MULTIPLE CHOICE 1.Which international corporate-level strategy strategy does Starbucks use?  (Chapter

Question : MULTIPLE CHOICE 1.Which international corporate-level strategy strategy does Starbucks use?  (Chapter : 1413269



1.Which international corporate-level strategy strategy does Starbucks use?  (Chapter 8 Opening Case)





2.The Chapter 8 Opening Case indicates that main basic benefit that Starbucks derives from its international strategies is

a.economies of scale and learning

b.location advantages

c.increased market size

d.extending the product life cycle

3.International strategy refers to a(an)

a.action plan pursued by American companies to compete against foreign companies operating in the United States.

b.strategy through which the firm sells products in markets outside the firm’s domestic market.

c.political and economic action plan developed by businesses and governments to cope with global competition.

d.strategy American firms use to dominate international markets.

4.Raymond Vernon states that the classic rationale for international diversification is to

a.pre-emptively dominate world markets before foreign companies can establish dominance.

b.avoid domestic governmental regulation.

c.extend the product’s life cycle.

d.avoid international governmental regulation.

5.Which of the following is NOT an incentive for firms to become multinational?

a.to gain access to consumers in emerging markets.

b.to gain easier access to raw materials.

c.to avoid high domestic taxation on corporate income.

d.opportunities to integrate operations on a global scale.

6.The increased pressures for global integration of operations have been driven mostly by

a.new low cost entrants.

b.increasing demand for similar products.

c.increased levels of joint ventures.

d.the rise of governmental regulation.

7.The benefits of expanding into international markets include each of the following opportunities EXCEPT

a.increasing the size of the firm’s potential markets.

b.economies of scale and learning.

c.location advantages.

d.favorable tax concessions and economic incentives by home-country governments.

8.U.S. companies moving into the international market need to be sensitive to the need for local country or regional responsiveness because of

a.increasing rejection of American culture across much of the world.

b.the sophistication of the international consumer because of the Internet.

c.consumer needs, political and legal structures, and social norms vary by country.

d.the increasing loss of economies of scale.

9.Which of the following is NOT a factor pressuring companies for local responsiveness?

a.differences in employment laws

b.customization due to cultural differences

c.government pressure for firms to use local sources for procurement

d.availability of low labor costs

10.U.S. cola companies entered the global market because of

a.limited growth opportunities in their domestic market.

b.lower labor costs in the emerging markets.

c.economies of scale that offset research and development costs.

d.an increase in the return on investment from their U.S. bottling plants.



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