1. Which of the following is an example of the resource-based view of the firm?

a. Philip Morris diversified by purchasing Kraft foods, because they did not want to put money back in the high- risk cigarette business.

b. Google hires employees by asking them to fill out a 200-item questionnaire; many of the questions have nothing to do with computers.

c. Halliburton takes advantage of the US war budget to bill the government at over $5 per gallon of gasoline.

d. Canon manufactures scanners, printers, copiers and cameras, all using its capability in imaging.

2. Which of the following is an example of the globalization of production?

a.Pepsico sells the same brand of pringles in multiple markets but with flavors talilored to local tastes.

b. The World Trade Organization forces Venezuela to change its gasoline grade to conform to the US Clean Air Act.

c. Ford manufactures a car in Michigan, but uses parts sourced from 27 countries.

d. All of the above.

3. Apple has a unique ability to design products that are better looking than competition. IMacs often sell because of their looks as much as for their power and ease of use. This quality of Apple is a:

a. Strength.

b. Opportunity.

c. Profitability.

d. Efficiency.

4. Ford is considering moving its Taurus plant from Edison, NJ to Buenos Aires in Argentina, but is intimidated by the fact that the inflation rate in the nation is too high, and their dollar investments may be compromised. Which segment of the general environment does this statement refer to?

a. Corporate-financial

b. Business-exchange

c. Political-legal

d. Economic

5. Which of the following is an example of global economies of scale?

a. Johnson & Johnson makes fourteen different varieties of Band-Aid for various product segments in different countries.

b. Intel has a big plant in Kiryat Gat (Israel) making i7 chips, which supplies the whole worldreducing the per-unit cost of each chip.

c. Mutual funds invest their stocks in several different country funds, to offset the risk of one currency failing suddenly.

d. Wal-Mart sells certain products very economically in some countries (like mobile AC units in Mexico), in order to attract customers, while other products may be at par with, or even more expensive than US prices.