Mgt 195 Hk1 Business Policy and Strategy Final Exam

MGT 195 HK1 Business Policy And Strategy Final Exam

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MGT 195 HK1 Business Policy And Strategy Final Exam

Question 1

The laws, and the enforcement of laws, associated with the protection of intellectual property rights, represent a significant currency and management risk to multinational firms.

True

False

Question 2

Software Tech, Inc., a company in the computer software industry, invests heavily in R&D and product design. Thus, most of its value is added:

Upstream

In its infrastructure

Downstream

Midstream

Question 3

Offshoring takes place when a firm decides to shift an activity that they were previously performing in a domestic location to a foreign location.

True

False

Question 4

Elements of a multidomestic strategy may facilitate the competitive advantage of cost leadership by:

Flexibility in adjusting to local laws and customs

Decreased duplication of inventories which are often involved in having multiple plants producing similar products

Decreased shipping and transportation costs inherent in local production

Economies of scale gained through centralized production of standardized products

Question 5

Corporations with multiple foreign operations that act very independently of one another are following a multidomestic strategy.

True

False

Question 6

The sale of Boeing’s commercial aircraft and Microsoft’s operating systems in many countries enable these companies to benefit from:

Higher prices in their domestic markets

Economies of scale

Optimizing the location for many activities in their value chain

Reducing their exposure to currency risks

Question 7

Appreciation of the U.S dollar will have the following impact on McDonald’s:

Lower sales abroad because foreign customers cannot afford McDonalds’ products

More transfer of ingredients from the U.S to branches abroad to take advantage of the higher...