Ch.10 Questions
MNEs pursuing a multi-domestic strategy hope that ___________
local consumers will perceive them to be a domestic company
T or F The benefits of local responsiveness always outweigh the costs.
False
Which of the following best defines national competitive advantage?
It is the extent to which a company can compete in international markets
Calculating cultural distance involves comparing the cultures of which of the following?
a firm's home country and a targeted host country
A global strategy is needed in order to ___________
achieve a competitive advantage against other companies
When an MNE doesn't face strong pressure for cost reductions or local responsiveness, an international strategy is typically...
advantageous
When firms from wealthy countries trade with firms from poor countries, they benefit from economic __________
arbitrage
MNEs pursuing a ____________ ocean strategy tend to also pursue a transnational strategy
blue
Which of the following dimensions are considered in the CAGE distance framework?
geographic distance economic distance cultural distance
Which three of the following conditions (select three) suggest a multi-domestic strategy might be the appropriate strategy for MNEs?
high demand for local responsiveness host countries with idiosyncratic domestic markets little need for cost reductions
During globalization 1.0 all important business functions were located in the home country, whereas during globalization 2.0 multinationals began to copy themselves __________
in a few key countries
In order for a company to be considered a multinational enterprise, it must operate...
in more than one country
Due to globalization, the world's market economies are becoming more ________
integrated and interdependent
Though many benefits exist, which of the following are among the drawbacks of a transnational strategy?
it's difficult to implement it makes working across cultures difficult it requires organizational complexity
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 known as ______ economies.
location
Which of the following risks do companies face when expanding internationally?
loss of reputation the liability of foreignness loss of intellectual property
One notable advantage of a multidomestic strategy is the...
lower exchange rate exposure
What are the four quadrants of the integration-responsiveness framework?
multi-domestic strategy global standardization strategy international strategy transnational strategy
Which of the following are the most important determinants of economic distance?
per capita income wealth
When multinationals draw on multiple innovation hubs that all have equal status, they pursue a...
polycentric innovation strategy
Which of the following have helped make globalization possible?
reductions in transportation costs advances in telecommunications reduced investment barriers
During the first stage of globalization, which of the following business functions typically took place abroad?
sales distribution Not: strategic management research
When pursuing an international strategy, a company...
sells the same product in both domestic and foreign markets
Which of the following help shrink the administrative and political distance between countries?
shared currency trade agreements a history of colonization
Which of the following comprise culture?
social mores beliefs social norms
Which of the following characteristics help make an MNE's international strategy successful?
strong reputation large domestic markets prominent brand names
Which of the following are distinct features of globalization 3.0?
technology has helped to reduce communication distances firms create global networks of local expertise MNEs reorganize into a more seamless global enterprise
Which of the following helped motivate globalization after the end of WWII?
the need to reconstruct economies damaged by war unfilled needs during the war years
Which of the following are reasons firms expand internationally?
to gain access to a larger market to develop new competencies to gain access to low-cost input factors
A ______ strategy focuses on integration at the business level by attempting to reconcile product differentiations at low cost.
transnational
When a company wants to be more responsive to local consumers in multiple countries, it will likely shift to a...
multidomestic strategy
When a company has difficulty coordinating operations across geographic distance and between distinct culture environments, it experiences
the liability of foreignness