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Briefly explain the stages of globalization.

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There are three stages of globalization,...

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Define a transnational strategy using the German multimedia conglomerate Bertelsmann as an example.

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Multinational companies pursuing a trans...

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


A) Greenfield operations
B) Brownfield operations
C) Exporting
D) Crowdsourcing

E) B) and D)
F) A) and D)

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The risk of intellectual property appropriation increases when companies follow a multidomestic strategy.Elaborate on this statement.

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The risk of intellectual property approp...

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Within the CAGE distance framework, what does geographic distance imply?

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Geographic distance does not simply capt...

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


A) It creates bottlenecks for global learning.
B) It exposes a firm to diseconomies of scale and location.
C) It requires a global matrix structure, which is difficult to implement.
D) It involves locating all key business activities in the home country headquarters.

E) B) and D)
F) B) and C)

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Which of the following statements is true of an international strategy?


A) It enables firms to leverage their home-based core competencies in foreign markets.
B) It is advantageous when firms face high pressures for both local responsiveness and cost reductions.
C) It relies on joint ventures to reap economies of scale by accessing a larger market.
D) It effectively protects a firm from exchange rate fluctuations.

E) All of the above
F) B) and D)

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Which of the following factors pertaining to national competitive advantage enabled Nokia, a multinational company from Finland, to become an early leader in cell phones?


A) The competitive intensity in the cell phone industry of Finland
B) The huge demand for high-quality wireless services in Finland
C) The abundance of natural resources in Finland
D) The related and supporting industries present in Finland

E) All of the above
F) A) and D)

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Briefly discuss the application of the CAGE distance framework.

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To aid multinational companies in decidi...

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What are the factors that capture administrative and political distance in the CAGE framework?

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Administrative and political distances a...

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When a firm pursues a(n) _____, it sells the same products or services in both domestic and foreign markets.


A) domestic strategy
B) international strategy
C) differentiation strategy
D) localization strategy

E) All of the above
F) C) and D)

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What effect do related and supporting industries have on national competitive advantage?

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Leadership in related and supporting ind...

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Which of the following is an observable feature in the globalization 3.0 stage?


A) Knowledge flow between the local replicas of the multinational enterprises and their U.S. headquarters is limited.
B) Only sales and distribution functions of a multinational enterprise are located in a few key countries.
C) Based on an optimal mix of costs, skills, and PESTEL factors, companies now freely locate business functions anywhere in the world.
D) Firms have reorganized from a global enterprise with different centers of expertise to a multinational company with self-contained operations in a few selected countries.

E) A) and D)
F) B) and D)

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What is meant by cultural distance? How does it affect a firm?

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Cultural distance is the cultural dispar...

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Shine Enterprises Inc.is a large financial conglomerate that operates in more than 50 countries and employs over 80,000 people across the world.It operates through multiple regional product divisions, which tend to function as autonomous profit-and-loss centers.This allows the company to reap significant economies of scale.Though each division acts as an autonomous firm with its individual regional leaders, frequent sharing of knowledge between the divisions allows for global learning.These factors help the company reconcile product and service differentiations at low cost.Which of the following strategies does Shine Enterprises Inc.most likely use?


A) An international strategy
B) A focused-differentiation strategy
C) A multidomestic strategy
D) A transnational strategy

E) B) and C)
F) A) and D)

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


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) A) and B)
F) A) and C)

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


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) A) and B)

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Discuss national competitive advantage with the help of examples.

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Student answers will vary.National compe...

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Which of the following modes of entering a foreign market allows for the lowest level of control?


A) Greenfield ventures
B) Exporting
C) Joint ventures
D) Acquisitions

E) None of the above
F) All of the above

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For which of the following companies will geographic distance be the most relevant factor in deciding whether or not to trade with a target country?


A) A firm that manufactures cell phone batteries
B) A firm that extracts and exports iron ore
C) A firm that produces movies
D) A firm that sells wrist watches

E) B) and C)
F) A) and B)

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Showing 41 - 60 of 125

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