Q&A Hero

Q: Different companies across different industries adopt any one of the five generic strategies to gain competitive advantage. Which of the following is most likely to use a low-cost provider strategy? A. A fashion clothing line uses sought-after designers and natural fabrics. B. A mortgage company specializes in lending money for second homes. C. An online retailer delivers organic groceries overnight. D. A baby products retailer sells unassembled baby furniture produced in China. E. A dairy products manufacturer uses exotic substitutes to produce lactose-free dairy products.

Q: BloomsJay Resorts Inc. has multiple tropical resorts in various locations. In a crowded market that caters to all kinds of consumers, this resort caters mainly to gays with guaranteed hassle-free holiday experience at a premium price. What strategy is BloomsJay using to gain competitive advantage? A. A low-cost provider strategy B. A broad differentiation strategy C. A focused low-cost strategy D. A focused differentiation strategy E. A best-cost provider strategy

Q: Easy DriveIn, a fast food facility, offers products at lower prices than its competitors in the market and has a drive-through-only operation with no indoor seating. What strategy is Easy DriveIn using to gain competitive advantage? A. A low-cost provider strategy B. A broad differentiation strategy C. A focused low-cost strategy D. A focused differentiation strategy E. A best-cost provider strategy

Q: Which of the following airlines does NOT employ a low-cost provider strategy? A. Airline 1 offers low prices on short-distance flights and cuts down on meals during flights. B. Airline 2 offers low prices on long-distance flights and has long service times for its planes between flights. C. Airline 3 offers low prices on short-distance flights and improves flight carrier capacity through addition of seats by reducing distance between existing seats. D. Airline 4 offers low prices on short-distance flights and pays minimum wage rates to the flight crew. E. Airline 5 offers low prices on long-distance flights and charges fees for carry-on as well as checked luggage.

Q: Winning a sustainable competitive edge over competitors does NOT hinge on which of the following? A. Having a distinctive competitive product offering B. Building competitively valuable expertise and capabilities not readily matched, and offering distinctive products C. Building experience, know-how, and specialized capabilities that have been perfected over a long period of time D. Having "hard-to-beat" capabilities and impressive product innovation E. Building products and distributing them at low prices to a broad customer base irrespective of manufacturing cost

Q: Which of the following companies would have the LEAST bargaining power with its suppliers? A. A company that is involved in mass production of goods to cater its expanding customer base B. A company that actively caters to a broad price-sensitive customer base C. A company that generates high quality product components from easily available raw materials for a broad customer base D. A company whose products are highly popular and easily available across most supermarkets E. A company that offers high-cost specialized products that could be used only by customers of a certain age group

Q: Which of the following is NOT a frequently used strategic approach to set a company apart from rivals and achieve a sustainable competitive advantage? A. Striving to be the industry's low-cost provider, thereby aiming for a cost-based competitive advantage B. Outcompeting rivals on the basis of differentiating features such as higher quality, wider product selection, added performance, better service, more attractive styling, technological superiority, or unusually good value for the money C. Focusing on a broad buyer segment and offering buyers a very low cost and highly customized attributes that meet their specialized needs better than rivals' products D. Focusing on a narrow market niche and winning a competitive edge by doing a better job than rivals of satisfying the needs and tastes of buyers comprising the niche E. Developing a cost advantage based on offering more value for the money

Q: Telsteer Mobil, a smartphone manufacturer, is working on developing its next-generation products. It has decided on a strategy of focusing on a narrow buyer segment and outcompeting rivals by offering buyers customized product features for specialized needs and tastes. What basic strategic approach has Telsteer decided upon? A. Focused differentiation B. Best-cost provider C. Low-cost provider D. Broad differentiation E. Focused low-cost

Q: What separates a powerful strategy from a run-of-the-mill or ineffective one is:A. the ability of the strategy to keep the company profitable.B. the proven ability of the strategy to generate maximum profits.C. the speed with which it helps the company achieve its strategic vision.D. management's ability to forge a series of actions, both in the marketplace and internally, that sets the company apart from rivals, and produces sustainable competitive advantage.E. whether it allows the company to maximize shareholder value in the shortest possible time.

Q: A creative and distinctive strategy that sets a company apart from rivals and that gives it a sustainable competitive advantage: A. is a reliable indicator that the company has a socially responsible business model. B. is achievable in emerging but not mature industries. C. is a company's most reliable ticket to above-average profitability. D. signals that the company has a bold, ambitious strategic intent that places the achievement of strategic objectives ahead of the achievement of financial objectives. E. is the best indicator that the company's strategy and business model are well-matched and properly synchronized.

