SB Chapter 10

For a U.S. company doing business internationally, which of the following would be examples of local responsiveness? (Check all that apply.)

Ikea selling metal chopsticks in South Korea Walmart selling live animals for food preparation in China McDonald's selling teriyaki burgers in Japan

Which of the following statements about the CAGE distance framework is true?

It is designed to aid MNEs in deciding where to compete in the world.

Which of the following statements regarding factor conditions in Porter's diamond framework is true?

Natural resources are not necessarily needed to generate world-leading companies.

Calculating cultural distance involves comparing the cultures of which of the following? (Check all that apply.)

a firm's home country a targeted host country

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

which country experienced rapid economic growth in the early 21st century and now challenges the US for global economies supremacy

china

Which of the following pressures opposes local responsiveness on the integration-responsiveness framework? (Check all that apply.)

cost reductions

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 experience economies of scale 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

True or false: The benefits of local responsiveness always outweigh the costs.

false

due to globalization, the world's market economies are becoming more ___

integrated and interdependent

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

international

Mount Mountain is a manufacturer of outdoor gear and apparel. It uses American sizing and standards for its apparel and gear across all markets. Which strategy is Mount Mountain adhering to?

international

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

international multidomestic global transnational

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

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

rising wages and other costs are likely to negate any benefits MNEs have of access to

low-cost inputs

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

multidomestic

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

multinational enterprise

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

national competitive advantage

when multinationals draw on multiple innovation hubs that all have equal status, they pursue a

polycentric innovation strategy

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 factors help define the administrative and political distance between two countries? (Check all that apply.)

the absence or presence of shared monetary associations the strength of legal or financial institutions the absence or presence of political hostilities

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 global financial crisis the european refugee crisis

a multidomestic strategy is appropriate when which of the following conditions exist

the firm faces high demand for local responsiveness the firm feels little need to reduce costs markets in the host country are idiosyncratic

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 common reasons for companies to make foreign direct investments

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

foreign direct investments are investments in

value chain activities abroad

Which of the following are the most important determinants of economic distance? (Check all that apply.)

wealth and per capita income

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

factor conditions

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

What are the factors in Michael Porter's model of national competitiveness? (Check all that apply.)

competitive intensity in a focal industry related industries/complementors demand conditions factors conditions

Which of the following factors helped make Germany, which was a tough environment for a car company, conducive to successful car companies?

demanding customers fierce domestic competition no-speed-limit autobahn