Strategic Management MCQ Questions and Solutions with Explanations | Management

International business has recently grown at such a rapid pace because of development of institutions to support and facilitate trade. International business refers to the trade of goods, services, technology, capital and/or knowledge across national borders and at a global or transnational level. It involves cross-border transactions of goods and services between two or more countries.

A buyer is important to the supplier does not increase the bargaining power of a supplier. The idea is that the bargaining power of the supplier in an industry affects the competitive environment for the buyer and influences the buyer's ability to achieve profitability. Strong suppliers can pressure buyers by raising prices, lowering product quality, and reducing product availability.

Exporting and importing best describes the mode of international business used by most companies. Exporting is the sale of products and services in foreign countries that are sourced or made in the home country. Importing refers to buying goods and services from foreign sources and bringing them back into the home country.

The organization will change strategy to seek to fully exploit its power is the danger of excessive monopoly power. A pure monopoly is a single supplier in a market with no competitors, whereas monopoly power exists when a single firm dominates a particular market.

Exports and imports apply mostly to merchandise. Exporting is the sale of products and services in foreign countries that are sourced or made in the home country. Importing refers to buying goods and services from foreign sources and bringing them back into the home country.

Governments seek to regulate to control competition, minimize resource wastage, and inhibit the exploitation of weak buyers and suppliers.

An investment that gives the investor a controlling interest in a foreign company is known as foreign direct investment. A foreign direct investment (FDI) is an investment made by a firm or individual in one country into business interests located in another country. Generally, FDI takes place when an investor establishes foreign business operations or acquires foreign business assets in a foreign company.

Ensure consistency between desired strategic position and the chosen strategy is not suggested by Markides (1999) as a factor for competitive and strategic success. Markides (1999introduced " breakthrough strategies " that primarily focus on revitalizing business and markets in a competitive environment, also taking other strategic alliances into consideration. The combination of creative marketing strategies and effective implementation seems a logical approach for organizations to gain a competitive advantage.

In order to have controlling interest in a foreign company an investor may hold a minority stake if the remaining ownership is widely dispersed. Working control is a situation wherein a minority shareholder or shareholders have enough voting power to influence or determine corporate policy.

To succeed, Ansoff (1987) demands that organizations become more aggressive in terms of competitive strategies and entrepreneurialism or change orientation. A competitive strategy may be defined as a long-term plan of action that a company devises towards achieving a competitive advantage over its competitors after examining the strengths and weaknesses of the latter and comparing them to its own.