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Homework answers / question archive / QUESTION 1)RsQ_014Which of the following correctly describes the sequential evolution in management thinking with respect to the strategic role of foreign operations in emerging MNEs?                                                       a

QUESTION 1)RsQ_014Which of the following correctly describes the sequential evolution in management thinking with respect to the strategic role of foreign operations in emerging MNEs?                                                       a

Management

QUESTION 1)RsQ_014Which of the following correctly describes the sequential evolution in management thinking with respect to the strategic role of foreign operations in emerging MNEs?

  •                           
  •                            a.
  •                            global mentality, multinational mentality, international mentality, transnational mentality.
  •                           
  •                            b.
  •                            international mentality, global mentality, transnational mentality, multinational mentality.
  •                           
  •                            c.
  •                            multinational mentality, global mentality, international mentality, transnational mentality.
  •                           
  •                            d.
  •                            international mentality, multinational mentality, global mentality, transnational mentality.
  •                           

 

QUESTION 2

  •                            RsQ_021OfficeWare 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:?
  •                           
  •                            a.
  •                            regards its overseas markets as a portfolio of local opportunities.
  •                           
  •                            b.
  •                            leverages its domestic capabilities worldwide.
  •                           
  •                            c.
  •                            regards the world as a single unit of analysis.
  •                           
  •                            d.
  •                            simultaneously responds to local needs, global demands and cross-border learning opportunities.
  •                           

 

QUESTION 3

  •                            RsQ_018One 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:?
  •                           
  •                            a.
  •                            preempt markets, capture global scale, and secure raw materials
  •                           
  •                            b.
  •                            capture global scale, access scarce knowledge, and match competitors
  •                           
  •                            c.
  •                            match competitors, capture global scale, and preempt markets
  •                           
  •                            d.
  •                            exploit factor cost differences, preempt markets, and match competitors
  •                           

 

QUESTION 4

  •                            RsQ_013Three prerequisites that must be satisfied before a national firm can transform itself into a multinational firm include:?
  •                           
  •                            a.
  •                            scale-based advantages, ownership-specific advantages, and contractual capabilities.
  •                           
  •                            b.
  •                            location-specific advantages, ownership-specific advantages, and organizational capabilities.
  •                           
  •                            c.
  •                            scale-based advantages, ownership-specific advantages, and organizational capabilities.
  •                           
  •                            d.
  •                            location-specific advantages, knowledge advantages, and organizational capabilities.
  •                           

 

QUESTION 5

  •                            RsQ_017HomeAppliances Co. is a new manufacturer of home appliances. HomeAppliances wants to go international. Some of its traditional motivations for pursuing internationalization include:?
  •                           
  •                            a.
  •                            securing key supplies, seeking new markets, and raising global scanning and learning capabilities
  •                           
  •                            b.
  •                            securing key supplies, seeking new markets, and improving competitive positioning
  •                           
  •                            c.
  •                            securing key supplies, seeking new markets and accessing low-cost factors of production
  •                           
  •                            d.
  •                            securing key supplies, improving competitive positioning, and accessing low-cost factors of production
  •           

 

QUESTION 6

  •                            RsQ_020Which of the following constitutes a list of foreign entry modes that involve the MNE to make a foreign investment?
  •                           
  •                            a.
  •                            Wholly owned, joint venture
  •                           
  •                            b.
  •                            Wholly owned, license
  •                           
  •                            c.
  •                            Franchising, joint venture
  •                           
  •                            d.
  •                            Franchising, license
  •                           

 

QUESTION 7

  •                            RsQ_012An MNE is a(n):
  •                           
  •                            a.
  •                            import-export company that actively trades in foreign markets.
  •                           
  •                            b.
  •                            company that passively manages its substantial foreign direct investment.
  •                           
  •                            c.
  •                            import-export company that actively manages its foreign investment portfolio.
  •                           
  •                            d.
  •                            company that actively manages substantial foreign direct investment.
  •                           

 

QUESTION 8

  •                            RsQ_020A multinational industry is characterized by ____________.
  •                           
  •                            a.
  •                            low national responsiveness and low global integration
  •                           
  •                            b.
  •                            low national responsiveness and high global integration
  •                           
  •                            c.
  •                            high national responsiveness and low global integration
  •                           
  •                            d.
  •                            high national responsiveness and high global integration
  •                           

 

QUESTION 9

  •                            RsQ_024Kentucky 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:?
  •                           
  •                            a.
  •                            Cultural differences and localization pressures
  •                           
  •                            b.
  •                            Government demands and factor costs
  •                           
  •                            c.
  •                            Localization pressures and economies of scale
  •                           
  •                            d.
  •                            Cultural differences and global competition
  •                           

 

QUESTION 10

  •                            RsQ_022A transnational industry is characterized by _____________.
  •                           
  •                            a.
  •                            low national responsiveness and low global integration
  •                           
  •                            b.
  •                            low national responsiveness and high global integration
  •                           
  •                            c.
  •                            high national responsiveness and low global integration
  •                           
  •                            d.
  •                            high national responsiveness and high global integration
  •                           

 

QUESTION 11

  •                            RsQ_021An industry that is characterized by moderate national responsiveness and moderate global integration is a(n)
  •                           
  •                            a.
  •                            international industry.
  •                           
  •                            b.
  •                            global industry.
  •                           
  •                            c.
  •                            transnational industry.
  •                           
  •                            d.
  •                            multinational industry.
  •                           

 

QUESTION 12

  •                            RsQ_019An industry that is characterized by low national responsiveness and high global integration is a(n
  •                           
  •                            a.
  •                            multinational industry.
  •                           
  •                            b.
  •                            global industry.
  •                           
  •                            c.
  •                            international industry.
  •                           
  •                            d.
  •                            transnational industry.
  •                           

 

QUESTION 13

  •                            RsQ_014Which global integration and coordination forces would MNEs, such as Mercedes-Benz, encounter?
  •                           
  •                            a.
  •                            Economies of scale, increasingly liberalized trade environments and government demands
  •                           
  •                            b.
  •                            Economies of scope, factor costs and increasingly liberalized trade environments
  •                           
  •                            c.
  •                            Economies of scale, expanding spiral of globalization and local competitors
  •                           
  •                            d.
  •                            Economies of scale, economies of scope and government demands
  •                           

 

QUESTION 14

  •                            RsQ_018What are the main forces that drive MNEs such as Nokia, the mobile communications company, to innovate and learn on a global scale?
  •                           
  •                            a.
  •                            Economic and political forces.
  •                           
  •                            b.
  •                            Political and social forces.
  •                           
  •                            c.
  •                            Social and informational forces.
  •                           
  •                            d.
  •                            Technological and informational forces.
  •                           

 

QUESTION 15

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

False

 

QUESTION 16

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

 

QUESTION 17

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

 

QUESTION 18

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

 

QUESTION 19

  •                            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.True False

 

QUESTION 20

  •                            An MNE with an 'international mentality' will typically be managed as a coordinated federation.True False

 

 

QUESTION 21

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

 

QUESTION 22

 

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 liabilityof foreignness, third the company must have the organizational capability to leverage its strategic advantages more effectively internally than externally

 

QUESTION 23

 

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

 

 

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