Chonnam - Global Business Management Post-Midterm

(T/F) Integrating mechanisms have impediments to coordination because managers have different orientations (production, marketing) and goals.

True

(T/F) Intermarket segment enhances the ability of an international business to view the global marketplace as a single entity and pursue a global strategy.

True

(T/F) Large discount superstores shorten channel length.

True

(T/F) Localization at the regional rather than the national level may be the appropriate strategic response.

True

(T/F) Media availability may be limited by law.

True

(T/F) The US is no longer the lead market.

True

(T/F) The global standardization strategy makes the most sense when there are strong pressures for cost reductions and demands for local responsiveness are minimal.

True

(T/F) The more value customers place on a firm's products, the higher the price the firm can charge for those products.

True

(T/F) There has been an increase in FDI worldwide, especially in China, Vietnam, and India.

True

(T/F) There is a link between marketing and R&D because developing new products requires R&D.

True

(T/F) U.S. CEOs earn, on average, roughly double the pay of non-U.S. CEOs. This begs the question as to whether executives in different countries should be paid according to the standards in each country, or equalize pay on a global basis.

True

(T/F) While FDI is expensive and risky when compared to exporting and licensing, many firms prefer FDI.

True

_______ ______ are projects in which a firm agrees to set up an operating plant for a foreign client and hand over the "key" when the plant is fully operational.

Turnkey Projects

Which 6 countries account for 60% of all FDI outflows?

US, UK, France, Germany, Japan, Netherlands

_____ ______ exist when the tastes and preferences of consumers in different nations are similar if not identical.

Universal Needs

_______ _______ refers to performing activities that increase the value of goods or services to customers. It's measured by the difference between a firm's costs (C) in production and the quality (value, V) that consumers perceive in its products.

Value Creation

The three dimensions of organizational structure includes: (1) _______ differentiation: centralization and decentralization (2) _______ differentiation: how the firm divides itself into subunits (3) Integrating Mechanisms: strategy and coordination in the international business

Vertical, Horizontal

_______ ___ _______ (1) are quick to execute, (2) can acquire valuable strategic assets, and (3) can increase the efficiency of the acquired unit by transferring capital, technology, or management skills.

Acquisitions and Mergers

______ cultures are where most managers care deeply about the value customers, stockholders, and employees. They also strongly value people and processes that create useful change in a firm.

Adaptive

______ _____ is a distribution channel that is difficult for outsiders to access. It varies among countries (ex. Japan is very exclusive).

Channel Exclusivity

______ _____ refers to the number of intermediaries between the producer (or manufacturer) and the consumer.

Channel Length

______ ______ refers to the expertise, competencies, and skills of established retailers in a nation and their ability to sell and support the products of international businesses.

Channel Quality

______ became a major foreign investor around 2005, especially in less developed nations.

China

When thinking of global R&D capabilities, keep in mind that: (1) ______ may require different versions of a new product to be produced for various countries. (2) Global ____ of R&D centers (HP, MS) (3) Strengthening relationship between each R&D and each _____ function (enhancing capability to adopt and apply markets' new taste and preference)

Commercialization, networks, marketing

_______ ______ is conducting communication activities to share the attributes of the product to prospective customers.

Communication Strategy

_______ ________ is designed to promote competition and to restrict monopoly practices It can be used to limit the prices a firm can charge in a given country.

Competition Policy

______ may use country of origin as a cue when evaluating a product. ______ use promotional messages that stress the positive performance attributes of the product when a negative country of origin effect exists.

Consumer, Firm

______ _______ are metrics used to measure performance of subunits.

Control Systems

______ ______ refers to the skills within the firm that competitors cannot easily match or imitate. It is the bedrock of a firm's competitive advantage.

Core Competence

What are reasons that FDI has been growing more rapidly than world trade and world output. A. Way to circumvent trade barriers B. Political and economic changes (shift toward democratic political institutions and free market economies) C. Globalization D. All of the above

D. All of the Above

Primary activities of the value chain include: (1) _____, creation, and delivery of the product (2) Marketing, _____, and after-sale service (4) R&D is concerned with the design and production processes (5) _____ is concerned with the creation of a good or service (6) Marketing and sales can _____ the perceived value of a product and discover customer needs. (7) _____ activity provides after-sale service and support.

Design, support, production, increase, service

________ ________ arises when two or more enterprises encounter each other in different regional markets, national markets, or industries.

Multipoint Competition

______ _____ refers to the number of other messages competing for a potential consumer's attention, and this too varies across countries.

Noise Levels

_______ is the composition of a limited number of large firms.

Oligopoly

________ refers to the different value creation activities a firm undertakes.

Operations

________ _______ is the totality of a firm's organization, including formal organizational structure, control systems and incentives, organizational culture, processes, and people.

Organizational Architecture

_________ are societies of individuals who come together to perform collective tasks.

Organizations

_______ include employees and strategies to recruit, compensate, and retrain them

People

The _______ policy requires host-country nationals to be recruited to manage subsidiaries, while parent-country nationals occupy key positions at corporate headquarters.

Polycentric

________ ______ is aimed at helping the expatriate managers and family ease themselves into day-to-day life in the host country. It also helps to have a support network of friends.

Practical Training

_____ _____ states that FDI has both benefits and costs; pursues policies designed to maximize the national benefits and minimize the costs.

Pragmatic Nationalism

_______ _________ use aggressive pricing to drive out competitors and then raise prices and operate in a monopoly position Requires the firms to have a profitable position in another market to subsidize the aggressive pricing process

Predatory Pricing

__________ is the manner in which decisions are made and work is performed within the organization. It can be found at many different levels within an organization; efficient and effective processes can lower the costs of value creation and add additional value to a product.

Process

________ are the manner in which decisions are made and work is performed.

Processes

_______ is based on the rate of return concept. _____ _____ is the percentage increase in net profits over time.

Profitability, Profit Growth

Which country has been the largest source of FDI since WW2?

The United States

What are the two forms of FDI?

Acquisitions & Mergers, Greenfield Investment

______ ____ _____ _____ refer to the extent to which the place of manufacturing influences product evaluations. They're not always negative.

Country of Origin Effects

______ ______ seeks to foster an appreciation for the host country's culture, history, politics, economy, religion, and social and business practices. ________ trip to the host country will help ease culture shock.

