Deck 1: Strategizing Around the Globe

Question 1

The earliest MNEs existed in some form thousands of years ago in the Assyrian, Phoenician, and Roman empires.

Answer 1

True

Question 2

According to the text, business students may tend to focus more on the economic gains of globalization, and be less concerned with its darker sides.

Answer 2

True

Question 3

The industry-based view posits that the degree of competitiveness in an industry largely determines firm performance.

Answer 3

True

Question 4

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

Question 5

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.

Question 6

During the second half of the twentieth century, Hong Kong, Singapore, South Korea, and Taiwan, refused to participate in the global economy and became known as the "Four Toothless Tigers."

Question 7

The resource-based view suggests that firm-specific capabilities do not drive performance differences.

Question 8

A SWOT analysis resonates very well with Sun Tzu's teachings.

Question 9

If a strategy theory) is truly successful, it will work not just for one firm but for all others as well.

Question 10

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

Question 11

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

Question 12

The opening case is an example of how the publishing industry now requires a simultaneous penetration of all markets rather than trying to win one market after another.

Question 13

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

Question 14

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.

Question 15

Semiglobalization involves doing business in either the northern or southern hemisphere but not both.

Question 16

During the 1990s there was an increase in both global trade and opposition to global trade.

Question 17

In the opening case, the formal rules in China stated that foreign companies could not publish books on their own.

Question 18

A lot of opponents of globalization are nongovernmental organizations NGOs), such as environmentalists and consumer groups.

Question 19

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.

Question 20

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

Question 21

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.

Question 22

As shown in the closing case, the informal rules of the game:
a. Must be avoided because global business is not a mere game.
b. Are not applicable in cultures in which tend to be very formal.
c. Often require that the firm seek to change the informal rules instead of going along with those rules.
d. Need to be understood by firms.
e. Are being replaced by formal rules.

Question 23

At the dawn of the 21st century, __________ had significant ramifications for companies and strategists around the world.
a. Antiglobalization protests
b. Terrorist attacks
c. Corporate governance crisis
d. All of the above
e. None of the above

Question 24

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

Question 25

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

Question 26

The current era of globalization originated in the aftermath of:
a. World War I.
b. World War II.
c. The Korean Conflict.
d. The Vietnam Conflict.
e. The Gulf War.

Question 27

"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.

Question 28

The word _______has now become the most famous Chinese business word to appear in English-language media.
a. Keiretsu
b. Guanxi
c. Chaebol
d. Blat
e. None of the above.

Question 29

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.

Question 30

Strategy:
a. Dates back to 500bc and the work of the strategist Sun Tzu of China.
b. Applies concepts developed by the strategist von Clausewitz.
c. Includes application of principles of military strategy to business competition.
d. All of the above.
e. In this century, civilian companies no longer apply military theories and principles in dealing with competition.

Question 31

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.

Question 32

According to the text, the current brand of "global strategy" seems relevant only for MNEs from:
a. BRIC.
b. The Triad.
c. OPEC nations.
d. NAFTA.
e. The E. U.

Question 33

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.

Question 34

Which of the following best describes foreign direct investment FDI)?
a. A firm's direct investment in production and/or service activities abroad.
b. The purchases of foreign securities by people within the U.S.
c. The purchases of U. S. securities by people from other countries.
d. Avoidance of brokers or other financial intermediaries when making foreign investments.
e. B and C above.

Question 35

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.

Question 36

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.

Question 37

Which of the following were the first to express concern about international competition from low-cost countries?
a. American political leaders in the twenty first century.
b. Union leaders in the last half of the twentieth century.
c. American business leaders in the late 1800s.
d. The King of England in the late 1700s.
e. A first century Roman emperor.

Question 38

A hallmark of theory building and development is:
a. The outcome of a test.
b. Replication.
c. Intuition.
d. Consensus.
e. Lack of controversy.

Question 39

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.

Question 40

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.

Question 41

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?

Question 42

As you examine the current political, social, and economic environment of your country and the world as of the moment you are reading the text, what is your estimate of the extent to which globalization will increase or decrease in the short run? In the long run?

Question 43

Why is there a backlash against globalization, and how do aspects of that backlash actually enhance globalization?

Question 44

The text points out that not all firms should go global. In view of the vast opportunities, why should some firms not pursue international business?