INTEGRATIVE Chapter 11

Under the CAGE distance framework, the administrative and political distance between two countries primarily increases with:

the absence of a trading bloc.

For which of the following companies will geographic distance be the most relevant factor in deciding whether or not to trade with a target country?

A firm that extracts and exports iron ore

Which of the following is an observable feature in the globalization 3.0 stage?

Based on an optimal mix of costs, skills, and PESTEL factors, companies now freely locate business functions anywhere in the world.

Which of the following modes of entering a foreign market allows for the lowest level of control?

Exporting

Which of the following is one of the features of an international strategy?

It is characterized by limited local responsiveness.

Which of the following statements best describes local responsiveness?

The need to tailor product and service offerings to fit native consumer preferences and host-country requirements

Marc Works Inc., a reputed brand for fine writing instruments, is implementing an international strategy in its firms. Torque Inc., a laptop brand, is pursuing a global-standardization strategy in its firms. Which of the following statements most likely holds true in this scenario?

Torque Inc. focuses more on cost reductions when compared to Marc Works Inc.

When a firm diversifies into different product lines and geographies, a _____ structure is preferred.

multidivisional

Since an organic structure helps a firm build core competencies in areas such as R&D and marketing, this structure is employed by firms that:

pursue a differentiation strategy at the business level.

Black Mouse Inc., a web development firm, is headed by Rob Dennis, the CEO. Each functional department of the company—marketing, finance, and HR—has a president who reports to the CEO directly. Each department has various managers who manage teams. The managers report to the presidents and the team leads report to the managers. Finally, the employees at the lowest level report to their team leads. It is rare for a lower-level employee to interact with the CEO of the company. In this scenario, Black Mouse Inc. can be said to have a(n):

tall hierarchical structure.