Question 1

Which of the following countries has a high geographic distance but a low cultural distance from the United States?

Accepted Answer

A)  Canada 
B)  Mexico 
C)  Australia 
D)  France 
A)  Canada 
B)  Mexico 
C)  Australia 
D)  France

Question 2

Which of the following will most likely harm a MNE's reputation?

Accepted Answer

A)  Principal-agent problems cause a MNE to merge with another MNE. 
B)  Increased competition causes a MNE to close a factory in a developing country. 
C)  Wages for workers in a factory owned by a MNE increase, causing profits to decline. 
D)  A sweatshop owned by a MNE has an explosion that kills hundreds of workers. 
A)  Principal-agent problems cause a MNE to merge with another MNE. 
B)  Increased competition causes a MNE to close a factory in a developing country. 
C)  Wages for workers in a factory owned by a MNE increase, causing profits to decline. 
D)  A sweatshop owned by a MNE has an explosion that kills hundreds of workers.

Question 3

How has China been affected by its one-child-per-family policy and appreciation of its currency?

Accepted Answer

A)  The purchasing power of its workforce has reduced. 
B)  The value added to production has reduced. 
C)  The standard of living within the economy has lowered. 
D)  The country's advantage in low-cost manufacturing has reduced. 
A)  The purchasing power of its workforce has reduced. 
B)  The value added to production has reduced. 
C)  The standard of living within the economy has lowered. 
D)  The country's advantage in low-cost manufacturing has reduced.

Question 4

Which of the following is a benefit of the transnational strategy?

Accepted Answer

A)  It facilitates global learning and harnesses economies of location. 
B)  It completely eliminates a firm's risk of intellectual property expropriation. 
C)  It helps to create a matrix global structure, which is cost-effective and easy to implement. 
D)  It helps a firm pursue a cost-leadership strategy by minimizing the need for local responsiveness. 
A)  It facilitates global learning and harnesses economies of location. 
B)  It completely eliminates a firm's risk of intellectual property expropriation. 
C)  It helps to create a matrix global structure, which is cost-effective and easy to implement. 
D)  It helps a firm pursue a cost-leadership strategy by minimizing the need for local responsiveness.

Question 5

Although demand for IKEA's low-cost furnishings has increased,its annual store growth has slowed to fewer than ten new stores a year.Why has this happened?

Accepted Answer

A)  IKEA has failed to hire top designers for its furniture. 
B)  IKEA's global supply chain has become bottlenecked. 
C)  IKEA has had a revolving door of CEOs for the past 20 years. 
D)  IKEA's holding companies are all located in Sweden. 
A)  IKEA has failed to hire top designers for its furniture. 
B)  IKEA's global supply chain has become bottlenecked. 
C)  IKEA has had a revolving door of CEOs for the past 20 years. 
D)  IKEA's holding companies are all located in Sweden.

Question 6

Which of the following is a feature of a multinational company pursuing a global-standardization strategy?

Accepted Answer

A)  Its key business functions are located at the home country headquarters. 
B)  Its business-level strategy tends to be cost-leadership. 
C)  Its competitive advantage lies in its high local responsiveness. 
D)  Its core competency lies in its strong product differentiation. 
A)  Its key business functions are located at the home country headquarters. 
B)  Its business-level strategy tends to be cost-leadership. 
C)  Its competitive advantage lies in its high local responsiveness. 
D)  Its core competency lies in its strong product differentiation.

Question 7

Which of the following statements best explains why Walmart is finding it difficult to replicate its existing business model in India?

Accepted Answer

A)  because of the political differences between India and U.S. 
B)  because NAFTA prohibits Walmart from investing in countries outside North America 
C)  because of the large economic distance between U.S. and India 
D)  because Walmart's low-cost strategy has not been accepted by Indian consumers 
A)  because of the political differences between India and U.S. 
B)  because NAFTA prohibits Walmart from investing in countries outside North America 
C)  because of the large economic distance between U.S. and India 
D)  because Walmart's low-cost strategy has not been accepted by Indian consumers

Question 8

McDonald's uses mutton instead of beef in India and offers teriyaki burgers in Japan.Which of the following strategies is the fast-food chain pursuing?

