Chapter 10 (Strategic Decision-Making)

Which of the following is not a characteristic of a global strategy?

A well designed global strategy almost certainly leads to success

CAGE distance framework includes:

Cultural distance; administrative and political distance; geographic distance; and economic distance

Why do firm expand internationally?

Gain access to a larger market; gain access to low-cost input factors; develop new competencies

Due to globalization, the world's market economies are becoming more

Integrated and interdependent

The oldest types of global strategies and the first step companies take when beginning to conduct business abroad is:

International strategy

What are the four quadrants of the integration-national responsiveness framework?

International strategy; multidomestic Strategy; global-standardization strategy; transnational strategy

Localization Strategy

Is best when entering a host country with a large domestic market

The global hypothesis suggest that consumer needs and preference throughout the world are becoming

More homogeneous

The two important country level factors that influence a multinational enterprises decision of where to invest include:

National institutions; national culture

Multinational enterprise

Refers to companies that deploy resources and capabilities to procure, produce and distribute goods in two or more countries.

Location economies

Refers to the benefits from locating value chain activities in the world's optimal geographies for a specific activity.

Which of the filling diminishing is not considered in the CAGE distance framework?

Risk aversion distance

Which of the following is an advantage to a multidomestic strategy?

The MNE faces lower exchange rate exposure

At a basic level, the concept of "liability of foreignness" refers to

The additional cost of doing business in an unfamiliar cultural and economic environment

National culture may be defined as

The collective mental and emotional programming of the mind that differentiates human groups.

Transnational strategy

Uses a global matrix structure to combine economies of scale in product lines with economies of learning in geographic regions

What factors assist in reigning supreme in business process outsourcing?

Well-educated English speaking workforce; low-cost labor