MGMT 498

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

factor conditions

Which of the following best defines national competitive advantage?

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

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

cultural distance

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

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

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

take advantage of location economies take advantage of economies of scale

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

"programming of the mind"

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 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

True or false: The benefits of local responsiveness always outweigh the costs.

false

Before World War II, business strategy, implementation, and knowledge typically flowed ______.

from domestic headquarters to outposts abroad

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

tailor product offerings to fit local preferences and requirements

The decision framework that is based on the relative distance between home and a foreign target country is the ______.

CAGE distance framework

Which of the following statements about the CAGE distance framework is true?

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

Which of the following statements regarding factor conditions in Porter's diamond framework is true?

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

Which of the following have helped make globalization possible? (Check all that apply.)

Reductions in transportation costs Falling trade barriers Advances in telecommunications

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

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

During the first stage of globalization, business functions that took place abroad were limited to which of the following? (Check all that apply.)

distribution sales

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.)

energy-efficient small quiet

The oldest form of internationalization is ______, which involves producing goods in one country to sell in another country.

exporting

The benefits of competing on a global scale exist ______.

for an increasing number of firms

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

geographic distance economic distance cultural distance

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

global-standardization

Since expanding internationally, IKEA has shifted focus, concentrating on effectively managing a global supply chain in order to achieve economies of scale. This is reflective of a(n) ______ strategy.

global-standardization

In order for a company to be considered a multinational enterprise, it must operate ______.

in more than one country

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

IKEA offers the same products in every market. This indicates that IKEA has followed a(n) ______ strategy.

international

MNEs pursuing a multidomestic strategy hope that ______.

local consumers will perceive them to be a domestic company

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

low-cost inputs

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

A company that deploys resources and capabilities in the procurement, production, and distribution of goods and services in at least two countries is a ______.

multinational enterprise

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

If the economic value creation of international expansion is negative, a firm should ______.

not expand internationally

When multinationals draw on multiple innovation hubs that all have equal status, they pursue a ______.

polycentric innovation strategy

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 risks do companies face when expanding internationally? (Check all that apply.)

the liability of foreignness loss of intellectual property loss of reputation

Which of the following are reasons firms expand internationally? (Check all that apply.)

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

A(n) ______ strategy focuses on integration at the business level by attempting to reconcile product differentiations at low cost.

transnational

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

uncertainty avoidance

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

Walmart selling live animals for food preparation in China Ikea selling metal chopsticks in South Korea McDonald's selling teriyaki burgers in Japan

The 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, is known as ______.

globalization