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Homework answers / question archive / Chapter 2 Understanding the international context: Responding to conflicting environmental forces True/False 1)MNEs from emerging markets seem to be more poorly equipped to compete in other emerging markets when compared to their counterparts from developed markets

Chapter 2 Understanding the international context: Responding to conflicting environmental forces True/False 1)MNEs from emerging markets seem to be more poorly equipped to compete in other emerging markets when compared to their counterparts from developed markets

Management

Chapter 2

Understanding the international context:

Responding to conflicting environmental forces

True/False

1)MNEs from emerging markets seem to be more poorly equipped to compete in other

emerging markets when compared to their counterparts from developed markets.

 

 

 

 

2.

The three conflicting environmental forces that MNEs encounter are cross-border integration

and coordination, national differentiation and responsiveness, and worldwide innovation and

learning.

 

 

3.

Global integration and coordination forces encountered by MNEs include economies of

scale, government demands, and the expanding spiral of globalization.

 

 

4.

Local responsiveness forces encountered by MNEs include cultural differences, government

demands and economies of scope.

 

 

5.

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

costs.

 

 

6.

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

 

 

7.

A multinational industry is characterized by low national responsiveness and high global

integration.

 

 

8.

An international industry is characterized by low national responsiveness and moderate

global integration.

 

 

9.

A transnational industry is characterized by moderate national responsiveness and moderate

global integration.

 

 

 

  1. The search for global competitiveness is a major source of conflict between MNEs and host governments.

 

 

 

 

 

  1. 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.

 

 

 

 

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

 

 

 

 

 

  1. Globalization is a phenomenon that took most industries by surprise.

 

 

 

 

 

Multiple Choice 

  1. Which global integration and coordination forces would MNEs, such as Mercedes-Benz, encounter?
  1. Economies of scale, increasingly liberalized trade environments and government demands
  1. Economies of scope, factor costs and increasingly liberalized trade environments
  2. Economies of scale, expanding spiral of globalization and local competitors
  3. Economies of scale, economies of scope and government demands

 

 

 

 

 

 

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

 

 

 

 

 

  1. The pressures that drive book publishers such as McGraw-Hill to integrate and coordinate their activities across national boundaries are primarily _________.
  1. Economic
  1. political
  2. social
  3. organizational

 

 

 

 

 

  1. 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?
  1. Social and economic forces.
  1. Social and political forces.
  2. Political and economic forces.
  3. Economic and psychological forces.

 

 

 

 

 

 

  1. What are the main forces that drive MNEs such as Nokia, the mobile communications company, to innovate and learn on a global scale?
  1. Economic and political forces.
  1. Political and social forces.
  2. Social and informational forces.
  3. Technological and informational forces.

 

 

 

  1. An industry that is characterized by low national responsiveness and high global integration is a(n)
  1. multinational industry.
  1. global industry.
  2. international industry.
  3. transnational industry.

 

 

 

 

  1. A multinational industry is characterized by ____________.
  1. low national responsiveness and low global integration
  1. low national responsiveness and high global integration
  2. high national responsiveness and low global integration
  3. high national responsiveness and high global integration

 

 

 

 

  1. An industry that is characterized by moderate national responsiveness and moderate global integration is a(n)
  1. international industry.
  1. global industry.
  2. transnational industry.
  3. multinational industry.

 

 

 

 

  1. A transnational industry is characterized by _____________.
  1. low national responsiveness and low global integration
  1. low national responsiveness and high global integration
  2. high national responsiveness and low global integration
  3. high national responsiveness and high global integration

 

 

 

 

  1. In a transnational industry, MNEs are expected to
  1. collaborate with their competitors to increase the prices of their products.
  1. build the capability to learn from the many environments in which they operate.
  2. acquire their competitors to increase their pool of resources.
  3. decentralize decisions to better respond to local demands.

 

 

 

 

  1. Topic: Transition to transnationality  ?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:
  1. Cultural differences and localization pressures
  1. Government demands and factor costs
  2. Localization pressures and economies of scale
  3. Cultural differences and global competition

 

 

 

 

 

Essay 

  1. Apple is a U.S. MNE.  Briefly describe three conflicting sets of external demands that its international operations might face.

 

 

 

  1. Briefly describe the global integration and coordination forces encountered by MNEs.

 

 

 

 

  1. Briefly describe the local differentiation and responsiveness forces encountered by Samsung, a multinational electronics and home appliances manufacturer and retailer.

 

 

 

 

 

  1. Briefly describe the worldwide innovation and learning force that Microsoft encounters.

 

 

 

  1. Explain (1) what is meant by ‘global chess’ and (2) why companies that are adept at playing global chess have an advantage over their competitors.

 

 

 

 

  1. Briefly discuss whether the type of industry a company belongs to affects that company’s decision to adopt an international, multinational, or global strategy. Explain why you believe that industry type affects/does not affect strategy choice.

 

 

 

 

  1. Interactions between host governments and MNEs have been sometimes compared to love-hate relationships. Could you please explain both parts of this equation and how host governments and MNEs relationships have evolved in the 2010s?

 

 

 

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