Q: A company achieves a competitive advantage when it: A. provides buyers with superior value compared to rival sellers or offers the same value at a lower cost. B. has a profitable business model. C. is able to maximize shareholder wealth. D. is consistently able to achieve both its strategic and financial objectives. E. has a strategy well-matched to its business model.

Q: A company's strategy and its quest for competitive advantage are tightly connected because: A. without a competitive advantage a company cannot become the industry leader. B. without a competitive advantage a company cannot have a profitable business model. C. crafting a strategy that yields a competitive advantage over rivals is a company's most reliable means of achieving above-average profitability and financial performance. D. a competitive advantage is what enables a company to achieve its strategic objectives. E. how a company goes about trying to please customers and outcompete rivals is what enables senior managers to choose an appropriate strategic vision for the company.

Q: The pattern of actions and business approaches that would NOT define a company's strategy include actions to: A. strengthen market standing and competitiveness by acquiring or merging with other companies. B. strengthen competitiveness via strategic coalitions and partnerships. C. upgrade competitively important resources and capabilities. D. gain sales and market share with lower prices despite increased costs. E. strengthen the firm's bargaining position with suppliers and distributors.

Q: The heart and soul of a company's strategy-making effort is determining how to:A. become the industry's low-cost provider.B. maximize profits and shareholder value.C. improve the efficiency of its business model.D. maximize profits while simultaneously operating in a socially responsible manner that keeps the company's prices as low as possible.E. come up with moves and actions that produce a durable competitive edge over rivals.

Q: In crafting a company's strategy, managers: A. face the biggest challenge of how closely to replicate strategies of successful companies in the industry. B. have comparatively little freedom in choosing the "hows" of strategy. C. are wise not to decide on concrete courses of action in order to preserve maximum strategic flexibility. D. need to come up with a sustainable competitive advantage that draws in customers and produces a competitive edge over rivals. E. are well-advised to be risk-averse and develop a "conservative" strategy"dare-to-be-different" strategies are rarely successful.

Q: A company's strategy stands a better chance of succeeding when: A. it is developed through a collaborative process involving all managers and staff from all levels of the organization. B. managers employ conservative strategic moves based on past experience and form an underlying basis of control. C. it is predicated on competitive moves aimed at appealing to buyers in ways that set the company apart from rivals. D. managers copy the strategic moves of successful companies in its industry. E. managers focus on meeting or beating shareholder expectations.

Q: FaberRoad, a respected courier brand, is fast losing its market share to competitors who do overnight deliveries of packages or offer lower prices. The company's research department has found that many customers care more about knowing exactly when a package will arrive than getting it the next day. Which strategy would best address the current state of FaberRoad and help it regain its market? A. Employing night delivery drivers at a high cost and maintenance charges B. Developing radio tags that could be attached to packages to allow for real-time tracking by customers' PCs and mobile phones C. Diversifying the different types of packages that can be transported and enabling booking through calls D. Acquiring small transportation companies with cheaper trucks and tempos, rebranding, and using them for deliveries E. Engaging in expensive advertising with new tag lines and famous celebrities to enhance its brand image in the market

Q: A company's strategy is NOT concerned with management's choices about how to: A. attract and please customers. B. stake out the same market position as successful rival companies. C. grow the business. D. compete successfully. E. conduct operations and improve the company's financial and market performance.

Q: Every strategy needs: A. a distinctive element that attracts customers and produces a competitive edge. B. to include similar characteristics to rival company strategies. C. to pursue conservative growth built on historical strengths. D. to employ diverse and sundry operating practices for producing greater control over sales growth targets. E. to mimic the plans of the industry's most successful companies.

Q: A multinational company enters a new geographical location, considered an emerging market, with its established product line: laptops and tablets. Which of the following would NOT serve as a good strategic move to enhance profits? A. Creating a sales plan that aims to enhance initial sales and market share with low prices based on high operational costs B. Devising a marketing plan that aims at different customer segments with attractive advertisements and offers on products C. Implementing a diversification plan that aims at adding smartphones to the existing line of products D. Charting an acquisition plan that aims at acquiring small-scale companies looking for funding and with a similar product lineup E. Establishing a distribution plan that aims at setting up more supply outlets than any other rivals in the location

Q: To improve performance, there are many different avenues for outcompeting rivals such as: A. realizing a higher cost structure and lower operating profit margins than rivals in order to drive sales growth. B. creating products analogous with competitors so as to be competitive in the same markets. C. pursuing similar personalized customer service or quality dimensions as rivals. D. confining operations to local or regional markets or developing product superiority or concentrating on a narrow product lineup. E. strengthening competitiveness by restricting strategic alliances and collaborative partnerships when compared to rivals.