Cultural Training, familiarization

Human Resources is responsible for these aspects of organizational architecture: (1) People, at the center (2) ________ (3) Processes (4) _______ (5) Incentives and _______

Culture, Structure, Controls

_______ ______ refers to choosing roots for delivering the product to the consumer.

Distribution Strategy

_______ ________ help overcome the subconscious biases and stereotyping of the majority that may lead to discrimination against minority employees.

Diversity Workshops

_____ occurs whenever a firm sells a product for less than what it cost to produce it. _______ regulation set a floor under export prices and limit firms' ability to pursue strategic pricing

Dumping, antidumping

_____ ___ ____ are the reductions in unit cost achieved by producing a large volume of a product.

Economies of Scale

______ is greater in countries with low income levels and where there is more competition.

Elasticity

_______ ________ are citizens of one country who are working in another. Used by ethnocentric and geocentric staffing policies.

Expatriate Managers

______ _______ _____ is aggressive pricing designed to increase volume and help the firm realize experience curve economies. The price is low worldwide in attempt to build global sales volume as rapidly as possible, even at a loss. Take profits later after moving down the experience curve.

Experience Curve Pricing

______ is the sale of products produced in one country to residents of another country.

Exporting

(T/F) Strategy is static.

False

(T/F) While China has been growing rapidly, China hasn't been a recipient of FDI.

False, China has been

(T/F) Historically, FDI has been mostly directed at underdeveloped nations.

False, developed nations

(T/F) Transnational strategy tends to centralize product development functions such as R&D at home, but establish manufacturing and marketing functions in each major country or region where they do business.

False, international strategy

(T/F) Countries with fragmented retail systems also tend to have short channels of distribution.

False, long

(T/F) Moving up the experience curve allows a firm to reduce its cost of creating value and increase its profitability.

False, moving down

(T/F) In terms of pragmatic nationalism, FDI is believed to be in international interest.

False, national interest

(T/F) Interdependence between firms in a monopoly leads to imitative behavior.

False, oligopoly

(T/F) MNCs should not redefine their domestic marketing mix through the context of global business.

False, they should

(T/F) One shouldn't have to differentiate its product offering and lowering its cost structure when compared to its single-location competitor.

False, they should

______ _____ _______ (_____) occurs when a firm invests directly in new facilities to produce and/or market in a foreign country (10% or more). The firm becomes a multinational enterprise.

Foreign Direct Investment (FDI)

______ is a specialized form of licensing in which the franchiser not only sells intangible property (normally a trademark) to the franchisee, but also insists that the franchisee agree to abide by strict rules as to how it does business.

Franchising

The _____ _____ _____ has roots in classical economic theory and trade theories of Adam Smith and David Ricardo.

Free Market Perspective

______ ______ influences the attitude toward FDI affecting on the decision about the country for efficient production. Shows the need for better skills for negotiation with foreign government.

Government Policy

________ ______ is when a company establishes a new operation in a foreign country.

Greenfield Investment

_______ benefits from FDI through: (1) resource-transfer effects (inflow of capital, technology, management resources from foreign firms) (2) ______ effects (bringing jobs that would not otherwise be there) (3) balance-of-payment effects (4) effect on ____ and economic growth.

Host-Country, employment, competition

_________ _________ ______ refers to the activities of an organization carries out to use its human resources effectively. Including staffing, performance evaluation, management development, compensation, labor relations.

Human Resource Strategy

_____ _____ are the establishment of a firm that is jointly owned by two or more otherwise independent firms. 50-50 ventures are most common.

Joint Ventures

______ _______ are devices used to reward appropriate employee behavior. It is usually closely tied to performance metrics used for output controls.

Incentive systems

_________ are devices used to reward managerial behavior.

Incentives

______ are a subset of expatriates who are citizens of a foreign country working in the home country of their multinational employer.

Inpatriates

New product success is a product of: (1) _____ marketing (2) R&D (3) Manufacturing Building close links among these three.

International

The _____ strategy is for firms with low cost pressures and low pressures for local responsiveness. It involves taking products first produced by their domestic market and selling them international with only minimal local customization.

International

________ shows the relationship between FDI and rivalry in oligopolistic industries.

Knickerbocker

________ _______ helps reduce exclusive reliance on English and helps with a manager's ability to interact with host-country nationals.

Language Training

_____ _____ are cost savings that come from learning by doing.

Learning Effects

_______ occurs when a firm (licensor) licenses the right to produce its product, use its production processes, or use its brand name or trademark to another firm (licensee). In return for giving the licensee these rights, the licensor collects a royalty fee on every unit the licensee sells.

Licensing

________ is an arrangement whereby a licensor grants the rights to intangible property to another entity (the licensee) for a specified period, and in return, the licensor receives a royalty fee from the licensee.

Licensing

_______ ______ arise from performing value creation activities in the optimal location for that activity, wherever in the world that might be.

Location Economies

_______ ______ arise from using resource endowments or assets that are tied to a particular foreign location and that a firm finds valuable to combine with its own unique assets.

Location-specific advantages

_______ _______ involves identifying distinct groups of consumers whose purchasing power differs from others in important ways.

Market Segmentation

Value Creation Activities include: (1) Production (2) Marketing and Sales (3) ______ Management (4) R&D (5) _____ ______ (6) Information Systems (7) ______

Materials, human resources, infrastructure

The _____ view (1945-1980s, no longer widely accepted) has roots in Marxist political and economic theory that states that multinational enterprises are an instrument of imperialist domination

Radical

________ of expatriates should be seen as the final link in training and management development. (1) Often they face challenges at the home organization, including not having a job that uses their new skills (2) HRM should develop good programs for reintegrating expatriates back into work life within their home-country organization

Repatriation

_______ ______ occur when the receiver of the message (the potential consumer in this case) evaluates the message on the basis of status or image of the sender. Can be damaging when there is bias against foreign firms.

Source Effects

______ ______ is selecting individuals who have the skills required to do particular jobs. It's a tool for developing and promoting the desired ________ ______ of the firm.

Staffing Policy

_________ __________ are cooperative agreements between potential or actual competitors. They include arrangements like ______ ______ or shorter-term contractual agreements.

Strategic Alliances, joint ventures

________ is the actions that managers take to attain the goals of the firm. The goal is to maximize the value of the firm for owners and shareholders.

Strategy

Core Competencies and entry mode include: 1) _______ know-how (licensing and joint-venture arrangements should be avoided unless technological advantage is transitory) 2) Management know-how (less risk for franchises or joint ventures)

Technological

_______ gives expatriate managers skills for the foreign posting. _______ is intended to develop the manager's skills over his or her career with the firm.

