6650 chapter 10 quiz
Swiss-based Nestlé, the largest food company in the world is well known for customizing its product offerings to suit local preferences, tastes, and requirements. Which of the following strategies does the company pursue? A global-standardization strategy A cost-reduction strategy A multidomestic strategy A one-product multiple markets strategy
A multidomestic strategy
Which of the following foreign entry modes requires the highest level of investment in terms of capital and other resources and allows for a high level of control? Acquisitions Franchising Joint ventures Exporting
Acquisitions
_____ is best described a process of closer integration and exchange between different countries and peoples worldwide, made possible by falling trade and investment barriers, advances in telecommunications, and reductions in transportation costs. Globalization Nationalism Privatization Traditionalism
Globalization
Which of the following statements is true of local responsiveness? It helps reinforce a cost-leadership strategy at the business level. It forms the basis for the globalization hypothesis. It reduces the differentiation of products and services It generally entails higher costs.
It generally entails higher costs.
_____ is best described as the additional costs of doing business in an unfamiliar cultural and economic environment, and of coordinating across geographic distances. Liability of foreignness Opportunity cost Social cost Economic embargo
Liability of foreignness
Which of the following is an advantage of using licensing or franchising as a foreign entry mode? Licensing or franchising reduces a firm's exposure to loss of reputation. Licensing or franchising allows for high levels of control. Licensing or franchising reduces a firm's exposure to loss of intellectual property. Licensing or franchising requires low capital investments.
Licensing or franchising requires low capital investments.
Which of the following factors best helps capture administrative and political distances? The absence or presence of weak legal and financial institutions The wealth and per capita income of consumers The physical size and topography of a country The linguistic and religious differences between two countries
The absence or presence of weak legal and financial institutions
Which of the following is a feature of Logitech as a global collaboration network? The company has been able to organize work continuously because its teams in different locations around the globe can work 24/7. The company has been unable to keep its costs low because of its centers of expertise that are spread across the globe. The company has been able keep its knowledge flow one-way, from its domestic headquarters to international outposts. The company has been able to operate as a multinational company with self-contained operations in a few key countries.
The company has been able to organize work continuously because its teams in different locations around the globe can work 24/7.
Which of the following reasons primarily attracted General Motors (GM) to expand internationally into the Chinese market? The anti-capitalists government regulations in the U.S. The tremendous growth in China's domestic auto market The easy access to China's superior automotive technology The reducing purchasing power in the U.S.
The tremendous growth in China's domestic auto market
The strategic foundations of the globalization hypothesis are based primarily on _____. superior customer service product differentiation local responsiveness cost reduction
cost reduction
According to Porter's diamond of national competitive advantage, factor conditions are best described as a country's: ethnographic conditions and trends that affect its growth and development. level of political and economic integration with other countries. endowments in terms of natural, human, and other resources. cultural and social environment that influence its economic health.
endowments in terms of natural, human, and other resources.
CuppaCuppa Inc. is a company that owns coffee plantations in Brazil. The company trades its coffee produce directly with coffee merchants in foreign markets who later resell and distribute it throughout their country. In this scenario, CuppaCuppa Inc.'s activities best illustrate _____. exporting a greenfield operation a strategic alliance importing
exporting
Bric Autos Inc., a Campora-based automobile company, made a capital investment of $300,000 to set up production units and distribution channels in the country of Bryon from where it plans to access the Bryonian market. Such investments are best known as _____. foreign exchange corporate leveraged buyouts corporate venture capital investments foreign direct investments
foreign direct investments
Zenovo Inc. is an electronics company based in the country of Linx. Zenovo has manufacturing facilities in four other countries where labor costs are low. It also has its research centers in three other countries, because these countries offer best-of-class capabilities. However, Zenovo does not offer much product differentiation because of which price is the main competitive weapon. In this scenario, Zenovo Inc. most likely implements a _____. multidomestic strategy global-standardization strategy global matrix strategy transnational strategy
global-standardization strategy
Companies from wealthy countries tend to trade with other rich countries rather than poor countries because they can: take advantage of the price differences between the two markets. increase the per capita income of consumers in the poor countries. benefit from economic arbitrage. replicate their existing business model more easily.
replicate their existing business model more easily.
According to the CAGE distance framework, cultural distance most affects industries or products: with low value-to-weight ratio. that a foreign government views as vital to national security. for which demand varies by income. that are related to national and/or religious identity.
that are related to national and/or religious identity.
CoralReef Products Inc. is a 100-year-old, multinational enterprise (MNE). Which of the following activities would the company most likely have been involved in during the stage of globalization 2.0? The company would have ventured into foreign markets essentially by exporting goods. The company would have organized itself as a global collaboration network with the help of Internet technologies. The company would have restricted all its business activities to its home country. The company would have increased its local responsiveness to country-specific circumstances by duplicating business functions
The company would have increased its local responsiveness to country-specific circumstances by duplicating business functions
According to the CAGE distance framework, what does cultural distance represent? The cultural disparity between an internationally expanding firm's home country and its targeted host country The geographical distance between two countries that have similar national cultures The cultural disparity between the employees of two companies in a joint venture The difference between a firm's organizational culture and its competitor's organizational culture
The cultural disparity between an internationally expanding firm's home country and its targeted host country
XPro Inc. is a luxury condominium-building company that is based in the country of Benom. It sells highly priced homes to consumers in Benom as well as to consumers in other countries. It has extremely high brand loyalty. The industry it operates in is characterized by low pressure for local responsiveness and low pressure for cost reductions. In this scenario, XPro Inc. most likely pursues a(n) _____. transnational strategy multidomestic strategy localization strategy international strategy
international strategy
In his research, Geert Hofstede defined and measured _____ as the collective mental and emotional "programming of the mind" that differentiates human groups. national culture political orientation locus of control self-efficacy
national culture