Chapter 10

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

It is characterized by limited local responsiveness

Which of the following is a feature of a multinational company pursuing a global-standardization strategy?

Its business-level strategy tends to be cost-leadership

A trend observed during the Globalization 3.0 stage involves

Multinational companies organizing as global-collaboration networks

After testing its products in foreign markets by pursuing an international strategy, GR Foods Inc. wants to expand by pursuing a multidomestic strategy. How will this most likely affect the company?

The company's exposure to exchange rate fluctuations will reduce

Which of the following is a drawback of pursuing a multidomestic strategy?

The strategy is costly and inefficient because it requires the duplication of key business functions across several countries

How will an increase in coordinated economic and political integration between countries affect the world economy?

There will be gains in social welfare and living standards across the globe

Which of the following is a drawback faced by multinational enterprises (MNEs) pursuing an international strategy?

They are highly affected by exchange rate fluctuations.

Which of the following is the most likely advantage of using foreign acquisitions or greenfield plants as a foreign entry mode?

They reduce a firm's exposure to loss of reputation.

Which of the following statements is true with regard to international trade between countries?

Wealthy countries engage in relatively more cross-border trade than poorer ones

Which of the following has been a key driver for firms to expand globally during the Globalization 3.0 stage?

benefits from lower labor costs in manufacturing and services

When two neighboring, democratic countries that are part of a trading bloc follow different religions and social norms, they most likely have high ______ distance

cultural

A firm following a multidomestic strategy

faces a greater risk of intellectual property (IP) appropriation

A firm is said to be pursuing a polycentric innovation strategy when

it draws from multiple, equally important research facilities located throughout the world

Global Frontier Inc. wants to expand into the international market. It does not want to spend a very large amount of money for this process. However, Global Frontier wants to maintain some control in the foreign market. Which of the following would be the best entry mode for this firm?

joint ventures

(n) _____ strategy arises out of the combination of high pressure for local responsiveness and high pressure for cost reductions.

transnational