Exam 7: Internationalization and Globalization Processes

As firms build foreign presences, they acquire economies of scope in building foreign market expertise and extending it across national boundaries

Global leaders are part born, part made

In financing a foreign subsidiary, an international firm borrows money from local banks or financial institutions. This financing approach works well when:

All of the following are global leadership characteristics except:

Global leaders are born, not made

Worldwide product structures facilitate product and technology flows among markets

When companies accumulate much expertise in knowledge or technology-intensive and need to leverage this expertise globally to maintain it, this is an example of what type of cost driver:

International departments and worldwide functional structures tend to be used when firms have few markets and products

Ethnocentric corporate cultures emphasize home-market orientations in strategic decision-making and corporate attitudes

When a company takes its home market corporate culture abroad and then adapts certain aspects of it to local national cultures, this is an example of:

Firms in knowledge and technology-intensive industries often globalize to leverage their expertise into international markets-these are scale economy drivers

In arranging international finance for new operations, internal financing through corporate funds allows international firms to adjust interest rates and payback conditions according to local market conditions

A company's resources are allocated without preference towards any particular country, its new products have global focuses, and its senior managers come from many different nations. Its corporate culture is:

Societies characterized by low uncertainty avoidance tend to make decisions slowly

Information and internet technologies have enhanced corporate communications internally but have done little to link companies to outside parties and institutions

Globalization is measured just by the proportion of international sales to total sales

A large firm pushing hard into the international marketplace decides to reassess its distributor network, its suppliers and its configuration of manufacturing plants. The firm is:

Individualism-collectivist orientations have few effects on corporate decision-making and lines of communication

Globalization is the process by which firms leverage their resources and capabilities across borders and coordinate their marketing and manufacturing strategies

A group of Western European firms join together in a series of alliances and acquisitions to counter the effects of global competitors. These are the effects of globalization on: