Question 1

Which of the following best describes an international company's asset and capability configuration?

Accepted Answer

A)  assets and capabilities are decentralized and nationally self-sufficient. 
B)  assets and capabilities are centralized and globally scaled. 
C)  assets and capabilities are dispersed, interdependent and specialized. 
D)  sources of core competences are centralized, while other assets and capabilities are decentralized. 
A)  assets and capabilities are decentralized and nationally self-sufficient. 
B)  assets and capabilities are centralized and globally scaled. 
C)  assets and capabilities are dispersed, interdependent and specialized. 
D)  sources of core competences are centralized, while other assets and capabilities are decentralized. D

Question 2

Explain why some firms adopt a transnational strategy, while others adopt a multinational strategy?

Accepted Answer

A multinational strategy focuses on leveraging national differences to pursue the company's strategic objectives. As such, scale and scope economies are not fully exploited. This strategic approach involves positioning the subsidiary to be autonomous and self-sufficient so that the subsidiary can respond flexibly to local environments. However, this approach often leads to inefficiencies and the failure to leverage the knowledge and competencies of other national units. Conversely, a transnational strategy involves leveraging national differences, as well as pursuing scale and scope economies, and leasing, in order to achieve the firm's strategic objectives.

Question 3

Which of the following best describes a global company's asset and capability configuration?

Accepted Answer

A)  assets and capabilities are centralized and globally scaled. 
B)  core competences are centralized, while other assets and capabilities are decentralized. 
C)  assets and capabilities are dispersed, interdependent and specialized. 
D)  assets and capabilities are decentralized and nationally self-sufficient. 
A)  assets and capabilities are centralized and globally scaled. 
B)  core competences are centralized, while other assets and capabilities are decentralized. 
C)  assets and capabilities are dispersed, interdependent and specialized. 
D)  assets and capabilities are decentralized and nationally self-sufficient. A

Question 4

How will global trends such as the increase in labor costs in some emerging markets (e.g. China) impact national differences in the future and companies' decisions to exploit them?

Accepted Answer

A)  Companies should consider both the current state of cost differences and the future state based on these trends, before they make a sound long-term commitment. 
B)  Some decisions may be economically viable based on the current differences but not as much attractive in the future. 
C)  An economically viable decision is time-independent. 
D)  Options a and b are both correct. 
A)  Companies should consider both the current state of cost differences and the future state based on these trends, before they make a sound long-term commitment. 
B)  Some decisions may be economically viable based on the current differences but not as much attractive in the future. 
C)  An economically viable decision is time-independent. 
D)  Options a and b are both correct.

Question 5

Which of the following describes the strategic orientation of a multinational company?

Accepted Answer

A)  focused on developing global efficiency, flexibility and worldwide learning capability simultaneously. 
B)  focused on exploiting parent company knowledge and capabilities through worldwide diffusion and adaptation. 
C)  focused on building cost advantages through centralized, global scale operations. 
D)  focused on building flexibility to respond to national differences through strong, resourceful and entrepreneurial national operations. 
A)  focused on developing global efficiency, flexibility and worldwide learning capability simultaneously. 
B)  focused on exploiting parent company knowledge and capabilities through worldwide diffusion and adaptation. 
C)  focused on building cost advantages through centralized, global scale operations. 
D)  focused on building flexibility to respond to national differences through strong, resourceful and entrepreneurial national operations.

Question 6

Describe different types of volatility in the global environment that force the MNE to adjust its strategies.

Accepted Answer

Macroeconomic risks such as changes in p

Question 7

In order to secure worldwide competitive advantage, a multinational firm should pursue all of the following objectives, except:

Accepted Answer

A)  the development of global-scale efficiencies. 
B)  the development of multinational flexibility. 
C)  the ability to develop innovation. 
D)  maximizing market share in all subsidiaries simultaneously. 
A)  the development of global-scale efficiencies. 
B)  the development of multinational flexibility. 
C)  the ability to develop innovation. 
D)  maximizing market share in all subsidiaries simultaneously.

Question 8

Having a city-specific strategy is always a better choice than country-specific strategy in emerging markets.

Accepted Answer

A) True 
 B)False

Question 9

As the CEO of an India based company, how will the rise of the middle class in India help you expand the business?

Accepted Answer

One can start by considering middle clas

Question 10

On his way to a meeting with a colleague, Mike Thornville, CEO of Ajaxiss Co., was debating how to explain the importance of national differences in both input and output markets to Ajaxiss and the need to exploit these differences. If you were Mike, how would you approach this conversation?

