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Exam practice - 1 INCORR ECT The rise of globalization has...

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1 INCORR ECT The rise of globalization has contributed to the economic boom in America's New Economy, where knowledge is the key source of competitive advantage and value creation. A) True B) False Feedback: On page 229 thetext states "The rise of globalization has contributed to the economic boom in America’s New Economy, where knowledge is the key source of competitive advantage and value creation." 2 INCORR ECT Less demanding domestic consumers push firms to move ahead of companies in other countries where consumers are more demanding and less complacent. A) True B) False Feedback: On page 231 the text states "Demanding consumers push firms to move ahead of companies in other countries where consumers are less demanding and more complacent." 3 CORRE CT Typically, intense rivalry in domestic markets forces firms to look outside their national boundaries for new markets. A) True B) False Feedback: On page 232 the text states "Interestingly, this intense rivalry forces firms to look outside their national boundaries for new markets, setting up the conditions necessary for global competitiveness." 4 INCORR ECT Differences in foreign markets such as culture, language, and customs represent minimal management risks when firms enter foreign markets. A) True B) False Feedback: On page 239 the text states "Management risk is a potential threat to a firm's operations in a country due to the problems that managers have making decisions in the context of foreign markets." The context includes culture, customs, language, income levels, customer preferences, and the like. 5 In a global strategy, a firm operates its businesses under different strategies in
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INCORR ECT different locations. A) True B) False Feedback: On page 245 the text states in reference to a global strategy "Competitive strategy is centralized and controlled to a large extent by the corporate office." 6 INCORR ECT Major trends in international development include all of the following except A) greater international trade and operations. B) a growing recognition of an international managerial perspective. C) a large increase in international investment. D) greater domestic consumer disillusionment. Feedback: On page 228 - 229 the text lists all of the choices in the question as examples of major trends in international development except the last choice D. 7 INCORR ECT Which of the following would be viewed as a strength of global strategies? A) the potential to increase costs of operation even if the primary market is at home B) a firm being solely dependent on the domestic market C) a firm with large margins at home helping subsidize its operations in other nations D) helps create uniform standards of quality throughout the world Feedback: On page 246 Exhibit 7.6 the text lists several strengths of global strategies including "helps create uniform standards of quality throughout the world." 8 CORRE CT When a company invests in logistics and operations, activities that are further away from the customer, they are adding value
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Exam practice - 1 INCORR ECT The rise of globalization has...

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