Question 1

Define a transnational strategy using the German multimedia conglomerate Bertelsmann as an example.

Accepted Answer

Multinational companies pursuing a trans

Question 2

Which of the following statements is true of an international strategy?

Accepted Answer

A)  It enables firms to leverage their home-based core competencies in foreign markets. 
B)  It is advantageous when firms face high pressures for both local responsiveness and cost reductions. 
C)  It relies on joint ventures to reap economies of scale by accessing a larger market. 
D)  It effectively protects a firm from exchange rate fluctuations. 
A)  It enables firms to leverage their home-based core competencies in foreign markets. 
B)  It is advantageous when firms face high pressures for both local responsiveness and cost reductions. 
C)  It relies on joint ventures to reap economies of scale by accessing a larger market. 
D)  It effectively protects a firm from exchange rate fluctuations.

Question 3

Which of the following is an observable feature in the globalization 3.0 stage?

Accepted Answer

A)  Knowledge flow between the local replicas of the multinational enterprises and their U.S. headquarters is limited. 
B)  Only sales and distribution functions of a multinational enterprise are located in a few key countries. 
C)  Based on an optimal mix of costs, skills, and PESTEL factors, companies now freely locate business functions anywhere in the world. 
D)  Firms have reorganized from a global enterprise with different centers of expertise to a multinational company with self-contained operations in a few selected countries. 
A)  Knowledge flow between the local replicas of the multinational enterprises and their U.S. headquarters is limited. 
B)  Only sales and distribution functions of a multinational enterprise are located in a few key countries. 
C)  Based on an optimal mix of costs, skills, and PESTEL factors, companies now freely locate business functions anywhere in the world. 
D)  Firms have reorganized from a global enterprise with different centers of expertise to a multinational company with self-contained operations in a few selected countries.

Question 4

What are the factors that capture administrative and political distance in the CAGE framework?

Accepted Answer

Administrative and political distances a

Question 5

Within the CAGE distance framework, what does geographic distance imply?

Accepted Answer

Geographic distance does not simply capt

Question 6

The risk of intellectual property appropriation increases when companies follow a multidomestic strategy.Elaborate on this statement.

Accepted Answer

The risk of intellectual property approp

Question 7

Which of the following foreign entry modes primarily involves producing goods in one country to sell in another?

Accepted Answer

A)  Greenfield operations 
B)  Brownfield operations 
C)  Exporting 
D)  Crowdsourcing 
A)  Greenfield operations 
B)  Brownfield operations 
C)  Exporting 
D)  Crowdsourcing

Question 8

Which of the following is a drawback of pursuing a transnational strategy?

Accepted Answer

A)  It creates bottlenecks for global learning. 
B)  It exposes a firm to diseconomies of scale and location. 
C)  It requires a global matrix structure, which is difficult to implement. 
D)  It involves locating all key business activities in the home country headquarters. 
A)  It creates bottlenecks for global learning. 
B)  It exposes a firm to diseconomies of scale and location. 
C)  It requires a global matrix structure, which is difficult to implement. 
D)  It involves locating all key business activities in the home country headquarters.

Question 9

What is meant by cultural distance? How does it affect a firm?

Accepted Answer

Cultural distance is the cultural dispar

Question 10

Briefly discuss the application of the CAGE distance framework.

Accepted Answer

To aid multinational companies in decidi

Question 11

What effect do related and supporting industries have on national competitive advantage?

Accepted Answer

Leadership in related and supporting ind

Question 12

Shine Enterprises Inc.is a large financial conglomerate that operates in more than 50 countries and employs over 80,000 people across the world.It operates through multiple regional product divisions, which tend to function as autonomous profit-and-loss centers.This allows the company to reap significant economies of scale.Though each division acts as an autonomous firm with its individual regional leaders, frequent sharing of knowledge between the divisions allows for global learning.These factors help the company reconcile product and service differentiations at low cost.Which of the following strategies does Shine Enterprises Inc.most likely use?