Training, development

What are limitations of exporting (2)?

Transportation costs, especially products with a low value-to-weight ratio (ex. cement) Trade Barriers, which increases the cost of exporting (time and financial)

(T/F) A multinational corporation's success in the global market is not only due to products (goods and services), but also by the core competence.

True

(T/F) Although the world is moving towards global markets, cultural and economic differences continue to exist among nations.

True

(T/F) An alliance should be structured so that the firm's risks of giving too much away to the partner are reduced to an acceptable level.

True

(T/F) By limiting imports through quotas and tariffs, governments increase the attractiveness of FDI and licensing.

True

(T/F) European inflows are mainly from the US and other European nations.

True

(T/F) FDI helps with a current account surplus (by substituting for imports).

True

(T/F) In regards to global advertising, a firm may select some features to include in all its advertising campaigns and localize other features (ex: Coca-Cola, Gillette)

True

Are some nations hostile to FDI?

Yes, like Venezuela and Bolivia

In terms of making alliances work, when choosing a partner: (1) Collect as much pertinent, publicly available information on potential _____ as possible (2) Gather data from informed ______ _____ (3) Get to know the potential partner as well as _____ before commiting to an alliance

allies, third parties, possible

When focusing on the firm instead of the macro environment, we focus on: (1) ______ managers take to compete more effectively (2) How organizations can increase _______ (and profitability) by expanding their operations in foreign markets

actions, revenue

Reasons to use standardized global advertising include: (1) Economic ______ (2) ______ of creative talent (3) Global brand names

advantages, shortage

A pull strategy relies on access to advertising. So in developed countries, ______ is focused. In developing countries, there are fewer forms of mass media, so the use of pull strategy is limited.

advertising

When leveraging subsidiary skills, managers must: (1) Recognize that valuable skills that lead to competencies can arise ______ within the firm's global network, not just at the corporate center (2) Establish an _____ system that encourages local employees to acquire new skills (3) Have a process for ______ when valuable new skills have been created in a subsidiary (4) Act as _______, helping transfer valuable skills within the firm

anywhere, incentive, identifying, facilitators

Exporting disadvantages: (1) May not be _____ if lower-cost locations for manufacturing the product can be found abroad (2) High _____ costs can make exporting uneconomical, particularly for bulk products (3) _____ barriers can make exporting uneconomical (4) Agents in the foreign market may not act for MNC's best interests

appropriate, transport, tariff

Franchising disadvantages: 1) May inhibit the firm's ability to take profits out of one country to support competitive _____ in another 2) ____ control (set up subsidiaries)

attacks, quality

The _____ ______ _____ for expatriate compensation attempts to provide expatriates with the same standard of living in their host countries as they enjoy at home plus a financial inducement.

balance sheet approach

In regards to the location of R&D, the rate of new-product development is greatest in countries where: (1) More money is spent on ____ and applied research and development (2) Underlying ______ is strong (3) Consumers are _____ (4) Competition is intense

basic, demand, affluent

First-mover advantages based on timing of entry: 1) Preempt rivals and capture demand by establishing a strong _____ name and customer satisfaction 2) Build _____ volume in that country and ride down the experience curve ahead of rivals - cost advantage 3) Create switching costs that tie customers into their products or services

brand, sales

The _________ control system claim that most important bureaucratic controls in subunits within multinational firms are budgets and capital spending rules.

bureaucratic

Steps to take when building a diverse global workforce: (1) Understand that diversity efforts represent a type of organizational _____ and should be driven from the top. (2) Top managers must create a clear value proposition that identifies the ______ of building a diverse and inclusive culture. (3) Managers must set clear goals (not quotas) for what they would like to achieve, identify the gap between the current situation and the desired state, and measure performance improvements over time. (4) Managers should be held ______ for attaining global diversity goals and reward those who hit or exceed goals. (5) Hiring should include people from diverse ________

change, benefits, accountable, backgrounds

Where are pressures for cost reduction greatest? (1) Greater in industries producing ________ products that fill universal needs (2) Major competitors are based in ______ locations, where there is persistent excess capacity, and where consumers are ______ and face low switching costs

commodity-type, low-cost, powerful

Cultural barriers: (1) Make it difficult to ______ messages (2) Need to develop cross-cultural ______ (3) Use local input in developing the marketing message

communicate, literacy

Pros of acquisitions include: (1) Quick to execute (2) May help preempt ______ (3) May be less risky than _____ _____

competitors, greenfield ventures

A _____ retail system is used more in developed countries because of car ownership, number of households with refrigerators and freezers, and number of two-income households. A ______ retail system is more common in developing countries because of geography and road conditions.

concentrated, fragmented

Four main elements on differences between countries affecting distribution strategy: (1) Retail _____ (2) Channel ____ (3) Channel exclusivity (4) Channel quality

concentration, length

Home-Country Policies that encourage inward FDI include incentives such as: tax _______, low-interest _____, _____, or _____ to MNC's subsidiaries

concessions; loans, grants, subsidiaries

Channel quality is not _____ in emerging markets and less developed nations. It can also impede market _____.

consistent, entry

Three conditions for superior enterprise profitability include: (1) Different element's in a firm's organizational structure must be internally _______ (2) Organizational architecture must ______ or ___ the strategy of the firm (strategy and architecture must be consistent) (3) Strategy and structure must not only be consistent but also make sense given the _______ conditions prevailing in the firm's markets ----- strategy, architecture, and _________ environment must all be consistent

consistent, match, fit, competitive (x2)

Pull strategies are used: (1) For _____ goods (2) When distribution channels are _____ (3) When ____ print and electronic media are available to carry the marketing message

consumer, long, sufficient

Joint venture disadvantages: 1) Loss of technology _____ 2) Lack of control over ______ that might need to realize experience curve or location economies 3) Can lead to _____ and battles for control between investing firms if their goals and objectives change or if they take different views as to what the strategy should be

control, subsidiaries, conflicts

Arguments for centralization includes: (1) Facilitates ______ and integration of operations (2) Helps ensure that decisions are _____ with organizational objectives (3) Gives top-level managers the means to bring ______ (4) Avoids the _______ of activities that occurs when similar activities are carried on by various subunits

coordination, consistent, change, duplication

Pressures for ______ ______ require a firm to try and lower the costs of value creation. Ex: Mass-producing standardized product or outsourcing.

cost reductions

What are types of competitive pressure? (1) Pressures of ____ reduction (2) Pressures to be locally ______ Can they place conflicting demands on a firm?

