Question 1

McDonald's uses mutton instead of beef in India and offers teriyaki burgers in Japan.Which of the following strategies is the fast-food chain pursuing?

Accepted Answer

A)   multidomestic strategy
B)   focused differentiation strategy
C)   global-standardization strategy
D)   international strategyE) All of the above
F) A) and B)

Question 2

How has China been affected by its one-child-per-family policy and appreciation of its currency?

Accepted Answer

A)   The purchasing power of its workforce has reduced.
B)   The value added to production has reduced.
C)   The standard of living within the economy has lowered.
D)   The country's advantage in low-cost manufacturing has reduced.E) A) and B)
F) B) and C)

Question 3

For a multinational enterprise (MNE) ,applying the globalization hypothesis would mean

Accepted Answer

A)   being highly responsive to the heterogeneous needs and preferences of consumers globally, without focusing on cost reduction.
B)   customizing each product sold by an enterprise to differentiate it from its competitors.
C)   manufacturing products on international platforms and slightly modifying them to meet local tastes and standards.
D)   pursuing a focused differentiation strategy instead of a cost-leadership strategy to gain a competitive advantage.E) A) and B)
F) A) and C)

Question 4

Michael Porter's diamond framework is used to explain

Accepted Answer

A)   national value creation.
B)   domestic value creation.
C)   national competitive advantage.
D)   domestic competitive advantage.E) None of the above
F) A) and B)

Question 5

Which of the following strategies must a multinational enterprise (MNE) use when it wants to pursue an integration strategy at the business level by attempting to reconcile product and/or service differentiations at low cost?

Accepted Answer

A)   a multidomestic strategy
B)   an international strategy
C)   a global-standardization strategy
D)   a transnational strategyE) C) and D)
F) B) and C)

Question 6

Plethora Inc.,a well-established and reputed multinational enterprise (MNE) ,is headquartered in a highly developed economy.It wants to start its operations in United Bejukistan,which has been recognized as one of the less-developed nations in the world.How will this strategic move most likely affect Plethora Inc.?

Accepted Answer

A)   It will be able to benefit from economic arbitrage.
B)   It will be able to successfully leverage its competitive advantage from economies of standardization.
C)   It will be able to replicate its existing business model easily.
D)   It will be able to easily sell products for which demand varies by income.E) A) and B)
F) A) and C)

Question 7

Which of the following statements is true of a multidomestic strategy?

Accepted Answer

A)   Firms frequently use a multidomestic strategy when entering host countries with large and/or idiosyncratic local markets.
B)   The multidomestic strategy is one of the main strategies companies pursued in the Globalization 1.0 stage.
C)   Companies pursuing a multidomestic strategy generally follow a cost-leadership strategy at the business level.
D)   The multidomestic strategy effectively protects firms from the risk of intellectual property appropriation.E) None of the above
F) B) and D)

Question 8

The German multimedia conglomerate Bertelsmann operates in more than 60 countries throughout the world and owns many regional leaders in their specific product categories,including Random House Publishing in the United States.Bertelsmann operates its more than 500 regional media divisions as more or less autonomous profit-and-loss centers.but attempts to share best practices across units; global learning and human resource strategies for executives are coordinated at the network level.Bertelsmann is an example of following a(n)

Accepted Answer

A)   multidomestic strategy.
B)   international strategy.
C)   global-standardization strategy.
D)   transnational strategy.E) C) and D)
F) None of the above

Question 9

Which of the following is a feature of a multinational company pursuing a global-standardization strategy?

Accepted Answer

A)   Its key business functions are located at the home country headquarters.
B)   Its business-level strategy tends to be cost-leadership.
C)   Its competitive advantage lies in its high local responsiveness.
D)   Its core competency lies in its strong product differentiation.E) B) and D)
F) A) and D)

Question 10

Although demand for IKEA's low-cost furnishings has increased,its annual store growth has slowed to fewer than ten new stores a year.Why has this happened?

Accepted Answer

A)   IKEA has failed to hire top designers for its furniture.
B)   IKEA's global supply chain has become bottlenecked.
C)   IKEA has had a revolving door of CEOs for the past 20 years.
D)   IKEA's holding companies are all located in Sweden.E) All of the above
F) B) and D)

Question 11

How will an increase in coordinated economic and political integration between countries affect the world economy?

Accepted Answer

A)   The world's market economies will become self-sufficient and independent.
B)   There will be gains in social welfare and living standards across the globe.
C)   The cost of labor will further decline in emerging economies.
D)   There will be a movement away from global-collaboration networks among multinational enterprises (MNEs) .E) A) and B)
F) C) and D)

Question 12

Which of the following countries has a high geographic distance but a low cultural distance from the United States?

Accepted Answer

A)   Canada
B)   Mexico
C)   Australia
D)   FranceE) A) and D)
F) A) and C)

Question 13

Because keeping cost low is critical to IKEA's value innovation,it switched from a(n)

Accepted Answer

A)   transnational strategy to a multidomestic strategy.
B)   transnational strategy to a global-standardization strategy.
C)   international strategy to a multidomestic strategy.
D)   international strategy to a global-standardization strategy.E) A) and C)
F) All of the above

Question 14

Which of the following statements is true with regard to international trade between countries?

Accepted Answer

A)   Greater cultural distance between the home and host countries decreases the liability of foreignness to multinational companies.
B)   Colony-colonizer relationships have a strong negative effect on bilateral trade between countries.
C)   Wealthy countries engage in relatively more cross-border trade than poorer ones.
D)   Political integrations decrease the expected trade intensity between two countries.E) All of the above
F) A) and B)

Question 15

Which of the following is a drawback of pursuing a multidomestic strategy?

Accepted Answer

A)   The strategy allows for the lowest possible local responsiveness.
B)   The strategy lowers the differentiation of a firm's product and service offerings.
C)   The strategy exposes a firm to greater exchange rate fluctuation when compared to an international strategy.
D)   The strategy is costly and inefficient because it requires the duplication of key business functions across several countries.E) C) and D)
F) A) and B)

Question 16

Which of the following will most likely harm a MNE's reputation?

Accepted Answer

A)   Principal-agent problems cause a MNE to merge with another MNE.
B)   Increased competition causes a MNE to close a factory in a developing country.
C)   Wages for workers in a factory owned by a MNE increase, causing profits to decline.
D)   A sweatshop owned by a MNE has an explosion that kills hundreds of workers.E) None of the above
F) A) and B)

Question 17

Which of the following describes a firm in the Globalization 1.0 stage?

Accepted Answer

A)   Robinson Inc. has a large office in New York, which is one cog in a global network.
B)   Robinson Inc. has a large office in New York, which functions with other large offices in Europe and Asia.
C)   Robinson Inc. has a base office in New York and a replica office in Amsterdam.
D)   Robinson Inc. has a base office in New York and distributes some of its products overseas.E) B) and D)
F) None of the above

Question 18

Which of the following foreign entry modes primarily involves producing goods in one country to sell in another?

Accepted Answer

A)   greenfield operations
B)   brownfield operations
C)   exporting
D)   crowdsourcingE) C) and D)
F) None of the above

Question 19

Which of the following statements best explains why Walmart is finding it difficult to replicate its existing business model in India?

Accepted Answer

A)   because of the political differences between India and U.S.
B)   because NAFTA prohibits Walmart from investing in countries outside North America
C)   because of the large economic distance between U.S. and India
D)   because Walmart's low-cost strategy has not been accepted by Indian consumersE) A) and C)
F) C) and D)

Question 20

Which of the following is a benefit of the transnational strategy?

Accepted Answer

A)   It facilitates global learning and harnesses economies of location.
B)   It completely eliminates a firm's risk of intellectual property expropriation.
C)   It helps to create a matrix global structure, which is cost-effective and easy to implement.
D)   It helps a firm pursue a cost-leadership strategy by minimizing the need for local responsiveness.E) A) and D)
F) All of the above

Exam 10: Global Strategy: Competing Around the World

Which of the following will most likely harm a MNE's reputation?

