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1)An MNE is a(n): import-export company that actively trades in foreign markets

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1)An MNE is a(n):

1. import-export company that actively trades in foreign markets.
2. company that passively manages its substantial foreign direct investment.
3. import-export company that actively manages its foreign investment portfolio.
4. company that actively manages substantial foreign direct investment.

 

 

2. Three prerequisites that must be satisfied before a national firm can transform itself into a multinational firm include:

1. scale-based advantages, ownership-specific advantages, and contractual capabilities.
2. location-specific advantages, ownership-specific advantages, and organizational capabilities.
3. scale-based advantages, ownership-specific advantages, and organizational capabilities.
4. location-specific advantages, knowledge advantages, and organizational capabilities.

 

 

3. What were the original four dimensions of Hofstede’s research?
   1. Power distance, uncertainty avoidance, long-term orientation, and “masculinity”
   2. Power distance, uncertainty avoidance, individualism, and “masculinity”
   3. Power distance, long-term orientation, indulgence, and uncertainty avoidance
   4. Indulgence, uncertainty avoidance, individualism and “masculinity”

 

 

 

4. Philips, a multinational electronics corporation based in the Netherlands and diversified in the consumer electronics, domestic appliance, lighting, medical systems and medical technology industries would encounter the following forces of local responsiveness:

1. Cultural differences, government demands, and economies of scope
2. Cultural differences, government demands and factor costs
3. Cultural differences, government demands, and local competitors
4. Cultural differences, government demands, and increasingly liberalized trade environments

 

 

5. An industry that is characterized by low national responsiveness and high global integration is a(n)

1. multinational industry.
2. global industry.
3. international industry.
4. transnational industry.

 

 

 

 

 

 

 

 

6. In a transnational industry, MNEs are expected to

1. collaborate with their competitors to increase the prices of their products.
2. build the capability to learn from the many environments in which they operate.
3. acquire their competitors to increase their pool of resources.
4. decentralize decisions to better respond to local demands.

 

 

7. A “regional” strategy becomes feasible when:

1. Geographic regions or groups of countries are sufficiently large and internally homogeneous markets but differ substantially from other regions or groups
2. Geographic regions or groups of countries are sufficiently small and internally homogeneous markets but differ substantially from other regions or groups
3. Geographic regions or groups of countries are sufficiently large and internally homogeneous markets but differ marginally from other regions or groups
4. Geographic regions or groups of countries are sufficiently small and internally homogeneous markets but differ marginally from other regions or groups

 

 

8. In order to secure worldwide competitive advantage, a multinational firm should pursue all of the following objectives, except:
   1. the development of global-scale efficiencies.
   2. the development of multinational flexibility.
   3. the ability to develop innovation.
   4. maximizing market share in all subsidiaries simultaneously.

 

 

9. Which of the following best describes a global company’s asset and capability configuration?

1. assets and capabilities are centralized and globally scaled.
2. core competences are centralized, while other assets and capabilities are decentralized.
3. assets and capabilities are dispersed, interdependent and specialized.
4. assets and capabilities are decentralized and nationally self-sufficient.

 

 

10. 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?

1. 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.
2. Some decisions may be economically viable based on the current differences but not as much attractive in the future.
3. An economically viable decision is time-independent.
4. Options a and b are both correct.

 

 

 

11. Which of the following is not a core characteristic of the decentralized federation structure?

1. Most key assets and resources are decentralized.
2. Subsidiaries are highly autonomous.
3. Corporate management regards subsidiaries as largely independent national operations.
4. Reporting and oversight conflicts prevail.

 

 

12. Which of the following is not characteristic of companies with a transnational strategy?

1. Multiple diverse perspectives are developed and legitimized.
2. Physical assets and management capabilities are internationally distributed, yet interdependent.
3. Integrative processes are flexible and robust.
4. Knowledge is developed centrally and adapted locally.

 

 

13. Frank is director of technology in an MNE in which most of the R&D activities are performed in the parent company’s home country, but then, foreign subsidiaries are responsible for introducing the resulting innovations to their local customers. The innovation process adopted by Frank’s MNE is:
    1. globally linked. 
    2. local-for-local. 
    3. center-for-global.
    4. locally leverage 

 

 

14. Which of the following management assumptions is most likely to support transnational innovation in MNEs?
    1. The roles of different organizational units should be uniform and symmetrical.
    2. The headquarter-subsidiary relationship should be based on clear and unambiguous patterns of dependence or independence.
    3. Career paths should be structured to give managers cross-border and cross-functional experience.
    4. Headquarters should be responsible for exercising decision-making and control uniformly.

 

 

15. Which of the following is not a benefit of a strategic alliance?
    1. Firms can transfer their technologies to new markets and increase their revenues from licensing fees.
    2. Firms can transfer employees to other organizations to reduce operating costs and acquire new knowledge through the employees they transfer.
    3. Firms can gain access to new markets for existing products and learn important new skills from the partner.
    4. Firms can share costs and develop new technologies together without being fully integrate

 

 

 

16. Too much enthusiasm by those involved in alliance planning and negotiations can sometimes cause:
    1. Realistic expectations and right choices
    2. Unrealistic expectations and wrong choices
    3. Unrealistic expectations and right choices
    4. Realistic expectations and wrong choices.

 

 

17. Top-level management teams strive to pursue continual renewal within the transnational by engaging in all of the following activities, except

1. defining the corporate mission and values
2. devoting considerable time and effort to reviewing below-budget financial results.
3. constantly orienting the organization to its customers.
4. forcing adaptation and learning.

 

18. The top-level management team should balance all of the following processes in order to fully exploit the MNE’s assets and resources and greatly leverage its performance, except

1. formalizing goods flow.
2. decentralizing decision making.
3. centralizing scarce resources.
4. socializing information and knowledge.

 

 

19. Which of the following accusations is least likely to be levied against exploitative MNEs

1. they may collude with political elites.
2. they may be willing to ignore the welfare of employees.
3. they may subvert the interests of their shareholders.
4. they may violate environmental norms.

 

 

20. Unilever’s development of a simple laundry bar for the rural community can be considered
    1. Transformative
    2. Responsive
    3. Transactional
    4. Exploitative