1. One of the challenges (weakness) of a global strategy is seen when there is a lack of local responsiveness. This may result in the alienation of local customers.

True

False

2. There are four factors that leads to a nation's relative position of advantage; such as endowment, demand, related/support industries, and strategy/structure/rivalry.

True

False

3. When a fast food chain store, say Wendy's, chooses to acquire the largest cattle ranch in Nebraska, this is said to be a clear example of vertical integration. The reason why this is clear, is because this illustrates a move by Wendy's to own its own supplier.

True

False

4. When diversifying in related businesses, such as horizontal relationships, the firm benefits from leveraging core competencies and sharing activities. As such, this enables the firm to gain from economies of scale.

True

False

5. The following five examples point to the different types of firms with entrepreneurship value creation potential: start-ups, major corporations, family-owned businesses, non-profit organizations, and established institutions.

True

False