Correct Answer
verified

Which of the following strategies must a multinational enterprise (MNE) use when it wants to pursue an integration strategy at the business level by attempting to reconcile product and/or service differentiations at low cost?

Correct Answer
verified

McDonald's uses mutton instead of beef in India and offers teriyaki burgers in Japan.Which of the following strategies is the fast-food chain pursuing?

Correct Answer
verified

Because keeping cost low is critical to IKEA's value innovation,it switched from a(n)

Correct Answer
verified

Although demand for IKEA's low-cost furnishings has increased,its annual store growth has slowed to fewer than ten new stores a year.Why has this happened?

Correct Answer
verified

Which of the following is a feature of a multinational company pursuing a global-standardization strategy?

Correct Answer
verified

Which of the following foreign entry modes primarily involves producing goods in one country to sell in another?

Correct Answer
verified

For a multinational enterprise (MNE) ,applying the globalization hypothesis would mean

Correct Answer
verified

Which of the following countries has a high geographic distance but a low cultural distance from the United States?

Correct Answer
verified

Which of the following describes a firm in the Globalization 1.0 stage?

Correct Answer
verified

Michael Porter's diamond framework is used to explain

Correct Answer
verified

Which of the following statements is true with regard to international trade between countries?

Correct Answer
verified

Which of the following statements is true of a multidomestic strategy?

Correct Answer
verified

How will an increase in coordinated economic and political integration between countries affect the world economy?

Correct Answer
verified

How has China been affected by its one-child-per-family policy and appreciation of its currency?

Correct Answer
verified

Which of the following statements best explains why Walmart is finding it difficult to replicate its existing business model in India?

Correct Answer
verified

Which of the following is a drawback of pursuing a multidomestic strategy?

Correct Answer
verified

Correct Answer
verified

Which of the following is a benefit of the transnational strategy?

Correct Answer
verified

Correct Answer
verified

Exam 10: Global Strategy: Competing Around the World

Which of the following will most likely harm a MNE's reputation?

Correct AnswerverifiedShow Answer

Which of the following strategies must a multinational enterprise (MNE) use when it wants to pursue an integration strategy at the business level by attempting to reconcile product and/or service differentiations at low cost?

Correct AnswerverifiedShow Answer

McDonald's uses mutton instead of beef in India and offers teriyaki burgers in Japan.Which of the following strategies is the fast-food chain pursuing?

Correct AnswerverifiedShow Answer

Because keeping cost low is critical to IKEA's value innovation,it switched from a(n)

Correct AnswerverifiedShow Answer

Although demand for IKEA's low-cost furnishings has increased,its annual store growth has slowed to fewer than ten new stores a year.Why has this happened?

Correct AnswerverifiedShow Answer

Which of the following is a feature of a multinational company pursuing a global-standardization strategy?

Correct AnswerverifiedShow Answer

Which of the following foreign entry modes primarily involves producing goods in one country to sell in another?

Correct AnswerverifiedShow Answer

For a multinational enterprise (MNE) ,applying the globalization hypothesis would mean

Correct AnswerverifiedShow Answer

Which of the following countries has a high geographic distance but a low cultural distance from the United States?

Correct AnswerverifiedShow Answer

Which of the following describes a firm in the Globalization 1.0 stage?

Correct AnswerverifiedShow Answer

Michael Porter's diamond framework is used to explain

Correct AnswerverifiedShow Answer

Which of the following statements is true with regard to international trade between countries?

Correct AnswerverifiedShow Answer

Which of the following statements is true of a multidomestic strategy?

Correct AnswerverifiedShow Answer

How will an increase in coordinated economic and political integration between countries affect the world economy?

Correct AnswerverifiedShow Answer

How has China been affected by its one-child-per-family policy and appreciation of its currency?

Correct AnswerverifiedShow Answer

Which of the following statements best explains why Walmart is finding it difficult to replicate its existing business model in India?

Correct AnswerverifiedShow Answer

Which of the following is a drawback of pursuing a multidomestic strategy?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is a benefit of the transnational strategy?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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