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Q:
What are the location and coordination issues that global firms face?
Q:
What is a global industry? What are the reasons strategic management planning must be global?
Q:
Briefly describe the different orientations companies may have toward their overseas activities.
Q:
What are the key issues to consider at the start of a firms globalization process?
Q:
Why do firms globalize?
Q:
Describe the four strategy levels involved in the evolution of a global corporation.
Q:
(p. 145) Risks of foreign subsidiaries include
A. The home country's expectations of long-term commitment
B. The home country's expectations that a number of foreign nationals be employed
C. Changing standards mandated by foreign regulations
D. A commitment to profits
Q:
(p. 143) Host countries may require a foreign branch to be
A. Domesticated
B. Globalized
C. Centralized
D. Localized
Q:
(p. 144) When one company buys another, the purchase is called a(n)
A. divestiture B. joint venture
C. acquisition
D. franchise
Q:
(p. 143) Joint ventures:
A. Can not address complex markets
B. Speed efforts to integrate into the foreign environment with less financial commitment than acquiring a foreign subsidiary
C. Must be overseen by an outside board of directors
D. Requires no disclosure of proprietary information
Q:
(p. 143) A special form of licensing is
A. Green-field investment
B. Exporting
C. Joint venture
D. Franchising
Q:
(p. 142) Licensing and contract manufacturing types of strategies are used best in
A. Small-sized companies
B. Companies large enough to have a combination of international strategic activities
C. Firms with broadly diversified products in high margin industries
D. Firms with highest level of commitment to international markets
Q:
(p. 142) The transfer of an industrial property right is called
A. Franchising
B. Licensing
C. Exporting
D. Bartering
Q:
(p. 142) Companies between exporting and an equity position on foreign soil:
A. Can pool capital in a joint venture
B. Can choose to establish a contractual arrangement such as licensing
C. Extend the company with a foreign branch
D. Extend the company with a foreign subsidiary
Q:
(p. 142) ______ usually requires minimal capital investment.
A. Joint venture
B. Exporting
C. Foreign branch
D. Wholly owned foreign subsidiary
Q:
(p. 141) Which strategy shows the highest commitment to international market?
A. Export
B. Joint venture
C. Licensing
D. Wholly owned foreign subsidiary
Q:
(p. 142) Which of these strategies shows the lowest commitment to international market?
A. Export
B. Joint venture
C. Licensing
D. Wholly owned foreign subsidiary
Q:
(p. 142) The primary niche for the market approach for exporting:
A. Begins with a mutually agreeable pooling of capital
B. Involves the transfer of some industrial property right
C. Is to modify select product performance or measurement characteristics to special foreign demands
D. Utilizes a foreign branch extension to distribute
Q:
(p. 142) Which of the following is NOT a competitive strategy for firms in foreign markets?
A. Licensing
B. Vertical integration
C. Franchising
D. Joint venture
Q:
(p. 141) Diversity in a firm's product line refers to
A. The length of a firm's business lines
B. The breadth of the firm's business lines
C. The number of critical success factors
D. The quality of the product
Q:
(p. 141) The complexity of a strategy refers to:
A. The breadth of a firm's business lines
B. A continuum of possible strategic choices
C. The diversity of the products
D. The number of critical success factors required
Q:
(p. 141) When a company offers many product lines, ____ is high.
A. complexity
B. diversity
C. integration
D. planning
Q:
(p. 141) As an industry becomes increasingly global, a firm must begin to coordinate an increasing number of _____ activities to effectively compete across countries. A. functional
B. strategic
C. contractual
D. public
Q:
(p. 141) As the industry becomes increasingly _____, a firm must begin to coordinate an increasing number of functional activities to effectively compete across country A. multidomestic
B. global
C. competitive
D. big
Q:
(p. 136) In a ____ industry, competition occurs within each country.
A. technological
B. industrial
C. global
D. multidomestic
Q:
(p. 141) Little coordination of functional activities across countries may be necessary in a ____ industry .
A. technological
B. global
C. multidomestic
D. industrial
Q:
(p. 141) As its industry becomes increasingly ______, a firm must begin to coordinate an increasing number of functional activities to effectively compete across countries.
A. local
B. global
C. multidomestic
D. regional
Q:
(p. 141) An industry can be ranked along a continuum that ranges between _____ at one extreme and ____ at the other.
