MGT 491 Ch. 10 Practice Quiz

Which of the following describes a firm in the Globalization 1.0 stage? Asha Inc. had a large office in New York, which was one cog in a global network. Asha Inc. had a large office in New York, which functioned with other large offices in Europe and Asia. Asha Inc. had a base office in New York and a replica office in Amsterdam. Asha Inc. had a base office in New York and distributed some of its products overseas.

Asha Inc. had a base office in New York and distributed some of its products overseas.

Firms that consider international expansion will often examine absolute metrics on which countries to pursue investments in but also consider relative distance. To help firms decide where to compete, the ________ was developed to help firms make this decision. MNE decision making model polycentric strategic framework CAGE distance framework Porter's Diamond framework

CAGE distance framework

Oceanic, a venture capital firm, has the opportunity to invest in one of two firms that are in the process of globalizing. Macmillan, an air-conditioner manufacturer, faces intense pressure from its home market. Rent a Swag, a dog-toy manufacturer, has encountered little competition in its country of origin. In which company should Oceanic invest? Macmillan, because air conditioners cost more to ship than dog toys do Macmillan, because firms that face stiff competition at home tend to do better abroad Rent a Swag, because firms that face little or no competition at home tend to do better abroad Rent a Swag, because dog toys cost less to ship than air conditioners do

Macmillan, because firms that face stiff competition at home tend to do better abroad

Los Pollos Hermanos is a company that makes frozen lunch and dinner entrées. Based on what you know about companies like Nestlé, what action should Los Pollos Hermanos take as it strives to become multinational? Pursue a multidomestic strategy, customizing product offerings to suit local preferences. Attempt an international strategy, controlling costs and taking advantage of economies of scale by selling the same (or very similar) products around the globe. Try a global-standardization strategy, which creates standardized products and competes mainly on price. Consider a transnational strategy by creating a blue ocean market.

Pursue a multidomestic strategy, customizing product offerings to suit local preferences.

For which of the following companies will geographic distance be the most relevant factor in deciding whether to trade with a target country? a firm that manufactures cell phone batteries a firm that extracts and exports iron ore a firm that produces movies a firm that sells wristwatches

a firm that extracts and exports iron ore

During the period of Globalization 1.0, the mode of entry into foreign markets primarily involved exporting goods. making foreign direct investments. making foreign institutional investments. licensing production and distribution.

exporting goods.

Vinny, the CEO of Rainholm Industries is looking to employ a ________ strategy, which would take advantage of economies of scale and location economies. He wishes to pursue and establish a global division of labor based on wherever best-of-class capabilities reside at the lowest possible cost for Rainholm Industries. global standardization multidomestic international transnational

global standardization

Aperture Science Inc. has decided to enter into a foreign market by setting up its own production facilities and distribution channels from scratch. This will give it strong control over all its business activities. Which of these foreign-entry modes will Maddox most likely choose? greenfield operation export joint venture acquisition

greenfield operation

Yubaba Inc., a company that manufactures and sells premium perfumes, is pursuing an international strategy. Axe Inc., a supermarket chain, follows a multidomestic strategy. Which of the following statements is most likely true of this scenario? Yubaba Inc. will sell the same products in both domestic and foreign markets, whereas Axe Inc. will customize its product offerings to suit local requirements. Yubaba Inc. will pursue a differentiation strategy at the business level, whereas Axe Inc. will pursue a cost-leadership strategy at the business level. Yubaba Inc. will be better protected from exchange rate fluctuations when compared to Axe Inc. Yubaba Inc. will not be able to use its home-based core competencies in foreign markets as much as Axe Inc. will.

Yubaba Inc. will sell the same products in both domestic and foreign markets, whereas Axe Inc. will customize its product offerings to suit local requirements.

Which of the following statements accurately explains the primary reason behind Walmart's failure in Germany? inability to implement its trademark focused-differentiation strategy in the German market significant differences between its U.S. personnel policies and Germany's culture Germany's unfamiliarity with retail discount powerhouses Metro's hostile takeover of Walmart in Germany

significant differences between its U.S. personnel policies and Germany's culture