Question 1

The administrative and political distance between two trading countries decreases when

Accepted Answer

A)   there are Foreign Direct Investment (FDI)  restrictions in the host country.
B)   the host country lacks an independent central bank.
C)   tariffs and trade quotas exist in the host country.
D)   there is a well-functioning capital market in the host country.E) All of the above
F) A) and C)

Question 2

Unilever's new-concept center is situated in downtown Shanghai, China, attracting hundreds of eager volunteers to test the firm's latest product innovations on-site while Unilever researchers monitor consumer reactions. In this example, Unilever is trying to reap the benefits of

Accepted Answer

A)   location economies.
B)   economies of scope.
C)   learning races.
D)   network effects.E) A) and B)
F) C) and D)

Question 3

The term demand conditions refers to how high the volume of demand is for a particular product in a particular country.

Accepted Answer

A) True 
 B)False

Question 4

Under the CAGE distance framework, the administrative and political distance between two countries primarily increases with

Accepted Answer

A)   differences in climates and time zones.
B)   the absence of a trading bloc.
C)   physical remoteness.
D)   the lack of connective ethnic and social networks.E) None of the above
F) All of the above

Question 5

Save On Everything Inc., a supermarket chain, is implementing a multidomestic strategy. Solar Future Inc., a company that manufactures solar panels for commercial and domestic purposes, is pursuing a global-standardization strategy. How will the two companies most likely differ from each other?

Accepted Answer

A)   Save On Everything Inc. will focus more on cost-reduction than Solar Future Inc.
B)   Save On Everything Inc. will have its business functions spread across the world; Solar Future Inc.'s business functions will be highly centralized.
C)   Unlike Solar Future Inc., Save On Everything Inc. will be able to pursue a differentiation strategy at the business level.
D)   Unlike Solar Future Inc., Save On Everything Inc. will be able to reap significant economies of scale and location economies.E) None of the above
F) All of the above

Question 6

How will an increase in coordinated economic and political integration between countries affect the world economy?

Accepted Answer

A)   The world's market economies will become self-sufficient and independent.
B)   There will be gains in social welfare and living standards across the globe.
C)   The cost of labor will further decline in emerging economies.
D)   There will be a movement away from global collaboration networks among multinational enterprises (MNEs) .E) A) and B)
F) A) and D) B

Question 7

Managers at Durkmunder, a firm in West Feenistan, want to make their company a global leader in business process outsourcing (BPO) . What should the Durkmunder managers look for as they decide where to locate their BPO facilities?

Accepted Answer

A)   large, undeveloped plots of land for greenfield projects
B)   plentiful natural resources
C)   many uneducated workers who are highly trainable
D)   an abundance of well-educated English speakersE) A) and B)
F) All of the above

Question 8

Downshift Autos Inc. has shifted its research and development unit from its home country to Germany. This allows the company to be better informed about the latest developments in the automotive industry by tapping into the highly advanced automotive industry in Germany. In this scenario, Downshift Autos Inc. is reaping the benefits of

Accepted Answer

A)   economies of scope.
B)   location economies.
C)   resource immobility.
D)   resource ambiguity.E) None of the above
F) C) and D)

Question 9

European aircraft maker Airbus invested $600 million in Mobile, Alabama, to build jetliners. Which of the following statements best explains why it used this strategy?

Accepted Answer

A)   to take advantage of the high labor costs in the southern United States
B)   to take advantage of the high cost of living in the southern United States
C)   to take advantage of the low impact of globalization in the United States
D)   to take advantage of lower taxes in the southern United StatesE) A) and B)
F) All of the above

Question 10

What is the engine behind globalization? Provide a real-world example.

Accepted Answer

Student examples will vary. A sample ans...

Question 11

In Michael Porter's diamond framework, ________ conditions describe a country's endowments in terms of natural, human, and other resources.

Accepted Answer

A)   market
B)   factor
C)   demand
D)   supplyE) C) and D)
F) A) and C)

Question 12

Carpatia and Novenica are neighboring countries with strong economic disparities. However, both the countries share a common national language and the same political ideologies. The relationship between these two countries will most likely affect the trade of

Accepted Answer

A)   food processed in Novenica.
B)   movies and TV shows produced in Carpatia.
C)   iron ore extracted in Novenica.
D)   luxury items manufactured in Carpatia.E) A) and D)
F) B) and C)

Question 13

A greater cultural distance between two trading countries

Accepted Answer

A)   increases linguistic similarities between the two countries.
B)   increases the liability of foreignness.
C)   reduces the uncertainty of doing business.
D)   reduces the transaction costs associated with business.E) A) and C)
F) B) and C)

Question 14

MacAdam Enterprises sells the same sparkplugs in more than 30 countries. MacAdam is an example that helps to support the globalization hypothesis.

