International and Corporate Strategy

Question 1

What is it called when the market values a diversified group of businesses and assets at less than the sum of its parts?

Accepted Answer

Conglomerate discount

Question 2

Which of the following industries are NOT typically affected by geographic distance?

Accepted Answer

Garnements

Question 3

Unrelated diversification is the development of products or services within the current capabilities of the value system

Accepted Answer

True

Question 4

"In an international strategy both the benefit from global integration and the need for local responsiveness is low

Accepted Answer

True

Question 5

Which of the following is NOT a reason for backwards integration?

Accepted Answer

Gain better access to end users

Question 6

Synergy models are about financial control (restructure and selling underpriced business units)

Accepted Answer

False

Question 7

One should typically integrate when...

Accepted Answer

There are few alternatives, The product is complex, Asset specificity is high

Question 8

Which of the following is types of corporations (multiple answers can be correct)

Accepted Answer

Portfolio models, Synergy models

Question 9

Synergy models are about strategic planning- exploiting synergies or own business units with specific competence

Accepted Answer

True

Question 10

Media, foods, cars and wines are all examples of industries typically affected by cultural distance

Accepted Answer

True

Question 11

Which of the following is NOT a part of the BCG Matrix

Accepted Answer

Exclamation point

Question 12

Which of the following is NOT one of the three tests in determining if one should diversify?

Accepted Answer

Corporate development test

Question 13

Cars are products typically affected by economic distance because demand varies by income

Accepted Answer

True

Question 14

Which of the following is not a driver of integration within International firms?

Accepted Answer

Globalization

Question 15

Which of the following industries is typically affected by administrative distance (high government involvement)

Accepted Answer

Telecommunications

Question 16

Internationalization can happen through... (more than one option can be correct)

Accepted Answer

Internal governance, Trade, Market governance

Question 17

Corporate strategy concerns which business units a corporation should be concerned with

Accepted Answer

True

Question 18

Corporate strategy concerns choices about the scope of the firm, i.e. diversification (horizontal integration)

Accepted Answer

True

Question 19

Why should one diversify ones business? (Multiple options can be correct)

Accepted Answer

To respond to market decline, To create more value, Spreading risk

Question 20

Which of the following are reasons to integrate forward?

Accepted Answer

Protection of proprietary know-how

Question 21

If you are Sony's TV division, which international strategy do you choose?

Accepted Answer

Global

Question 22

Why is global strategy correct in the previous question?

Accepted Answer

Their product is standardized

Question 23

Synergies (financial, operations, competitive, HR) are the main argument for why corporations exist

Accepted Answer

True

Question 24

A multidomestic strategy use existing domestic models in local markets

Accepted Answer

True

Question 25

Why should International governance only be used when markets do not provide enough protection or support knowledge?

Accepted Answer

It is expensive

Question 26

In a Transnational strategy both the benefit from global integration and the need for local responsiveness is high

Accepted Answer

True

Question 27

Which of the following is not a driver of adaptation within International firms?

Accepted Answer

International rules

Question 28

Which of the following describe distance in the CAGE framework? (Multiple answers can be correct)

Accepted Answer

Geographic, Economical, Administrative, Cultural

Question 29

Which of the following does not characterize a global strategy?

Accepted Answer

Using existing domestic models in local markets

Question 30

A firm can only integrate horisontal and forward

Accepted Answer

False

Question 31

A global strategy is both high in benefits from global integration and high in the need for local responsiveness

Accepted Answer

False

Question 32

Related diversification is the development of products or services within the current capabilities of the value system

Accepted Answer

True

International and Corporate Strategy

Questions 32

International and Corporate Strategy

Questions 32