Accepted Answer

A)  An international strategy 
B)  A focused-differentiation strategy 
C)  A multidomestic strategy 
D)  A transnational strategy 
A)  An international strategy 
B)  A focused-differentiation strategy 
C)  A multidomestic strategy 
D)  A transnational strategy

Question 13

Which of the following statements is true with regard to international trade between countries?

Accepted Answer

A)  Greater cultural distance between the home and host countries decreases the liability of foreignness to multinational companies. 
B)  Colony-colonizer relationships have a strong negative effect on bilateral trade between countries. 
C)  Wealthy countries engage in relatively more cross-border trade than poorer ones. 
D)  Political integrations decrease the expected trade intensity between two countries. 
A)  Greater cultural distance between the home and host countries decreases the liability of foreignness to multinational companies. 
B)  Colony-colonizer relationships have a strong negative effect on bilateral trade between countries. 
C)  Wealthy countries engage in relatively more cross-border trade than poorer ones. 
D)  Political integrations decrease the expected trade intensity between two countries.

Question 14

For which of the following companies will geographic distance be the most relevant factor in deciding whether or not to trade with a target country?

Accepted Answer

A)  A firm that manufactures cell phone batteries 
B)  A firm that extracts and exports iron ore 
C)  A firm that produces movies 
D)  A firm that sells wrist watches 
A)  A firm that manufactures cell phone batteries 
B)  A firm that extracts and exports iron ore 
C)  A firm that produces movies 
D)  A firm that sells wrist watches

Question 15

Briefly explain the stages of globalization.

Accepted Answer

There are three stages of globalization,

Question 16

Discuss national competitive advantage with the help of examples.

Accepted Answer

Student answers will vary.National compe

Question 17

Which of the following modes of entering a foreign market allows for the lowest level of control?

Accepted Answer

A)  Greenfield ventures 
B)  Exporting 
C)  Joint ventures 
D)  Acquisitions 
A)  Greenfield ventures 
B)  Exporting 
C)  Joint ventures 
D)  Acquisitions

Question 18

When a firm pursues a(n)_____, it sells the same products or services in both domestic and foreign markets.

Accepted Answer

A)  domestic strategy 
B)  international strategy 
C)  differentiation strategy 
D)  localization strategy 
A)  domestic strategy 
B)  international strategy 
C)  differentiation strategy 
D)  localization strategy

Question 19

Which of the following factors pertaining to national competitive advantage enabled Nokia, a multinational company from Finland, to become an early leader in cell phones?

Accepted Answer

A)  The competitive intensity in the cell phone industry of Finland 
B)  The huge demand for high-quality wireless services in Finland 
C)  The abundance of natural resources in Finland 
D)  The related and supporting industries present in Finland 
A)  The competitive intensity in the cell phone industry of Finland 
B)  The huge demand for high-quality wireless services in Finland 
C)  The abundance of natural resources in Finland 
D)  The related and supporting industries present in Finland

Question 20

Which of the following statements is true of a multidomestic strategy?

Accepted Answer

A)  Firms frequently use a multidomestic strategy when entering host countries with large and/or idiosyncratic local markets. 
B)  The multidomestic strategy is one of the main strategies companies pursued in the Globalization 1.0 stage. 
C)  Companies pursuing a multidomestic strategy generally follow a cost-leadership strategy at the business level. 
D)  The multidomestic strategy effectively protects firms from the risk of intellectual property appropriation. 
A)  Firms frequently use a multidomestic strategy when entering host countries with large and/or idiosyncratic local markets. 
B)  The multidomestic strategy is one of the main strategies companies pursued in the Globalization 1.0 stage. 
C)  Companies pursuing a multidomestic strategy generally follow a cost-leadership strategy at the business level. 
D)  The multidomestic strategy effectively protects firms from the risk of intellectual property appropriation.

