Homework answers / question archive / 1)The largest MNEs are equivalent in their economic importance to less developed economies such as Tanzania, Estonia, or Sri Lanka       The process of internalization followed by most firms is usually well thought out in advance and typically builds on a combination of rational analysis     Emerging motivations for internationalization include the desire to enhance the firm's competitive position and the desire to develop global scanning capabilities     For an MNE to exist, first foreign countries must provide location specific advantages to attract the company to invest there, second foreign countries must have ownership specific advantages that counteract its liability of foreignness, third the company must have the organizational capability to leverage its strategic advantages more effectively internally than externally     An MNE with a global perspective will typically manage its operations centrally     An MNE is a   Three prerequisites that must be satisfied before a national firm can transform itself into a multinational firm include   Which of the following correctly describes the sequential evolution in management thinking with respect to the strategic role of foreign operations in emerging MNEs?   Which suggests that in the first stage innovations are produced in the home developed country; in the second stage they are exported to other similarly developed countries; in the third stage they start being produced in these developed counties; in the fourth stage they start being produced in low wage developing countries   OfficeWare Corp

1)The largest MNEs are equivalent in their economic importance to less developed economies such as Tanzania, Estonia, or Sri Lanka       The process of internalization followed by most firms is usually well thought out in advance and typically builds on a combination of rational analysis     Emerging motivations for internationalization include the desire to enhance the firm's competitive position and the desire to develop global scanning capabilities     For an MNE to exist, first foreign countries must provide location specific advantages to attract the company to invest there, second foreign countries must have ownership specific advantages that counteract its liability of foreignness, third the company must have the organizational capability to leverage its strategic advantages more effectively internally than externally     An MNE with a global perspective will typically manage its operations centrally     An MNE is a   Three prerequisites that must be satisfied before a national firm can transform itself into a multinational firm include   Which of the following correctly describes the sequential evolution in management thinking with respect to the strategic role of foreign operations in emerging MNEs?   Which suggests that in the first stage innovations are produced in the home developed country; in the second stage they are exported to other similarly developed countries; in the third stage they start being produced in these developed counties; in the fourth stage they start being produced in low wage developing countries   OfficeWare Corp

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1)The largest MNEs are equivalent in their economic importance to less developed economies such as Tanzania, Estonia, or Sri Lanka

 

 

 

2. The process of internalization followed by most firms is usually well thought out in advance and typically builds on a combination of rational analysis

 

 

3. Emerging motivations for internationalization include the desire to enhance the firm's competitive position and the desire to develop global scanning capabilities

 

 

4. For an MNE to exist, first foreign countries must provide location specific advantages to attract the company to invest there, second foreign countries must have ownership specific advantages that counteract its liability of foreignness, third the company must have the organizational capability to leverage its strategic advantages more effectively internally than externally

 

 

5. An MNE with a global perspective will typically manage its operations centrally

 

 

6. An MNE is a

 

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

 

8. Which of the following correctly describes the sequential evolution in management thinking with respect to the strategic role of foreign operations in emerging MNEs?

 

9. Which suggests that in the first stage innovations are produced in the home developed country; in the second stage they are exported to other similarly developed countries; in the third stage they start being produced in these developed counties; in the fourth stage they start being produced in low wage developing countries

 

10. OfficeWare Corp. is an MNE that produces and sells office equipment. If the company's CEO employs a global mentality toward the strategic role of the company's foreign operations, then we would expect that OfficeWare

 

11. The three conflicting environmental forces that MNEs encounter are cross-border integration and coordination, national differentiation and responsiveness, and worldwide innovation and learning.

 

 

12. Local responsiveness forces encountered by MNEs include cultural differences, government demands and economies of scope

 

 

13. A global industry is characterized by low national responsiveness and high global integration.

 

 

14. A firm's decision with respect to whether it should adopt a global, multinational or international strategy should be made without any consideration of the industry in which the firm operates.

 

 

15. The pressures that drive book publishers such as McGraw-Hill to integrate and coordinate their activities across national boundaries are primarily

 

16. What are the main forces that drive MNEs such as Nokia, the mobile communications company, to innovate and learn on a global scale?

 

17. A multinational industry is characterized by

 

18. A transnational industry is characterized by

 

19. In a transnational industry, MNEs are expected to

 

20. An industry that is characterized by moderate national responsiveness and moderate global integration is a(n)

 

21. An MNE can maximize each of the following objectives independently - global scale efficiency, multinational flexibility and innovation development.

 

 

22. The diversity of environments in which the MNE operates enables the firm to develop diverse capabilities and experience multiple learning opportunities.

 

 

23. In addition to capturing cost advantages due to national differences in factor endowments, an MNE can also exploit markets by responding to customer needs and commanding higher prices.

