Exam 4 (Connect Ch. 10)

A company that deploys resources and capabilities in the procurement, production, and distribution of goods and services in at least two countries is a ______.

multinational enterprise

When companies face a highly competitive environment at home, they are more likely to ______.

outperform global competition that lacks such intense domestic competition

which of the following are reasons firms expand internationally

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

Which country experienced rapid economic growth in the early 21st century and now challenges the United States for global economic supremacy?

china

in ________ societies, competitiveness, assertiveness, and the exercise of power are considered ideal

masculine

What are the four quadrants of the integration-responsiveness framework? (Check all that apply.)

multidomestic strategy, international strategy, global standardization strategy, transnational strategy

The cultural disparity between the internationally expanding firm's home country and its targeted host country is known as ______.

cultural distance

A country's natural, human, and other resources can be expressed in terms of ______.

factor conditions

the benefits of local responsiveness always outweigh the costs

false

multinational enterprises are the driving force behind globalization

true

The extent to which members of a society feel anxious when faced with an unknown situation is known as ______.

uncertainty avoidance

which of the following helped motivate globalization after the end of WWII

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

foreign direct investments are investments in

value chain activities abroad

Multinational enterprises need an effective global strategy in order to ______.

achieve a competitive advantage against other companies

which of the following have helped make globalization possible

advances in telecommunications, reductions in transportation costs, falling trade barriers

A multinational enterprise would likely be motivated to pursue a global-standardization strategy in order to do which of the folllowing?

take advantage of location economies, take advantage of economies of scale

Which of the following were black swan events that occurred in the early 21st century and helped reshape the global economy?

the European debt crisis, the European refugee crisis, the global financial crisis

all other things equal, the greater the cultural distance

the greater the liability of foreignness

Benicio's Burritos is a leader in the Mexican fast-food category in the United States. It decides to expand internationally, starting in Japan. Benicio's Burritos fails within a year, learning later that Mexican food is uncommon in Japan and that the flavor profiles are not compatible with Japanese palates. The failure of Benicio's Burritos can be attributed to which of the following?

liability of foreignness

A(n) ______ strategy focuses on integration at the business level by attempting to reconcile product differentiations at low cost.

transnational

The oldest form of internationalization is ______, which involves producing goods in one country to sell in another country.

exporting

During the first stage of globalization, business functions that took place abroad were limited to which of the following?

distribution and sales

companies from wealthy countries benefit from cross border trade with other wealthy countries when their competitive advantage is based on which of the following factors

economies of scale, economies of experience, standardization

when looking at the modes of foreign market entry, one could conclude that

exporting might be the earliest stage of commitment because it allows the firm to test whether a foreign market is ready for its products

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 countries

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

in more than one country

When firms from wealthy countries trade with firms from poor countries, they benefit from economic _______.

economic arbitrage

Porter's diamond framework to explain national competitive advantage includes four interrelated factors: demand conditions, competitive intensity in a focal industry, related and supporting industries/complementors, and ______.

factor conditions

which of the following statements about pursuing international expansion is true

it can enhance a firm's competitive advantage

which of the following risks do companies face when expanding internationally

loss of reputation, loos of intellectual property, the liability of foreignness

Rising wages and other costs are likely to negate any benefits MNEs have of access to ______.

low cost inputs

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

programming of the mind

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

tailor product offerings to fit local preferences and requirements

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

to avoid import restrictions, reduce tax burdens, reduce labor costs

calculating cultural distance involves comparing the cultures of which of the following

a targeted host country, a firm's home country

Before World War II, business strategy, implementation, and knowledge typically flowed ______.

from domestic headquarters to outposts abroad

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

geographic distance, cultural distance, economic distance

If a firm's goal is to leverage home-based core competencies in foreign markets, it should pursue a(n) ______ strategy.

international

MNEs pursuing a multi domestic strategy hope that

local consumers will perceive them to be a domestic company

The decision framework that is based on the relative distance between home and a foreign target country is the ______.

CAGE distance framework

which of the following are part of culture

beliefs, social norms, social mores

The Finnish company Nokia was an early industry leader in cell phones. This is an example of ______.

national competitive advantage

if the economic value creation of international expansion is negative, a firm should

not expand internationally

an approach in which MNEs draw on multiple, equally important innovation hubs throughout the world characteristic of globalization 3.0 is known as

polycentric innovation strategy

When pursuing an international strategy, a company ______.

sells the same product in both domestic and foreign markets

A company's ______ is the part of a corporate strategy that addresses how to gain and sustain a competitive advantage when competing against other foreign and domestic companies around the world.

global strategy

companies seeks to access international markets as a means of

increasing their economic value creation

Gunther is transferred from the United States to Hong Kong for work. He notices that his colleagues at the new office, most of whom are Hong Kong natives, behave and communicate in a similar manner that is a striking contrast to what Gunther is accustomed to. Gunther is observing his colleagues' ______.

national culture

As the standard of living rises in emerging economies, MNEs are hoping that ______.

increased purchasing power will enable workers to purchase the products previously made only for export

IKEA offers the same products in every market. This indicates that IKEA has followed a(n) ______ strategy.

international

The integration-responsiveness framework suggests that companies facing high pressure for both local responsiveness and cost reduction should follow a(n) ______ strategy.

transnational

Multinational enterprises that manufacture commodity products that focus on cost leadership tend to use a(n) ______ strategy.

global standardization

Spex is a leading manufacturer of eyeglasses. Spex is based in the United States but opens a facility in a Japanese city known for cutting-edge eyeglass innovations. Spex is counting on which of the following?

benefiting from location economies

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

which of the following pressures opposes local responsiveness of the integration responsiveness framework

cost reductions

Since expanding internationally, IKEA has shifted focus, concentrating on effectively managing a global supply chain in order to achieve economies of scale. This is reflective of a(n) ______ strategy.

global standardization

Which country has become a hub for MNEs seeking to outsource business processes such as IT and customer service due to an abundance of highly educated but low-cost labor?

india

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

its low cost labor and its well educated, english speaking workforce

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

liability of foreignness

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

locations

The integration-responsiveness framework suggests that companies facing high pressure for local responsiveness and low pressure for cost reduction should follow a(n) ______ strategy.

multi domestic

which of the following pressures opposes local responsiveness on the integration responsiveness framework

cost reductions

The process of closer integration and exchange between different countries and peoples worldwide, made possible by falling trade and investment barriers, advances in telecommunications, and reductions in transportation costs, is known as ______.

globalization

The specific characteristics of needs 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