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1. The opening case is an example of how global companies hire employees locally and then train employees to
work in other countries.
a. True
b. False
2. In the opening case, Samsung’s Global Strategy Group has demonstrated that cultural integration is difficult,
with retention rates below two-thirds.
a. True
b. False
3. Within Samsung’s Global Strategy Group, Korean colleagues have had to change their work styles to
accommodate Westernized practices.
a. True
4. As demonstrated at Samsung, it is easier for Westerners to adapt to Eastern work styles than for Easterners to
adapt to Western work styles.
a. True
5. A multinational enterprise rarely engages in foreign direct investment.
a. True
b. False
6. A typical “one-size-fits-all” strategy remains the most effective for firms “going global.”
a. True
b. False
7. The current brand of “global strategy” seems relevant only for multinational enterprises from developed
countries, primarily North America, Europe, and Japan.
a. True
b. False
8. In the global economic pyramid, the top tier includes the 2 billion people whose annual per capita income is
greater than US$20,000.
a. True
b. False
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9. Global strategy has, in the past, been primarily focused on markets that consist of those people who are in the
bottom tier of the global economic pyramid.
a. True
10. A SWOT analysis resonates well with Sun Tzu’s teachings.
a. True
11. If a strategy (theory) is truly successful, it will work not just for one firm but for all others as well.
a. True
b. False
12. If done well, a SWOT analysis will turn unrealized strategies into intended strategies.
a. True
b. False
13. The two primary purposes of a theory are to explain the past and predict the future.
a. True
14. The concept of strategy as integration means that strategy is a combination of planned deliberate actions and
unplanned emergent activities.
a. True
15. The quality of management practices around the world does not seem to correlate well with the level of
economic development.
a. True
b. False
16. The Japanese use a formal system of interlocking business groups and relationships, known as guanxi, in
determining business strategies.
a. True
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b. False
17. The three key perspectives of strategy as a discipline include industry-based, resource-based, and labor-
based views.
a. True
18. Companies use balanced scorecards to summarize business information into a smaller number of critical
factors.
a. True
b. False
19. Determining the scope of the firm involves not only growth of the firm but also contraction.
a. True
b. False
20. The text stresses that realism indicates that all companies should “go global” and endeavor to do so as
quickly as possible in view of the vast opportunities that exist.
a. True
b. False
21. The industry-based view posits that the degree of competitiveness in an industry largely determines firm
performance.
a. True
22. The resource-based view suggests that firm-specific capabilities do not drive performance differences.
a. True
b. False
23. The institution-based view argues that institutional forces provide an answer to similarities in firm
performance but not differences.
a. True
b. False
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24. The more traditional meaning of global strategy is any strategy outside one’s home country.
a. True
b. False
25. The textbook’s goal is to approach global strategy as the way that both domestic firms and foreign entrants
compete successfully.
a. True
b. False
26. In discussions of globalization, a case can be made for both extensive cultural integration as well as the
promotion of inequality.
a. True
b. False
27. Although global strategy is associated with business, the term globalization means the close integration of
countries and peoples of the world.
a. True
28. The earliest MNEs existed in some form thousands of years ago in the Assyrian, Phoenician, and Roman
empires.
a. True
29. According to the text, today’s most successful MNEs far exceed the historical clout of some MNEs such as
Britain’s East India Company during colonial times.
a. True
b. False
30. During the second half of the twentieth century, Hong Kong, Singapore, South Korea, and Taiwan, refused
to participate in the global economy and became known as the “Four Toothless Tigers.”
a. True
b. False
31. During the 1990s there was an increase in both global trade and opposition to global trade.
a. True
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32. Semiglobalization involves doing business in either the Northern or Southern Hemisphere but not both.
a. True
b. False
33. The recession that began in 2008 led to an increase in protectionist measures.
a. True
b. False
34. The pendulum view of globalization explains the steady expansion and contraction of individual nations’
economies.
a. True
b. False
35. China in the 1970s is an example of an emerging economy.
a. True
b. False
36. Standardization in markets is the main goal of semiglobalization.
a. True
b. False
37. When surveyed about the benefit of globalization, a higher percentage of the American general public saw
globalization as good for strengthening the economics of poor countries than as good for U.S. consumers.
a. True
b. False
38. U.S. business students have positive views similar to those of the general public.
a. True
b. False
39. According to the text, business students may tend to focus more on the economic gains of globalization, and
be less concerned with its darker sides.
a. True
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b. False
40. A lot of opponents of globalization are nongovernmental organizations (NGOs), such as environmentalists
and consumer groups.
a. True
b. False
41. Multinational enterprises (MNEs) are firms that:
a. Engage in foreign direct investment (FDI).
b. Delegate control of value-adding activities in other countries.
c. Standardize strategies across all business units.
d. None of the above.
42. Which of the following best describes foreign direct investment (FDI)?
a. A firm’s direct investment in production and/or service activities abroad.
b. The purchases of foreign securities by people within the United States.
c. The purchases of U. S. securities by people from other countries.
d. Avoidance of brokers or other financial intermediaries when making foreign investments.
43. Which of the following best defines “Triad” as the term is used in the text?
a. The United States, Japan, and Germany.
b. The United States, Canada, and Mexico.
c. North America, Europe, and Japan.
44. According to the text, the current brand of “global strategy” seems relevant only for MNEs from:
a. BRIC.
b. The Triad.
c. OPEC nations.
d. NAFTA.
e. The E. U.
45. Emerging economies (or emerging markets):
a. Now command a full one-half of the worldwide FDI flow.
b. Command half of the global gross domestic product (GDP) measured at purchasing power parity.
c. Consist of countries which are in a state of decline but which are believed to have potential for growth.
d. Despite their growth, they still command less than 10% of global GDP.
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46. BRIC refers to:
a. Brazil, Russia, India, and China.
b. Bolivia, Romania, Indonesia, and Columbia.
c. Bulgaria, Belgium, Romania, Italy, and Canada.
47. Many BRIC local firms are:
a. Focused only on competing globally.
b. Growing their absolute GDP but failing to increase their percentage of world GDP.
c. Inadequate in mounting any competitive threat to Triad-based MNEs.
48. The notion of global strategy as a one-size-fits-all:
a. Adds to local responsiveness.
b. Provides the best way for companies to compete with domestic rivals as well as international rivals.
c. Fails to adequately accommodate firms in emerging economies.
d. Looks primarily at how MNEs compete with their domestic rivals in foreign countries.
49. When looking at the global economy as a pyramid, MNEs:
a. Traditionally believed no money was to be made in base of the pyramid markets.
b. Are based almost exclusively in the top tier.
c. Face little competition from emerging markets at any level of the pyramid.
d. Tend to target the population at the base of the pyramid.
50. GE developed a portable electrocardiograph machine originally for doctors in India and China that is now being sold
in the United States at a significantly lower price than comparable products. This product is an example of:
a. Foreign direct investment.
b. Reverse innovation.
c. Intended strategy.
d. Intended strategy.
51. MNEs are increasingly finding that:
a. The strategy that works in their domestic market will most likely work best in foreign markets.
b. Tailoring strategies for particular markets is costly and often ineffective.
c. The quest for worldwide cost reduction and consolidation in global strategy has sacrificed local
responsiveness.
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d. Strategies targeted to emerging markets work best in developed markets as well.
52. A primary reason to study global strategy is:
a. Strategy consultants with global experience are highly paid.
b. Understanding how strategic decisions are made can facilitate business careers.
c. Domestic employers are finding themselves working with foreign suppliers and buyers more and more
often.
d. All of the above.
53. Strategy:
a. Dates back to 500 B.C. and the work of the strategist Sun Tzu of China.
b. Applies concepts developed by Napoleon.
c. In business competition uses principles distinctly different from military operations.
d. Is a fairly recent modern concept.
54. A hallmark of theory building and development is:
a. The outcome of a test.
b. Replication.
c. Intuition.
55. Overall, strategy is:
a. A rulebook.
b. A blueprint.
c. A set of programmed instructions.
56. Strategic management is essentially:
a. Follows a one-size-fits-all philosophy.
b. A military concept rather than a business concept.
c. The way a firm goes about competing successfully from a “big picture” perspective.
d. None of the above.
57. The school of thought that views strategy as the outcome of rigorous formal planning is based on:
a. The work of Carl von Clausewitz, a Prussian military strategist.
b. Sun Tzu’s book The Art of War.
c. Mintzberg’s ideas of bottom-up feedback.
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d. Liddell Hart’s set of goal-oriented actions.
58. Mintzberg advocated strategy as action in which:
a. Intended strategy is always superseded by emergent strategy.
b. Emergent strategy can arise in addition to intended strategy.
c. Top-down planning is most conducive to emergent strategy.
d. Bottom-up planning and flexibility are avoided as part of strategic planning.
59. Chandler advocated strategy as integration, a perspective in which:
a. Intended strategy is always superseded by emergent strategy.
b. Strategy is neither solely about plan nor action, but integrates both.
c. Top-down planning integrates a “know yourself” philosophy.
d. Bottom-up planning and flexibility are avoided as part of strategic planning.
60. Which of the following is NOT an advantage of “strategy as theory”?
a. It integrates both planning and action schools.
b. It requires both replications and experimentations.
c. It encompasses an understanding of the difficulty of strategic change.
d. It serves the single purpose of prediction.
61. When it comes to strategic work as defined by A. G. Lafley, CEOs are primarily responsible for:
a. Overseeing the tactical aspects of a firm’s work.
b. Shaping the values and standards of the firm.
c. Calling and presiding over strategy meetings.
d. Delegating the responsibility for making strategic choices .
62. Much of our knowledge about “the firm” is from research on firms in:
a. Anglo-American capitalism.
b. Japan after World War II.
c. German mathematical models.
d. Emerging markets.
63. The word _______has now become the most famous Chinese business word to appear in English-language
media.
a. keiretsu
b. guanxi
c. chaebol
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d. blat
64. The _______ view primarily focuses on the ______ in a SWOT analysis.
a. Industry-based; OT
b. Resource-based;OT
c. Industry-based; SW
d. Resource-based; SW
65. In an institution-based view of strategy, the informal rules of the game:
a. Must be avoided because global business is not a mere game.
b. Are being replaced by formal rules.
c. Often require that the firm seek to change the informal rules instead of going along with those rules.
d. Need to be understood by firms.
66. Diversification:
a. Is a relatively new concept in Western business .
b. Is believed by Western media to destroy value in emerging economies.
c. Is a poor idea and results in lower or no profitability in emerging economies.
d. Should be dismantled in emerging economies, based on recent research.
67. In looking at strategy, the authors address all of the following questions EXCEPT:
a. Why do firms differ?
b. How do firms behave?
c. What determines the scope of the firm?
d. Is strategy really necessary in business?
68. The Japanese practice of employing a network form of supplier management rather than using costly
acquisitions that is common in the West is known as:
a. Keiretsu.
b. Guanxi.
c. Chaebol.
d. Blat.
69. Part of China’s economic growth has been attributed to guanxi, which is:
a. A process of rapid acquisition and divestment.
b. Formal institutional structures.
c. The nouveau riche of China.
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70. When reviewing the diversity of management practices around the world, the quality of management practices:
a. Depends on the interpersonal relationships among managers.
b. Is tightly related to size of firm, economic development of markets, and formal structures.
c. Seems to correlate with the level of economic development.
d. Relies heavily the assessment of external opportunities and threats.
71. A resource-based view of strategy sees a firm’s success as primarily dependent on:
a. A firm’s opportunities and threats.
b. A firm’s strengths and weaknesses.
c. The competitive forces of the firm’s market.
d. The formal and informal rules of the game.
72. In determining the success and failure of firms around the globe, strategic managers will look at :
a. How to acquire, leverage, and sustain competitive advantage over time.
b. A comparative analysis of industry-based, resource-based, and institution-based practices.
c. How to best standardize a firm’s products and services on a worldwide basis.
d. A standardized balanced scorecard across industries.
73. “Global strategy” refers to:
a. A particular theory on how to compete.
b. Offering standardized products and services on a worldwide basis.
c. Strategy of firms around the globe—essentially various firms’ theories about how to compete
successfully.
d. All of the above.
74. Globalization is viewed as:
a. A new force sweeping through the world in recent times.
b. A long-run historical evolution since the dawn of human history.
c. A pendulum that swings from one extreme to another from time to time.
d. All of the above.
75. Which of the following was the first to express concern about international competition from low-cost
countries?
a. American political leaders in the twenty first century.
b. Union leaders in the last half of the twentieth century.
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c. A first-century Roman emperor.
d. The King of England in the late 1700s.
76. The current era of globalization originated in the aftermath of:
a. World War I.
b. World War II.
c. The Vietnam Conflict.
d. The Gulf War.
77. For those who view globalization as a “pendulum,” the practice of _________________ to identify and assess as well
as minimize the effects of unfortunate events is important.
a. risk management
b. strategy as action
c. intended strategy
d. SWOT analysis
78. Viewing each country as a unique market and therefore somewhat isolated is known as _________, whereas
___________ sees market integration as subject to some barriers that do not totally insulate those markets.
a. antiglobalization; localization
b. localization; globalization
c. globalization; semiglobalization
d. localization; semiglobalization
79. The values and beliefs about globalization held by the general public are:
a. Nearly identical to those held by executives, policymakers, and scholars.
b. Nearly identical to those held by current business school students, but different from those of executives,
policymakers, and scholars.
c. Much more positive than those held by executives, policymakers, and scholars.
d. More negative than those held by current business school students.
80. When looking at globalization, many executives, policymakers, and scholars:
a. Consistently side with nongovernmental organizations in opposing globalization.
b. See more costs than benefits in globalization as it exists today.
c. Fail to take into sufficient account the social, political, and environmental costs associated with
globalization.
d. Recognize that most other members of society share the same view of globalization.
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81. What is the difference between developed economies and emerging economies? Give examples of countries that
would be consider to have developed economies and those that have emerging economies.
82. How can principles of military strategy be useful in developing a global business strategy? Explain by using
SWOT analysis.
83. Describe Liddell Hart’s “strategy as action” concept. Explain Mintzberg’s theory about strategy and how it
is similar to Hart’s.
84. The text points out that not all firms should go global. In view of the vast opportunities, why should some
firms not pursue international business?
85. Describe how strategy is not “a rulebook” but rather a theory. What advantages does “strategy as theory”
have?
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86. Having valuable, unique, and hard-to-imitate capabilities may be advantageous in doing business globally.
However, what is the problem with trying to maintain that advantage?
87. Describe the way in which a firm might use a balanced scorecard.
88. Why is there a backlash against globalization, and how do aspects of that backlash actually enhance
globalization?
89. How is semiglobalization different from globalization and localization?
90. Who are the main opponents of globalization and what arguments do they make?
91. As you examine the current political, social, and economic environment of your country and the world as of
the moment you are reading the text, what is your estimate of the extent to which globalization will increase or
decrease in the short run? In the long run?
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