Global Strategy: Quiz :Corporate Strategy (Strategic Leadership and Management Specialization) Answers 2025

Question 1

Which one of the following has NOT contributed to the rapid development of globalization?

❌ Falling trade and investment barriers
❌ Advanced telecommunication technology
❌ Reductions in transportation costs
✅ Increasing local tariffs

Explanation:
Higher local tariffs restrict trade and slow globalization, not accelerate it.

Question 2

Which of the following is NOT a typical reason for why firms expand abroad?

❌ Managing corporate risk
❌ Leveraging core capabilities
❌ Developing new capabilities
✅ Avoiding the winner’s curse

Explanation:
The winner’s curse relates to overpaying in acquisitions, not to international expansion motives.

Question 3

The mode of entering a foreign market that has the highest level of investment and control is:

❌ Licensing
✅ Full integration
❌ Franchising
❌ Exporting

Explanation:
Full integration (wholly owned subsidiary) requires the most capital but provides the highest control.

Question 4

According to the integration–responsiveness framework, a firm facing high local responsiveness and high cost pressures should adopt:

❌ A localization strategy
❌ An international strategy
❌ A global standardization strategy
✅ A transnational strategy

Explanation:
A transnational strategy balances local responsiveness and global cost efficiency.

Question 5

Local responsiveness refers to:

❌ Choosing a cost leadership strategy
❌ Choosing an international strategy
✅ Tailoring products and services to fit local consumer preferences and host-country requirements
❌ Choosing a global-standardization strategy

Explanation:
Local responsiveness focuses on adapting offerings to local markets.

Question 6

The four aspects of Porter’s Diamond Model include all of the following EXCEPT:

❌ Factor conditions
❌ Related and supporting industries/complementors
❌ Demand conditions
✅ Legal and political institutions

Explanation:
Legal and political institutions are external context factors, not core elements of Porter’s Diamond.

Question 7

Which of the following is NOT predicted by the “stages model” of internationalization?

✅ Firms will initially expand into the largest, most wealthy markets
❌ Firms will first expand domestically before entering foreign markets
❌ Firms will initially use less risky modes of market entry
❌ Firms will first expand into proximate similar markets

Explanation:
The stages model predicts expansion to nearby and similar markets first, not necessarily the largest or wealthiest.

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