Q: The objectives of a well-crafted strategy require management to strive to: A. match rival businesses' products and quality dimensions in the marketplace. B. build profits for short-term success. C. realign the market to provoke change in rival companies. D. develop lasting success that can support growth and secure the company's future over the long term. E. re-create their business models regularly.

Q: The competitive moves and business approaches a company's management is using to grow the business, stake out a market position, attract and please customers, compete successfully, conduct operations, and achieve organizational objectives is referred to as its: A. strategy. B. mission statement. C. strategic intent. D. cost-price framework. E. market vision.

Q: A company's strategy consists of the action plan management is taking to: A. stake out a unique market position and achieve superior profitability. B. compete against rivals and establish a transitory competitive advantage. C. concentrate on improving the existing product offering irrespective of the changing and turbulent markets. D. develop a more appealing business model than rivals. E. identify its strategic vision, its strategic objectives, and its strategic intent.

Q: A pharmaceutical company functioning in France for the last 10 years has moderate sales in a crowded market with competitors offering drugs with similar efficacy and safety precautions, but with better sales. The greatest challenge is to increase the prescription of their drugs. What would be the MOST effective strategy to improve sales performance in the existing market? A. Modifying marketing communication to increase brand familiarity within key physician segments B. Relocating all the existing drug manufacturing facilities to developing countries to reduce operational costs C. Employing hiring plans that aim at acquiring drug designers from rival companies D. Exiting the market and entering a new unexplored geographical location E. Engaging in new contract talks with suppliers about price breaks

Q: Which of the following is NOT one of the managerial considerations in determining how to compete successfully? A. How can a company attract, keep, and please customers? B. How can a company modify its entire product line to emphasize its internal service attributes? C. How should a company respond to changing economic and market conditions? D. How should a company be competitive against rivals? E. How should a company position itself in the marketplace?

Q: What is the role of the International Court of Justice?

Q: What are the four major types of legal systems and the basis of each?

Q: What does the Paris Convention address? What is the major enforcement problem with it?

Q: Describe the current state of international protections of trademarks.

Q: The nation of Tobago is looking for new boats for its Coast Guard. Tobago enters into a contract to purchase boats from an American manufacture while visiting their facility in Miami. Tobago revokes the contract after the acceptance period under the UCC. The boat manufacturer sues for contract enforcement in a U.S. federal court. Does the court have jurisdiction over the nation of Tobago?

Q: A website lets anyone sell items to buyers from around the world. The site's policies for the items being sold included prohibitions on particular illegal items from being sold. It also tells sellers that they could not list items in jurisdictions where the sale of the item would violate the jurisdiction's applicable laws. The E.U. has an anti-terrorism law prohibiting the sale of pro-Irish Republican Army related items on the internet. The website has several IRA items for sale. The E.U. found a violation of their law. Would a U.S. court find the same?

Q: What are the sources of international law? Briefly discuss each.

Q: What are the four major differences between the UCC and the UNCISG?

Q: Platkos Inc. applies for a permit to import their goods to Russia. A Russian official denies their permit. Platkos hires a Russian consultant, a very low level official to act as a lobbyist. The consultant is paid a very large fee. When the permit is approved, Platkos sends the consultant a thank you gift. Is this scenario permissible under the FCPA?

Q: Discuss the ways the three major international arbitration organizations choose arbitrators.

Q: Which treaty is the standard that courts use for interpreting treaty law?A.Convention on the Recognition and Enforcement of Foreign LawsB.United Nations Treaty on Foreign JurisprudenceC.Berne ConventionD.Vienna Convention on the Law of Treaties

Q: In Yahoo! v. La Ligue Contre Racisme et L'Antisemitisme, Yahoo! ran an auction site that allowed user to post and sell items to buyers from around the world. Yahoo!'s policies for the items being sold included prohibitions on particular illegal items from being sold. It also told sellers that they could not list items in jurisdictions where the sale of the item would violate the jurisdiction's applicable laws. La Ligue Contre Racisme et L'Antisemitisme (LICRA) sued Yahoo! in France under a French law prohibiting the sale of Nazi and Third Reich related items. The French court held that Yahoo! violated the French code with their sale. Yahoo! filed a suit in U.S. District court claiming that the ban infringed on impermissibly on its rights under the U.S. Constitution's First Amendment and asked that the court find that the French court's holding was not enforceable under American law. The district court held that: A.U.S. courts are bound by foreign judgments if the two countries both recognize the sovereignty of each other. B.U.S. courts are not bound by foreign judgments if the judgment is inconsistent with Constitution and laws of the United States. C.U.S. courts are bound by foreign judgments based on the principles set forth through comity and the Vienna Treaty. D.U.S. courts are not bound by foreign judgments based on the idea of sovereign immunity.

