1. Global value creation depends on: a reducing the gap between the price customers are willing to pay for a product and the cost an organization incurs to produce it. _b. reducing the gap between the price competitors charge for a product and the cost an organization incurs to produce it. c. growing the wedge, relative to competitors, between the price customers are willing to pay for a product and the cost an organization incurs to produce it. d. increasing the gap between the price charged to customers by the organization and the price competitors charge to customers. 2. The situation in which organizations with the greatest advantage at home are often also those most likely to fail when expanding abroad is known as: a. the liability of being a foreigner. b. the curse of the pioneer. c. the paradox of being consistent. d. the downside of globalization. 3. To create and capture value from global expansion, an organization needs a global strategy that: a. leverages or builds on the organization's home-market competitive advantage in new countries or geographic regions. b. minimizes costs across the countries or economic regions that it competes in. c. ignores differences across geographic markets. _d. involves entry only into geographic markets that are the same as the organization's home-market. 4. An organization that diversifies geographically to obtain new capabilities, such as unique knowledge that helps it improve its products or services, is following what type of strategy? _a. Deployment _b. Deepening _c. Development _d. Diversifying 5. Which of the following is NOT one of the seven critical dimensions that managers should consider when selecting among the three basic global strategies? _a. The goal the organization wants to pursue b. The level of profitability to be achieved _c. The value chain to be used to produce the product _d. The capabilities that the organization possesses or hopes to develop 6. Organizations that follow deployment strategies are often positioned to expand quickly because: a. their business model is standardized. b. their business model emphasizes adaptation to local differences. _c. their competitors are slow to respond. d. they do not suffer from slack resources