Chapter 10 Strategic Management

which of the following factors often combine to load to tragic outcomes for workers?

MNE's search for low-cost labor failure to enforce safety standards government corruption

A _____ strategy focuses on integration at the business level by attempting to reconcile product differentiations at a low cost

Transnational

a global strategy is needed in order to ______

achieve a competitive advantage against other companies

as MNEs compete internationally, a focus on local responsiveness allows the to do which of the following?

appeal to local consumers more effectively increase product differentiation

which of the following dimensions are considered in the CAGE distance framework>

economic distance geographic distance cultural distance

the oldest form on internationalization is _____, which involves producing goods in one country to sell in another country

exporting

in order for a company to be considered a multinational enterprise, it must operate

in more than one country

when a company wants to be more responsive to local consumers in multiple countries, it will likely shift to a

multidomestic strategy

despite a growing belief in the death-of-distance hypothesis, there remains evidence that certain countries remain leaders in specific industries and maintain a kind of ________ competitive advantage

national

which of the following have helped make globalization possible?

reduced investment barriers reductions in transportation costs advances in telecommunications

when pursuing an international strategy, a company

sells the same product in both domestic and foreign markets

Which of the following are the most important determinants of economic distance?

wealth per capita income

a manufacturing worker in the United States makes about ____ times as much as a similar worker in china.

20

MNEs pursuing a _____ ocean strategy tend to also pursue a transnational strategy

blue

global-collaboration networks freely locate business functions anywhere in the world based on an optimal mix of which factors?

costs capabilities PESTEL factors

the specific characteristics of demand in a firm's domestic market, such as customers who hold companies to a high standard of value creation and cost containment, are also called ____

demand conditions

what are the factors in michael porter's model of national competitiveness

demand conditions factors conditions competitive intensity in a focal industry related industries/complementors

which of the following factors helped make germany conductive to successful car companies?

demanding customers no-speed-limit autobahn fierce domestic competition

multinational enterprises that manufacture commodity products that focus on cost leadership tend to use a ______ strategy

global-standardization

though natural resources can be a boon to a country's economy, more important than resources are a country's ___ frameworks

institutional

a benefit of an international strategy is

leveraging core competences

according to _____, consumer needs and preferences throughout the world are converging and becoming increasingly homogenous

levitt's globalization hypothesis

in the global economy, according to Porter, competitive advantages increasingly exist in ____ knowledge, relationships, and motivation

local

MNEs pursuing a multi-domestic strategy hope that ______

local consumers will perceive them to be a domestic company

which of the following put opposing pressures on the integration-national responsiveness framework?

local responsiveness cost reductions

the benefits to be accrued from locating value chain activities in the world's optimal geographies for a specific activity are know as ____ economies

location

which of the following risks do companies face when expanding internationally?

loss of intellectual property loss of reputation the liability of foreignness

which of the following factors enabled india to gain a competitive advantage in business process outsourcing?

low-cost labor well-educated english speaking workforce

one notable advantage of a multi-domestic strategy is the

lower exchange rate exposure

a multinational enterprise would likely be motivated to pursue a global standardization strategy in order to

take advantage of location economies and economies of scale

a company should only expand abroad if

the benefits outweigh the costs

leading biotechnology, software, and internet companies and leading computer manufacturers are concentrated in which of the following countries?

the united states, taiwan, china

the integration-responsiveness framework suggests that companies facing high pressure for both local responsiveness and cost reduction should follow a ______ strategy

transnational

which of the following helped motivate globalization after the end of world war 2?

unfilled needs during the war years the need to reconstruct economies damaged by war

which of the following statistic regarding MNEs are correct?

account of 11% of private-sector employment growth since 1990 employ 19% of the work force pay 25% of the wages provide for 31% of the us gdp make up 74% of private-sector r&d spending

when an MNE doesn't face strong pressure for cost reductions or local responsiveness, an international strategy is typically

advantageous

firms can achieve increased competitive advantage as a result of _____, which are firms that produce a good or service that increases the perceived value of a focal firm's offering when the two are combined.

complementors

which of the following are distinct features of globalization 3.0?

firms create global networks of local expertise MNEs reorganize into a more seamless global enterprise technology has helped to reduce communication distances

prior to the second world war, business strategy, implementation, and knowledge typically moved

from domestic headquarters to outposts abroad

which of the following are reasons firms expand internationally?

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

as the standard of living rises in emerging economies, MNEs are hoping that _____

increased purchasing power will enable workers to purchase the products they used to make for exports only

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

integrated and interdependent

which of the following characteristics help make an MNEs international strategy successful?

large domestic markets prominent brand names strong reputation

In order to implement a transnational strategy, MNEs typically adopt a global _______ structure

matrix

when multinationals draw on multiple innovation hubs that all have equal status, they pursue a _______

polycentric innovation strategy

the ____ dimension of national culture focuses on how a society deals with inequality among people

power-distance

when a country's demand conditions include high-density urban living and high energy costs, one would expect consumers to prefer air conditioners with which of the following characteristics?

quiet, small, energy-efficient

which of the following are common reasons for companies to make foreign direct investments?

reduced tax burdens reduced labor costs avoiding import restrictions

which of the following help shrink the administrative and political distance between countries?

shared currency a history of colonization trade agreements

Which of the following factors help define administrative and political distance?

shared monetary associations political hostilities the strength of financial institutions

which of the following are among the primary considerations when determining the mode in which a firm enters a foreign market?

the desired level of control over foreign operations the degree of investment

all other things equal, the greater the cultural distance,

the greater the liability of foreignness

examples of local responsiveness

metal chopsticks in south korea sale of toads for preparation in china sale of mutton burgers in india

when a company has difficulty coordinating operations across geographic distance and between distinct culture environments, it experiences

the liability of foreignness

National culture, according to Geert Hofstede, can be defined as different groups' distinctive

"Programming of the mind"