Question 1

Which of the following refers to the negative impact of political decisions or events on a multinational's profitability?

Accepted Answer

A) Economic risk 
B) Local government risk 
C) Political risk 
D) Control risk 
A) Economic risk 
B) Local government risk 
C) Political risk 
D) Control risk

Question 2

You work for a small company that has an innovative low-cost production method for laser disks that allow it to produce at very low cost.A Belgian firm approaches your CEO and offers to export your disks to Belgium for a commission.The CEO asks you to write a report detailing the risks and potential benefits of this deal.What will you include in your report and why

Accepted Answer

Answers will vary bu

Question 3

A company that treats and fills overseas orders like domestic orders is an example of a

Accepted Answer

A) Indirect exporter. 
B) Export management company. 
C) Aggressive exporter. 
D) Passive exporter. 
A) Indirect exporter. 
B) Export management company. 
C) Aggressive exporter. 
D) Passive exporter.

Question 4

Having one set of products for North American countries and another set of products for Europe illustrates which strategy?

Accepted Answer

A) Multidomestic 
B) Regional 
C) Transnational 
D) Global 
A) Multidomestic 
B) Regional 
C) Transnational 
D) Global

Question 5

To deal with political risk,various private and government agencies offer

Accepted Answer

A) Insurance. 
B) Assurance. 
C) Investment. 
D) All of the above are true. 
A) Insurance. 
B) Assurance. 
C) Investment. 
D) All of the above are true.

Question 6

What is political risk? Discuss some of the aspects of political risk assessment.How can multinationals use political risk assessment?

Accepted Answer

Answers will vary but should reflect stu

Question 7

International franchising

Accepted Answer

A) Is a comprehensive licensing agreement where the franchisor grants to the franchisee the use of a whole business operation. 
B) When multinationals make a project fully operational and train local managers and workers before the owner takes control. 
C) The use of intermediaries or go-between firms to provide the knowledge and contacts necessary to sell overseas is. 
D) None of the above 
A) Is a comprehensive licensing agreement where the franchisor grants to the franchisee the use of a whole business operation. 
B) When multinationals make a project fully operational and train local managers and workers before the owner takes control. 
C) The use of intermediaries or go-between firms to provide the knowledge and contacts necessary to sell overseas is. 
D) None of the above

Question 8

A regional strategy refers to

Accepted Answer

A) Managing raw-material sourcing, production, marketing, and support activities within a particular region. 
B) Selling global products and using similar marketing techniques worldwide. 
C) Dispersing value-chain activities anywhere in the world where the company can do them best or cheapest. 
D) None of the above 
A) Managing raw-material sourcing, production, marketing, and support activities within a particular region. 
B) Selling global products and using similar marketing techniques worldwide. 
C) Dispersing value-chain activities anywhere in the world where the company can do them best or cheapest. 
D) None of the above

Question 9

Comparative advantage is

Accepted Answer

A) Similar to competitive advantage. 
B) A local responsiveness solution. 
C) Where the company can produce the cheapest. 
D) Advantages of nations over other nations. 
A) Similar to competitive advantage. 
B) A local responsiveness solution. 
C) Where the company can produce the cheapest. 
D) Advantages of nations over other nations.

Question 10

Globalization drivers

Accepted Answer

A) Fall into four categories: market, costs, governments, and competition. 
B) Are conditions in an industry that favor transnational or international strategies over multidomestic or regional strategies. 
C) Indicate the degree of globalization of an industry. 
D) All of the above 
A) Fall into four categories: market, costs, governments, and competition. 
B) Are conditions in an industry that favor transnational or international strategies over multidomestic or regional strategies. 
C) Indicate the degree of globalization of an industry. 
D) All of the above

Question 11

Which strategy attempts to balance advantages from three other multinational strategies?

Accepted Answer

A) Regional 
B) Multidomestic 
C) Transnational 
D) International 
A) Regional 
B) Multidomestic 
C) Transnational 
D) International

Question 12

Which of the following strategies gives top priority to seeking location advantages and to gaining operation efficiencies from worldwide operation?

Accepted Answer

A) Multidomestic strategy 
B) Regional strategy 
C) Transnational strategy 
D) International strategy 
A) Multidomestic strategy 
B) Regional strategy 
C) Transnational strategy 
D) International strategy

Question 13

Entry-mode strategies

Accepted Answer

A) Include multidomestic and transnational strategies. 
B) Are options multinationals have to enter foreign markets and countries. 
C) Are only processes by which firms fill overseas orders like domestic orders. 
D) None of the above 
A) Include multidomestic and transnational strategies. 
B) Are options multinationals have to enter foreign markets and countries. 
C) Are only processes by which firms fill overseas orders like domestic orders. 
D) None of the above

Question 14

A multidomestic company gives strategic priority to

Accepted Answer

A) Providing a low cost product to local customers. 
B) Adapting a product or service to local needs. 
C) Having multiple locations for sources its raw materials. 
D) Controlling the strategic options of local companies. 
A) Providing a low cost product to local customers. 
B) Adapting a product or service to local needs. 
C) Having multiple locations for sources its raw materials. 
D) Controlling the strategic options of local companies.

