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  114) A strategy in which a company exploits economies of scale to have the lowest cost structure of any competitor in its industry is called a(n) ________ strategy.   115) A(n) ________ strategy is one in which a company designs its products to be perceived as unique by buyers throughout its industry.   116).
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    81) Which of these strategies is one in which a company designs its products to be perceived by buyers as unique throughout its industry? A) Differentiation B) Stability C) Low-cost leadership D) Retrenchment   82) Companies that follow a ________ strategy can charge a higher price and enjoy greater customer loyalty than the low-cost leader. A) differentiation B).
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  137) Compare and contrast the two main techniques for forecasting exchange rates: fundamental and technical analysis. Discuss the significance of the Jamaica Agreement, and identify its key provisions. 138) Explain how a pegged exchange rate system works.  Why would a country choose to follow this type of system?       .
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    51) Which of these is a support activity in a firm's value chain? A) Operations B) Inbound and outbound logistics C) Customer service D) Human resource management   52) A strategy of adapting products and their marketing strategies in each national market to suit local preferences is called a ________. A) multinational strategy B) stability strategy C) global strategy D).
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    31) When a country's currency is weak, the price of its ________. A) exports and imports declines B) exports on world markets declines and the price of imports increases C) exports and imports increases D) exports on world markets increases and the price of imports declines   32) A company selling in a country with a.
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21) Weaker competitors often resort to retrenchment when national business environments grow more competitive.   22) The purpose of a combination strategy is to mix growth, retrenchment, and stability strategies across a corporation's business units.   23) The key to developing an effective business-level strategy is deciding on a general competitive strategy in the.
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1) Traditionally, companies enter the international business arena by choosing to enter familiar nearby countries first.   2) Companies go international only to increase sales.   3) The first step in identifying potential markets is to assess the basic demand for a product.   4) The first step in screening potential markets is to assess the.
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    31) Which of these is the process of identifying and selecting an organization's objectives and deciding how the organization will achieve those objectives? A) Mission formulation B) Planning C) Value chain analysis D) Strategy development   32) ________ is the set of planned actions taken by managers to help a company meet its objectives. A) Mission formulation B).
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  127) Discuss the roles of business confidence and psychology in currency values. 128) Explain why managers prefer that movements in exchange rates be predictable. How does the Big Mac index help determine whether a currency is overvalued or undervalued, and what are its drawbacks?       .
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41) To be the largest global company in each industry in which we compete is an example of an objective at the ________. A) individual department level B) business-unit level C) consumer level D) corporate level   42) At which level in a company do objectives usually become more precise and almost always contain numerical targets.
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    61) Companies designing promotional campaigns and advertising strategies at headquarters are likely following a ________ strategy. A) retrenchment B) global C) multinational D) multidomestic   62) Global products are most common in industries where there is ________. A) little buyer convergence B) low pressure to contain costs C) significant price competition D) high pressure for localization   63) A ________ strategy can.
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    61) According to the efficient market view, the best predictor of exchange rates is ________. A) forward exchange rates B) fundamental analysis C) technical analysis D) statistical modeling   62) The efficient market view holds that prices of financial instruments ________. A) do not reflect all publicly available information B) are dependent on economic efficiency C) are not dependent.
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  124) Differentiate between the primary and support activities that create value for a company's customers. How can managers determine whether an activity enhances customer value? 125) Briefly describe the strategy formulation process. Identify the activities under each stage.       .
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  81) Which of the following was created by the Bretton Woods Agreement to enforce the rules of the international monetary system? A) International Monetary Fund (IMF) B) International Bank for Reconstruction and Development (IBRD) C) Special Drawing Rights (SDR) D) World Bank   82) The ________ is an IMF asset whose value is based on a.
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    11) Human resource management is an example of a support activity.   12) When analyzing primary activities, managers often look for areas in which the company can increase the value provided to customers.   13) The external business environment consists of all the elements outside a company that can affect its performance. 14) A multinational.
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  132) Explain how movement in a currency's exchange rate affects the activities of both domestic and international companies.  Discuss how companies can export successfully despite a strong currency. 133) Explain the concept of devaluation, and explain the effect devaluation has on the price of a country's imports. Discuss how international companies.
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    91) Which of the following would be considered a primary activity in creating value for customers, as opposed to a support activity? A) Firm infrastructure B) Procurement C) Human resource management D) Logistics   92) Which of these would be considered a support activity in creating value for Beanstalk's customers, as opposed to a primary activity? A).
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    91) If the nation had raised and not lowered its currency's value, its actions would be called ________. A) valuation B) devaluation C) fundamental disequilibrium D) revaluation   92) Which of the following would best explain to Tom what devaluation in a target market means? A) Devaluation increases the price of a country's exports on world markets. B).
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  103) The intentional lowering of the value of a currency by the nation's government is called ________.   104) The intentional raising of the value of a nation's currency is called ________. 105) The ________ stipulates that an identical product must have an identical price in all countries when price is expressed in.
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  136) Describe any three organizational structures common for the vast majority of the international companies. Provide an example organizational chart for each. 137) Explain participative management and accountability in a decentralized organization, and discuss accountability in a global matrix structure. Include a description of a global matrix structure in your answer.       .
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    51) ________ involves using taxes and government spending to influence the money supply indirectly. A) Monetary policy B) Domestic policy C) The law of one price D) Fiscal policy   52) When a government buys its own securities on the open market, ________. A) tax rates decline B) the money supply increases C) the nation's productivity increases D) it encourages.
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  21) Proponents of the efficient market view of exchange rates believe that companies can search for new pieces of information to improve forecasting.   22) Technical analysis employs charts of past trends in currency prices and other factors to forecast exchange rates.   23) The value of a currency expressed in dollars is called.
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  133) How does the international capital market reduce the cost of money for borrowers? What are the two components for every quoted exchange rate?   134) Explain the concept of cross rates. Include a description of a vehicle currency and the role it plays in the foreign exchange market. 135) Briefly describe the.
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    71) Organic growth refers to corporate strategy relying on ________. A) mergers and acquisitions B) joint venture growth C) internally generated growth D) strategic alliance growth   72) Methods of growth include all of the following EXCEPT ________. A) acquisitions B) joint ventures C) strategic alliances D) inorganic growth 73) A strategy designed to reduce the scale or scope of a.
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  104) ________ are all parties who are affected by a company's activities.   105) A clearly identifiable group of potential buyers is known as a(n) ________. 106) A(n) ________ is a special ability of a company that competitors find extremely difficult or impossible to equal.   107) The process of dividing a company's activities into.
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