cost, responsive Yes

Location economies can: (1) lower the ____ of value creation and help the firm achieve a low-cost position (2) Can enable a firm to ______ its product offering from those of competitors

costs, differentiate

When choosing a distribution strategy, keep in mind: (1) Determined by relative ____ and benefits of retail concentration, channel length, channel exclusivity, and channel quality (2) Link between channel length, _____ selling price, and profit margin (3) It makes sense for an ______ business to use longer channels in countries where the retail sector is fragmented and ____ in countries where the retail sector is concentrated (4) If there are concerns about channel quality, firms should handle _____ on their own.

costs, final, international, distribution

The objective a _______ ______ is to take a product development project from the initial concept development to market introduction.

cross-functional team

In the ______ control system, employees "buy into" the norms and value systems of the firm and control their own behavior. Can reduce the need for other control systems.

cultural

Barriers to international communication include: (1) _____ barriers (2) Source and country of origin effects (3) ______ levels

cultural, noise

Cons of acquisitions: (1) Overpaying (more than one firm's interest on target firm, "hubris hypothesis") (2) ______ Clash (3) _______ the operations of the acquired and acquiring entities often run into roadblocks and take much longer than forecasted (4) _____ reacquisition screening (5) reducing risks of failure (careful screening, allay concerns management has, have quick integration plan and execution)

culture, integrating, inadequate

Integrating R&D, production, and marketing can help a company ensure that: (1) Product development projects are driven by ______ needs. (2)New products are designed for ease of _____. (3) Development costs are kept in check. (4) Time to market is _______

customer, manufacture, minimized

Approaches to labor relations: In the past: Most international companies have ________ international labor relations activities to their foreign individual subsidiaries, because labor laws, union power, and the nature of collective bargaining ______ so much from country to country. More recently: Companies have been shifting to a _______ approach with the goal of increasing their bargaining power. This trend reflects international firms' attempts to rationalize their global operations

decentralized, varied, centralized

International firms must consider: 1) The ______ of which foreign markets to enter, when to enter them, and on what _____ 2) The choice of entry _____ 3) The role of strategic alliance (cooperative agreements between potential or actual competitors)

decision, scale, mode

Reasons a diverse workplace may improve performance: (1) Diverse talents bring insights into the needs of a ____ customer base. (2) An enterprise with a homogenous employee base is ______ the talent to be found among women and minorities. (3) Customers may appreciate interacting with an enterprise whose employees look like them, and therefore, have a better understanding of their needs, tastes, and preference. (4) May improve the brand ____ of an enterprise (5) Increases employee satisfaction

diverse, underutilizing, image

Organizational structure includes: (1) The formal ______ of the organization (2) The ______ of decision-making responsibilities (3) The establishment of ________ mechanisms

division, location, integrating

The ______ ______ strategy focuses on increasing profitability and profit growth by reaping the cost reductions that come from economies of scale, learning effects, and location economies.

global standardization

In regards to product attributes, economic development shows: (1) Consumer behavior is influenced by the level of economic _____ in a country (2) Consumers in the most _____ countries are often not willing to sacrifice their preferred attributes for lower prices (3) Consumers in the most advanced countries are willing to pay _____ for products that have additional features and attributes _____ to their tastes and preferences. (4) Consumers in ____ developed countries tend to prefer more basic products but want high product reliability.

development, developed, more, customized, less

Advantages of Licensing: 1) No _____ costs and risks associated with opening in a foreign market 2) Used when a firm wishes to participate in a foreign market but is _____ from doing so by barriers to investment 3) Used when a firm possesses some ______ property that might have business applications, but it does not want to develop those applications itself

development, prohibited, intangible

Issues for marketing managers include: (1) ______ between countries in the structure of market segments (2) Existence of segments that transcend national borders (______ segment)

differences, intermarket

Reasons against global advertising include: (1) Cultural ______ (2) Advertising _____

differences, regulations

Four ways to make a reasonable alliance structure: (1) Alliances can be designed to make it ____ to transfer technology not meant to be transferred (2) Firms use contractual ____ to guard against the risk of opportunism by a partner (3) The skills and technologies that are to be _____ should be agreed upon in advance so that there's equitable gain (cross-licensing agreements) (4) Extract a significant ______ commitment from the partner in advance

difficult, safeguards, swapped, credible

Dunning's locations specific advantages argument explains the _____ of FDI, but not ____ firms prefer FDI to exporting or licensing.

direction, why

Bias from home-country managers comes from _____ and lack of experience working abroad. They tend to rely on hard ____ that does not present a complete picture. Bias from host-country managers can be biased towards their own frame of _____.

distance, data, reference

Organizational inertia may be caused by: (1) Existing _____ of power and influence within an organization (2) Existing _____ expressed in norms and value systems (3) Senior managers' preconceptions about the appropriate business model or _______ (4) Institutional constraints

distribution, culture, paradigm

Marketing mix are the choices about: (1) product attributes (2) ______ strategy (3)communication strategy (4) ____ strategy

distribution, pricing

The scale of entry and strategic commitments decision focuses on positives and negatives. Positive: good for attracting customer and ______ in local market Negative: fewer resources available to support ______ in other market

distributor, expansion

In a typical distribution system: (1) There is a channel with a wholesale _____ and a retailer (2) Firm can also sell directly to the consumer, to the _____, or to the wholesaler (3) Firm may sell to an _____ agent who then deals with the wholesale distributor, the retailer, or the consumer

distributor, retailer, import

The United States is a target for FDI inflows because: (1) it has a large and wealthy _____ market (2) dynamic and ____ economy (3) favorable ______ environment and ______ to FDI

domestic, stable, political, openness

The decision of when to enter a market will enter the market. An ______ entry is when a firm enters a foreign market before other foreign firms, and _____ when a firm enters after other international businesses have established themselves.

early, late

The third set of FDI theories is the ________ ________, which attempts to combine the two other perspectives into a single holistic explanation of FDI.

eclectic paradigm

The Free Market Perspective states that international production should be distributed among countries for achieving production _______ according to the theory of comparative advantage; FDI is a _____ to both the source country and the host country.

