Question 1

Since efficiency,flexibility and learning are conflicting goals,a transnational company should focus on only one of these goals and try to exploit it through the three sources of worldwide competitive advantage - national differences in both input and output markets,scale economies and scope economies.

Accepted Answer

A) True 
 B)False

Question 2

Cost reductions due to scale-economies are static and constant over time and few dynamic benefits are associated with scale economies.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following best describes a global company's asset and capability configuration?

Accepted Answer

A)  assets and capabilities are centralized and globally scaled. 
B)  core competences are centralized, while other assets and capabilities are decentralized. 
C)  assets and capabilities are dispersed, interdependent and specialized. 
D)  assets and capabilities are decentralized and nationally self-sufficient.

Question 4

The main drivers of MNEs' continual growth and prosperity are the desire to protect existing revenues and to increase profits.

Accepted Answer

A) True 
 B)False

Question 5

According to an article in McKinsey Quarterly on June 2012 ,about 40 percent of the growth of the global economy over the next 15 years will be generated in 400 midsized emerging-market cities.What are implications of this statement for MNEs in advanced and emerging economies?

Accepted Answer

The answer of According to an article in McKinsey Quarterly...

Question 6

Cool-Colas Ltd.is a national beverage manufacturer situated in India.During the past few years,the company has suffered intense competition from major multinationals such as Coca Cola,Nestlé and Pepsi.What can Cool-Colas do to protect its domestic market?

Accepted Answer

The answer of Cool-Colas Ltd.is a national beverage manufacturer situated...

Question 7

How will global trends such as the increase in labor costs in some emerging markets (e.g.China)impact national differences in the future and companies' decisions to exploit them?

Accepted Answer

A)  Companies should consider both the current state of cost differences and the future state based on these trends, before they make a sound long-term commitment. 
B)  Some decisions may be economically viable based on the current differences but not as much attractive in the future. 
C)  An economically viable decision is time-independent. 
D)  Options a and b are both correct.

Question 8

On his way to a meeting with a colleague,Mike Thornville,CEO of Ajaxiss Co.,was debating how to explain the importance of national differences in both input and output markets to Ajaxiss and the need to exploit these differences.If you were Mike,how would you approach this conversation?

Accepted Answer

The answer of On his way to a meeting with...

Question 9

Explain why some firms adopt a transnational strategy,while others adopt a multinational strategy?

Accepted Answer

The answer of Explain why some firms adopt a transnational...

Question 10

Which of the following best describes scope economies?

Accepted Answer

A)  cost advantage resulting from production, development or distribution in more than one country. 
B)  cost advantage resulting from large volume production, development or distribution. 
C)  cost advantage resulting from the joint production, development or distribution of more than one product. 
D)  cost advantage resulting from the production, development or distribution of very high quality products.

Question 11

Which of the following describes the strategic orientation of a transnational company?

Accepted Answer

A)  focused on building flexibility to respond to national differences through strong, resourceful and entrepreneurial national operations. 
B)  focused on developing global efficiency, flexibility and worldwide learning capability simultaneously. 
C)  focused on building cost advantages through centralized, global scale operations. 
D)  focused on exploiting parent company knowledge and capabilities through worldwide diffusion and adaptation.

Question 12

Lindux Co.,intends to enhance its competitive advantage by exploiting the national differences that prevail in the countries that host its subsidiaries.Which of the following is consistent with this intention?

Accepted Answer

A)  moving the manufacture of labor-intensive components to Vietnam in order to capitalize on the lower cost labor found in Vietnam. 
B)  hiring local managers for its foreign subsidiaries rather than employing expatriates. 
C)  centralizing the company's R&D activities in the home country for reasons of strategic security. 
D)  using a common distribution channel for multiple products.

Question 13

Which of the following best describes a transnational company's asset and capability configuration?

Accepted Answer

A)  assets and capabilities are centralized and globally scaled. 
B)  core competences are centralized, while other assets and capabilities are decentralized. 
C)  assets and capabilities are dispersed, interdependent and specialized. 
D)  assets and capabilities are decentralized and nationally self-sufficient.

Question 14

Which of the following strategies can be employed to enhance the efficiency of an MNE?

Accepted Answer

A)  pursue scale and scope economies. 
B)  pursue scope economies alone. 
C)  benefit from inter-country differences in factor costs. 
D)  pursue both scale and scope economies, as well as benefit from inter-country differences in factor costs.

Exam 3: Developing Transnational Strategies: Building Layers of Competitive Advantage

Cost reductions due to scale-economies are static and constant over time and few dynamic benefits are associated with scale economies.

Which of the following best describes a global company's asset and capability configuration?

The main drivers of MNEs' continual growth and prosperity are the desire to protect existing revenues and to increase profits.

According to an article in McKinsey Quarterly on June 2012 ,about 40 percent of the growth of the global economy over the next 15 years will be generated in 400 midsized emerging-market cities.What are implications of this statement for MNEs in advanced and emerging economies?

Cool-Colas Ltd.is a national beverage manufacturer situated in India.During the past few years,the company has suffered intense competition from major multinationals such as Coca Cola,Nestlé and Pepsi.What can Cool-Colas do to protect its domestic market?

How will global trends such as the increase in labor costs in some emerging markets (e.g.China) impact national differences in the future and companies' decisions to exploit them?

On his way to a meeting with a colleague,Mike Thornville,CEO of Ajaxiss Co.,was debating how to explain the importance of national differences in both input and output markets to Ajaxiss and the need to exploit these differences.If you were Mike,how would you approach this conversation?

Explain why some firms adopt a transnational strategy,while others adopt a multinational strategy?

Which of the following best describes scope economies?

Which of the following describes the strategic orientation of a transnational company?

Lindux Co.,intends to enhance its competitive advantage by exploiting the national differences that prevail in the countries that host its subsidiaries.Which of the following is consistent with this intention?

Which of the following best describes a transnational company's asset and capability configuration?

Which of the following strategies can be employed to enhance the efficiency of an MNE?