Question 1

Many retailers that have been outstandingly successful in their how markets have experienced much poorer performance when they have entered overseas markets.These include: Tesco,Marks & Spencer,Laura Ashley,and Body Shop in the UK);Best Buy,Sears,Macy's,and Walmart in the US.This reflects:

Accepted Answer

A) The lack of major efficiency benefits from international scope in retailing 
B) The lack of scale economies in retailing 
C) Limited opportunities for exploiting learning benefits in retailing (e.g.by transferring best practices) 
D) The lack of major efficiency benefits from international scope combined with the need for national differentiation.

Question 2

Large countries have an advantage over small countries in technology-intensive and capital-intensive industries,because:

Accepted Answer

A) They can influence the rest of the world's technical standards 
B) Small markets discourage ambition among the firms that serve them 
C) A large home market facilitates exploitation of scale economies 
D) Large countries tend to have superior educational systems

Question 3

Internationalization occurs through two main mechanisms: trade and government policy.

Accepted Answer

A) True 
 B)False

Question 4

McKinsey & Company's finding that found that successful MNCs are underperforming successful "national Champions" is evidence of:

Accepted Answer

A) The benefits of exploiting the benefits of multinationality being outweighed by the cost imposed by the complexity 
B) The rise of economic nationalism and the governments' waning commitment to free trade 
C) The declining importance of global scale economies 
D) The increasing difficulties of managing business activities across national borders

Question 5

Comparative advantage refers to countries' relative efficiencies in producing different products

Accepted Answer

A) True 
 B)False

Question 6

Service industries such as commercial banking and hotels tend to be "multidomestic" in their pattern of internationalization.

Accepted Answer

A) True 
 B)False

Question 7

Internationalization often involves mergers and acquisitions,hence,it tends to reduce seller concentration within individual national markets.

Accepted Answer

A) True 
 B)False

Question 8

A start-up company based in Canada and led by an academic microbiologist has patented genetically-modified,drought-resistant maize particularly suitable to arid regions of Africa.The firm has been unable to attract significant venture capital investment.How should the firm exploit commercial opportunities for its product in Africa?

Accepted Answer

A) It should form a joint venture with a multinational agricultural seed company 
B) It should establish seed production in Canada and set up sales offices in African countries 
C) It should establish seed production in Canada and appoint sales agents in different African countries 
D) It should license its patent to a multinational agricultural seed company and continue research on other projects for the genetic modification of agricultural crops

Question 9

International trade is motivated by the quest for market opportunities in other countries,while foreign direct investment is motivated by the desire to exploit resources and capabilities in other countries.

Accepted Answer

A) True 
 B)False

Question 10

Traditionally,European-based multinational companies such as Unilever,Shell,and Philips have been highly centralized;Japanese multinationals such as Honda,Sony,and Hitachi have been highly decentralized.

Accepted Answer

A) True 
 B)False

Question 11

The Dutch-based electrical and consumer electronics multinational,Philips,has transferred the headquarters for several of its global business away from the Netherlands.In terms of Bartlett and Ghoshal's typology of multinational strategies,this represents a transition from:

Accepted Answer

A) A "centralized hub" to a "decentralized federation" 
B) A "centralized hub" to a "transnational" 
C) A "decentralized federation" to a "transnational" 
D) A "coordinated federation" to a "decentralized federation"

Question 12

Firms internationalize through two mechanisms:

Accepted Answer

A) Exports and imports 
B) Trade in goods (visible trade)and trade in services (invisible trade) 
C) Direct and indirect investment 
D) Trade and direct investment.

Question 13

With internationalization,the threat of new entry into domestic industries are increases because:

Accepted Answer

A) Customers prefer imported products to domestically-produced products 
B) The World Trade Organization (WTO)prevents governments protecting their domestic industries through subsidies and import restrictions 
C) Barriers to entry that would deter domestic firms may be easily overcome by large firms from other countries 
D) Foreign-based,state-owned enterprises are not deterred by losses earned in overseas markets

Question 14

The value chain for a product will tend to be dispersed across different countries when:

Accepted Answer

A) Different stages of the value chain require different types of resources and capabilities 
B) The product is subject to import tariffs and quotas 
C) The product is knowledge-intensive 
D) The different stages of the value chain need to be closely coordinated.

