Exam 2 review

Exam 2 review - EXAM 2 REVIEW All Possible Questions on the...

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EXAM 2 REVIEW All Possible Questions on the Exam 1. Briefly identify the special features of competing in foreign markets. (p. 197 - 201) a. Cultures and lifestyles differ among countries b. Differences in market demographics and income levels c. Variations in manufacturing and distribution costs d. Fluctuating exchange rates e. Differences in host government economic and political demands i. Local content requirements, restrictions on exports, regulations on prices of imports, import tariffs or quotas, other regulations (ex. technical standards, product certification, withdrawal of funds, ownership) 2. Explain how exchange rate fluctuations pose a risk to manufacturing companies who rely upon an export strategy to compete in foreign markets. (p. 199 - 200) a. Companies with manufacturing facilities in a particular country are most cost- competitive in exporting goods to world markets when the local currency is weak (or declines in value relative to other currencies); their competitiveness erodes when the local currency grow stronger relative to the currencies of the countries to which the locally made goods are being exported i. Exporters always gain in competitiveness when the currency of the country where goods are manufactured grows weaker II. Exporters are disadvantaged when the currency of the country where goods are manufactured grows stronger 3. Discuss in some detail the difference between a multi-country strategy and a global strategy and give the pros and cons of each. (p. 201 - 202) a. Multi-Country Strategy - Varying the company's strategic approach from country to country in accordance with local conditions and differing buyer tastes and preferences (entire supply chain in more than one country) i. Pros: 1. The company's actions and business approaches are deliberately crafted to accommodate the differing tastes and expectations of buyers 2. Essential when . .. a. Significant country to country differences in customer preference buying habits b. Significant cross-country differences in distribution channels and marketing methods c. Governments enact regulations requiring products meet specifications and standards a. Trade restrictions of host governments are diverse and complicated
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VII. Becoming too dependent on another firm for essential expertise of the long - term 5. Identify at least two strategic approaches that are well-suited for competing in a stagnant or declining industry. (p.24IJ) a. Focus Strategy - Aimed at the fastest-growing segment within the industry b. Differentiation - Stress differentiation based on quality improvement and product innovation c. Low-Cost Leader - strive to drive down costs (cut marginal activities, outsource, redesign internal processes, add more distribution channels, etc . .. ) 6. Companies in a stagnant or declining industry are doomed to having declining revenues and profits. True or false? Explain your answer. (p.239) a. False - market demand may be decaying slowly but some segments of the market
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Exam 2 review - EXAM 2 REVIEW All Possible Questions on the...

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