Accepted Answer

In the absence of efficient markets, dif

Question 11

Which of the following best describes a transnational company's asset and capability configuration?

Accepted Answer

A)  assets and capabilities are centralized and globally scaled. 
B)  core competences are centralized, while other assets and capabilities are decentralized. 
C)  assets and capabilities are dispersed, interdependent and specialized. 
D)  assets and capabilities are decentralized and nationally self-sufficient. 
A)  assets and capabilities are centralized and globally scaled. 
B)  core competences are centralized, while other assets and capabilities are decentralized. 
C)  assets and capabilities are dispersed, interdependent and specialized. 
D)  assets and capabilities are decentralized and nationally self-sufficient.

Question 12

Which of the following is not a source of environmental volatility?

Accepted Answer

A)  macroeconomic risks. 
B)  risk ratings attributed to the MNE. 
C)  political risks. 
D)  resource risks. 
A)  macroeconomic risks. 
B)  risk ratings attributed to the MNE. 
C)  political risks. 
D)  resource risks.

Question 13

According to an article in McKinsey Quarterly on June 2012 , about 40 percent of the growth of the global economy over the next 15 years will be generated in 400 midsized emerging-market cities. What are implications of this statement for MNEs in advanced and emerging economies?

Accepted Answer

The statement implies the increasing imp

Question 14

At the annual meeting of the board of directors of LabZaws Co., James Wilson, the CEO of the company, was directed to focus primarily on enhancing the firm's efficiency. How could he achieve this objective?

Accepted Answer

A)  focus on cost reduction alone. 
B)  focus on revenue enhancement alone. 
C)  focus on both cost reduction and revenue enhancement. 
D)  downsize and outsource many of the firm's activities. 
A)  focus on cost reduction alone. 
B)  focus on revenue enhancement alone. 
C)  focus on both cost reduction and revenue enhancement. 
D)  downsize and outsource many of the firm's activities.

Question 15

Cost reductions due to scale-economies are static and constant over time and few dynamic benefits are associated with scale economies.

Accepted Answer

A) True 
 B)False

Question 16

Since efficiency, flexibility and learning are conflicting goals, a transnational company should focus on only one of these goals and try to exploit it through the three sources of worldwide competitive advantage - national differences in both input and output markets, scale economies and scope economies.

Accepted Answer

A) True 
 B)False

Question 17

MNEs can maximize each of the following objectives independently: global scale efficiency, multinational flexibility and innovation development.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following strategies can be employed to enhance the efficiency of an MNE?

Accepted Answer

A)  pursue scale and scope economies. 
B)  pursue scope economies alone. 
C)  benefit from inter-country differences in factor costs. 
D)  pursue both scale and scope economies, as well as benefit from inter-country differences in factor costs. 
A)  pursue scale and scope economies. 
B)  pursue scope economies alone. 
C)  benefit from inter-country differences in factor costs. 
D)  pursue both scale and scope economies, as well as benefit from inter-country differences in factor costs.

Question 19

Lindux Co., intends to enhance its competitive advantage by exploiting the national differences that prevail in the countries that host its subsidiaries. Which of the following is consistent with this intention?

Accepted Answer

A)  moving the manufacture of labor-intensive components to Vietnam in order to capitalize on the lower cost labor found in Vietnam. 
B)  hiring local managers for its foreign subsidiaries rather than employing expatriates. 
C)  centralizing the company's R&D activities in the home country for reasons of strategic security. 
D)  using a common distribution channel for multiple products. 
A)  moving the manufacture of labor-intensive components to Vietnam in order to capitalize on the lower cost labor found in Vietnam. 
B)  hiring local managers for its foreign subsidiaries rather than employing expatriates. 
C)  centralizing the company's R&D activities in the home country for reasons of strategic security. 
D)  using a common distribution channel for multiple products.

Question 20

The CEO of Informatix Co., suggested to the board of directors that if the firm was going to adopt a transnational strategy, rather than having treasury operations situated in the headquarters, the company should relocate this operation to London in order to enhance access to financial markets. Consequently, the treasury operations would still be centralized, but situated in a different location. Flexible specialization, or excentralization, is an important attribute of firms that adopt a transnational strategy.

Accepted Answer

A) True 
 B)False

Which of the following best describes an international company's asset and capability configuration?

Explain why some firms adopt a transnational strategy, while others adopt a multinational strategy?

Which of the following best describes a global company's asset and capability configuration?

How will global trends such as the increase in labor costs in some emerging markets (e.g. China) impact national differences in the future and companies' decisions to exploit them?