A. regiocentric, polycentric
B. international, global
C. ethnocentric, regiocentric
D. multidomestic, global
Q:
(p. 140) A multi-national corporation:
A. Has limited location options for functional activities
B. Should not have different locations for marketing and operations
C. Should spread research and development functions across facilities
D. Must determine how to coordinate activities
Q:
(p. 140) A global firm competing in a ______ industry cannot totally ignore opportunities to utilize intracorporate resources in competitive positioning.
A. Multidomestic
B. Specific
C. Hypercompetitive
D. Dynamic
Q:
(p. 140) A global firm competing in a global industry must:
A. Be responsive to global conditions only
B. Be responsive to both global and local conditions
C. Be responsive to local conditions only
D. Compete in multi-domestic industry also
Q:
(p. 140) Although industries can be characterized as global or multidomestic, few ___ cases of either type exist. A. combined
B. blended
C. hybrid
D. pure
Q:
(p. 140) Among the factors that make for the creation of a global industry are all of these EXCEPT
A. Economies of scale
B. The presence of heterogeneous product needs across markets
C. A low level of trade regulation
D. A high level of R & D expenditures on products
Q:
(p. 140) Rapid technological development:
A. Requires less management control
B. Has no affect on product life cycles
C. Lengthens product life cycles
D. Shortens product life cycles
Q:
(p. 139) A global planning process provides:
A. Cross purposes for subsidiaries
B. An ordered means for assembling, analyzing and distilling information
C. A means for misinformation to occur
D. Another information explosion
Q:
(p. 139-140) Strategic management planning must be global for six reasons. One of them is:
A. The increased cope of the global management task
B. Decreased globalization of firms
C. Increase in global monopolies
D. Slowing technology
Q:
(p. 140) Which of the following is NOT an aspect of global business that makes global planning necessary?
A. Shorter distances
B. Greater distances
C. The interrelationship of global operations
D. Differences in environmental factors in different countries
Q:
(p. 139) The automobile industry is an example of a _______ industry.
A. multidomestic
B. global
C. transnational
D. multinational
Q:
(p. 138) The retailing industry is an example of a _______ industry.
A. global
B. multidomestic
C. transnational
D. multinational
Q:
(p. 139) The expanding list of global industries include all of these EXCEPT
A. Automobiles
B. Mainframe computers
C. Insurance
D. Commercial aircraft
Q:
(p. 139) A ______ is one in which competition crosses national borders.
A. Stakeholder activism
B. Multidomestic industry
C. Polycentric environment
D. Global industry
Q:
(p. 139) Factors that increase the degree to which an industry is multidomestic include:
A. A need for standardized products
B. Fragmented industry with few competitors
C. Distribution channels unique to each country
D. The existence of economics of scale
Q:
(p. 138) A ______ is one in which competition is essentially segmented from country to country.
A. Stakeholder activism
B. Multidomestic industry
C. Globalized economy
D. Polycentric environment
Q:
(p. 137) The demands placed on the global firm by the foreign environments in which it operates, principally by foreign governments is called
A. Globalization
B. Localization
C. Formalization
D. Stakeholder activism
Q:
(p. 136) Which one of the following is NOT a factor that contributes to the increase in complexity of the global environment?
A. Globals face multiple political, economic, legal, social and cultural environments
B. Interactions between the national and foreign environments are complex
C. Geographic closeness impacts communication
D. Cultural and national differences make control difficult
Q:
(p. 136) State of marketing and distribution systems is a variable included under which category (as outlined by Business International Corporation)?
A. Political factors
B. Business factors
C. Transportation factors
D. Distribution factors
Q:
(p. 136) According to Business International Corporation, variables to be included under labor factors include:
A. Degree of skill
B. Availability of raw materials
C. Degree of anti foreign discrimination
D. Cost of local borrowing
Q:
(p. 136) Which of the following is NOT a geographic factor in choosing a foreign manufacturing site?
A. Efficiency of transport
B. Proximity of site to export markets
C. Availability of local raw materials
D. Availability of tariff protection
Q:
(p. 136) According to Business International Corporation, the variables to be included under capital-source factors include:
A. Proximity of site to export market
B. Modern banking-systems
C. Availability of tariff protection
D. Current currency rate
Q:
(p. 136) Business International Corporation recommends that 7 broad categories of factors be considered in a corporation's assessment of a foreign manufacturing site. Which of the following described one of these categories?
