MAN4720 CH10 Connect Questions

Though natural resources can be a boon to a country's economy, more important than resources are a country's _________ frameworks.

Institutional

Firms located in regional clusters benefit from:

Knowledge spill over

Which of the following helped motivate globalization after the end of World War II?

The need to reconstruct economies damaged by war, unfilled needs during the war years

National culture, according to Geert Hofstede, can be defined as different groups' distinctive ______ a. racial makeup b. explicitly understood rules of the game c. cultural, political, geographical, and religious traits d. programming of the mind

"programming of the mind."

A global strategy is needed in order to ________________. a. achieve a comp. adv. against other companies b. reinforce political and religious views c. employ more people d. discourage foreign direct investment

Achieve a competitive advantage against other companies

When a MNE doesn't face strong pressure for cost reductions or local responsiveness, an international strategy is typically __________________. a. doomed to fail b. advantageous c. dangerous d. transnational

Advantageous

As MNEs compete internationally, a focus on local responsiveness allows them to do which of the following?

Appeal to local consumers more effectively, increase product differentiation

When firms from wealthy countries trade with the firms from poor countries, they benefit from economic ____________

Arbitrage

Which of the following comprise culture?

Beliefs, social norms, social mores

MNEs pursuing a ____________ ocean strategy tend to also purse a transnational strategy.

Blue

Firms can achieve increase competitive advantage as a result of ___________, which are firms that produce a good or service that increases the perceived value of a focal firm's offering when the two are combined.

Complementors

Which of the following put opposing pressures on the integration-national responsiveness framework?

Cost reductions, local responsiveness

Which of the following dimensions are considered in the CAGE framework?

Cultural Distance, Economic Distance, Geographic Distance

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?

Energy-efficient, small, quiet

The oldest form of internationalization is ___ which involved producing goods in one country to sell in another country a. exporting b. importing c. franchising d. licensing

Exporting

Which of the following are distinct features of globalization 3.0?

Firms create global networks of local expertise, technology has helped to reduce communication distances, MNEs reorganize into a more seamless global enterprise

As the standard of living rises in emerging economies, MNEs are hoping that _________________ a. increased purchasing power will enable workers to purchase the products they used to make for exports only b. more people will like them and have the means to become shareholders c. governments will offer more local tax advantage to MNEs so that they can pay higher salaries to poor employees d. more companies engage in strategic actions to compete globally

Increased purchasing power will enable workers to purchase the products they used to make for exports only

When pursuing an international strategy, a company ______ a. sells the same product in both domestic and foreign markets b. doesnt sell domestically anymore c. sells only low cost options of their core product in foreign markets d. sells very locally customized products in each market

Sells the same product in both domestic and foreign markets

Which of the following help shrink the administrative and political distance between countries?

Shared currency, a history of colonization, trade agreements

Leading biotechnology, software, and internet companies and leading computer manufactures are concentrated in which of the following countries or states?

USA, Taiwan, China

At a basic level, the concept of "liability of foreignness" refers to the additional a. revenues of doing business in an unfamiliar cultural and economic environment b. cost of hiring foreigners c. cost of traveling to foreign destinations d. cost of doing business in an unfamiliar cultural and economic environment

cost of doing business in an unfamiliar cultural and economic environment

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

cultural distance

The benefits of competing on a global scale exist:

for an increasing number of firms

Multinational enterprises that manufacture commodity products that focus on cost leadership tend to use a ___ strategy a. global standardization b. international c. mass customization d. local responsiveness

global standardization

During flobalization 1.0 all important business functions were located in the home country, where during 2.0 multinationals began to copy themselves a. in a few key countries b. in all other countries c. only in some Euro countries d. only in some asian countries

in a few key countries

Companies seek to access international markets as means of a. participating in a uniform market b. increasing their economic value creation c. developing transnationalism and ethnocentrism d. avoiding competition

increasing their economic value creation

Due to globalization, the worlds market economies are becoming more ___ a. integrated and interdependent b. advanced and independant c. export-led and undeveloped d. standardized and universal