Accepted Answer

A)  multidomestic strategy 
B)  focused differentiation strategy 
C)  global-standardization strategy 
D)  international strategy 
A)  multidomestic strategy 
B)  focused differentiation strategy 
C)  global-standardization strategy 
D)  international strategy

Question 9

Michael Porter's diamond framework is used to explain

Accepted Answer

A)  national value creation. 
B)  domestic value creation. 
C)  national competitive advantage. 
D)  domestic competitive advantage. 
A)  national value creation. 
B)  domestic value creation. 
C)  national competitive advantage. 
D)  domestic competitive advantage.

Question 10

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

Accepted Answer

A)  The strategy allows for the lowest possible local responsiveness. 
B)  The strategy lowers the differentiation of a firm's product and service offerings. 
C)  The strategy exposes a firm to greater exchange rate fluctuation when compared to an international strategy. 
D)  The strategy is costly and inefficient because it requires the duplication of key business functions across several countries. 
A)  The strategy allows for the lowest possible local responsiveness. 
B)  The strategy lowers the differentiation of a firm's product and service offerings. 
C)  The strategy exposes a firm to greater exchange rate fluctuation when compared to an international strategy. 
D)  The strategy is costly and inefficient because it requires the duplication of key business functions across several countries.

Question 11

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 12

The German multimedia conglomerate Bertelsmann operates in more than 60 countries throughout the world and owns many regional leaders in their specific product categories,including Random House Publishing in the United States.Bertelsmann operates its more than 500 regional media divisions as more or less autonomous profit-and-loss centers.but attempts to share best practices across units; global learning and human resource strategies for executives are coordinated at the network level.Bertelsmann is an example of following a(n)

Accepted Answer

A)  multidomestic strategy. 
B)  international strategy. 
C)  global-standardization strategy. 
D)  transnational strategy. 
A)  multidomestic strategy. 
B)  international strategy. 
C)  global-standardization strategy. 
D)  transnational strategy.

Question 13

How will an increase in coordinated economic and political integration between countries affect the world economy?

Accepted Answer

A)  The world's market economies will become self-sufficient and independent. 
B)  There will be gains in social welfare and living standards across the globe. 
C)  The cost of labor will further decline in emerging economies. 
D)  There will be a movement away from global-collaboration networks among multinational enterprises (MNEs). 
A)  The world's market economies will become self-sufficient and independent. 
B)  There will be gains in social welfare and living standards across the globe. 
C)  The cost of labor will further decline in emerging economies. 
D)  There will be a movement away from global-collaboration networks among multinational enterprises (MNEs).

Question 14

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 15

Which of the following describes a firm in the Globalization 1.0 stage?

Accepted Answer

A)  Robinson Inc. has a large office in New York, which is one cog in a global network. 
B)  Robinson Inc. has a large office in New York, which functions with other large offices in Europe and Asia. 
C)  Robinson Inc. has a base office in New York and a replica office in Amsterdam. 
D)  Robinson Inc. has a base office in New York and distributes some of its products overseas. 
A)  Robinson Inc. has a large office in New York, which is one cog in a global network. 
B)  Robinson Inc. has a large office in New York, which functions with other large offices in Europe and Asia. 
C)  Robinson Inc. has a base office in New York and a replica office in Amsterdam. 
D)  Robinson Inc. has a base office in New York and distributes some of its products overseas.

Question 16

For a multinational enterprise (MNE),applying the globalization hypothesis would mean

Accepted Answer

A)  being highly responsive to the heterogeneous needs and preferences of consumers globally, without focusing on cost reduction. 
B)  customizing each product sold by an enterprise to differentiate it from its competitors. 
C)  manufacturing products on international platforms and slightly modifying them to meet local tastes and standards. 
D)  pursuing a focused differentiation strategy instead of a cost-leadership strategy to gain a competitive advantage. 
A)  being highly responsive to the heterogeneous needs and preferences of consumers globally, without focusing on cost reduction. 
B)  customizing each product sold by an enterprise to differentiate it from its competitors. 
C)  manufacturing products on international platforms and slightly modifying them to meet local tastes and standards. 
D)  pursuing a focused differentiation strategy instead of a cost-leadership strategy to gain a competitive advantage.

Question 17

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.

