Deck 7: Strategy Going Global

Question 1

______ can be thought of as integration in virtually every sphere, achieved principally through international diversification of goods, services and processes across borders.

A) Generalization
B) Globalization
C) Geographical integration
D) Americanization

Answer 1

B

Question 2

The International Monetary Fund, in defining globalization, does NOT pay particular attention to which factor:

A) trade and financial flows
B) movement of people
C) technologies across international borders
D) domestic growth

Answer 2

D

Question 3

Globalization involves increasing relations among:

A) people
B) objects
C) places
D) all of these

Answer 3

D

Question 4

It is generally agreed that globalization:

A) intensifies social relations over ever-greater distances
B) links different and previously separated peoples and locales
C) transforms the spatial and temporal organization of social relations and transactions
D) all of these

Question 5

Which of the following erects obstacles and barriers to globalization?

A) states and governments
B) industrial players
C) trade unions
D) all of these

Question 6

Globalization is often associated with:

A) westernization
B) Americanization
C) homogenization
D) all of these

Question 7

Americanization refers to:

A) the rise in popularity of American brands
B) the influence of American culture on the culture of other countries
C) the increase in American corporations entering into cross-border mergers and acquisitions
D) all of these

Question 8

Globalization is:

A) a 21st century phenomenon
B) a 20th century phenomenon
C) a 19th century phenomenon
D) all of these

Question 9

Foreign Direct Investment (FDI) involves ______.

A) buying shares in foreign companies listed on a stock exchange
B) investment by a company based in one country in a company based in another country
C) cross-border trade relations through exports and/or licensing agreements
D) the exploitation of less developed countries by Western firms

Question 10

What does glocalization mean?

A) homogenization of the local into the global
B) harmonization of the local and global
C) assimilation of the local by the global
D) hybridization of globalization and localization

Question 11

Glocal strategies are followed by organizations that seek to go global by:

A) entering into some form of local relationship with organizations in another country
B) copying what organizations in other countries do
C) allowing themselves to be taken over by companies from other countries
D) all of these

Question 12

What is the name given to firms that defy the conventional wisdom that it is necessary to have evolved into a large firm to internationalize?

A) early internationalizers
B) born global
C) rapid expanders
D) small globalizers

Question 13

Which of the following factors are identified as contributing to the phenomenon of firms being 'born global':

A) increasingly global market conditions
B) new developments in transportation and communication technologies
C) an increase in the available number of people with international experience
D) all of these

Question 14

Which of the following are examples of companies that were global almost from the outset?

A) Coca-Cola
B) Ford
C) Facebook
D) Samsung

Question 15

Which of the following is NOT a distinctive characteristic of born-global firms, according to Tanev?

A) high activity in international markets from or near the founding due to founder's vision
B) managers who have a strong international outlook
C) emphasis on competing on cost achieved through global economies of scale
D) emphasis on differentiation strategy targeting niche markets

Question 16

Which of the following contributes to the growth of born global enterprises, according to Tanev?

A) Universities as anchor points
B) small home market
C) demanding local clients
D) all of these

Question 17

What does OLI stand for in Dunning's framework, according to which all three aspects must be present for an MNE to appear?

A) ownership; location; internalization
B) organization; leadership; innovation
C) ownership; license; innovation
D) organization; localization; internationalization

Question 18

Which of the following is NOT a model of global strategy promulgated in the international business literature?

A) decentralized federation multinational strategy
B) integrated federation international strategy
C) coordinated federation international strategy
D) integrated network transnational strategy

Question 19

Which of the following are potential drawbacks of a decentralized federation structure, where a parent company establishes different national subsidiaries?

A) Decisions may be made wholly in terms of local relevancies, which may not always serve the interests of the centre.
B) Duplication of effort and cost inefficiencies as each periphery replicates functions locally, on a small and more costly scale.
C) Resistance to innovations from subsidiaries who view themselves as rival centres in the federation.
D) all of these

Question 20

A matrix organization is:

A) based on the movie The Matrix
B) modelled on a beehive
C) not what it seems
D) none of these

Question 21

Arbitrage is:

A) the practice of profiting from differences in costs and process across borders
B) a process of negotiation between different interests
C) a judgment made within a national legal system when contract disputes arise between parties in a cross-border relationship
D) none of these

Question 22

Which of the following did the International Labour Organization identify as risk(s) facing workers at the end of global supply chains?

A) human rights violations
B) poor working conditions
C) human trafficking
D) all of these

Question 23

Globalization does NOT refer to:

A) increasing internationalization
B) multidirectional flows of people
C) high domestic competition
D) flow of material things across the world

Question 24

Why do domestic industrial players seek to erect barriers to globalization?

A) They are ethically against it.
B) They do not approve of its practices.
C) They are keen to protect themselves from global competition.
D) all of these

Question 25

Why do trade unions seek to erect barriers to globalization?

A) to ensure that the price of labour in the labour market is not reduced by people from less developed countries who will enable employers to cut labour costs
B) to ensure that domestic employees won't leave the domestic market and thus weaken the employee base of the economy
C) to ensure that employers who benefit from globalization also share the profits with employees
D) all of these

Question 26

In the MNC context, a mandate is:

A) an encounter with a potential foreign partner
B) a range of tasks that are assigned to subsidiaries by headquarters
C) an agreement about the transfer of knowledge from subsidiary to parent
D) a political imposition of territorial sovereignty

Question 27

Centre-periphery relations between MNCs and their subsidiaries are invariably:

A) political
B) exploitative
C) arms length
D) all of these

Question 28

What is centrally important for the implementation of parent mandates?

A) shared information systems
B) expatriate managers
C) resources for implementing the mandate
D) the legitimacy of the mandate

Question 29

Which contextual factors frame MNC strategic options?

A) host country contextual factors
B) subsidiary contextual factors
C) headquarters contextual factors
D) all of these

Question 30

MNC diversification into new territories is more likely to occur when:

A) Firms possess high endowments of intangible resources such as knowledge.
B) Firms are in information-intensive industries seeking intangible resources such as knowledge.
C) Firms' top management teams have an elite education, low average age and great international experience.
D) all of these

Question 31

According to Brunsson and Jacobsson, which of the following is a pressure from international standards on how an enterprise should be managed?

A) how enterprises should deal with the environmental impact of their operations
B) how they should manage their risks, knowledge and complaints made against them
C) how they should keep their accounts and ensure regulatory compliance and probity in other ways
D) all of these

Question 32

MNCs experience institutional duality when:

A) headquarters (HQ) pressures subsidiaries to adopt its desired practices while the subsidiary is pressurized by its host context to follow local practices
B) they are not sure which laws they should be following when they operate in more than one country
C) performance in the subsidiary lags that required by HQ
D) none of these

Question 33

When ideas travel globally they are subject to ______.

A) translation
B) diffusion
C) stabilization
D) homogenization

Question 34

What do the BRIC countries have in common?

A) government models
B) economic models
C) resource-based economies
D) a label

Question 35

Proponents of liberal markets want to limit the role of ______ as a strategic decision-maker and let the ______ decide.

A) government/markets
B) people/government
C) markets/people
D) institutions/local communities

Question 36

What type of government strategies do BRIC countries have in common?

A) open liberal markets
B) protectionist policies
C) imperfectly competitive markets to achieve growth simultaneously with protectionist policies
D) autarchic policies

Question 37

Shanzai is:

A) the name of a Chinese MNC
B) the name for intellectual property theft based on unlicensed copying
C) a famous Chinese pirate
D) all of these

Question 38

Globalization has been perceived by scholars in terms of:

A) convergence
B) divergence
C) translation
D) all of these