integrated and interdependent

Which of the following best defines national competitive advantage? a. Involves leveraging home based core competencies by offering the same goods in local and international markets b. its the extent to which a country can compete in international markets c. refers to the efforts companies put into meeting local consumer preferences d. the degree to which global consumer needs are becoming more and more homogeneous

its the extent to which a country can compete in international markets

A benefit of an international strategy is ____

leveraging core competences

When a company has difficulty coordinating operations across geographic distance and between distinct culture environments, it experiences a. incompatibility of cultural exchange b. liability of foreignness c. loss of intellectual property d. loss of reputation

liability of foreignness

Through low cost raw materials were important in promoting the first two stages of globalization, Globalization 3.0 has been motivated largely by firms desire to access a. english speaking customers b. lower labor costs c. increased manufacturing capabilities d. customer service improvements

lower labor costs

In ___ societies, values like competitiveness, assertiveness, and exercise of power are considered ideal a. collective b. individualistic c. feminine d. masculine

masculine

When multinationals draw on multiple innovation hubs that all have equal status, they pursue a a. polycentric innovation strategy b. multi-ethnic growth policy c. domestic expansion project d. location economy

polycentric innovation strategy

In a global standardization strategy, the main competitive element is ___ a. leveraging core competencies b. reduced cost c. product differentiation d. local responsiveness

reduced cost

When pursuing an international strategy, a company _____

sells the same product in both domestic and foreign markets

A company should only expand abroad if _____

the benefits outweigh the costs

Which of the following are examples of local responsiveness?

the sale of toads for preparation in China, the sale of mutton burgers in India, the sale of metal chopsticks in South Korea

Which of the following are reasons forms expand internationally?

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

The integration-responsiveness framework suggests that companies facing high pressure for both local responsiveness and a cost reduction should follow a _______ strategy.

transnational

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

National

In order for a company to be considered a multinational enterprise, it must operate _____ a. exclusively in the country where it was founded b. with franchise locations in multiple countries c. in every country d. in more than one country

In more than one country

During the first stage of globalization, which of the following business functions typically took place abroad?

Sales, distribution

The ____ dimension of national culture focuses on how a society deals with inequality among people a. individualism b. femininity c. masculinity d. power distance

power distance

Foreign direct investments are investments in a. reducing overhead in foreign countries b. undermining competition abroad c. value chain activities abroad

value chain activities abroad

What are the four quadrants of the integration-responsiveness framework?

International strategy, Transnational strategy, Multi-domestic strategy, Global standardization strategy

Which of the following have helped make globalization possible?

Reduced investment barriers, reductions in transportation costs, advances in telecommunications

Which three of the following conditions suggest a multi-domestic strategy might be the appropriate strategy for MNEs?

Little need for cost reductions, host countries with idiosyncratic domestic markets, high demand for local responsiveness

In the global economy, according to Porter, competitive advantages increasingly exist in ___________ knowledge, relationships, and motivation.

Local

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

Local consumers will perceive them to be a domestic company

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

Which of the following factors often combine to lead to tragic outcomes for workers?

MNEs search for low-cost labor, government corruption, failure to enforce safety standards

When a company wants to be more responsive to local consumers in multiple countries, it will likely shift to a ________ a. non global b. single payer strategy c. global standardization strategy d. multidomestic strategy

Multi-domestic strategy

Which of the following are common reasons for companies to make foreign direct investments?

Reduced tax burdens, reduced labor costs, avoiding import restrictions

One notable advantage of a multi-domestic strategy is the ______ a. higher compensation b. economies of scale c. higher exchange rate exposure d. lower exchange rate exposure

lower exchange rate exposure

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

the greater the liability of foreignness

In order to implement a transnational strategy, MNEs typically adopt a global ________________ structure.

Matrix

Rising wages and other costs are likely to negate any benefits MNEs have of access to ___ a. well educated workers b. low cost outputs c. high cost inputs d. low cost inputs

low cost inputs