1. What is the first step in the process of global strategic planning?

1. Choose appropriate competitive benchmarks
2. Choose a competitive strategy
3. Define the business for which the strategy is being developed
4. Choose a country market focus
5. Decide where value added activities will take place

2. If a firm’s competence lies in low cost manufacturing and it targets a broad range of market segments it is said to be pursuing a _________________ strategy.

1. Cost focus
2. Cost leadership
3. Focussed differentiation
4. Differentiation

3. Firms may organize in various ways for global market expansion. With a _______________ organizational structure each division specializes in a particular activity such as marketing, finance, production or research and development.

1. Product
2. Matrix
3. Functional
4. Geographic

4. Which of the following is a factor in the selection of expatriate managers for overseas assignment?

1. Language ability
2. Cross-cultural suitability
3. Family requirements
4. All of the above
5. (a) and (b) only

5. Local firms with firm specific assets that are transferable across national borders and are in industries with high pressure to globalize should upgrade their capabilities and compete with their global competitors in niche markets. This is referred to as a(n) ________________ strategy.

1. Extender
2. Contender
3. Dodger
4. Defender