Accepted Answer

A) True 
 B)False  True

Question 15

Foreign-entry modes such as acquisitions and greenfield projects are usually disadvantageous because they require a high level of capital and resource investment but allow for a low level of control.

Accepted Answer

A) True 
 B)False

Question 16

Janessa Inc., a reputed brand for fine art supplies, is implementing an international strategy. Slalom Corp., a maker of mini computer tablets, is pursuing a global-standardization strategy. Which of the following statements most likely holds true in this scenario?

Accepted Answer

A)   While Janessa Inc.'s competitive advantage lies in its high local responsiveness, Slalom Corp. will lack such capabilities.
B)   Slalom Corp. focuses more on cost-reductions when compared to Janessa Inc.
C)   Slalom's business functions are highly centralized, whereas Janessa. organizes its activities worldwide.
D)   Slalom is exposed to greater risks of exchange rate fluctuations.E) B) and C)
F) A) and B)

Question 17

The transnational strategy is similar to a(n)  ________ strategy because they both focus on product differentiation and low costs.

Accepted Answer

A)   liquidation
B)   product diversification
C)   international
D)   blue oceanE) A) and B)
F) None of the above D

Question 18

WackyPop Inc. produces an inexpensive microwave popcorn that is well tailored for the tastes of U.S. consumers. However, it has failed to satisfy the consumer preferences of its host country, Japan. Which of the following categories has WackyPop performed poorly in?

Accepted Answer

A)   cost reduction
B)   local responsiveness
C)   global standardization
D)   transnational strategyE) A) and B)
F) A) and C)

Question 19

Which of the following is most likely an accurate statement?

Accepted Answer

A)   The multinational enterprise Starship benefited from advances in communications technology.
B)   The multinational enterprise United Allies was hindered by falling investment barriers.
C)   The multinational enterprise MegaStore benefited from rising trade barriers.
D)   The multinational enterprise Global Partners was hindered by reduced transportation costs.E) A) and C)
F) A) and B)

Question 20

Discuss the disadvantages of international expansion for firms, particularly in regard to intellectual property. Substantiate with an example from your reading assignment or from your own experience.

Accepted Answer

Student examples will vary. A sample ans...

Exam 10: Global Strategy: Competing Around the World

The administrative and political distance between two trading countries decreases when

Correct Answer
verified

Unilever's new-concept center is situated in downtown Shanghai, China, attracting hundreds of eager volunteers to test the firm's latest product innovations on-site while Unilever researchers monitor consumer reactions. In this example, Unilever is trying to reap the benefits of

Correct Answer
verified

The term demand conditions refers to how high the volume of demand is for a particular product in a particular country.

Correct Answer
verified

Under the CAGE distance framework, the administrative and political distance between two countries primarily increases with

Correct Answer
verified

Save On Everything Inc., a supermarket chain, is implementing a multidomestic strategy. Solar Future Inc., a company that manufactures solar panels for commercial and domestic purposes, is pursuing a global-standardization strategy. How will the two companies most likely differ from each other?

Correct Answer
verified

How will an increase in coordinated economic and political integration between countries affect the world economy?

Correct Answer
verified
B

Managers at Durkmunder, a firm in West Feenistan, want to make their company a global leader in business process outsourcing (BPO) . What should the Durkmunder managers look for as they decide where to locate their BPO facilities?

Correct Answer
verified

Correct Answer
verified

European aircraft maker Airbus invested $600 million in Mobile, Alabama, to build jetliners. Which of the following statements best explains why it used this strategy?

Correct Answer
verified

What is the engine behind globalization? Provide a real-world example.

Correct Answer
verified
Student examples will vary. A sample ans...
View Answer

In Michael Porter's diamond framework, ________ conditions describe a country's endowments in terms of natural, human, and other resources.

Correct Answer
verified

Carpatia and Novenica are neighboring countries with strong economic disparities. However, both the countries share a common national language and the same political ideologies. The relationship between these two countries will most likely affect the trade of

Correct Answer
verified

A greater cultural distance between two trading countries

Correct Answer
verified

MacAdam Enterprises sells the same sparkplugs in more than 30 countries. MacAdam is an example that helps to support the globalization hypothesis.