Question 15

When deciding on an entry-mode strategy,cultural distance is

Accepted Answer

A) The physical distance between two countries. 
B) Not the distance between an organization's culture and the local national culture. 
C) Similar to the geographic distance. 
D) None of the above 
A) The physical distance between two countries. 
B) Not the distance between an organization's culture and the local national culture. 
C) Similar to the geographic distance. 
D) None of the above

Question 16

Foreign direct investment

Accepted Answer

A) Exists when two or more firms have an ownership position in a separate company. 
B) Requires at least three separate companies to combine resources. 
C) Exists when two or more companies agree to cooperate in any value-chain activity. 
D) The above statements are all true for equity international joint ventures. 
A) Exists when two or more firms have an ownership position in a separate company. 
B) Requires at least three separate companies to combine resources. 
C) Exists when two or more companies agree to cooperate in any value-chain activity. 
D) The above statements are all true for equity international joint ventures.

Question 17

Contrast the transnational and international strategies in their approach to location advantages.

Accepted Answer

Answers will vary but should reflect stu

Question 18

As entry-mode strategies,direct and indirect exporting have

Accepted Answer

A) High levels of control and low levels of risk. 
B) Similar levels of risk and control as FDI. 
C) Low levels of risk and control. 
D) Are among the most risky. 
A) High levels of control and low levels of risk. 
B) Similar levels of risk and control as FDI. 
C) Low levels of risk and control. 
D) Are among the most risky.

Question 19

Foreign direct investment

Accepted Answer

A) Is an entry-mode strategy. 
B) Means that a multinational owns, in part or in whole, an operation in another country. 
C) Symbolizes the highest rate of internationalization. 
D) All of the above 
A) Is an entry-mode strategy. 
B) Means that a multinational owns, in part or in whole, an operation in another country. 
C) Symbolizes the highest rate of internationalization. 
D) All of the above

Question 20

Discuss the conditions when a transnational or international firm is likely to outcompete a multidomestic or regional strategist.Contrast this with the opposite situation where the multidomestic is most likely to be successful.

Accepted Answer

Answers will vary but should reflect stu

Which of the following refers to the negative impact of political decisions or events on a multinational's profitability?

A company that treats and fills overseas orders like domestic orders is an example of a

Having one set of products for North American countries and another set of products for Europe illustrates which strategy?

To deal with political risk,various private and government agencies offer

What is political risk? Discuss some of the aspects of political risk assessment.How can multinationals use political risk assessment?

International franchising

A regional strategy refers to

Comparative advantage is

Globalization drivers

Which strategy attempts to balance advantages from three other multinational strategies?

Which of the following strategies gives top priority to seeking location advantages and to gaining operation efficiencies from worldwide operation?

Entry-mode strategies

A multidomestic company gives strategic priority to

When deciding on an entry-mode strategy,cultural distance is

Foreign direct investment

Contrast the transnational and international strategies in their approach to location advantages.

As entry-mode strategies,direct and indirect exporting have

Foreign direct investment

Discuss the conditions when a transnational or international firm is likely to outcompete a multidomestic or regional strategist.Contrast this with the opposite situation where the multidomestic is most likely to be successful.

Multinational Management in a Changing World

Culture and Multinational Management

The Institutional Context of Multinational Management

Managing Ethical and Social Responsibility Challenges in Multinational Companies

Strategic Management in the Multinational Company: Content and Formulation

Small Businesses and International Entrepreneurship

Organizational Design for Multinational Companies

International Strategic Alliances: Management and Design

Multinational E-Commerce: Strategies and Structures

International Human Resource Management

Hrm in the Local Context: Knowing When and How to Adapt

International Negotiation and Cross-Cultural Communication

Motivation in Multinational Companies

Leadership and Management Behavior in Multinational Companies

Filters

Exam 6: Multinational and Entry-Mode Strategies: Content and Formulation

Which of the following refers to the negative impact of political decisions or events on a multinational's profitability?

A company that treats and fills overseas orders like domestic orders is an example of a

Having one set of products for North American countries and another set of products for Europe illustrates which strategy?

To deal with political risk,various private and government agencies offer

What is political risk? Discuss some of the aspects of political risk assessment.How can multinationals use political risk assessment?

International franchising

A regional strategy refers to

Comparative advantage is

Globalization drivers

Which strategy attempts to balance advantages from three other multinational strategies?

Which of the following strategies gives top priority to seeking location advantages and to gaining operation efficiencies from worldwide operation?

Entry-mode strategies

A multidomestic company gives strategic priority to

When deciding on an entry-mode strategy,cultural distance is

Foreign direct investment

Contrast the transnational and international strategies in their approach to location advantages.

As entry-mode strategies,direct and indirect exporting have

Foreign direct investment

Discuss the conditions when a transnational or international firm is likely to outcompete a multidomestic or regional strategist.Contrast this with the opposite situation where the multidomestic is most likely to be successful.

Multinational Management in a Changing World

Culture and Multinational Management

The Institutional Context of Multinational Management

Managing Ethical and Social Responsibility Challenges in Multinational Companies

Strategic Management in the Multinational Company: Content and Formulation

Small Businesses and International Entrepreneurship

Organizational Design for Multinational Companies

International Strategic Alliances: Management and Design

Multinational E-Commerce: Strategies and Structures

International Human Resource Management

Hrm in the Local Context: Knowing When and How to Adapt

International Negotiation and Cross-Cultural Communication

Motivation in Multinational Companies

Leadership and Management Behavior in Multinational Companies

Filters