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1)Lindux Co

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1)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?

 

2. Which of the following describes the strategic orientation of a transnational company?
3. An MNE with a ‘multinational mentality’ will typically be managed as a coordinated federation.

 

4. Companies using multinational strategies are characterized by asset and capability configurations that are dispersed, interdependent and specialized.

 

5. An MNE with a ‘global mentality’ will typically manage its operations centrally.

 

6. The main advantage multinational mentality has over global mentality is more efficient manufacturing.

 

7. ___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 countries; in the fourth stage they start being produced in low-wage developing countries.
8. Emerging motivations for internationalization include the desire to enhance the firm’s competitive position and the desire to develop global scanning capabilities.

 

9. A franchise, such as McDonald’s, is a _________ mode of foreign entry.
10. The search for global competitiveness is a major source of conflict between MNEs and host governments.

 

11. In a transnational industry, MNEs are expected to

 

12. 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:
13. The key capabilities of national responsiveness, learning and transfer of home country knowledge abroad, and global efficiency are mutually exclusive. That is, having one capability inhibits the concurrent possession of others.

 

14. Summit Corp. is transitioning from a multinational strategy to a transnational strategy. It would probably be more effective and less costly if the company commenced its accompanying organizational transition by focusing on changing employees’ attitudes and mentalities, than it would be if it led its efforts by engaging in structural change.

 

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

 

16. An international industry is characterized by low national responsiveness and moderate global integration.

 

17. Which global integration and coordination forces would MNEs, such as Mercedes-Benz, encounter?
18. Companies that pursue a multinational strategy are inclined to adopt the decentralized federation organizational model.

 

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

 

20. Which of the following best describes scope economies?
21. The largest MNEs are equivalent in their economic importance to less developed economies such as Cameroon, Paraguay, or Barbados.

 

 

 

22. The demand for the Italy-based Sparkly Fashion Manufacturing’s unisex pants has been continually increasing. Sparkos, the CEO of the company, intends to take his company international by producing these unisex pants mainly in Italy and selling them in the same way all over the world. Sparkos is operating with a(n):
23. The pressures that drive book publishers such as McGraw-Hill to integrate and coordinate their activities across national boundaries are primarily___.
24. Which of the following correctly describes the sequential evolution in management thinking with respect to the strategic role of foreign operations in emerging MNEs?
25. In the transnational organization, capable managers situated in the national subsidiaries act as the primary source for sensing and analyzing worldwide opportunities and threats.

 

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

 

27. The diversity of environments in which MNEs operate enables them to develop diverse capabilities and experience multiple learning opportunities.

 

28. An industry that is characterized by low national responsiveness and high global integration is a(n)
29. Global integration and coordination forces encountered by MNEs include economies of scale, government demands, and the expanding spiral of globalization.

 

30. Which of the following best describes a transnational company’s asset and capability configuration?
31. MNEs that adopted a centralized hub organizational model were able to develop competitive advantage through their ability to transfer knowledge and expertise and adapt it to markets worldwide.

 

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

 

33. In the emerging international environment, most industries can be categorized as multinational, global or international.

 

34. Worldwide innovation and learning forces that are encountered by MNEs are driven by factor costs.

 

35. A multinational industry is characterized by___.
36. Which of the following is not a benefit associated with higher production volumes?
37. In a transnational organization, knowledge is developed at the headquarters and transferred to foreign units.

 

38. Having a city-specific strategy is always a better choice than country-specific strategy in emerging markets.

 

39. The CEO of Informatix Co., suggested to the board of directors that if the firm was going to adopt a transnational strategy, rather than having treasury operations situated in the headquarters, the company should relocate this operation to London in order to enhance access to financial markets. Consequently, the treasury operations would still be centralized, but situated in a different location. Flexible specialization, or excentralization, is an important attribute of firms that adopt a transnational strategy.

 

40. In order to secure worldwide competitive advantage, a multinational firm should pursue all of the following objectives, except:
41. Local responsiveness forces encountered by MNEs include cultural differences, government demands and economies of scope.