Question 18

Because keeping cost low is critical to IKEA's value innovation,it switched from a(n)

Accepted Answer

A)  transnational strategy to a multidomestic strategy. 
B)  transnational strategy to a global-standardization strategy. 
C)  international strategy to a multidomestic strategy. 
D)  international strategy to a global-standardization strategy. 
A)  transnational strategy to a multidomestic strategy. 
B)  transnational strategy to a global-standardization strategy. 
C)  international strategy to a multidomestic strategy. 
D)  international strategy to a global-standardization strategy.

Question 19

Which of the following strategies must a multinational enterprise (MNE)use when it wants to pursue an integration strategy at the business level by attempting to reconcile product and/or service differentiations at low cost?

Accepted Answer

A)  a multidomestic strategy 
B)  an international strategy 
C)  a global-standardization strategy 
D)  a transnational strategy 
A)  a multidomestic strategy 
B)  an international strategy 
C)  a global-standardization strategy 
D)  a transnational strategy

Question 20

Plethora Inc.,a well-established and reputed multinational enterprise (MNE),is headquartered in a highly developed economy.It wants to start its operations in United Bejukistan,which has been recognized as one of the less-developed nations in the world.How will this strategic move most likely affect Plethora Inc.?

Accepted Answer

A)  It will be able to benefit from economic arbitrage. 
B)  It will be able to successfully leverage its competitive advantage from economies of standardization. 
C)  It will be able to replicate its existing business model easily. 
D)  It will be able to easily sell products for which demand varies by income. 
A)  It will be able to benefit from economic arbitrage. 
B)  It will be able to successfully leverage its competitive advantage from economies of standardization. 
C)  It will be able to replicate its existing business model easily. 
D)  It will be able to easily sell products for which demand varies by income.

Which of the following countries has a high geographic distance but a low cultural distance from the United States?

Which of the following will most likely harm a MNE's reputation?

How has China been affected by its one-child-per-family policy and appreciation of its currency?

Which of the following is a benefit of the transnational strategy?

Although demand for IKEA's low-cost furnishings has increased,its annual store growth has slowed to fewer than ten new stores a year.Why has this happened?

Which of the following is a feature of a multinational company pursuing a global-standardization strategy?

Which of the following statements best explains why Walmart is finding it difficult to replicate its existing business model in India?

McDonald's uses mutton instead of beef in India and offers teriyaki burgers in Japan.Which of the following strategies is the fast-food chain pursuing?

Michael Porter's diamond framework is used to explain

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

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

How will an increase in coordinated economic and political integration between countries affect the world economy?

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

Which of the following describes a firm in the Globalization 1.0 stage?

For a multinational enterprise (MNE),applying the globalization hypothesis would mean

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

Because keeping cost low is critical to IKEA's value innovation,it switched from a(n)

Which of the following strategies must a multinational enterprise (MNE)use when it wants to pursue an integration strategy at the business level by attempting to reconcile product and/or service differentiations at low cost?

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 and Entrepreneurship

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

Which of the following countries has a high geographic distance but a low cultural distance from the United States?

Which of the following will most likely harm a MNE's reputation?

How has China been affected by its one-child-per-family policy and appreciation of its currency?

Which of the following is a benefit of the transnational strategy?

Although demand for IKEA's low-cost furnishings has increased,its annual store growth has slowed to fewer than ten new stores a year.Why has this happened?

Which of the following is a feature of a multinational company pursuing a global-standardization strategy?

Which of the following statements best explains why Walmart is finding it difficult to replicate its existing business model in India?

McDonald's uses mutton instead of beef in India and offers teriyaki burgers in Japan.Which of the following strategies is the fast-food chain pursuing?

Michael Porter's diamond framework is used to explain

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

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

How will an increase in coordinated economic and political integration between countries affect the world economy?

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

Which of the following describes a firm in the Globalization 1.0 stage?

For a multinational enterprise (MNE),applying the globalization hypothesis would mean

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

Because keeping cost low is critical to IKEA's value innovation,it switched from a(n)

Which of the following strategies must a multinational enterprise (MNE)use when it wants to pursue an integration strategy at the business level by attempting to reconcile product and/or service differentiations at low cost?

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 and Entrepreneurship

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