1.Jessica Riendeau follows both Globalanacing Ltd. and Lowprofitious Corp. She has determined that Globalancing consistently has a higher valuation than Lowprofitious. Which of the following is least likely to be characteristic of the relationship between Globalancing and Lowprofitious and their respective home countries and industries?
| Globalancing | Lowprofitious |
A) No vertical integration Vertically integrated B) Low inflation rate country High inflation rate country C) Full flow-through firm Passes along 70% of its country's inflation D)Franchise factor greater than zero Franchise factor equal to zero The correct answer was A) Vertical integration can mitigate some value chain risk, and is consequently associated with higher, not lower, valuation. A low inflation rate, full flow-through of inflation, and a positive franchise factor are all associated with higher valuation. 2.Which statement best applies to the relationship between country and industry analysis? A) Global demand analysis is a key component of country analysis. B) The Herfindahl index is used in country analysis to provide a framework for analyzing industry sector growth. C) Co-opetition can become problematic in country analysis during periods of strong economic growth. D) Economic growth in the home country can have less impact on a multinational firm than global industry conditions. The correct answer was D) Global demand analysis is part of industry, not country, analysis. The Herfindahl index is used to assess market concentration within an industry, not industry growth. Co-opetition becomes problematic in periods of weak, not strong, economic growth. 3.Which combination of type of analysis and related approach is the least appropriate? < >>
| Type of analysis
| Approach |
A) Country analysis Herfindahl index B) Country analysis GDP forecast C) Industry analysis Value chain analysis D) Industry analysis Industry life cycle The correct answer was The Herfindahl index is used in competitive analysis of an industry, not in country analysis. GDP is used in country analysis. Industry analysis uses both value chain and industry life cycle approaches. 4.Which of the following is most important to country analysis? A) Value chain. B) Competitive advantage. C) Expected GDP in the home country. D) Competitive strategy. The correct answer was C) Country analysis is analysis of economic growth in the home country. The value chain, competitive strategy, and competitive advantage are all parts of industry analysis. Competitive advantage is important in selecting where to produce a good or service as part of an industry analysis, but less important for analyzing economic growth in the home country as part of country analysis. 5.The plastic shoe industry is comprised of six firms. Two have 30% market share each and the other four each have 10% market share. Which description of the Herfindahl index and market concentration in the plastic shoe industry is most accurate?
| Herfindahl index
| Market concentration |
A) 0.17 Moderate B) 0.22 High C) 0.22 Moderate D) 0.02 Low The correct answer was B) The Herfindahl index is: (0.102 × 4) + (0.302 × 2) = 0.22 This is higher than 0.18, the minimum threshold for high concentration. | 
发表于 2008-5-13 15:17
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