According to Michael Porter, what are the two basic strategies for creating value and attaining a competitive advantage in an industry?

Multiple Choice

• differentiation and low-cost

• value creation and generalization

• one-size-fits-all and zero-sum

• comparison and standardization

• profitability and strategic fit

• Denim Supply Inc. does not feel the pressure to create custom jeans for any of its markets around the world, but it does want to focus on cost reductions. What strategy should this company consider using to achieve this?

  Multiple Choice

• domestic strategy

• global standardization strategy

• international strategy

• transnational strategy

• nationalization strategy

• Kitchen-Rite believes that by producing its small appliances in Canada, they can take advantage of lower wage rates in that country. By pursuing such a strategy, Kitchen-Rite hopes to realize

  Multiple Choice

• a position inside the efficiency frontier.

• the experience curve.

• economies of scale.

• location economies.

• demographic advantages.

• A global motor vehicle parts manufacturer wants to start production in China. While catering to local responsiveness, what can the firm do to get scale economies?

  Multiple Choice

• increase costs whenever possible

• use common components across many different models

• shorten the production runs for each component

• increase the duplication of functions required for each operation

• manufacture only one type of car and sell it in all the international markets

• The liberalization of the world trade and investment environment in recent decades, by facilitating greater international competition, has generally

  Multiple Choice

• increased cost pressures.

• decreased the demand for local responsiveness.

• decreased pressures for cost reduction.

• increased consumer surplus.

• reduced the production of conventional commodity products.