Define a transnational strategy using the German multimedia conglomerate Bertelsmann as an example.

Which of the following statements is true of an international strategy?

Which of the following is an observable feature in the globalization 3.0 stage?

What are the factors that capture administrative and political distance in the CAGE framework?

Within the CAGE distance framework, what does geographic distance imply?

The risk of intellectual property appropriation increases when companies follow a multidomestic strategy.Elaborate on this statement.

Which of the following foreign entry modes primarily involves producing goods in one country to sell in another?

Which of the following is a drawback of pursuing a transnational strategy?

What is meant by cultural distance? How does it affect a firm?

Briefly discuss the application of the CAGE distance framework.

What effect do related and supporting industries have on national competitive advantage?

Which of the following statements is true with regard to international trade between countries?

For which of the following companies will geographic distance be the most relevant factor in deciding whether or not to trade with a target country?

Briefly explain the stages of globalization.

Discuss national competitive advantage with the help of examples.

Which of the following modes of entering a foreign market allows for the lowest level of control?

When a firm pursues a(n)_____, it sells the same products or services in both domestic and foreign markets.

Which of the following factors pertaining to national competitive advantage enabled Nokia, a multinational company from Finland, to become an early leader in cell phones?

Which of the following statements is true of a multidomestic strategy?

What Is Strategy

Strategic Leadership: Managing the Strategy Process

External Analysis: Industry Structure, Competitive Forces, and Strategic Groups

Internal Analysis: Resources, Capabilities, and Core Competencies

Competitive Advantage, Firm Performance, and Business Models

Business Strategy: Differentiation, Cost Leadership, and Blue Oceans

Business Strategy: Innovation, Entrepreneurship, and Platforms

Corporate Strategy: Vertical Integration and Diversification

Corporate Strategy: Strategic Alliances, Mergers and Acquisitions

Organizational Design: Structure, Culture, and Control

Corporate Governance and Business Ethics

Filters

Exam 10: Global Strategy: Competing Around the World

Define a transnational strategy using the German multimedia conglomerate Bertelsmann as an example.

Which of the following statements is true of an international strategy?

Which of the following is an observable feature in the globalization 3.0 stage?

What are the factors that capture administrative and political distance in the CAGE framework?

Within the CAGE distance framework, what does geographic distance imply?

The risk of intellectual property appropriation increases when companies follow a multidomestic strategy.Elaborate on this statement.

Which of the following foreign entry modes primarily involves producing goods in one country to sell in another?

Which of the following is a drawback of pursuing a transnational strategy?

What is meant by cultural distance? How does it affect a firm?

Briefly discuss the application of the CAGE distance framework.

What effect do related and supporting industries have on national competitive advantage?

Which of the following statements is true with regard to international trade between countries?

For which of the following companies will geographic distance be the most relevant factor in deciding whether or not to trade with a target country?

Briefly explain the stages of globalization.

Discuss national competitive advantage with the help of examples.

Which of the following modes of entering a foreign market allows for the lowest level of control?

When a firm pursues a(n)_____, it sells the same products or services in both domestic and foreign markets.

Which of the following factors pertaining to national competitive advantage enabled Nokia, a multinational company from Finland, to become an early leader in cell phones?

Which of the following statements is true of a multidomestic strategy?

What Is Strategy

Strategic Leadership: Managing the Strategy Process

External Analysis: Industry Structure, Competitive Forces, and Strategic Groups

Internal Analysis: Resources, Capabilities, and Core Competencies

Competitive Advantage, Firm Performance, and Business Models

Business Strategy: Differentiation, Cost Leadership, and Blue Oceans

Business Strategy: Innovation, Entrepreneurship, and Platforms

Corporate Strategy: Vertical Integration and Diversification

Corporate Strategy: Strategic Alliances, Mergers and Acquisitions

Organizational Design: Structure, Culture, and Control

Corporate Governance and Business Ethics

Filters