Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Chapter 1 Expanding abroad: Motivations, means, and mentalities True/False 1)The largest MNEs are equivalent in their economic importance to less developed economies such as Tanzania, Estonia or Sri Lanka

Chapter 1 Expanding abroad: Motivations, means, and mentalities True/False 1)The largest MNEs are equivalent in their economic importance to less developed economies such as Tanzania, Estonia or Sri Lanka

Management

Chapter 1

Expanding abroad:

Motivations, means, and mentalities

True/False

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

 

 

 

 

  1. 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.

 

 

 

  1. 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. 

 

 

 

 

  1. A joint venture is a contractual mode of foreign entry involving a high level of resource commitment by all partners.

 

 

 

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

 

 

 

 

  1. 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.

 

 

 

 

  1. An MNE with an ‘international perspective’ will typically be managed as a coordinated federation.

 

 

 

 

 

  1. An MNE with a ‘multinational perspective’ will typically be managed as a coordinated federation.

 

 

 

  1. An MNE with a ‘global perspective’ will typically manage its operations centrally.

 

 

 

 

 

 

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

 

 

 

 

 

 

Multiple Choice

 

  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.

 

 

 

 

  1. 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.

 

 

 

  1. Which of the following correctly describes the sequential evolution in management thinking with respect to the strategic role of foreign operations in emerging MNEs?
  1. global mentality, multinational mentality, international mentality, transnational mentality.
  2. international mentality, global mentality, transnational mentality, multinational mentality.
  3. multinational mentality, global mentality, international mentality, transnational mentality.
  4. international mentality, multinational mentality, global mentality, transnational mentality.

 

 

 

  1. A franchise, such as McDonald’s, is a _________ mode of foreign entry.
  1. low commitment, low control
  2. low commitment, moderate control
  3. low commitment, high control
  4. moderate commitment, moderate control

 

 

 

  1. A joint venture is a _________ mode of foreign entry.
  1. low commitment, low control
  2. low commitment, moderate control
  3. low commitment, high control
  4. moderate commitment, moderate control

 

 

 

  1. Pashpa Co. is a new manufacturer of home appliances. Pashpa wants to go international.  Some of the traditional motivations for pursuing internationalization include:
  1. securing key supplies, seeking new markets, and raising global scanning and learning capabilities
  2. securing key supplies, seeking new markets, and improving competitive positioning
  3. securing key supplies, seeking new markets and accessing low-cost factors of production
  4. securing key supplies, improving competitive positioning, and accessing low-cost factors of production

 

 

 

  1. 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:
  1. preempt markets, capture global scale, and secure raw materials
  2. capture global scale, access scarce knowledge, and match competitors
  3. match competitors, capture global scale, and preempt markets
  4. exploit factor cost differences, preempt markets, and match competitors

 

 

 

  1. _________  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.
  1. Vernon’s product cycle theory
  2. Johanson and Vahlne’s stages theory
  3. Dunning’s eclectic theory
  4. Levitt’s globalization theory

 

 

 

 

  1. Which of the following constitutes a list of foreign entry modes that involve the MNE to make a foreign investment
  1. Greenfield, acquisition, joint venture and capital participation
  2. Greenfield, acquisition, joint venture and license
  3. Franchising, acquisition, joint venture and capital participation
  4. Greenfield, acquisition, cooperation agreements and capital participation

 

 

 

  1. 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:
  1. regards its overseas markets as a portfolio of local opportunities.
  2. leverages its domestic capabilities worldwide.
  3. regards the world as a single unit of analysis.
  4. simultaneously responds to local needs, global demands and cross-border learning opportunities.

 

 

 

Essay

 

  1. The CEO of Paragon Ltd. wants to take his company international. What are the three big questions he must answer before expanding abroad?

 

 

 

 

  1. Rana manages an Italian fashion design company. What would motivate Rana’s company to internationalize?

 

 

 

 

 

  1. Briefly explain the product cycle of personal computers using Raymond Vernon’s product cycle theory.

 

 

 

 

  1. Briefly compare and contrast the Uppsala Internationalization Model and the Born Global Model.   Under what circumstances is each model most applicable?  Give examples to support your arguments.

 

 

 

 

 

  1. Roy is the CEO of a multinational apparel company. How would he conceptualize the strategic role of his firm’s foreign operations if he possessed a ‘global mentality’? If he possessed a ‘multinational mentality’?

 

 

 

 

 

  1. What is an MNE? Give examples to explain the difference between companies that are considered MNEs and those that are not.

 

 

 

 

  1. Briefly compare and contrast the four mentalities toward internationalization.

 

 

 

 

Option 1

Low Cost Option
Download this past answer in few clicks

6.83 USD

PURCHASE SOLUTION

Already member?


Option 2

Custom new solution created by our subject matter experts

GET A QUOTE

rated 5 stars

Purchased 7 times

Completion Status 100%

Sitejabber (5.0)

BBC (5.0)

Trustpilot (4.8)

Google (5.0)

Related Questions