67) A multinational firm may need to delegate marketing functions to national subsidiaries to
A) fully implement the firm’s localization strategy.
B) employ economies of scale.
C) meet the requirements for a global standardization strategy.
D) be responsive to local differences in distribution channels.
68) Firms usually respond to pressures for cost reduction by trying to
A) lower the costs of value creation.
B) be locally responsive.
C) undertaking product differentiation.
D) diversifying product lines.
69) Responding to pressure for ________ requires that a firm differentiate its products and
marketing strategy from country to country, even though it may raise costs.
A) cost reductions
B) experience effects
C) lowering the costs of value creation
D) being locally responsive
70) ________ needs exist when the tastes and preferences of consumers in different nations are
similar if not identical.
A) Universal
B) Homogenous
C) Basic
D) Bundled
71) When AMD sells its computer chips in countries across the world, it doesn’t need to worry too
much about customizing the product to local needs and preferences because computer chips are
________ needs.
A) universal
B) homogenous
C) basic
D) single-user
72) Pressures for ________ imply that it may not be possible for a firm to realize the full benefits
from economies of scale, learning effects, and location economies.
A) local responsiveness
B) profitability
C) value creation
D) global standardization
73) When a firm focuses on increasing profitability by customizing the product or service so that it
provides a good match to tastes and preferences in different national markets, the firm is following
________ strategy.
A) a transnational
B) a localization
C) an international
D) a global standardization
74) When the firm simultaneously faces both strong cost pressures and strong pressures for local
responsiveness, the ideal strategy to follow is the ________ strategy.
A) global standardization
B) localization
C) transnational
D) international
75) ________ strategy makes most sense when demands for local responsiveness are high, but cost
pressures are moderate or low.
A) A global standardization
B) A transnational
C) An international
D) A localization
76) The distinguishing feature of many firms that pursue ________ strategy is that they are selling
a product that serves universal needs, but they do not face significant competitors.
A) an international
B) a localization
C) a transnational
D) a global standardization
77) According to researchers Bartlett and Ghoshal, for transnational enterprises to be successful,
they must focus on
A) selling a product that serves universal needs.
B) leveraging subsidiary skills.
C) increasing profitability by customizing the firm’s goods or services so that they provide a good
match to tastes and preferences in different national markets.
D) ensuring that the flow of skills from the home country to the foreign subsidiaries is one way and
uninterrupted.
78) When a firm has a strategic goal of pursuing a low-cost strategy on a worldwide scale, the firm
should follow ________ strategy.
A) a global standardization
B) a localization
C) an international
D) a customization
79) Which of the following is associated with firms following the global standardization strategy?
A) high pressures for local responsiveness
B) cost advantage used to support aggressive pricing in world markets
C) low pressures for cost reductions
D) product offering and marketing strategy customized to local conditions
80) ________ strategy is most appropriate when there are substantial differences across nations
with regard to consumer tastes and preferences, and where cost pressures are not too intense.
A) Localization
B) Transnational
C) Global standardization
D) International
81) What strategy focuses on increasing profitability by customizing the firm’s goods or services
so they provide a good match to tastes and preferences in different national markets?
A) global standardization strategy
B) transnational strategy
C) localization strategy
D) international strategy
82) What is a disadvantage of the localization strategy?
A) a decrease in the value of the product in the local market
B) some duplication of functions
C) an inability to accommodate varying tastes and preferences in different markets
D) reduced customization
83) A firm that is facing both strong cost pressures and strong pressures for local responsiveness
should follow ________ strategy.
A) a localization
B) a global standardization
C) an international
D) a transnational
84) A firm that is pursuing ________ strategy is simultaneously trying to achieve low costs
through location economies, economies of scale, and learning effects; and trying to differentiate its
product offering across geographic markets.
A) a global customization
B) an international
C) a localization
D) a transnational