Chapter 09 Global Strategy Answer Key
Multiple Choice Questions
1.
(p. 254–
257)
Which of the following is not a potential economic benefit from locating in a particular
geographical region?
2.
(p. 269)
A horizontally integrated industry is one in which:
3.
(p. 214)
Which of the following promotes technological spillovers within a region?
4.
(p. 262)
Which of the following factors is not part of Porter’s diamond model?
Difficulty: 1 Easy
5.
(p. 264)
Which of the following are attributes of countries with emerging markets?
6.
(p. 265)
Which of the following factors support the openness of a country’s macro environment?
7.
(p. 227–
229)
Which of the following is a reason firms in the same industry differ in their global
configurations?
8.
(p. 269)
Industries remain nationally segmented because:
9.
(p. 266)
Which of the following best captures the definition of a successful global firm?
10.
(p. 277)
Which of the following reduces the threat of appropriation associated with political risk?
11.
(p. 278)
Which of the following is generally not an option in organizing globally in the single business
firm?
True / False Questions
12.
(p. 2)
The standard explanation of regional advantage is based on the equal geographical
distribution of resources.
13.
(p. 256)
Product innovations diffuse more quickly across regions whereas process innovations diffuse
more quickly within regions.
14.
(p. 261)
It is uncommon to find economically weak countries that are rich in natural resources.
15.
(p. 277–
278)
Centralizing some functions globally and decentralizing others by region is one way to
organize globally in the single business firm.
(p. 259)
16.
Trade policy is typically designed to help domestic firms compete.
17.
(p. 255)
Locating where a labor pool already exists adds value to a firm when the firm faces some
uncertainty in its employee needs.
18.
(p. 279)
Multidomestic firms have interdependent assets and resources across countries.
19.
(p. 281)
Comparative advantage is associated with the benefits due to a firm’s home country.
20.
(p. 271)
The number of industries that exhibit both vertical and horizontal integration across countries
is large.
21.
(p. 271–
Firms integrate activities across countries to lower costs through economies of scale or
scope.
Short Answer Questions
22.
(p. 254–
255)
Why do firms in many industries tend to cluster together in a geographical region?
23.
(p. 258)
How might price regulation affect a firm’s international expansion?
24.
(p. 263–
265)
Why does Porter’s Diamond include “related and supporting industries”? Give an example to
support your answer.