Washburn University

BU 355

Chapter 12

1)Serving a global market from a single location is consistent with:

 

2. A firm is most likely to pursue a global standardization strategy when:

 

3. Which of the following is true about learning effects?

 

4. Which of the following terms best represents the systematic reductions in production costs that have been observed to occur over the life of a product?

 

5. Diminishing returns imply that when a firm already has significant value built into its product offering, increasing value by a relatively small amount requires only minimal additional costs.

 

6. Which of the following is a value creation activity that falls into the category of primary activities?

 

7. Location economies are the economies that arise from performing a value creation activity in the optimal location for that activity, wherever in the world that might be.

 

8. A global car manufacturer wants to start production in China. While catering to local responsiveness, what can the firm do to get scale economies?

 

9. Xerox had a monopoly on photocopiers for several years as the technology underlying the photocopier was protected by strong patents. As it served a universal need, this favorable position led Xerox to pursue a(n):

 

10. A number of studies have observed that a product's production costs decline by some quantity about each time:

 

11. For a firm to maximize its profitability, it is necessary that it:

 

12. A firm's ability to increase its profitability and profit growth by expanding globally is constrained:

 

13. Which of the following supports the argument that customer demands for local customization are on the decline worldwide?

 

14. In which of the following tasks will the learning effects be most significant?

15. Consumer surplus captures some of the value of a product thereby reducing the price a firm can charge for it.

 

16. Firms that operate internationally are able to realize location economies by dispersing individual value creation activities to locations where they are performed most efficiently and effectively.

 

17. Which of the following is most likely to necessitate the delegation of marketing functions to national subsidiaries?

 

18. Superior value creation relative to rivals requires that the firm:

 

19. Pressures for cost reduction are intense in firms:

 

20. For an international business, which of the following is most likely to be an outcome of protectionism and nationalism in a host-country?

 

21. Which of the following is true of a firm that pursues a global standardization strategy?

 

22. Which of the following is an observation made by researchers Bartlett and Ghoshal regarding modern multinational enterprises?

 

23. Which of the following is most likely to be the advantage of locating a value creation activity in the optimal location for that activity?

 

24. According to Michael Porter, superior profitability goes to a firm that:

 

25. One of the reasons why a firm typically charges for a good or service less than the value placed on that good or service by the customer is because:

26. Mayer Life Systems, a manufacturer of surgical and medical appliances, invented and patented a new dialysis machine that radically reduced maintenance and operational issues. Responding to a global demand, it decided to sell the machines manufactured at its plant in the United States to various markets across the globe. Since the product features provided by Mayer were not provided by any other competitor, Mayer did not feel any pressure for cost reductions. Which of the following strategies is most likely being pursued by Mayer?

 

27. Cost reduction pressures tend to be particularly intense in industries that:

 

28. The amount of value a firm creates is measured by:

 

 

29. Which of the following allows two or more firms to share the fixed costs (and associated risks) of developing new products or processes?

 

30. Which of the following is true of a localization strategy?

 

31. Which of the following conditions is most favorable to reap gains from global scale economies?

 

32. The higher the firm's profit per unit sold is, the greater its profitability will be, all else being equal.

 

33. Which of the following statements is true about an international strategy?

 

34. For services such as banking or health care, "production" typically occurs when the:

 

35. In general, the more value customers place on a firm's products:

36. The value of a product to an average consumer is V, the average price that the firm can charge a consumer for that product is P, and the average unit cost of producing that product is C. For this scenario, which of the following is true?

 

37. As a result of consumer surplus, a firm typically charges a lower price for a good or service than the value placed on it by customers because:

 

38. If a value creation activity of a firm can take place in Mexico most effectively, then that activity of the firm must be based in Mexico. Firms that pursue such a strategy are most likely to realize:

 

39. Labor productivity increases over time as individuals understand the most efficient ways to perform particular tasks. This is a result of:

 

40. Which of the following is true of a transnational strategy?

 

41. Which of the following statements is true about economies of scale?

 

42. The amount of value a firm creates is measured by the difference between its costs of production and the value that consumers perceive in its products.

 

43. Firms that compete in the global marketplace typically face two types of competitive pressure: