Strategic Management And Competitive Advantage 5th Edition By Barney – Test Bank

Overview

Chapter 11
International Strategies

True / False

1) At some level, international strategies have existed since before the beginning of recorded time.
Answer: TRUE
Diff: 1
Learning Obj: 11.1: Define International Strategy
AACSB: Diverse and Multicultural Work Environments

2) International strategies are actually a special case of business strategies.
Answer: FALSE
Diff: 2
Learning Obj.: 11.1: Define International Strategy
AACSB: Diverse and Multicultural Work Environments

3) International strategies are typically limited to just huge multinational companies.
Answer: FALSE
Diff: 1
Learning Obj.: 11.1: Define International Strategy
AACSB: Diverse and Multicultural Work Environments

4) The increased use of international strategies by both large and small firms suggests that the economic opportunities associated with operating in multiple geographic markets can be substantial.
Answer: TRUE
Diff: 2
Learning Obj.: 11.1: Define International Strategy
AACSB: Diverse and Multicultural Work Environments

5) Products and services that a firm sells in its domestic market will always also sell in foreign markets.
Answer: FALSE
Diff: 2
Learning Obj.: 11.3: Describe Five Ways that International Strategies can Create Economic Value
AACSB: Diverse and Multicultural Work Environments

6) The most obvious economy of scope that may motivate firms to pursue an international strategy is the potential new customers for a firm’s current products or services that such a strategy might generate.
Answer: TRUE
Diff: 1
Learning Obj.: 11.3: Describe Five Ways that International Strategies can Create Economic Value
AACSB: Diverse and Multicultural Work Environments

7) To the extent that customers outside a firm’s domestic market are willing and able to buy a firm’s current products or services, implementing an international strategy can directly increase a firm’s revenues.
Answer: TRUE
Diff: 2
Learning Obj.: 11.3: Describe Five Ways that International Strategies can Create Economic Value
AACSB: Diverse and Multicultural Work Environments
8) In 2012, about a third of Wal-Mart’s sales revenues came from outside the United States.
Answer: TRUE
Diff: 2
Learning Obj.: 11.1: Define International Strategy
AACSB: Diverse and Multicultural Work Environments

9) In 2012, more than 50 percent of General Motor’s automobile sales came from outside the United States.
Answer: TRUE
Diff: 2
Learning Obj.: 11.1: Define International Strategy
AACSB: Diverse and Multicultural Work Environments

10) Different physical standards can require a firm pursuing international opportunities to change its current products or services to sell them into a nondomestic market.
Answer: TRUE
Diff: 2
Learning Obj.: 11.3: Describe Five Ways that International Strategies can Create Economic Value
AACSB: Diverse and Multicultural Work Environments