Question 15

The rise of Shenzhen to become one of the world's most important industrial centers is evidence of:

Accepted Answer

A) The superiority of the Chinese economic model over western market 
B) The transformative potential of internationalization 
C) The spillover benefits from being close to a dynamic business hub such as Hong Kong.

Question 16

Internationalization offers a remarkable opportunity for businesses to expand and prosper.Only the unimaginative and the pessimistic would regard it as a threat.

Accepted Answer

A) True 
 B)False

Question 17

Sheltered industries are shielded from imports by government restrictions such as import quotas and high tariffs and .

Accepted Answer

A) True 
 B)False

Question 18

A key difference between Bartlett and Ghoshal's "transnational corporation" and the conventional US multinational corporation (described by Bartlett and Ghoshal as a "coordinated federation")is that communication and coordination occurs between national units rather than exclusively between each national unit and the corporate HQ

Accepted Answer

A) True 
 B)False

Question 19

Saudi Aramco and Statoil are both major oil producers.Saudi Aramco's competitive advantage is based on its access to low-cost domestic oil reserves;Statoil's competitive advantage is its capability in offshore exploration and production.The implications for the internationalization strategies of the two companies are:

Accepted Answer

A) Both companies should focus on exporting from their own countries 
B) Saudi Aramco should focus on exporting;Statoil should pursue direct foreign investment 
C) Saudi Aramco should pursue direct foreign investment;Statoil should focus on exporting 
D) Both companies should use a mixture of exporting and direct investment depending upon the nature of the foreign opportunity

Question 20

Porter's "national diamond" framework implies that government policies which foster "national champions" within technology-based industries are likely to be successful in stimulating national competitiveness in these sectors.

Accepted Answer

A) True 
 B)False

Exam 11: Global Strategy and the Multinational Corporation

Many retailers that have been outstandingly successful in their how markets have experienced much poorer performance when they have entered overseas markets.These include: Tesco,Marks & Spencer,Laura Ashley,and Body Shop in the UK) ;Best Buy,Sears,Macy's,and Walmart in the US.This reflects:

Large countries have an advantage over small countries in technology-intensive and capital-intensive industries,because:

Internationalization occurs through two main mechanisms: trade and government policy.

McKinsey & Company's finding that found that successful MNCs are underperforming successful "national Champions" is evidence of:

Comparative advantage refers to countries' relative efficiencies in producing different products

Service industries such as commercial banking and hotels tend to be "multidomestic" in their pattern of internationalization.

Internationalization often involves mergers and acquisitions,hence,it tends to reduce seller concentration within individual national markets.

International trade is motivated by the quest for market opportunities in other countries,while foreign direct investment is motivated by the desire to exploit resources and capabilities in other countries.

Traditionally,European-based multinational companies such as Unilever,Shell,and Philips have been highly centralized;Japanese multinationals such as Honda,Sony,and Hitachi have been highly decentralized.

The Dutch-based electrical and consumer electronics multinational,Philips,has transferred the headquarters for several of its global business away from the Netherlands.In terms of Bartlett and Ghoshal's typology of multinational strategies,this represents a transition from:

Firms internationalize through two mechanisms:

With internationalization,the threat of new entry into domestic industries are increases because:

The value chain for a product will tend to be dispersed across different countries when:

The rise of Shenzhen to become one of the world's most important industrial centers is evidence of:

Internationalization offers a remarkable opportunity for businesses to expand and prosper.Only the unimaginative and the pessimistic would regard it as a threat.

Sheltered industries are shielded from imports by government restrictions such as import quotas and high tariffs and .

Porter's "national diamond" framework implies that government policies which foster "national champions" within technology-based industries are likely to be successful in stimulating national competitiveness in these sectors.