Rivalry is intense in nations with conditions of __________ consumer demand, __________ supplier

bases, and __________ new entrant potential from related industries.

strong; strong; high

Which of these points on the Porter diamond of national advantage is the strongest indicator of global
competitive success?

domestic rivalry

Which of the following is not a risk normally associated with Bottom of the Pyramid strategies?

D. New products may be perceived as exploiting the privileged customer with substandard products.

Corporate level strategy

a strategy that focuses on gaining long term revenue, profits, and market value through managing
operations in multiple businesses

Globalization is a term used to mean the growing dissimilarity of laws, rules, norms, values and ideas
across countries.

FALSE

When the GE wind energy business tapped into world-wide talent, it was able to expand using a(n)
_________________ strategy.

B. diversification

Compared to mergers and acquisitions, firms that engage in internal development capture the value
created by their own innovative activities by not having to share the wealth with alliance partners or
face the difficulties associated with combining activities across the value chains of several firms or
merging corporate cultures.

TRUE

The primary means by which a firm can diversify are __________, _________, and ________.

B. mergers and acquisitions; joint ventures and strategic alliances; internal developmen

When firms expand into global markets, they are faced with the choice of reducing costs and/or
adapting to the local market. When high pressures exist to lower costs, companies should choose a(n)
__________ or __________ in order to compete in the global marketplace.

global strategy; transnational strategy

High levels of environmental awareness in Denmark have led to a decline in Danish industrial
competitiveness in the international marketplace.

FALSE

One of the criteria for a core competence is that the different businesses in the corporation must be
similar in at least one important way related to the core competence.
TRUE

IBM, Memorial Sloan Kettering, and Cedars-Sinai have a _________ whereby IBM receives expert
medical knowledge that it uses to leverage its technological skills to develop new medical insights.

STRATEGIC ALLIANCE

Arbitrage opportunities are simple trading opportunities and therefore account for little of the success
Walmart experiences.

FALSE

High pressure for local adaptation combined with low pressure for lower costs would suggest what type
of international strategy?

MULTIDOMESTIC

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.

FALSE

Many acquisitions ultimately result in divestiture.

TRUE

Unbalanced capacities that limit cost savings, difficulties in combining specializations, and reduced
flexibility are disadvantages associated with

VErtical Intergration

An advantage of a firm entering into a strategic alliance is that it does not have to share the wealth with
its partners.

FALSE

Gillette developed the Fusion and Mach 3 shaving systems that created superior customer value as a
result of the company core competency in research and development

TRUE

The antitakeover tactic, _______, is when a firm offers to buy shares of their stock from a company (or
individual) planning to acquire their firm at a higher price than the unfriendly company paid for it.

GREENMAIL