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Question 1

Theodore Levitt (1983) was a proponent of which view?

a) Global divergence

b) Global diversity

c) Global convergence

d) Glocalization

Question 2

A cement producer would be advised to follow which of the following international strategies?

a) A Global strategy

b) A Transnational strategy

c) A local strategy

d) None of these

Question 3

Porter has designed a framework to help understand why certain countries achieve global competitive advantage in certain industries. It also helps internationalizing firms to make location decisions. The framework is called:

a) Porter's value chain

b) Porter's Five Forces

c) Porter's Generic Strategies

d) Porter's Diamond

Question 4

In terms of Porter's Diamond model, a demand condition as applied to the chocolate industry in Belgium would be:

a) Belgium has a network of firms that support each other in becoming stronger as a whole in the chocolate industry

b) Belgian consumers are particularly discerning about chocolate

c) Belgium has a number of very strong competing firms in the chocolate industry

d) Belgium possesses a number of secret recipes in chocolate making

Question 5

If pressures to adapt to local tastes are high and pressures to lower costs are low, a firm should follow which international strategy?

a) International

b) Global

c) Multi-domestic

d) Transnational

Question 6

Which of the following products is arguably most suited to a global strategy?

a) Luxury watches

b) Packaged foods

c) Cars

d) Toothpaste

Question 7

Douglas and Wind argued that price-based worldwide strategies are not sustainable because:

a) Economies of scale are difficult to achieve

b) It is too difficult to keep costs low

c) Price-based strategies are easily imitated

d) There are not enough price-sensitive consumers

Question 8

With reference to the global convergence/divergence debate, Hofstede (1997) argued that:

a) Levitt was correct in his assertions that consumer tastes are becoming homogenous

b) There is no evidence that cultures of different countries are converging

c) There is a great deal of evidence that consumers tastes in the young generation are converging

d) Consumer tastes have become more and more divergent in recent times

Question 9

There are three tools for achieving global competitive advantage. These are national differences, economies of scale and:

a) Differential advantages

b) Economies of scope

c) Efficiency

d) Learning

Question 10

A strategy that can exploit local differences and achieve global efficiencies is called:

a) Transnational

b) Global

c) Multi-domestic

d) International

Question 11

The 'Icarus paradox' describes a situation where:

a) A firm copies the market leader

b) A firm takes too many risks

c) A firm becomes the victim of its own success

d) A firm repeats past mistakes

Question 12

The geographic grouping known as the triad consists of:

a) Japan, China and Russia

b) Japan, Europe and USA

c) China, Europe and USA

d) India, Russia and China

Question 13

Ghemawat (2005) argues that globalization is more accurately described as:

a) Multi-localization

b) Cultural imperialism

c) Glocalization

d) Regionalization

Question 14

Administrative heritage includes elements such as:

a) A firm's corporate parenting style

b) A firm's bureaucratic controls

c) A firm's configuration, management style and values

d) A firm's strategic planning style

Question 15

The three objectives of the transnational organization are efficiency, responsiveness and:

a) Flexibility

b) Quality

c) Adaptability