efficiency, benefit

Advantages of strategic alliances: (1) May facilitate _____ into a foreign market (2) Allows firms to share the _____ costs (and associated risks) of developing new products or processes with its partner (3) Brings together _______ skills and assets that neither company could easily develop on its own (4) May help firm establish ______ standards for the industry that will benefit the firm

entry, fixed, complementary, technological

The response to strategy of organized labor has included 3 actions: (1) Trying to ______ international labor organizations (2) ______ for national legislation to restrict multinationals (3) Trying to achieve international ______ on multinationals through such organizations as the United Nations

establish, lobbying, regulations

Wholly owned subsidiary disadvantages: 1) Bear full cost and risk of _____ new market 2) Can be problems associated with acquisitions (merging divergent corporate cultures)

establishing

The _______ policy means all positions are filled by parent-country nationals.

ethnocentric

Implications for control and incentives includes: (1) Costs are defined as amount of time top management devotes to monitoring and _______ subunits' performance (2) Costs are _____ when performance ambiguity is greater (3) More ______ approach on incentive under greater performance ambiguity

evaluating, greater, systematic

The ______ ______ includes systematic reductions in production costs that have been observed to occur over the life of a product. Costs decline by some quantity about each time cumulative output doubles.

experience curve

In Porter's idea about strategic positioning, he states that: (1) A firm should be _______ about its choice of strategic emphasis with regard to value creation (differentiation) and low cost. (2) A firm should ______ its internal operations to support that strategic emphasis (3) Achieving ____ methods of creating value at the same time is very difficult, so companies must choose strategic position and drive a variety of supportive activities to sustain it.

explicit, configure, both

The Eclectic Paradigm by John Dunning covers location-specific advantages and _______.

externalities

The first set of theories of FDI seeks to explain why a firm will ____ FDI as a means of entering a foreign market when two other alternatives ______ and ______, are open to it.

favor, exporting, licensing

Arguments for decentralization include: (1) Gives top management time to _____ on critical issues by delegating more routine issues to lower-level managers (2) _______ research favors decentralization (3) Permits greater _______ (4) Can result in better decisions (5) can increase ______

focus, motivational, flexibility, control

Combining location-specific assets or resource endowments with the firm's own unique capabilities often requires ____ _____ _____.

foreign direct investment

Drawbacks to the geocentric policy includes: (1) Many countries want ______ subsidiaries to employ their citizens. (2) Can be ______ to implement

foreign, expensive

Horizontal differentiation typically allows for the design of structure in 3 ways: (1) on the basis of _____ (2) on the type of business (3) on the ______ area

function, geographical

A ______ structure divides itself based on functions reflecting the firm's value creation activities (ex: production, marketing, R&D, sales)

functional

Markets are segmented by: (1) ________ (2) Demography (3) Sociocultural factors (4) _______ factors

geography, psychological

Having a ______ ______ is a fundamental attribute of a global manager because it allows them to deal with high levels of complexity and ambiguity, and are open to the world.

global mindset

A ____ _____ refers to when different stages of the value chain are dispersed to those locations around the globe where value added is maximized or where costs of value are minimized. It should create a competitive advantage that a firm that bases all of its creation activities in one location won't have.

global web

Types of wholly owned subsidiaries include: 1) _____ venture: set up a new operation in host country 2) Acquisition: acquire an established firm in a host nation

greenfield

A ______ _____ may be better when the firm needs to transfer organizationally embedded competencies, skills, routines, and culture. ________ work well when the market already has well-established competitors.

greenfield venture, acquisitions

A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the ground up, the so-called _____ strategy, or by _____ an enterprise in the target market.

greenfield, acquiring

Noise levels are _____ in highly developed countries but ______ in developing countries because there are fewer firms competing for attention.

high, lower

The transnational strategy: (1) makes the most sense when demands for local responsiveness are ___ and cost pressures are high (2) focuses on leveraging _____ skills (3) places conflicting ____ on the company

high, subsidiary, demands

In general, firms can charge _____ prices when demand is inelastic.

higher

Culture is maintained by: (1) _____ and promotional practices of the organization (2) ______ strategies (3) _____ processes - formal or informal (4) communication strategy - corporate mission statements

hiring, reward, socialization

Two groups evaluate expatriate mangers: _____ _____ managers and home country managers. Each have their own unintentional bias.

host country

When creating and maintaining organizational structure, keep in mind that: (1) Founders or leaders have a profound ______ (2) The broader social culture of the ______ (3) The _____ of the enterprise

impact, nation, history

The two trends of FDI are that: (1) There has been an ____ of both flow and stock of FI over past 25 years (2) Growing _____ ____ than world trade and world output.

increase, more rapidly

FDI _____ competition in the local market, which will drive ____ prices and increase welfare of consumers, stimulate investment, and ____ prices.

increases, down, lowering

Push strategies are used when: (1) For _____ or complex new products (2) When distribution channels are _____ (3) When few print or electronic media are availability

industrial, short

Integrating mechanisms: (1) include both formal and _____ integrating mechanisms (2) implement the mechanisms that ___ with their strategy and structure (3) need for coordination is lowest in firms pursuing a localization strategy, is _____ in international companies, higher still in global companies, and highest of all in ______ companies

informal, fit, higher, transnational

Support activities of the value chain include: (1) Provide ____ that allow primary activities to occur (2) _____ systems can alter the efficiency and effectiveness with which a firm manages its other value creation activities. (3) _____ control the transmission of physical materials through the value chain (4) ______ resources ensure that the company has the right mix of skilled people and ensures training, motivation, and compensation. (5) ______ includes the organization structure, control systems, and culture of the firm.

inputs, information, logistics, human, infrastructure

Home-Country policies that encourage outward FDI include: (1) Government-backed _____ programs (2) Government ____ (3) Elimination of _____ _____ of foreign income (4) Relaxation of ______ on FDI by host countries

insurance, loans, double taxation, restricitons

Exporting advantages: (1) avoids often _____ costs of establishing manufacturing operations in host country (2) may help firm achieve ____ curve and location economies

substantial, experience

A summary of integrating mechanisms includes: (1) Multinationals need _____, particularly if they are pursuing global standardization, international, or transnational strategies (2) Can be difficult to achieve due to the _____ to coordination (3) Formal integrating mechanisms do not always work (so the firm should establish an informal knowledge network and build a common culture)

integration, impediments

Turnkey project disadvantages: 1) The firm that enters into a turnkey deal will have no long-term ____ in the foreign country 2) May inadvertently create a _____ (another foreign enterprise) 3) Selling a technology through a turnkey project is also selling competitive advantage to potential and/or actual competitors

interest, competitor

The ________ divisional structure: (1) Tends to be based by geography (2) Typically replicates the structure in the home market (3) Dual structure can create conflict and coordination problems

international

The ________ __________ _______ (ITSs) has been largely unsuccessful because it causes competition between national unions and due to the wide variation in union structure.

