In contrast to a strategic alliance, a joint venture creates a whole new firm.
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Question 2Local adaptation or tailoring a strategy to specific countries results in a loss of global advantage.
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Question 3The best cost is not necessarily the lowest cost.
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Question 4A firm which experiences interdependence in its operations around the world is most likely to choose a multidomestic strategy.
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Question 5Multidomestic industries do not need a global strategy because the focus should be on developing a series of distinct domestic strategies.
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Question 6Configuration centers on where each activity is performed, including the number of locations.
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Question 7Arguments over profit-sharing and management styles are common problems experienced in exporting.
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Question 8A firm whose products are technically complex and are protected by U.S. patents is a good candidate for relocating to a rapidly developing economy.
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Question 9A factory in a rapidly developing economy can be built with 70 of the investment level needed in a highly developed economy.
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Question 10The two primary sources of cost advantages driving firm to implement operations in rapidly developing economies are lower operating costs and lower capital investment requirements.
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Question 11For truly global industries, a firm's position in one country significantly affects its position elsewhere, so a multi-domestic strategy is required.
Indicate whether the statement is true or false
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