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Chapter 05 - The Global Environment
51. (p. 133) A ______ is one in which competition crosses national borders.
52. (p. 133) The expanding list of global industries include all of these EXCEPT
53. (p. 133) The retailing industry is an example of a _______ industry.
54. (p. 133) The automobile industry is an example of a _______ industry.
55. (p. 133) Which of the following is NOT an aspect of global business that makes global
planning necessary?
56. (p. 134) Strategic management planning must be global for six reasons. One of them is:
57. (p. 134) A global planning process provides:
58. (p. 134) Rapid technological development:
59. (p. 134) Among the factors that make for the creation of a global industry are all of these
EXCEPT
60. (p. 135) Factors that drive the success of global companies include
61. (p. 134) A global firm competing in a global industry must:
62. (p. 135) All of these are factors that drive the success of global companies EXCEPT
63. (p. 135) A multi-national corporation:
64. (p. 135) An industry can be ranked along a continuum that ranges between _____ at one
extreme and ____ at the other.
65. (p. 135) As its industry becomes increasingly ______, a firm must begin to coordinate an
increasing number of functional activities to effectively compete across countries.
66. (p. 136) All markets can be arrayed along a continuum from markets in which products are
____ to markets in which products must be _____ for customers from market to market.
67. (p. 136) Standardized products in all markets include ______
68. (p. 136) Which one of the following is a key dimension of customer demand in foreign
markets?
69. (p. 136) Which one of the following is a key dimension of customer demand in foreign
markets?
70. (p. 137) When a company offers many product lines, ____ is high.
71. (p. 137) The complexity of a strategy refers to:
72. (p. 137) Diversity in a firm's product line refers to
73. (p. 137) Which of the following is NOT a competitive strategy for firms in foreign markets?
74. (p. 137) The primary niche for the market approach for exporting:
75. (p. 138) Which of these strategies shows the lowest commitment to international market?
76. (p. 138) Which strategy shows the highest commitment to international market?
77. (p. 138) ______ usually requires minimal capital investment.
78. (p. 138) Companies between exporting and an equity position on foreign soil:
79. (p. 138) The transfer of an industrial property right is called
80. (p. 139) Licensing and contract manufacturing types of strategies are used best in
81. (p. 139) A special form of licensing is
82. (p. 139) Joint ventures:
83. (p. 140) When one company buys another, the purchase is called a(n)
84. (p. 140) Host countries may require a foreign branch to be
85. (p. 142) Risks of foreign subsidiaries include
Chapter 05 - The Global Environment
Essay Questions
86. What is globalization? How are standardization and customization relevant in
globalization?
Learning Objective: 1
87. Describe the four strategy levels involved in the evolution of a global corporation.
Learning Objective: 1
88. Why do firms globalize?
Learning Objective: 1
89. What are the key issues to consider at the start of a firm’s globalization process?
Learning Objective: 2
90. Briefly describe the different orientations companies may have toward their overseas
activities.
91. What factors contribute to the increased complexity of the global environment? Explain.
Learning Objective: 4
92. What control problem do global firms face?
Learning Objective: 2
93. What is a multidomestic industry? What factors increase the degree to which an industry
is multidomestic?
Learning Objective: 4
94. What is a global industry? What are the reasons strategic management planning must be
global?
Learning Objective: 4
95. What are the location and coordination issues that global firms face?
Learning Objective: 4
96. Briefly explain the factors that drive the success of global companies.
Learning Objective: 4
97. Describe the market requirement and product characteristics in global competition.
Learning Objective: 5
98. Describe the competitive strategy of niche market exporting.
Learning Objective: 5
99. Identify and briefly explain the lowest to the highest commitment strategies a firm may
have to international markets.
137-143.
100. Compare and contrast licensing and franchising.
138-139.
Learning Objective: 6
101. Differentiate between foreign branching, equity investment and wholly owned
subsidiaries. What risks firms face with foreign subsidiary strategy? Explain.
