Fred r david – strategic management, 13th edition ch5

Exam
Name___________________________________
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
1)


Firms face complex and challenging factors in competing globally.
1)
_______
2)


Arab-based companies have been aggressively venturing abroad for 30 years now.
2)
_______
3)


Governments in various parts of the world have relaxed market regulations and accelerated privatization
of state-owned companies.
3)
_______
4)


In recent years, Arab executives have not considered international and global business involvement to be a
strategic choice essential for growth and development.
4)
_______
5)

Arab executives from Morocco to Oman have intended to expand their business to international markets.
5)
_______
6)


Market expansion allows companies to realize an economy of scale.
6)
_______
7)


Despite their accessibility to capital or a greater amount of liquidity, the companies in the Gulf region fail
to seize opportunities.
7)
_______
8)


Increasing competition, and the willingness of many Arab executives, has induced many companies to
expand overseas.
8)
_______
9)


One of the reasons why Arab executives have set their eyes on expanding beyond domestic and regional
markets is to capitalize on core competencies.
9)

_______
10)


Major Arab companies have recognized the need to sustain their competitiveness and meet their
competitors on similar fronts.
10)
______
11)


In 2009, Advanced Technology Investment Company of Abu Dhabi acquired Singapore’s Chartered
Semiconductor Manufacturing.
11)
______
12)


Planet Food World, a Saudi based company, has invested heavily in agriculture products, mainly industrial
farms, in Turkey.
12)
______
13)


Arab countries rarely vary in their commitment to international expansion and activities.
13)
______
14)

Up to the early 1970s, most Arab business people served as representatives of, and/or distributors for
major multinational corporations.
14)
______
15)


The globalization focus ignores the global market as the platform for action.
15)
______
16)


In the process of globalization, the activities and involvement of the firms are determined by opportunities.

16)
______
17)


Both internationalization and global approaches have been essential in enabling Arab business to leave
their mark on the world economy.
17)
______
18)


Arab companies are confronted with various issues as part of their global expansion.
18)

______
19)


The methods of tackling various issues due to global expansion are product of a single factor.
19)
______
20)


In today’s business, executives have ample access to information provided by various sources.
20)
______
21)


The World Factbook includes information related to the history, people, government, economy, geography,
communications, transportation, military, and transnational issues of 266 nation states.
21)
______
22)


It is not so important for Arab executives to monitor global trends as long as they are familiar with general
and economic conditions of the target country or region.
22)
______
23)

Regardless of which country a company chooses to operate in, its executives must understand that
differences do exist and must be approached with an open mind.
23)
______
24)


Demographically, while some countries have experienced an acute shortage in youth population, the Arab
world has a high ratio of youth.
24)
______
25)