Free Master of International Business: Global Business Environment Questions and Answers

Question 1

The term "strategic group analysis" means:

Accepted Answer

identifying firms with similar strategies or competing on similar bases.

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identifying strategies for similar groups of firms.

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identifying strategies for groups of multinational firms.

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identifying similarities and differences between groups of people who buy and use your firm's goods and services.

Question 2

Mobility obstacles include:

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barriers which prevent other firms entering the strategic group and threatening the existing members.

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barriers between countries that prevent multinational firms from crossing borders.

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barriers related to the human tendency to reject unfamiliar or negative information.

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barriers which constrain the mobility of multinational firms in foreign markets.

Question 3

According to Michael Porter, the primary factor(s) affecting a company's profitability are:

Accepted Answer

Industry attractiveness

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Bargaining power

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Economies of scale

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Conditions in the home diamond

Question 4

You can use the Five Forces Model to:

Accepted Answer

analyze a firm's competitive position in a specific market segment or similar market segments.

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understand a firm's strategic internal assets in global markets or regional markets

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plan a firm's global strategy based on internal firm resources

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explain why industry change may force firms to relocate parts of their business to other countries

Question 5

The challenges that potential newcomers would face when trying to enter a market are referred to as:

Accepted Answer

Barriers to entry

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Economies of scale

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Mobility barriers

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Buyer switching costs

Question 6

Which of the following is NOT an illustration of entry barriers?

Accepted Answer

Buyer switching costs

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Expected retaliation

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Product differentiation

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Economies of scale

Question 7

The International Product Life Cycle idea implies that:

Accepted Answer

Products go through an international life cycle, during which a developed country is initially an exporter, then loses its export markets, and finally could become an importer of the product from developing countries.

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The shelve life of a product depends on international product competition.

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International products are first designed by innovative developing countries and then are exported to developed country markets.

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Every basic product evolves through a cycle of roughly four stages-introduction, growth, maturity, and decline-which correspond to the rate of growth of industry sales.

Question 8

Non-standard industrial products like the following are not covered by the international product life cycle:

Accepted Answer

Luxury products

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DVD players

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Televisions

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Ship-building

Question 9

The forecasts are

Accepted Answer

educated assumptions about future trends and events.

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mental pictures of future scenarios.

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hypothetical sequences of events constructed for the purpose of focusing attention on causal processes and decision points.

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complex exercises to understand the causes of and interrelationships among new trends.

Question 10

Which major corporation was the first to employ scenarios?

Accepted Answer

Shell

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Sony

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Hewlett Packard

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British Airways