Exam 12: Global Strategy and the Multinational Corporation

The revealed comparative advantage of the US,Canada and Australia in cereals is a reflection of these countries' large natural endowments of land.

Comparative advantage refers to countries' relative efficiencies in producing different products

According to Porter's "national diamond" analysis,the competitive advantage of Swiss firms in watches,German firms in luxury cars,and Japanese firms in cameras is a result of:

In Ghemawat's "Aggregation,Adaptation,Arbitrage" framework,the potential for a multinational enterprise to exploit arbitrage benefits are likely to be greater in a capital-intensive industry than in a labor-intensive industry

With internationalization,the threat of new entry into domestic industries is increases because:

The theory of comparative advantage is concerned with:

The value chain for a product will tend to be dispersed across different countries when:

Internationalization often involves mergers and acquisitions; hence,it tends to reduce seller concentration within individual national markets.

Service industries such as commercial banking and hotels tend to be "multidomestic" in their pattern of internationalization.

Global industries are those where:

A common approach to reconciling the benefits of global scale with the need for national differentiation is to:

The Dutch-based electrical and consumer electronics multinational,Philips,has transferred the headquarters for several of its global business away from the Netherlands.In terms of Bartlett and Ghoshal's typology of multinational strategies,this represents a transition from:

Many retailers that have been outstandingly successful in their how markets have experienced much poorer performance when they have entered overseas markets.These include: Tesco,Marks& Spencer,Laura Ashley,and Body Shop in the UK); Best Buy,Sears,Macy's,and Wal-Mart in the US.This reflects:

The costs of national differentiation can be low if:

Internationalization tends to increase competition by increasing investment in new capacity and increasing the diversity of competitors within each national market.

Uber's distribution of ice cream in over 38 counties of the world on July 17,2014,exemplifies the following feature of international business:

Internationalization among New York-based law firms is the result of:

Traditionally,European-based multinational companies such as Unilever,Shell,and Philips have been highly centralized; Japanese multinationals such as Honda,Sony,and Hitachi have been highly decentralized.

In an international context,comparative advantage and competitive advantage are identical concepts.

The two primary drivers of change in business environment during the past half century are deregulation and internationalization.