G) B) and C)
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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 foreign franchisees.
B) being particularly well suited to the global expansion efforts of companies with multicountry strategies.
C) helping build multiple profit sanctuaries.
D) being well suited to companies that employ cross-market subsidization.
E) being well suited to the global expansion efforts of manufacturers.
G) A) and C)
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