international trade secretariats

Intangible Property includes: Patents, ______, formulas, processes, designs, _______, and trademarks

inventions, copyrights

Joint venture advantages: 1) Local partner's ______ of the host country's competitive conditions, culture, language, political systems, and business 2) Shared costs and _____ 3) Political ______ (government interference, nationalism, etc.)

knowledge, risks, considerations

Cultural differences include differences in social structure, _____, religion, education, and more. To identify where standardization is possible and where the _____ mix must be customized, firms need to look for evidence of ______ trends that Levitt identified.

language, marketing, globalization

Advantages to polycentric policy includes: (1) Firm _____ _____ to have cultural myopia (2) May be less ______ than an ethnocentric approach

less likely, expensive

Formal integrating mechanisms include: (1) Direct contact (2) _______ roles (3) teams (4) _______ structures (This order shows that the greater the need for coordination, the more complex the formal integrating mechanisms need to be. Ordered from low to high)

liaison, matrix

Strategic alliances include: 1) Cross-shareholding deals 2) _____ arrangements 3) Formal _____ ventures 4) Informal ______ arrangements

licensing, joint, cooperative

New-product development has a high failure rate, typically due to: (1) Development of a technology for which demand is ______ (2) Failure to adequately commercialize promising _______ (3) Inability to manufacture a new product _____ effectively

limited, technology, cost

In regards to HRM, three aspects are true: (1) There is a _____ between strategy and HRM (2) HRM is more ______ in a multinational corporation (3) HRM must deal with a myriad of ____ related to expatriate managers

link, complex, issues

HRM.... (1) Has a strong _____ with profitability (2) Has a critical _____ on the people, culture, incentive, and control system elements of the firm's organizational architecture (3) Success also requires HRM policies to be _______ with the firm's strategy.

link, impact, congruent

The _______ strategy focuses on increasing profitability by customizing the firm's goods or services so that they produce a good match to tastes and preferences in different national markets. It is most appropriate when there are (1) substantial differences in consumer tastes and preferences and (2) cost pressures are not too intense.

localization

MNC Strategies, interdependence, and ambiguity include: (1) _____ strategy: low performance ambiguity (2) International strategy: higher level of _____ is necessary (3) Global ______ strategy: higher still, many activities are interdependent (4) ________: highest level of performance ambiguity, high degree of joint decision making

localization, integration, standardization, transnational

In regards to channel length and push vs pull strategy: (1) The ____ the distribution channel, the more intermediaries (2) Can lead to ____ in the channel (3) Direct selling for pushing a product can be _______ (4) Mass advertising as a pull strategy will be more _____ when channel length is too long.

longer, inertia, expensive, useful

Two strategies for value creation are: (1) ____ ____ (2) Differentiation

low cost

Disadvantages of strategic alliances: (1) May give competitors a _______ route to new technology and markets

low-cost

The global standardization strategy tries to: (1) pursue _____ strategy on global scale (2) Locating in ____ optimal locations, producing standardized products (3) Production, marketing, R&D, and supply chain activities are concentrated in a ____ favorable locations (4) Avoids ____ because of higher cost

low-cost, few, few, customizaiton

Franchising advantages: 1) Firm experiences ____ costs and risks than opening a foreign market on its own 2) Helps build a global _____ quickly

lower, presence

Reasons for expatriate failure rates (premature return from a foreign posting, high resignation) for the US includes (Tung's Study): (1) Inability of spouse to adjust (2) ______ inability to adjust (3) Other family problems (4) Manager's _____ or emotional maturity (5) Inability to _____ with larger overseas responsibilities

manager's, personal, cope

Licensing disadvantages: 1) Does not give a firm tight control over _____, marketing, and strategy that is required for realizing experience curve and location economies 2) Limits a firm's ability to coordinate strategic moves across countries by using ____ earned in one country to support competitive attacks in another 3) A firm can lose ____ over its technology by licensing it (to reduce risk, enter into cross-licensing agreement or joint venture)

manufacturing, profits, control

Why do firms expand globally? (1) Expand the _____ for their domestic products (2) Realize location economies by ______ value creation activities where they can be performed most efficiently and effectively (3) Realize greater ____ economies from experience effects (4) Earn a greater _____ by leveraging skills developed in foreign markets by transferring them to other parts of the organization

market, dispersing, cost, return

How organizations can increase revenue includes: (1) understanding the ____ of value creation (2) How to _____ global value chains (3) How to _____ superior performance

meaning, structure, achieve

The output control system: (1) Relatively ______ performance metrics such as profitability, productivity, growth, market share, and quality (2) Managers judged by their ability to ______ these goals (3) Goals are normally established through ______ between subunits and headquarters

objective, achieve, negotiation

______ _______ ______ is used when two or more international businesses compete against each other in two or more national markets. It refers to the fact that a firm's pricing strategy in one market may have an impact on its rivals' pricing strategy in another market

multipoint pricing strategy

Two conditions for profitable price discrimination (1) _____ markets must be kept separate. (2) Price ______ of demand

national, elasticity

In regards to balance of payments, _____ accounts track both payments to and receipts from ____. On the _____ ____, transactions are recorded involving the export or import of goods and services. A _____ _____ _____, or trade deficit, arises when a country is importing more goods and services than it is exporting.

national, foreigners, current account, current account deficit

When managing processes in an international business, managers should keep in mind that: (1) Many processes cut not only across organizational boundaries, embracing several different subunits, but also across ______ boundaries (2) A multinational enterprise should recognize that ______ new processes that might lead to a competitive advantage can be developed anywhere within the organization's global network of operations

national, valuable

There are a few implications regarding the scale of entry and strategic commitments: 1) Rapid large-scale market entry can have an important influence on the _____ of competition in a market 2) Must be _____ against the resulting risks and lack of flexibility associated with significant commitments 3) Small-scale entry allows a firm to learn about a foreign market while _____ the firm's exposure to that market

nature, balanced, limiting

A greenfield venture should be chosen when: (1) There are _____ incumbent competitors to be acquired (2) The ______ advantage of the firm is based on the transfer of organizationally embedded competencies, skills, routines, and culture.

no, competitive

One integrating mechanism is knowledge networks, which: (1) can be used as a __________ conduit for knowledge flows within a multinational enterprise (2) Make use of distributed computer and _______ information systems (3) Using management development program for creating ______ knowledge network (4) Managers must share a strong _______ to the same goals, norms, and values

nonbureaucratic, telecommunications, informal, commitment

The strategy, _____, and organization of the firm must all be consistent with each other if it is to attain a competitive advantage and garner superior profitability.

