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International Strategy Exam
International Strategy Exam
d. Arbitrage strategies
19. One of companies implementing two “A”s is P&G company which use strategies of:
a. Adoptation and Aggregation Strategies
b. Adaptation and Arbitrage Strategies
c. Adaptation and Aggregation Strategies
d. Aggregation and Arbitrage Strategies
20. There are considerations in applying the AAA Framework, except:
a. Focus on one or two of the as to build competitive advantage
b. Make sure the new elements of a strategy are a good fit organizationally
c. Employ multiple integration mechanism
d. companies should always do integration to be better
Part 2. True and False Questions.
1. Efficiencies associated with supply-side changes, such as increasing or decreasing the scale of
production is definition of Economies of scope. (T/F)
False, Efficiencies associated with supply-side changes, such as increasing or decreasing the
scale of production is definition of Economies of scale.
2. Ghemawat analyzes distance between countries or regions in terms of four dimensions, there
are cultural, administrative, geographic, and economic which influences business in different
ways. (T/F)
TRUE.
3. In the stage of market entry, companies tend to enter new countries using business model that
are very different to the ones they deploy in their home markets. (T/F)
False, Companies tend to enter new countries with business models that are very similar to those
they employ in their own markets.
4. The theory of competitive economic advantage holds that as a result of natural endowments,
some countries or regions of the world are more efficient than others in producing particular
goods. (T/F)
False, the theory of comparative economic advantage holds that as a result of natural
endowments, some countries or regions of the world are more efficient than others in
producing particular goods
5. Government policy can through infrastructure, incentives, subsidies or temporary protection
which is the nurture of global industries. (T/F)
TRUE.
6. Industry globalization drivers are market drivers, socio drivers, government drivers, and
competitive drivers. (T/F)
False, Industry globalization drivers are market drivers, Government drivers, competitive
drivers, and cost drivers.
7. In the product specialization stage, companies transfer some amount of production process of
a particular product to a single, low-cost location and export the goods to various consumer
markets. (T/F)
False, companies transfer the full production process of a particular product to a single,
low-cost location and export the goods to various consumer markets.
8. Adaptation, aggregation, and arbitrage strategies are the AAA framework created by
Ghemawat. (T/F)
TRUE.
9. Ghemawat subdivides adaptation strategies into five categories: variation, differentiation,
internalization, design, and innovation. (T/F)
False, Ghemawat subdivides adaptation strategies into five categories: Variation, focus,
externalization, design, innovation.
10. Aggregation strategies is focusing on economies of scale and economies of scope. (T/F)
False, focus on achieving economies of scale or scope