Chapter 10 Learnsmart

According to __, consumer needs and preferences throughout the world are converging and becoming increasingly homogeneous. -VRIO framework -Greenfield operations -Levitt's globalization hypothesis -Hofstedy's theory on national culture

-Levitt's globalization hypothesis

Which of the following factors often combine to lead to tragic outcomes for domestic workers of MNEs? (Check all that apply.) -MNE's search for low-cost labor -corporate social responsibility -government corruption -failure to enforce safety standards

-MNE's search for low-cost labor -government corruption -failure to enforce safety standards

Which of the following are part of culture? (Check all that apply.) -beliefs -national boundaries -social norms -social mores

-beliefs -social norms -social mores

The oldest form of internationalization is __, which involves producing goods in one country to sell in another country. -licensing -franchising -exporting -importing

-exporting

What are the four quadrants of the integration-responsiveness framework? (Check all that apply.) -global standardization strategy -universalism strategy -customization strategy -multidomestic strategy -international strategy -transnational strategy

-global standardization strategy -multidomestic strategy -international strategy -transnational strategy

Multinational enterprises that manufacture commodity products that focus on cost leadership tend to use a(n) __ strategy. -mass-customization -international -local-responsiveness -global-standardization

-global-standardization

Dream Donuts is a very successful business in the United Kingdom. It is contemplating global expansion. Which of the following strategies is Dream Donuts most likely to pursue at these beginning stages of expansion? -acquisition -transnational -international -multidomestic

-international

If a firm's goal is to leverage home-based core competencies in foreign markets, it should pursue a(n) __ strategy. -liability of foreignness -local responsiveness -international -political distance

-international

Which of the following factors enabled India to gain a competitive advantage in business process outsourcing? (Check all that apply.) -its low-cost labor -its high rates of commercialization -its low-cost transportation -its well-educated English speaking workforce

-its low-cost labor -its well-educated English speaking workforce

A benefit of an international strategy is __. -leveraging core competences -reduced exchange rate exposure -limited local responsiveness -high risk of IP appropriation

-leveraging core competences

MNEs pursuing a multidomestic strategy hope that __. -local consumers will perceive them to be a foreign company -competitors will be overwhelmed by the financial means of the firm -the firm can save money due to lower international tax rates -local consumers will perceive them to be a domestic company

-local consumers will perceive them to be a domestic company

Which of the following help shrink the administrative and political distance between countries? (Check all that apply.) -shared currency -trade agreements -the presence of occupying troops -a history of colonization

-shared currency -trade agreements -a history of colonization

Which of the following factors help define administrative and political distance? (Check all that apply.) -shared monetary associations -the strength of financial institutions -geographic space between borders -political hostilities

-shared monetary associations -the strength of financial institutions -political hostilities

All other things equal, the greater the cultural distance, __. -the greater the liability of foreignness -the lower the cost and uncertainty of conducting business abroad -the lower the liability of foreignness

-the greater the liability of foreignness

When a company has difficulty coordinating operations across geographic distance and between distinct culture environments, it experiences __. -a loss of intellectual property -the liability of foreignness -a loss of reputation -the incompatibility-curse

-the liability of foreignness

Which of the following are reasons firms expand internationally? (Check all that apply.) -to define the U.S. workforce overseas -to direct economic investment -to gain access to a larger market -to gain access to low-cost input factors -to develop new competencies

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

A(n) __ strategy focuses on integration at the business level by attempting to reconcile product differentiations at low cost. -transnational -globalization -mass customization -international

-transnational

T/F: The benefits of local responsiveness always outweigh the costs

False

T/F: Though low-skilled laborers make much less in developing countries, no such difference in wages exists for high-skilled workers.

False

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

Strategic positions __. -can fluctuate -change over geography but not over time -can disappear overnight -do not change

-can fluctuate

Which of the following dimensions are considered in the CAGE distance framework? (Check all that apply.) -economic distance -architectural distance -cultural distance -geographic distance

-economic distance -cultural distance -geographic distance

One notable advantage of a multidomestic strategy is __ -higher competition -higher exchange-rate exposure -economies of scale -lower exchange-rate exposure

-lower exchange-rate exposure

In __ societies, competitiveness, assertiveness, and the exercise of power are considered ideal. -individualistic -collective -feminine -masculine

-masculine

A multinational enterprise would likely be motivated to pursue a global-standardization strategy in order to __ (Check all that apply). -maintain maximum efficient scale -differentiate more -take advantage of economies of scale -take advantage of location economies -be locally responsive

-take advantage of economies of scale -take advantage of location economies

Which of the following risks do companies face when expanding internationally? (Check all that apply.) -the liability of foreignness -loss of intellectual property -loss of reputation -disruptive innovation

-the liability of foreignness -loss of intellectual property -loss of reputation

Which of the following statements about economic distance are true? (Check all that apply.) -wealthy companies benefit from trade when their competitive advantage is based on economies of experience, scale, and scope -wealthy countries tend to trade with other wealthy countries -poor countries tend to trade almost exclusively with other poor countries -wealthy companies benefit from trade with poor countries only in terms of reputation loss

-wealthy companies benefit from trade when their competitive advantage is based on economies of experience, scale, and scope -wealthy countries tend to trade with other wealthy countries

Which of the following are benefits of a transnational strategy? (Check all that apply.) -it harnesses economies of scale -it provides a standardization of all products and services -it promotes global learning and the diffusion of best practices and innovations -it minimizes local adaptations

-it harnesses economies of scale -it promotes global learning and the diffusion of best practices and innovations