operations

Disadvantages of ethnocentric policy includes: (1) Limits advancement _____ for host-country nationals (which results in resentment, lower productivity, and increased turnover in that group) (2) Can lead to _____ myopia ("short-sightedness")

opportunities, cultural

When selecting expatriates, there are four dimensions that predict success (Mendenhall and Oddou): (1) Self-orientation (2) _________ (3) Perceptual Ability (4) Cultural ______

others-orientation, toughness

The flow of FDI include _____, or flows out of a country and _____, or flows into a country.

outflows, inflows

Home-Country policies that restrict outward FDI include: (1) limiting capital ____ (2) Manipulating _____ _____, like through tax incentives, to keep investments at home (3) _____ investment for political reasons (ex. North Korea)

outflows, tax rules, prohibit

Host-Country Policies that restrict inward FDI include: (1) _____ restraints (2) _____ requirements

ownership, performance

The second set of FDI theories seeks to explain the observed ______ of foreign direct investment flows.

pattern

________ _______ exists when the causes of a subunit's poor performance aren't clear and tends to occur when there's a high degree of interdependence between subunits within the organization

performance ambiguity

The ______ ______ system is most widely used in small firms; structures the relationships between managers at different levels in multinational enterprises.

personal control

First-mover disadvantages regarding timing of entry include ______ costs. Characteristics of this cost are: 1) they arise when a business system in a foreign market is so ____ from that in a firm's home country 2) Enterprise has to devote considerable effort, time, and ____ to learn the rules of the game 3) Costs of business failure, costs of promoting and establishing a new product offering, costs of educating customers about product 4) ______ may change in a way that diminishes the value of an early entrant's investments

pioneering, different, expense, regulations

When asking which foreign market to enter, the choice is based on an assessment of a nation's long-run profit ______. Other factors include: 1) Size of the market 2) Present and future _____ of consumers 3) Costs and risks 4) The ____ an international business can create in a foreign market, which depends on suitability of its products and the nature of ______ competition

potential, wealth, value, indigenous

Pressures for local responsiveness include: (1) Differences in customer tastes and ______ (customer demands for local customization are declining in some industries) (2) Differences in _______ and traditional practices (possible delegation of manufacturing and production functions to foreign subsidiaries) (3) Differences in _____ channels (possible delegation of marketing functions to national subsidiaries) (4) Host-government demands (economic or political; threats of protectionism, economic nationalism, local content rules dictate manufacturing locations) (5) Rise of ______ (convergence of tastes, preferences, etc. demands a broader region)

preferences, infrastructure, distribution, regionalism

The balance sheet approach includes: (1) base salary (2) a foreign service ______: extra pay for working outside country of origin (3) ______ of various types (hardship, housing, COL, education) (4) tax _______ (5) benefits (same level of medical and pension as back home)

premium, allowances, differentials

Pressures for cost reductions and entry mode include: 1) The greater the _____ for cost reductions, the more likely a firm will want to pursue some combination of exporting and wholly owned subsidiaries. 2) Wholly owned marketing subsidiaries give the firm tight ______ that might be required for coordinating a globally dispersed value chain. 3) Also give the firm the ability to use the profits generated in one market to ______ its competitive position in another market

pressures, control, improve

A firm can maximize its profits by using ________ __________ where consumers in different countries are charged different prices for the same product.

price discrimination

In the _____ ______ structure, each division is responsible for a distinct product line (business area).

product divisional

The concerns of organized labor: (1) The company can counter labor union's bargaining power with the power to move ______ to another country. (2) The business will keep highly skilled tasks in its home country and farm out only ________ tasks to foreign plants. (3) Attempts to import employment practices and contractual agreements from its home country may ____ its power.

production, low-skilled, reduce

Drawbacks/disadvantages to polycentric policy includes: (1) Host-country nationals have limited opportunities to gain experience outside their own country and thus cannot ______ beyond senior positions in their own subsidiary (2) Gap between host-country managers and parent-country managers (3) Can result in ______ within the firm

progress, inertia

Preferable cross-functional team conditions include having: (1) a _____ manager (2) at least ____ member for each key function (3) Physically in ____ location (4) Clear plan and goals (5) Processes for _____ and conflict resolution

project, one, one, communication

In regards to product type and consumer sophistication: Consumer goods usually use the ____ strategy, except in nations with poor literacy rates. Industrial products or complex products favor a ______ strategy.

pull, push

The _____ strategy emphasizes personal selling. The _____ strategy depends more on mass media and advertising.

push, pull

Companies use ethnocentric policy because: (1) The host country lacks ______ individuals to fill senior management positions. (2) A firm may see this policy as the best way to ____ a unified corporate culture (3) A firm believes that the best way to transfer core ______ is to transfer parent-country nationals who have knowledge of said competency to the foreign operation

qualified, maintain, competencies

Political Ideology for FDI is shifting from _____ ideology to _____ _____ ideology, a more liberal foreign investment regime.

radical, free market

The three political ideologies regarding FDI include: (1) the _____ view (2) ______ nationalism (3) ______ _____ perspective

radical, pragmatic, free market

Product and technical standards on product differentiation: (1) The globalization of _____ market could be achieved by enlarging their power in the global market (2) Suggesting product and technological standard is a kind of way to get the _____ (3) Differing government-mandated product standards can often result in companies giving up _____ production and marketing of a fully global and standardized product (4) Differences in technical standards also constrain the globalization of markets

regional, power, mass

Potential costs of FDI include: (1) _____ of profits (2) _____ balance of payments effects

repatriation, negative

Development of valuable skills can occur in foreign ________. Leveraging the skills created within subsidiaries and applying them to other operations within the firm's global network may create value.

subsidiaries

Host-Country costs regarding FDI include: (1) adverse effects on competition (______ may have greater economic power than domestic competitors) (2) adverse effects on the ______ of payments (subsequent capital outflow, imports of inputs from abroad) (3) loss of economic independence (effects on national _____ and autonomy)

subsidiaries, balance, sovereignty

The global matrix structure: (1) Answers the question: how do firms face both pressure for local _______ and pressure for cost reductions? (2) Allows for differentiation along two dimensions - ______ division and geographic area (3) _____ decision making - the product division and the geographic area have equal responsibility for operating decisions (4) Often clumsy and ______, promoting conflict between area and product manager

responsiveness, product, dual, bureaucratic

Turnkey project advantages: 1) Can earn great economic ____ from know-how and knowledge about certain technologically complex process 2)Can be less ____ than conventional FDI

returns, risky

The ______ __________ effect is when a multinational enterprise learns valuable skills from its exposure to foreign markets that can subsequently be transferred back to the home country.