Q: What is the role of the International Court of Justice? A.settle legal disputes submitted to it by member states B.set rules and standards for international arbitrations C.hear cases on war crimes and crimes against humanity D.interpret legislation drafted by the United Nations

Q: Which of these is not a major part of the Foreign Corrupt Practices Act? A.requiring corporations to keep accurate records, books, and accounts B.requiring corporations to refrain from committing copyright violations abroad C.prohibiting bribery by American corporations of foreign officials D.requiring issuers registered with the Securities and Exchange Commission to maintain a responsible internal accounting control system

Q: In a contract governed by UNCISG, when must a contract for the sale of goods be written? A.when the price exceeds $500 B.when the price exceeds $1,500 C.when the price exceeds $5,000 D.there is no requirement that the contract be written

Q: What is the purpose of the Madrid Protocol? A.set standards for international trials B.make the trademark process more uniform and single-sourced for multinational companies C.ensure copyright protection in foreign jurisdictions D.limit abilities of multinational companies to file for trademark protections

Q: Why does the Paris Convention still leave inventors at risk? A.very few countries have signed B.many member countries do not comply with it C.it does not specify common standards for patentability D.it is limited to only patents

Q: In DiMercurio v. Sphere Drake Insurance, DiMercurio was a fisherman who worked on a boat in Massachusetts. The boat was insured by a British insurance company, Sphere Drake. The boat DiMercurio worked on sank and he was injured. The company he worked for could not pay the damages DiMercurio won against them in court but gave their rights against its insurer, Sphere Drake, to DiMercurio. The insurance policy between the boat owners and Sphere Drake included an arbitration clause. Sphere Drake sought to enforce the arbitration while DiMercurio argued that it would be too burdensome on the parties that he would have to travel to London for arbitration. The appellate court held that: A.the international travel was overly burdensome and the arbitration clause was not valid. B.DiMercurio did not agree to the arbitration clause with Sphere Drake, the boat owner did, therefore the arbitration clause is not valid. C.the arbitration clause is valid because arbitration clauses once agreed on are always valid. D.the arbitration clause is valid under a four-part analysis that included the consideration of the commercial relationship having a reasonable relation with a foreign country.

Q: Which of these is not a prominent group that administers arbitrations? A.International Chamber of Commerce's International Court of Arbitration (ICC) B.World Arbitration Organization (WAO) C.London Court of International Arbitration (LCIA) D.American Arbitration Association (AAA)

Q: What is the problem with the Madrid Protocol? A.there are no specifics that require fundamental enforcement B.few countries have signed the agreement C.the European Union chose to create their own agreement instead of following Madrid Protocol's terms D.the terms of the protocol are very limited in their application

Q: The common law system is based on what country's legal concepts and organization? A.United States B.ancient Rome C.England D.France

Q: Pierre and Fritz have an oral agreement to ship goods from Switzerland to Quebec, Canada. If the UNCISG applies: A.there is no contract to ship the goods because it is not in writing. B.there is no contract to ship the goods because Pierre and Fritz are not both European. C.the oral agreement is binding only if the goods are shipped and received without protest from either party. D.there may be a contract depending on the totality of the circumstances.

Q: Which international body created the Convention of Contracts for the International Sale of Goods (CISG)? A.World Trade Organization B.U.N. Commission on International Trade Law C.International Monetary Fund D.Organization for Economic Cooperation and Development

Q: What is the purpose of the International Chamber of Commerce Terms? A.to standardize contractual terms and avoid confusion due to language barriers B.to provide basic contract law for international sales of goods C.to standardize the monetary units used in international contracts D.to provide a forum for arbitration of UNCISG contracts

Q: When did the U.S. withdraw from compulsory jurisdiction from the International Court of Justice? A.1959 B.it was never under compulsory jurisdiction of the court C.1986 D.it never withdrew

Q: The World International Property Organization created an arbitration center in Switzerland for the arbitration of each of the following except: A.copyrights. B.patents. C.trademarks. D.contracts.

