Business Strat CHapter 10 SB

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

Related industries/complementors Factors conditions Demand conditions Competitive intensity in a focal industry

When firms from wealthy countries trade with firms from poor countries, they benefit from economic _______.

arbitrage

Which of the following are part of a culture?

beliefs social mores social norms

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

international

MNEs pursuing a multidomestic strategy hope that ______.

local consumers will perceive them to be a domestic company

In ______ societies, competitiveness, assertiveness, and the exercise of power are considered ideal.

masculine

When companies face a highly competitive environment at home, they are more likely to ______.

outperform global competition that lacks such intense domestic competition

A company should only expand abroad if ______.

the benefits outweigh the costs

Which of the following are among the primary considerations when determining the mode in which a firm enters a foreign market? (Check all that apply.)

the desired level of control over foreign operations the degree of investment

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

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

Though many benefits exist, which of the following are among the drawbacks of a transnational strategy? (Check all that apply.)

It requires implementing a complex organizational structure. It's difficult to implement.

A multidomestic strategy is appropriate when which of the following conditions exist? (Check all that apply.)

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

True or false: Multinational enterprises are the driving force behind globalization.

True

MNEs pursuing a ocean strategy tend to also pursue a transnational strategy.

blue

The cultural disparity between the internationally expanding firm's home country and its targeted host country is known as ______.

cultural distance

Which of the following dimensions are considered in the CAGE distance framework? (Check all that apply.)

cultural distance geographic distance economic distance

The specific characteristics of needs in a firm's domestic market, such as customers who hold companies to a high standard of value creation and cost containment, are also called ______.

demand conditions

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

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

factor conditions

The benefits of competing on a global scale exist ______.

for an increasing number of firms

As the standard of living rises in emerging economies, MNEs are hoping that ______.

increased purchasing power will enable workers to purchase the products previously made only for export

Companies seek to access international markets as a means of ______.

increasing their economic value creation

Due to globalization, the world's market economies are becoming more ______.

integrated and interdependent

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

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

Despite a growing belief in the death-of-distance hypothesis, there remains evidence that certain countries remain leaders in specific industries and maintain a kind of ______ advantage.

national competitive

When pursuing an international strategy, a company ______.

sells the same product in both domestic and foreign markets

As MNEs compete internationally, a focus on local responsiveness allows them to do which of the following? Multiple choice question. independently convert foreign currency into domestic currency tailor product offerings to fit local preferences and requirements deliver the same standardized product to all markets throughout the world open new production facilities quickly and without political interference

tailor product offerings to fit local preferences and requirements

All other things equal, the greater the cultural distance, ______.

the greater the liability of foreignness

Which of the following risks do companies face when expanding internationally?

the liability of foreignness loss of reputation loss of intellectual property

The extent to which members of a society feel anxious when faced with an unknown situation is known as ______.

uncertainty avoidance

Which of the following is the most important determinant of economic distance? Multiple choice question. the exchange rate wealth and per capita income inflation the balance of trade

wealth and per capita income

Which of the following are benefits of a transnational strategy? (Check all that apply.)

It harnesses economies of scale. It promotes global learning and the diffusion of best practices and innovations.

Rising wages and other costs are likely to negate any benefits MNEs have of access to ______.

low-cost inputs

Gunther is transferred from the United States to Hong Kong for work. He notices that his colleagues at the new office, most of whom are Hong Kong natives, behave and communicate in a similar manner that is a striking contrast to what Gunther is accustomed to. Gunther is observing his colleagues' ______.

National culture

National culture, according to Geert Hofstede, can be defined as different groups' distinctive ______.

"programming of the mind"

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

McDonald's selling teriyaki burgers in Japan Walmart selling live animals for food preparation in China

Which of the following statements regarding factor conditions in Porter's diamond framework is true? Multiple choice question. Factor conditions must be taken into consideration only with the multidomestic strategy. Natural resources are not necessarily needed to generate world-leading companies. Factor conditions are the least important factor in Porter's diamond framework. Natural resources are more important than such factor endowments as human capital and know-how.

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

Which of the following statements about the CAGE distance framework is true? Multiple choice question. It is designed to aid MNEs in deciding where to compete in the world. It helps MNEs restore their reputations after suffering from loss of reputation following international expansion. Its purpose is to help MNEs determine whether or not they should expand internationally. It instructs MNEs how to avoid the liability of foreignness.

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

If an MNE wishes to be responsive to the needs of its local consumers but also wants to attain a lowest-cost position, it should follow a(n) ______ strategy.

transnational

Which of the following statements about pursuing international expansion is true? Multiple choice question. It can enhance a firm's competitive advantage. A major benefit is gaining access to high-cost, exclusive input factors. It is a good option for a firm struggling in a domestic market. It ensures a firm's success as a low-cost competitor.

It can enhance a firm's competitive advantage.

Which of the following best defines national competitive advantage? Multiple choice question. It involves national economies but has no effect on firm-level competitive advantage. It is the degree to which global consumer needs are becoming more and more homogeneous. It refers to the efforts companies put into meeting local consumer preferences. It is the extent to which a country can compete in international markets.

It is the extent to which a country can compete in international markets.

Porter's diamond framework to explain national competitive advantage includes four interrelated factors: demand conditions, competitive intensity in a focal industry, related and supporting industries/complementors, and ______.

factor conditions

A multinational enterprise would likely be motivated to pursue a global-standardization strategy in order to ______. (Check all that apply.)

take advantage of economies of scale take advantage of location economies

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

national competitive advantage

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 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

Multinational enterprises that manufacture commodity products that focus on cost leadership tend to use a(n) ______ strategy.

global-standardization

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

a targeted host country a firm's home country

The Japanese market is very particular, and MNEs tend to have a challenging time breaking into the market successfully. To provide the most local responsiveness and to influence Japanese consumers in believing that the products are local, an MNE should follow a(n) ______ strategy.

multidomestic

When a country's demand conditions include high-density urban living and high energy costs, consumers can be expected to prefer air conditioners that are which of the following? (Check all that apply.)

quiet energy-efficient small

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?

standardization economies of experience economies of scale