Exam 8: Understanding Emerging Markets

How are large MNEs from advanced economies competing against new emerging market MNEs? In a short essay, describe the methods used by the incumbents to protect market share from emergent firms.

Free

(Essay)

4.8/5

(36)

Question 1

Correct Answer:

Verified

Advanced-economy firms can counter in various ways. Initially, managers must conduct research to develop an understanding of the new challengers. It is vital to analyze the advantages and strategies of the emergent firms, which often enjoy superior advantages in the industry in the target market. The next step is to acquire new capabilities that improve the firm's competitive advantages. For example, many incumbents are boosting their R&D to invent new, superior products. Others are partnering with competitors to pool resources against emerging market rivals. Incumbent firms can also match global challengers at their own game by leveraging low-cost labor and skilled workers in locations such as China, Mexico, and Eastern Europe. Many advanced economy firms partner with family conglomerates and others in emerging markets on critical value-chain activities such as R&D, manufacturing, and technical support.

In emerging markets, MNEs must set prices appropriate for local conditions because ________.

Free

(Multiple Choice)

4.9/5

(35)

Question 2

Correct Answer:

Verified

Maximus Motor Company (Scenario) Maximus Motor Company is a British automobile manufacturer that builds high-end luxury cars for sale around the world. Maximus managers recognize they are missing opportunities in emerging markets, such as India, which have an increasing number of middle-class people ready to purchase affordable cars. Competitors that entered the Indian market experienced significant profits over the last two years. Maximus managers have been assigned the task of determining the best strategy for Maximus to do business in India. -The strategies that MNEs developed decades ago and refined in mature advanced-economy markets are considered most suitable for achieving success in emerging markets.

Free

(True/False)

4.8/5

(27)

Question 3

Correct Answer:

Verified

False

For foreign firms wanting to do business in emerging markets, family conglomerates can make valuable venture partners.

(True/False)

5.0/5

(43)

Question 4

An economy is categorized as advanced, developing, or emerging based on degree of economic development and per-capita income.

(True/False)

5.0/5

(32)

Question 5

Increasingly, mainstream banks view microfinance as a source of future growth.

(True/False)

4.8/5

(29)

Question 6

Developing countries lack numerous conditions needed for successful economic development, including low trade barriers and substantial international trade and investment.

(True/False)

4.9/5

(38)

Question 7

Which of the following is an example of global sourcing?

(Multiple Choice)

4.7/5

(31)

Question 8

Class Reports (Scenario) Prof. Jacob Middleton has divided students in his international business class into three groups. Each group has been assigned the task of presenting an overview of a major country group and outlining its distinguishing characteristics. Group 1 will discuss advanced economies, Group 2 will address the characteristics of developing economies, and Group 3 will focus on emerging markets. -Which of the following refers to a distinctive trait of the type of economy discussed by Group 2?

(Multiple Choice)

4.9/5

(33)

Question 9

Samsung is an example of a family conglomerate based in South Korea.

(True/False)

4.8/5

(36)

Question 10

In emerging markets, the size and growth rate of conglomerates serve as signals of a dynamic market economy.

(True/False)

4.8/5

(34)

Question 11

Foreign firms should seek alliances with well-qualified local companies in countries characterized by inadequate legal and political frameworks because ________.

(Multiple Choice)

4.8/5

(33)

Question 12

Privatization and the promotion of new, privately owned businesses have allowed the transition economies to attract substantial direct investment from abroad.

(True/False)

4.7/5

(33)

Question 13

________ are low-income countries characterized by limited industrialization and stagnant economies.

(Multiple Choice)

4.7/5

(33)

Question 14

Governments and state enterprises in emerging markets are major targets for sales of infrastructure-related products and services.

(True/False)

4.8/5

(37)

Question 15

Vytel Communications (Scenario) Vytel Communications is a U.S.-based telecommunications company that is considering doing business in Argentina. Vytel managers hire a consulting firm to investigate the risks and benefits related to doing business in Argentina. The consulting firm identifies a number of challenges that might prohibit Vytel from entering Argentina. In addition, the consultants conduct surveys that indicate a demand for Vytel's products and services. -Which of the following most likely supports the consulting firm's recommendation that Vytel proceed with plans to do business in Argentina?

(Multiple Choice)

4.8/5

(30)

Question 16

________ make up the largest group of countries and include Bangladesh, Nicaragua, and Zaire.

(Multiple Choice)

4.9/5

(36)

Question 17

Which of the following is characteristic of family conglomerates?

(Multiple Choice)

4.8/5

(35)

Question 18

Demographic trends indicate that, in the coming two decades, the proportion of middle-class households in emerging markets will become much larger.

(True/False)

4.9/5

(36)

Question 19

Which of the following emerging market economies has the highest median household income?

(Multiple Choice)

4.8/5

(35)

Question 20

Showing 1 - 20 of 97

How are large MNEs from advanced economies competing against new emerging market MNEs? In a short essay, describe the methods used by the incumbents to protect market share from emergent firms.

In emerging markets, MNEs must set prices appropriate for local conditions because ________.

For foreign firms wanting to do business in emerging markets, family conglomerates can make valuable venture partners.

An economy is categorized as advanced, developing, or emerging based on degree of economic development and per-capita income.

Increasingly, mainstream banks view microfinance as a source of future growth.

Developing countries lack numerous conditions needed for successful economic development, including low trade barriers and substantial international trade and investment.

Which of the following is an example of global sourcing?

Samsung is an example of a family conglomerate based in South Korea.

In emerging markets, the size and growth rate of conglomerates serve as signals of a dynamic market economy.

Foreign firms should seek alliances with well-qualified local companies in countries characterized by inadequate legal and political frameworks because ________.

Privatization and the promotion of new, privately owned businesses have allowed the transition economies to attract substantial direct investment from abroad.

________ are low-income countries characterized by limited industrialization and stagnant economies.

Governments and state enterprises in emerging markets are major targets for sales of infrastructure-related products and services.

________ make up the largest group of countries and include Bangladesh, Nicaragua, and Zaire.

Which of the following is characteristic of family conglomerates?

Demographic trends indicate that, in the coming two decades, the proportion of middle-class households in emerging markets will become much larger.

Which of the following emerging market economies has the highest median household income?

Introduction: What Is International Business

Globalization of Markets and the Internationalization of the Firm

The Cultural Environment of International Business

Ethics, Corporate Social Responsibility, Sustainability and Corporate Governance in International Business

Theories of International Trade and Investment

Political and Legal Systems in National Environments

Government Intervention and Regional Economic Integration

The International Monetary and Financial Environment

Financial Management and Accounting in the Global Firm

Strategy and Organization in the International Firm

Global Market Opportunity Assessment

Exporting and Global Sourcing

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Marketing in the Global Firm

Human Resource Management in the Global Firm

Filters