Which of the following describes the strategic orientation of a multinational company?

Describe different types of volatility in the global environment that force the MNE to adjust its strategies.

In order to secure worldwide competitive advantage, a multinational firm should pursue all of the following objectives, except:

Having a city-specific strategy is always a better choice than country-specific strategy in emerging markets.

As the CEO of an India based company, how will the rise of the middle class in India help you expand the business?

On his way to a meeting with a colleague, Mike Thornville, CEO of Ajaxiss Co., was debating how to explain the importance of national differences in both input and output markets to Ajaxiss and the need to exploit these differences. If you were Mike, how would you approach this conversation?

Which of the following best describes a transnational company's asset and capability configuration?

Which of the following is not a source of environmental volatility?

According to an article in McKinsey Quarterly on June 2012 , about 40 percent of the growth of the global economy over the next 15 years will be generated in 400 midsized emerging-market cities. What are implications of this statement for MNEs in advanced and emerging economies?

At the annual meeting of the board of directors of LabZaws Co., James Wilson, the CEO of the company, was directed to focus primarily on enhancing the firm's efficiency. How could he achieve this objective?

Cost reductions due to scale-economies are static and constant over time and few dynamic benefits are associated with scale economies.

MNEs can maximize each of the following objectives independently: global scale efficiency, multinational flexibility and innovation development.

Which of the following strategies can be employed to enhance the efficiency of an MNE?

Lindux Co., intends to enhance its competitive advantage by exploiting the national differences that prevail in the countries that host its subsidiaries. Which of the following is consistent with this intention?

Expanding Abroad: Motivations, Means, and Mentalities

Understanding the International Context: Responding to Conflicting Environmental Forces

Developing a Transnational Organization: Managing Integration, Responsiveness, and Flexibility

Creating Worldwide Innovation and Learning: Exploiting Cross Border Knowledge Management

Engaging in Cross-Border Collaboration: Managing across Corporate Boundaries

Implementing the Strategy: Building Multidimensional Capabilities

The Future of the Transnational: An Evolving Global Role

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Exam 3: Developing Transnational Strategies: Building Layers of Competitive Advantage

Which of the following best describes an international company's asset and capability configuration?

Explain why some firms adopt a transnational strategy, while others adopt a multinational strategy?

Which of the following best describes a global company's asset and capability configuration?

How will global trends such as the increase in labor costs in some emerging markets (e.g. China) impact national differences in the future and companies' decisions to exploit them?

Which of the following describes the strategic orientation of a multinational company?

Describe different types of volatility in the global environment that force the MNE to adjust its strategies.

In order to secure worldwide competitive advantage, a multinational firm should pursue all of the following objectives, except:

Having a city-specific strategy is always a better choice than country-specific strategy in emerging markets.

As the CEO of an India based company, how will the rise of the middle class in India help you expand the business?

On his way to a meeting with a colleague, Mike Thornville, CEO of Ajaxiss Co., was debating how to explain the importance of national differences in both input and output markets to Ajaxiss and the need to exploit these differences. If you were Mike, how would you approach this conversation?

Which of the following best describes a transnational company's asset and capability configuration?

Which of the following is not a source of environmental volatility?

According to an article in McKinsey Quarterly on June 2012 , about 40 percent of the growth of the global economy over the next 15 years will be generated in 400 midsized emerging-market cities. What are implications of this statement for MNEs in advanced and emerging economies?

At the annual meeting of the board of directors of LabZaws Co., James Wilson, the CEO of the company, was directed to focus primarily on enhancing the firm's efficiency. How could he achieve this objective?

Cost reductions due to scale-economies are static and constant over time and few dynamic benefits are associated with scale economies.

MNEs can maximize each of the following objectives independently: global scale efficiency, multinational flexibility and innovation development.

Which of the following strategies can be employed to enhance the efficiency of an MNE?

Lindux Co., intends to enhance its competitive advantage by exploiting the national differences that prevail in the countries that host its subsidiaries. Which of the following is consistent with this intention?

Expanding Abroad: Motivations, Means, and Mentalities

Understanding the International Context: Responding to Conflicting Environmental Forces

Developing a Transnational Organization: Managing Integration, Responsiveness, and Flexibility

Creating Worldwide Innovation and Learning: Exploiting Cross Border Knowledge Management

Engaging in Cross-Border Collaboration: Managing across Corporate Boundaries

Implementing the Strategy: Building Multidimensional Capabilities

The Future of the Transnational: An Evolving Global Role

Filters