Correct Answer
verified
True

Foreign-entry modes such as acquisitions and greenfield projects are usually disadvantageous because they require a high level of capital and resource investment but allow for a low level of control.

Correct Answer
verified

Janessa Inc., a reputed brand for fine art supplies, is implementing an international strategy. Slalom Corp., a maker of mini computer tablets, is pursuing a global-standardization strategy. Which of the following statements most likely holds true in this scenario?

Correct Answer
verified

The transnational strategy is similar to a(n) ________ strategy because they both focus on product differentiation and low costs.

Correct Answer
verified
D

WackyPop Inc. produces an inexpensive microwave popcorn that is well tailored for the tastes of U.S. consumers. However, it has failed to satisfy the consumer preferences of its host country, Japan. Which of the following categories has WackyPop performed poorly in?

Correct Answer
verified

Which of the following is most likely an accurate statement?

Correct Answer
verified

Discuss the disadvantages of international expansion for firms, particularly in regard to intellectual property. Substantiate with an example from your reading assignment or from your own experience.

Correct Answer
verified
Student examples will vary. A sample ans...
View Answer

Exam 10: Global Strategy: Competing Around the World

The administrative and political distance between two trading countries decreases when

Correct AnswerverifiedShow Answer

Unilever's new-concept center is situated in downtown Shanghai, China, attracting hundreds of eager volunteers to test the firm's latest product innovations on-site while Unilever researchers monitor consumer reactions. In this example, Unilever is trying to reap the benefits of

Correct AnswerverifiedShow Answer

The term demand conditions refers to how high the volume of demand is for a particular product in a particular country.

Correct AnswerverifiedShow Answer

Under the CAGE distance framework, the administrative and political distance between two countries primarily increases with

Correct AnswerverifiedShow Answer

Save On Everything Inc., a supermarket chain, is implementing a multidomestic strategy. Solar Future Inc., a company that manufactures solar panels for commercial and domestic purposes, is pursuing a global-standardization strategy. How will the two companies most likely differ from each other?

Correct AnswerverifiedShow Answer

How will an increase in coordinated economic and political integration between countries affect the world economy?

Correct AnswerverifiedB

Managers at Durkmunder, a firm in West Feenistan, want to make their company a global leader in business process outsourcing (BPO) . What should the Durkmunder managers look for as they decide where to locate their BPO facilities?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

European aircraft maker Airbus invested $600 million in Mobile, Alabama, to build jetliners. Which of the following statements best explains why it used this strategy?

Correct AnswerverifiedShow Answer

What is the engine behind globalization? Provide a real-world example.

Correct AnswerverifiedStudent examples will vary. A sample ans...View AnswerShow Answer

In Michael Porter's diamond framework, ________ conditions describe a country's endowments in terms of natural, human, and other resources.

Correct AnswerverifiedShow Answer

Carpatia and Novenica are neighboring countries with strong economic disparities. However, both the countries share a common national language and the same political ideologies. The relationship between these two countries will most likely affect the trade of

Correct AnswerverifiedShow Answer

A greater cultural distance between two trading countries

Correct AnswerverifiedShow Answer

MacAdam Enterprises sells the same sparkplugs in more than 30 countries. MacAdam is an example that helps to support the globalization hypothesis.

Correct AnswerverifiedTrue

Foreign-entry modes such as acquisitions and greenfield projects are usually disadvantageous because they require a high level of capital and resource investment but allow for a low level of control.

Correct AnswerverifiedShow Answer

Janessa Inc., a reputed brand for fine art supplies, is implementing an international strategy. Slalom Corp., a maker of mini computer tablets, is pursuing a global-standardization strategy. Which of the following statements most likely holds true in this scenario?

Correct AnswerverifiedShow Answer

The transnational strategy is similar to a(n) ________ strategy because they both focus on product differentiation and low costs.

Correct AnswerverifiedD

WackyPop Inc. produces an inexpensive microwave popcorn that is well tailored for the tastes of U.S. consumers. However, it has failed to satisfy the consumer preferences of its host country, Japan. Which of the following categories has WackyPop performed poorly in?

Correct AnswerverifiedShow Answer

Which of the following is most likely an accurate statement?

Correct AnswerverifiedShow Answer

Discuss the disadvantages of international expansion for firms, particularly in regard to intellectual property. Substantiate with an example from your reading assignment or from your own experience.

Correct AnswerverifiedStudent examples will vary. A sample ans...View AnswerShow Answer

Correct Answer
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B

Correct Answer
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Student examples will vary. A sample ans...
View Answer

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True

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D

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Student examples will vary. A sample ans...
View Answer