 

42. Which of the following is not characteristic of companies with a transnational strategy?
43. Kentucky Fried Chicken (KFC) suffered a major chicken sales decrease in Hong Kong immediately after running the Chinese version of their successful worldwide advertising campaign ‘Finger lickin’ good’ that supposedly highlights the tastiness of their chicken. This is most likely an issue of:

 

44. Which of the following describes the strategic orientation of a multinational company?
45. Which of the following constitutes a list of foreign entry modes that involve the MNE to make a foreign investment?
46. In a transnational organization, the asset and capability configuration can be described as dispersed, specialized and interdependent.

 

47. What are the main forces that motivate MNEs such as Dell Computers to disaggregate their operations and activities to respond to national, regional and local needs and demands?
48. Which of the following strategic approach and strategic capabilities cannot be paired?
49. A joint venture is a contractual mode of foreign entry involving a high level of resource commitment by all partners.

 

50. A transnational industry is characterized by___.
51. An industry that is characterized by moderate national responsiveness and moderate global integration is a(n)
52. Globalization is a phenomenon that took most industries by surprise.

 

53. One motivation behind internationalization is to sustain the firm’s competitive position. To pursue a sustainable competitive position relative to its rivals in the athletic clothing industry, Nike attempts to:
54. At the annual meeting of the board of directors of LabZaws Co., James Wilson, the CEO of the company, was directed to focus primarily on enhancing the firm’s efficiency. How could he achieve this objective?
55. Which of the following is not a core characteristic of the decentralized federation structure?

 

56. An MNE with a ‘transnational mentality’ will typically be managed as an integrated network.

 

57. 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.

 

58. The key strategic capability associated with the coordinated federation organizational model is global-scale efficiency.

 

59. Three prerequisites that must be satisfied before a national firm can transform itself into a multinational firm include:
60. 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.

 

61. A transnational organization integrates its dispersed assets, resources, and capabilities through flexible processes involving centralization, formalization and rationalization.

 

62. The process of internationalization followed by most firms is usually well-thought out in advance and typically builds on a combination of rational analysis, planning and implementation.

 

63. 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:
64. MNEs from emerging markets seem to be more poorly equipped to compete in other emerging markets when compared to their counterparts from developed markets.

 

65. For an MNE to exist, first foreign countries must provide location-specific advantages to attract the company to invest there, second the company 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.

 

66. Which of the following is not considered a source of global competitive advantage?
67. A multinational industry is characterized by low national responsiveness and high global integration.

 

68. Which of the following is not a characteristic of the companies with centralized hub structure?
69. Which of the following describes the preferred sequencing of changes associated with implementing the typically more effective emerging change process model?
70. In companies with the decentralized federation model, the degree of control and coordination exercised by the headquarters is greater than it is in companies with the coordinated federation organizational model.

 

71. A joint venture is a _________ mode of foreign entry.
72. The three conflicting environmental forces that MNEs encounter are cross-border integration and coordination, national differentiation and responsiveness, and worldwide innovation and learning.

 

73. A transnational industry is characterized by moderate national responsiveness and moderate global integration.

 

74. HomeAppliances Co. is a new manufacturer of home appliances. HomeAppliances wants to go international. Some of its traditional motivations for pursuing internationalization include:
75. Which of the following is not a source of environmental volatility?
76. All companies internationalize in an incremental manner. First, they make an initial commitment of resources to the foreign market in order to secure local market knowledge. Building on this knowledge, they make subsequent resource commitments, eventually leading to higher levels of investment in the foreign market.

 

77. Which of the following best describes an international company’s asset and capability configuration?
78. Isatis Co. has successfully transitioned from a global strategy to a transnational strategy. Which of the following describes the likely configuration of assets and capabilities that now most likely prevails at Isatis?
79. Which of the following explain why cost reduction occurs in the context of scope economies?
80. An MNE with an ‘international mentality’ will typically be managed as a coordinated federation.

 

81. An MNE is a(n):
82. 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?
83. MNEs can maximize each of the following objectives independently: global scale efficiency, multinational flexibility and innovation development.

 

84. Which of the following is not a core characteristic of the coordinated federation structure?
85. What are the main forces that drive MNEs such as Nokia, the mobile communications company, to innovate and learn on a global scale?
86. Which of the following best describes a global company’s asset and capability configuration?
87. 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.