10

56. When a firm chooses to build new plants and facilities from scratch in foreign markets, this is called __________.

A greenfield strategy

40. Google has benefited from being located in San Jose, California, which is considered a high-technology hub. This is because Google enjoyed _________.

Location economies

41. A phenomena of having an optimal geography for a specific activity is called _______.

Location economies

85. Which one of the following can be considered a characteristic of a cluster?

Location economies

17. The movie Slumdog Millionaire's budget was $14 million dollars, which is low compared to other Hollywood blockbusters. What was the movie's international focus?

Low cost factors

27. The degree of CORE COMPETENCIES increased in a firm when adopting Globalization 2.0 is ________.

Low, because firms still have limited knowledge flow back to headquarters

21. Global strategy is a firm's strategy to gain ________ when competing against foreign companies around the world.

Competitive advantage

51. In highly masculine cultures, general values are more toward each of the following EXCEPT:

Cooperation

49. National culture refers to:

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

42. The location advantages associated with locating facilities in other countries can include all of the following EXCEPT:

The evasion of host country regulations.

63. One disadvantage noted in the text of an international strategy is _______________.

The expropriation of intellectual property by foreign competitors

19. Foreign direct investment (FDI) is a firm's investment in _________ abroad.

Value chain activities

34. Location economies are promoted by _____________ from foreign direct investments.

A community of learning

30. Firms with core competencies that can be exploited across international markets are able to ______________________________.

Achieve synergies and produce high quality goods at lower costs

55. Which of the following modes of entering a foreign market has the highest level of investment and control?

Acquisition

16. Hollywood filmmakers used diversified inputs to gain international market access for their products by using:

All of the above

32. GM has been producing a small, boxy type of sedan in China, because of:

All of these

74. Which of the following is NOT a factor pressuring companies for local responsiveness?

Availability of low labor costs

66. To maximize profitability, the best global strategy to use is _____________.

Dependent on products offered and strategic intent

33. AstraZeneca, a Swiss pharmaceutical firm, relocated its research facility to the Boston biotech cluster. This is because they want to ___________.

Develop new competencies

58. According to the globalization hypothesis, there seems to be some convergence of consumer preferences across the globe. However, national differences remain. This is due to ________________.

Distinct institutions and cultures

79. The four aspects of Porter's model of national competitive advantage include all of the following EXCEPT the:

Economic institutions.

65. A global standardization strategy emphasizes _____________.

Economy of scale

69. Transnational strategy promotes innovation because of:

Effective global learning.

23. Globalization 1.0 from Strategy Highlight 10.1 is similar to which of the following international entry modes?

Export

57. A U.S. manufacturer of adaptive devices for persons with disabilities is considering expanding internationally. It is a fairly small company, but it is looking for growth opportunities. This company should primarily consider the option of:

Exporting.

80. Japan, due to a lack of undeveloped land, would be an unusual choice of location for a U.S. cattle company to set up local grazing operations. This limiting factor would be identified in what part of Porter's determinants of national advantage?

Factor condition

78. From Porter's National Competitive Advantage framework, ____________ describe(s) a country's endowments in terms of natural, human, and other resources.

Factor conditions

81. The Middle East has been a popular choice for oil companies because of sufficient ___________.

Factor conditions

26. Globalization 2.0 requires significant ________ when initiating business operations overseas.

Foreign direct investment

61. When a firm faces low pressure for local responsiveness and high pressure for cost reduction, it is likely to adopt a(n) __________.

Global-standardization strategy

22. According to Strategy Highlight 10.1, when all important business functions are located in the home country and only sales and distribution take place overseas, what stage of globalization is this?

Globalization 1.0

28. Nike is headquartered in the U.S., outsources its manufacturing to Asia, has an extensive distribution network that covers the entire world, and has extremely high brand name and product exposure around the globe. What stage of globalization is Nike using in this example?