reverse resource-transfer

Wholly owned subsidiary advantages: 1) Reduces the ____ of losing technology control 2) Can tightly control ____ in different countries 3) Location and experience curve economies 4) 100% share of ____

risk, operations, profits

Different examples of communication strategy include: (1) Direct Selling (2) ______ _______ (3) Direct _____ (4) Advertising Can also include international communication.

sales promotion, marketing

When managing an alliance: (1) be ____ to cultural differences (2) build _____ (3) build relational capital (4) ____ from the alliance partner and apply the knowledge within one's own organization

sensitive, trust, learn

A direct connection between producer and consumer is a ____ channel. When a producer sells through an import agent, wholesaler, and retailer, it's a _____ channel.

short, long

Management Development and Strategy is... (1) focused on increasing the overall _____ levels of managers (ongoing management education, rotating through different jobs) (2) used as a strategic tool to build a strong, unifying _____, and an informal management network (supporting a transnational or global standardization strategy)

skill, culture

The pro of greenfield ventures is that it gives the firm a much greater ability to build the kind of subsidiary company that it wants. Cons include: (1) ______ to establish (2) Risky by _____ (3) Preemption by global competitors

slower, uncertainty

The choice of choosing a push vs pull strategy depends on: (1) Product type relative to consumer _______ (2) Channel length (3) _____ availability

sophistication, media

Four International Strategies include: (1) Global ______ (2) Localization strategy (3) ______ strategy (4) International strategy

standardization, transnational

Implementing organizational change means: (1) Unfreezing the organization (2) Moving to the new ____ (3) _______ the organization

state, refreezing

The evolution of strategy is that: (1) strategy is not ______ (2) A firm may start out using international strategy, but find it has to shift to _____ standardization strategy or transnational strategy as competition ______. (3) A localization strategy might initially give a competitive advantage, but if its facing aggressive _____, the company will have to reduce its cost structure

static, global, increases, competitors

The _____ of FDI is the total accumulated value of foreign-owned assets at a given time.

stock

_______ ______ involves the commitment of significant resource and implies rapid entry.

strategic commitments

A good partner when making alliances work is one that: (1) Helps the firm achieve its _____ goals (2) Has ____ the firm lacks (3) Is unlikely to try to opportunistically exploit its partner

strategic, capabilities

_______ cultures are where all mangers share a consistent set of values and norms that have a clear impact on work performance. _____ doesn't necessarily mean good.

strong (x2)

When mass producing a standardized output, keep in mind that: (1) Mass production allows a firm to realize _____ unit cost reductions from experience curve effects and other economies of scale (2) ______ products ignoring country differences in consumer tastes and preferences can lead to ______

substantial, standardized, failure

Limitations of licensing includes: (1) Licensing may result in a firm giving away valuable ________ _____ to a potential foreign competitor. (2) Licensing does not give a firm tight control of _____, _____, and _____ in a foreign country that may be required to maximize profitability. (3) The firm's competitive advantage is based on the management, marketing, and manufacturing capabilities, which is ______ ______ to licensing.

technological know-how; production, marketing, strategy; not amendable

Potential benefits of FDI include: (1) inflows of capital, (2) _______ (3) _______ (4) jobs

technology, skills

There are ____ complementary perspectives/theories of Foreign Direct Investment.

three

The ______ strategy tries to simultaneously meet demand for low costs by focusing on location economies, economies of scale, and learning effects, while at the same time, differentiates the product to meet the needs of individual markets.

transnational strategy

Multinational Enterprises choose FDI when: (1) _____ _____ or trade barriers make exporting unattractive (2) When a firm wishes to maintain control over its ________ _____ and/or its ______ and business strategy.

transportation costs, technological know-how, operations

What are caveats to location economies? (1) _____ costs and trade barriers (2) Political and _____ risk

transportation, economic

The six different entry modes for a market: 1) Exporting 2) _____ projects 3) Licensing 4) _______ 5) Joint ventures 6) Wholly owned ______

turnkey, franchising, subsidiaries

Theodore Levitt's HBR article stresses: (1) World markets are becoming increasingly similar, making it ______ for companies to localize the marketing mix (2) Importance of _____ in globalization (3) Fewer differences in national and regional preferences (4) Global corporations sell the same things the _____ way (5) The convergence of markets leads to ______ of products, manufacturing, trade and commerce

unnecessary, technology, same, standardization

In regards to a geocentric staffing policy: (1) Makes the best ____ of its human resources (2) Builds a cadre of international executives who feel at home working in a number of cultures (3) Firms may be better able to create _____ from the pursuit of experience curve and location economies and from the multidirectional transfer of core competencies than firms pursuing other staffing policies

use, value

In the incentive system: (1) The type of incentive ____ depending on employees/tasks (2) Requires significant _______ between managers in different subunits (3) Often adjusted to account for ____ differences in institutions and culture (4) Can have unintended ________: employees may focus on the work guaranteeing higher incentives

varies, cooperation, national, consequences

To maximize profitability, a firm must: (1) Pick a position that is ____ in the sense that there is enough demand to support that choice (2) ______ its internal operations, such as manufacturing, marketing, logistics, information systems, human resources, and so on, so that they support that position. (3) Make sure that the firm has the right organization ______ in place to execute its strategy.

viable, configure, structure

In order to reduce bias in performance appraisal: (1) Give more _____ to an onsite manager's appraisal than to an offsite manager's appraisal. (2) Include a _____ expatriate who has worked in the same location in the process could minimize bias. (3) Home-office managers should be consulted _____ an onsite manager completes a formal termination evaluation.

weight, former, before

An acquisition should be chosen when: (1) The firm is seeking to enter a market where there are already _______ incumbent enterprises (2) Global competitors are also interested in establishing a presense

well-established

The _______ ______ structure is favored by firms with a low degree of diversification and a domestic structure based on functions. Own a set of value creation activities and decentralized operational authority.

worldwide area

The _______ _______ divisional structure is favored by firms that are easily diversified and originally had domestic structures based on product divisions. Allows for worldwide corporation of value creation activities, and facilitates the transfer of core competencies and simultaneous introduction of new products, but does not allow for local responsiveness.

worldwide product