Companies That Compete Internationally Can Pursue Competitive Advantage in World

question 51

Multiple Choice

Companies that compete internationally can pursue competitive advantage in world markets (or offset domestic disadvantages) by

• A)using a differentiation-based competitive strategy in those country markets with superior resources.
• B)choosing not to compete in countries with high tariffs and high taxes (which then have to be passed along to buyers in the form of higher prices), thus keeping costs and prices lower than rivals.
• C)using an export strategy to circumvent the risks of adverse exchange rate fluctuations.
• D)locating value chain activities in whatever nations prove most advantageous in a manner that uses location to lower costs or achieve greater product differentiation, allow for the transfer of competitively valuable competencies and capabilities from one country to another, and allow for cross-border coordination.
• E)employing a multidomestic strategy instead of a global strategy.

Determine the incremental manufacturing cost for a single unit increase in production.

Understand and apply cost classifications such as direct materials, direct labor, manufacturing overhead, and period costs.

Prepare contribution format and traditional format income statements.

Calculate variable and fixed costs at different activity levels.

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Definitions:

Extinction

The process by which a learned behavior diminishes or disappears as a result of the repeated absence of an unconditioned stimulus or reinforcement.

Reward Centers

Brain structures that regulate the experience of pleasure and motivate individuals towards behaviors necessary for survival, such as eating and reproduction.

Latin Word

A term originating from Latin, a classical language that has contributed to many words in modern languages, especially in science, law, and medicine.

Knowledge

Facts, information, and skills acquired through experience or education; awareness or familiarity gained by experience of a fact or situation.