Globalization 3.0

31. Moving into international markets is a particularly attractive strategy to firms whose domestic markets:

Have entered the mature stage on the industry life cycle.

46. Terrorist attacks and the war in Iraq have:

Increased the liability of foreignness for firms thinking of expanding.

20. Which one of the following does NOT contribute to the rapid development of globalization?

Increasing local tariffs

24. Globalization 1.0 in Strategy Highlight 10.1 is similar to which one of the following strategies?

International strategy

62. According to the integration-responsiveness framework, if a firm is facing low pressure for local responsiveness and low pressure for cost reductions, the firm is likely to adopt a(n) _________.

International strategy

72. Harley Davidson offers similar products in many different global markets by using a(n) ____________.

International strategy

64. The stage model of an international entry vehicle does NOT apply to ___________.

Internet companies

68. The Swiss-based Nestlé offers a wide variety of different products to foreign markets because of:

Localization strategy.

82. High competitive intensity in the focal industry is advantageous for many MNEs because _________________.

It forces MNEs to be more prepared for intense global competition

75. Firms within emerging economies may want to form strategic alliances with firms from developed countries because __________.

It gains access to the foreign firm's sophisticated technology

50. Hofstede's national culture consists of all the following EXCEPT:

Knowledge spillover.

84. According to Porter, the enduring competitive advantages in a global economy lie increasingly in local things, such as _________.

Knowledge, relationship, and motivation

76. A reason for a country's development of advanced and specialized factors of production is often its ___________.

Lack of a critical resource

73. The risks of choosing an international strategy includes all of the following EXCEPT:

Leveraging core competence.

18. International strategy refers to:

Leveraging home-based core competencies by selling the same products or services in both domestic and foreign markets.

39. ____________ refer(s) to the additional costs of doing business in an unfamiliar cultural and economic environment.

Liabilities of foreignness

38. The major disadvantages of expanding internationally is ________________.

Liability of foreignness

37. Why might going global be necessary to achieve growth in smaller economies like South Korea?

Limited domestic market

59. According to the integration-responsiveness framework, if a firm is facing high pressure for local responsiveness and low pressure for cost reductions, the firm is likely to adopt a(n) _____________.

Localization strategy

48. _______ focuses on the relationship between genders and its relation to an individual's role at work and society.

Masculinity-femininity

44. _______ refers to the political and legal factors of a foreign market.

National institutions

71. Transnational strategy is quite appealing, but it is difficult to implement due to _______.

Organizational complexities

54. Individualism focuses on _______________________.

Personal achievement and fame

45. ___________ deal(s) with inequality among people in terms of physical and intellectual capabilities.

Power distance

43. The major benefit of having established national institutions is ___________.

Reduced uncertainty and cost

83. A ________ is a group of interconnected companies and institutions in a specific industry, located near each other and otherwise linked by common characteristics.

Regional cluster

35. Economic development has two consequences for MNEs. They are ______________.

Rising wages and high living standards

70. Which of the following companies adopted an international strategy?

Rolex

52. In high uncertainty-avoidance cultures, the values will lean more toward ______.

Structured career patterns

29. What is the main reason that Globalization 2.0 practices have faded over time?

Substantial FDI for the duplication of home-based business functions induced a waste of resources.

67. International strategy focuses on:

The scale of operations through both product and geographic diversification.

36. China is a popular target for MNEs, but it is NOT because of ___________.

Their information censorship policy

77. A large domestic market can provide the country's industries with a chance at dominating the world market because _____________.

They have been able to develop economies of scale at home

25. Which one of the following is NOT a reason firms expand abroad?

To dominate domestic market

53. In high-power distance cultures, people tend to:

Translate inequalities in power, status, and wealth.

60. When a firm faces high pressure for local responsiveness and high pressure for cost reduction, it is likely to adopt a(n) _____________.

Transnational strategy

47. When the degree of power distance in a particular culture is ______, people tend to allow more inequalities and transform to their own benefits.

high