Q: What is the major difference between domestic and international arbitrations? A.the different arbitration rules between the arbitration organizations B.international arbitration awards have wide enforceability in many countries C.international arbitration awards have limited enforceability in many countries D.American courts do not recognize the validity of international arbitration

Q: How are the International Court of Justice's rulings enforced? A.there are no means to enforce the judgments B.through the U.N. Security Council C.through monetary sanctions D.through unilateral agreement by the parties before their case is heard

Q: What is the main problem with international courts? A.finding judges who understand the complexities of international law B.creating a body of law that reflects multiple legal systems C.enforcing a ruling on sovereign nations is difficult D.lack of recognition from the U.N. and WTO

Q: Which of these agreements apply to copyrights? A.Madrid Protocol B.United Nations Intellectual Property Accord C.Berne Convention D.Paris Convention

Q: The civil law system is based on which legal heritage? A.English B.Roman C.American D.Italian

Q: If Gina, an American musician, sold copies of her latest album in Great Britain, her music would be protected the same as a British citizen under what agreement? A.Vienna Convention on the Law of Treaties B.Paris Convention C.Madrid Protocol D.Berne Convention

Q: What type of legal system would a government that based its laws on the tenants of Buddhism have? A.a karma law system B.a blended legal system C.a religious-based legal system D.a mixed legal system

Q: What is the purpose of the Paris Convention? A.extend national patent rights to foreign inventors who have patents in their home country B.place limits on the items that are able to be protect under trademark laws C.set requirements for filing for copyrights in foreign jurisdictions D.standardize requirements for filing for trademarks around the world

Q: Which of these is not a primary source of international law? A.treaties B.customs C.United Nations statutes D.judicial decisions

Q: Jose is from Argentina. He works for a railroad business that is controlled by the government. Big Container Shipping Company is considering sending their South American cargo on that railroad. Should Big Container Shipping be concerned with the Foreign Corrupt Practices Act when they take Jose out to an expensive dinner? A.yes, because Jose is a foreign national B.yes, because Jose works for a government controlled business C.no, because Jose does not work directly for the government administration, he works for a business D.no, because it is only dinner

Q: Under the Foreign Sovereign Immunities Act (FSIA) a foreign country is not under the jurisdiction of U.S. courts if the foreign nation: A.is engaged in some commercial enterprise on U.S. soil. B.its actions have a direct effect on U.S. interests. C.files a law suit in its own courts against a U.S. based business. D.waived immunity, explicitly or by implication.

Q: What is the standard used to find violations of Foreign Corrupt Practices Act (FCPA)? A.a standard of good faith and fair dealing B.a standard of reasonable care C.no intent is necessary D.a knowing standard

Q: Legal systems that are made of two or more different legal systems are known as: A.mixed legal systems. B.combined legal systems. C.multiple legal systems. D.blended legal systems.

Q: In Butters v. Vance International Inc, Vance International was hired to provide security for the Saudi royal family while they were in California. Butters was employed by Vance International as a security officer. She was assigned to the Saudi detail and worked occasionally as an acting supervisor in a security command post. Vance International recommended to the Saudis that Butters be promoted to a full rotation in the command post. The Saudis rejected this recommendation on their belief that it was against Islamic law to have a woman in the command post. Butters sued for gender discrimination for the loss of promotion. Vance International argued that they were immune under the Federal Sovereign Immunities Act because they were carrying out the orders of a foreign government. The court found that: A.Vance International was not immune because the discrimination took place on American soil. B.Vance International was not immune because the Saudis waived immunity by hiring an American security company. C.Vance International was immune because the Saudis were performing an act peculiar to a sovereign and not a commercial activity. D.Vance International was immune because U.S. courts recognize the jurisdiction of Saudi's laws for Saudi nationals in the U.S.

Q: Public international law primarily addresses relationships between countries, business entities, and international organizations.

Q: The only major difference between the UCC and the UNCISG is the lack of writing requirement under the UNCISG.

Q: Intellectual property rights protection come from several multilateral agreements.

Q: An international arbitration usually has no connection with the country where the arbitration is being held.

Q: Mediation is an involuntary process that involves a third party decision maker.

Q: As long as there is proof that the parties intended to form a contract for the sale of goods and there is mention of the goods, quantity, and the price there is a valid offer under the UNCISG.

Q: Under the concept of sovereign immunity, a foreign country is exempt from jurisdiction in the U.S. courts.

Q: There are no exemptions to the doctrine of sovereign immunity.

Q: The use of treaties as a modern source of international law dates to World War I and the Treaty of Versailles.

Q: Company executives taking foreign officials to dinner is not bribery under the Foreign Corrupt Practices Act.

Q: American Arbitration Association arbitration rules permit the parties to choose an arbitrator as long as the AAA receives notification of their choice.

Q: Diplomatic relations do not play a role in the creation of international law.

Q: Reciprocity is an important concept in the Berne Convention.

Q: International Chamber of Commerce terms and abbreviations are usually used in conjunction with UNCISG.