 

 

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

 

 

25. In order to secure worldwide competitive advantage, a multinational firm should pursue all of the following objectives, except:

 

26. Which of the following is not considered a source of global competitive advantage?

 

27. Which of the following best describes scope economies?

 

28. Which of the following explain why cost reduction occurs in the context of scope economies?

 

29. Which of the following is not a source of environmental volatility?

 

30. Which of the following describes the strategic orientation of a multinational company?

 

31. Companies have found that installing a matrix structure is the most effective way to transition from an organization based on multiple regional divisions to one able to manage both geographic and product diversity.

 

 

32. Companies that pursue a multinational strategy are inclined to adopt the decentralized federation organizational model.

 

 

33. The degree of control and coordination exercised by the headquarters is greater in the context of the decentralized federation model than it is in the coordinated federation organizational model.

 

 

34. In the transnational organization, capable managers situated in the national subsidiaries act as the primary source for sensing and analyzing worldwide opportunities and threats.

 

 

35. In a transnational organization, the asset and capability configuration can be described as dispersed, specialized and interdependent.

 

 

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

 

37. Which of the following is not a core characteristic of the coordinated federation structure?

 

38. Which of the following is not characteristic of a transnational strategy?

 

39. Which of the following is not a characteristic of the centralized hub structure?

 

40. Which of the following describes the preferred sequencing of changes associated with implementing the typically more effective emerging change process model?

 

41. The innovation process described as local-for-local implies the decentralization of R&D activities in multiple countries.

 

 

42. Globally linked innovations involve processes designed to ensure that the special resources and capabilities of each subsidiary are globally available to other units of the organization.

 

 

43. The greatest risk facing center-for-global innovation is market insensitivity

 

 

44. Linking local managers to corporate decision-making processes makes them more effective in managing local innovation.

 

 

45. The development of transnational innovation requires that the roles performed by organizational units worldwide are essentially uniform, and that the headquarters manages all of its subsidiaries in the same manner

 

 

46. 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

 

47. Which of the following does not enhance the efficiency of a local-for-local innovation process?

 

48. Which of the following management assumptions is most likely to support transnational innovation in MNEs?

 

49. What is the primary advantage of operating interdependent subsidiaries?

 

50. TechInnovation is a large MNE operating in an environment characterized by rapid changes. During the past 50 years, its subsidiaries have operated independently. Which of the following actions will be least helpful to increase the interdependence across its widely dispersed national organizations?

 

51. Entering collaborative relationships with other firms is one way for firms to meet the needs of an increasingly complex environment

 

 

52. Strategic alliances with customers are a form of collaboration that enable MNEs to increase their bargaining power and reduce their costs

 

 

53. Strategic alliances are only forged for so long durations. Firms should not enter collaborative agreements with a short term horizon

 

 

54. Collaboration reduces the time and risk associated with the development of new products

 

 

55. Alliances are the only feasible way to develop a position in multiple countries and regions

 

 

56. A vast majority of successful cross-border collaborations are founded and maintained by firms that acquire the other partner's knowledge without sharing their own knowledge

 

 

57. Once an alliance is formed, the goals, tasks, and management processes of the alliance must constantly be monitored and adapted to changing conditions

 

 

58. Which of the following is not a benefit of a strategic alliance

 

59. Which of the following can inhibit a firm's ability to learn from the alliance

 

60. Most stable alliances often involve

 

61. The global business manager alone is responsible for formulating the strategic priorities of the MNE

 

 

62. The global business manager does not need to be located in the MNE's home country

 

 

63. While the global business manager must routinely incorporate the perspectives of the geographic (country) managers when formulating the MNE's global business strategy, there is no need to incorporate the perspectives of the worldwide functional managers because these perspectives are incorporated into the formulation of the broader corporate strategy

 

 

64. Innovations can be stimulated by all of the following - revolutionary technological breakthroughs, emerging consumer trends, new competitive challenges and pending government regulations.

 

 

65. Two key tasks associated with the geographic (country) manager's role as a national defender and advocate are both the responsibility for advocating the subsidiary's role in the MNE's worldwide organization and the responsibility for championing transnational innovations.

 

 

 

 

66. Experience has shown that encouraging foreign direct investment by MNEs in developing economies has been less effective than government-funded aid programs in efforts to reduce global poverty.

 

 

67. The primary difference between transactional MNEs and exploitive MNEs is that the former employs an approach that tends to be legally compliant and non-oppressive in its emerging market dealings.

 

 

68. Some transformative MNEs go beyond commercial relationships with their consumers and offer their products and services to those who most desperately need them, regardless of their ability to pay.

 

 

69. Responsive MNEs act in a way that is sensitive and responsive to the needs of all its immediate stakeholders.

 

 

70. Transformative MNEs commit to leading initiatives to bring life-enhancing changes to their home countries.