Exam 1: Strategizing Around the Globe

Determining the scope of the firm involves not only growth of the firm but also contraction.

Diversification: a. Was acclaimed in the West during the 1960s and 1970s but was discredited twenty years later. b. Is believed by Western media to destroy value in emerging economies. c. Has resulted in higher profitability for some in emerging economies than independent firms. d. In emerging economies may be a function of the level of institutional under) development. e. All of the above.

Which of the following best defines "Triad" as the term is used in the text? a. The U.S., Japan, and Germany. b. The U.S., Canada, and Mexico. c. North America, Europe, and Japan. d. North America, Europe, and Asia. e. The U.S. dollar, the Euro, and the Yen.

Many BRIC local firms are: a. Effectively competing at home. b. Launching offensives abroad. c. Creating serious ramifications for Triad-based MNEs. d. All of the above. e. BRIC local firms have yet to become significant globally.

Globalization is viewed as: a. A new force sweeping through the world in recent times. b. A long-run historical evolution since the dawn of human history. c. A pendulum that swings from one extreme to another from time to time. d. All of the above. e. None of the above.

According to the text, today's most successful MNEs far exceed the historical clout of some MNEs such as Britain's East India Company during colonial times.

Beginning in the late 1990s and early twenty first century, a corporate governance crisis has developed.

How can principles of military strategy be useful in developing a global business strategy? Explain by using SWOT analysis.

In China, political correctness may need to be considered when making reference to Taiwan.

Emerging economies or emerging markets): a. Now command a full one-third of the worldwide FDI flow. b. Command half of the global gross domestic product GDP) measured at purchasing power parity. c. A and B above d. Despite their growth, they still command less than 10% of global GDP. e. Consist of countries which are in a state of decline but which are believed to have potential for growth.

The institution-based view argues that institutional forces provide an answer to similarities in firm performance but not differences.

The text stresses that realism indicates that all companies should "go global" and endeavor to do so as quickly as possible in view of the vast opportunities that exist.

Multinational enterprises MNEs) are firms that: a. Engage in foreign direct investment FDI). b. Directly control value-adding activities in other countries. c. Manage value-adding activities in other countries. d. All of the above. e. None of the above.

The _______ view primarily focuses on the ______ in a SWOT analysis. a. Industry-based, OT b. Resource-based, OT c. Industry-based, SW d. Resource-based, SW e. Industry and resource, SWOT

The closing case illustrates how to strategically focus on the base of the global economic pyramid and to do so successfully.

"Global strategy" refers to: a. A particular theory on how to compete. b. Offering standardized products and services on a worldwide basis. c. Any strategy outside one's home country. d. Strategy of firms around the globe-essentially various firms' theories about how to compete successfully. e. All of the above.

As illustrated by Cengage Learning's penetration of the China market with Global Strategy opening case), the idea that firms must "think global and act local" simultaneously is simply not possible.

Having valuable, unique, and hard-to-imitate capabilities may be advantageous in doing business globally. However, what is the problem with trying to maintain that advantage?

BRIC refers to: a. Bahrain, Russia, Iran, and China. b. Bolivia, Romania, India, and Columbia. c. Bulgaria, Romania, Iraq, and China. d. Bermuda, Rwanda, Iraq, and the Czech Republic. e. Brazil, Russia, India, and China.

Much of our knowledge about "the firm" is from research on firms in: a. Anglo-American capitalism. b. Japan after World War II. c. German mathematical models. d. Emerging markets. e. The early industrial era.