A. Size of GNP
B. Tax factors
C. Technical factors
D. Social factors
Q:
(p. 136) Political factors in choosing a foreign manufacturing site include:
A. Attitude toward foreign investment
B. Cost of local borrowing
C. Degree of labor force in management
D. Currency rate
Q:
(p. 135) Internal assessment involves identification of the basic ______ of a firm's operations.
A. Opportunities
B. Strengths
C. Threats
D. Competitors
Q:
(p. 134) Top-down governance structure is evident in which orientation of a global firm?
A. Ethnocentric
B. Regiocentric
C. Geocentric
D. Polycentric
Q:
(p. 134) Global personnel development and placement occurs in which orientation of a global firm?
A. Ethnocentric
B. Regiocentric
C. Geocentric
D. Polycentric
Q:
(p. 134) Host country culture is a dominant factor in which orientation of a global firm?
A. Ethnocentric
B. Regiocentric
C. Geocentric
D. Polycentric
Q:
(p. 134) Repatriation of profits to home country represents which orientation of a global firm?
A. Ethnocentric
B. Regiocentric
C. Geocentric
D. Polycentric
Q:
(p. 133) Careful examination of critical global environmental features with particular attention to the status of the host nation is called:
A. Internal assessment
B. External assessment
C. Ethnocentric orientation
D. Cultural assessment
Q:
(p. 133) Understanding the ______ risk involved is a key element in the decision to do business in a foreign nation.
A. financial
B. economic
C. social
D. political
Q:
(p. 133) External and internal assessments are conducted ______ a firm enters global markets.
A. after
B. during
C. before
D. once
Q:
(p. 134) Closed countries typically have _______ policies.
A. Open
B. Isolationist
C. Many
D. Few
Q:
(p. 134) ______ countries maintain their stability by restricting the flow of money, goods, services, people, and information across their borders.
A. Open
B. Closed
C. Most
D. Few
Q:
(p. 134) In which of these orientations is national responsiveness a key strategic priority?
A. Ethnocentric
B. Polycentric
C. Geocentric
D. Regioentric
Q:
(p. 134) In which of these orientations is repatriations of profits to home country a key priority?
A. Polycentric
B. Ethnocentric
C. Geocentric
D. Regioentric
Q:
(p. 134) In which of these orientations are we likely to see hierarchical product divisions?
A. Polycentric
B. Ethnocentric
C. Geocentric
D. Regioentric
Q:
(p. 134) In which of these orientations is governance bottom-up?
A. Ethnocentric
B. Polycentric
C. Geocentric
D. Regioentric
Q:
(p. 134) In which of these orientations is governance top-down?
A. Polycentric
B. Ethnocentric
C. Geocentric
D. Regioentric
Q:
(p. 133) American firms often adopt a ______ orientation for pursuing strategies in Europe.
A. polycentric
B. regiocentric
C. geocentric
D. ethnocentric
Q:
(p. 133) A firm with a _______ orientation adopts a global systems approach to strategic decision making, thereby emphasizing global integration.
A. polycentric
B. geocentric
C. regiocentric
D. ethnocentric
Q:
(p. 133) A company with a ______ orientation adopts a global systems approach to strategic decision making, thereby emphasizing global integration.
A. Ethnocentric
B. Polycentric
C. Regiocentric
D. Geocentric
Q:
(p. 133) A(n) ______ orientation exists when the parent attempts to blend its own predisposition with those of the region under consideration.
A. Polycentric
B. Regiocentric
C. Ethnocentric
D. Geocentric
Q:
(p. 133) If a corporations has a(n) ______ orientation, then the culture of the country in which a strategy is to be implemented is allowed to dominate the decision-making process.
A. Polycentric
B. Ethnocentric
C. Regiocentric
D. Geocentric
Q:
(p. 133) Which one of the following is NOT a strategic orientation of global firms?
A. Omnicentric
B. Ethnocentric
C. Polycentric
D. Regiocentric
Q:
(p. 133) A(n) ______ orientation believes that the values and priorities of the parent organization should guide the strategic decision making of all its operations.
A. Ethnocentric
B. Polycentric
C. Regiocentric
D. Geocentric
Q:
(p. 132) Direct penetration of foreign markets makes sense as a competitive weapon because a firm can drain vital ____ from a foreign competitors domestic operations.
A. cash flows
B. export sales
C. dividends
D. debt
Q:
(p. 131) ______ leads in optics, solid-state physics, engineering, chemistry and process metallurgy.
A. Japan
B. France
C. The U.S.
D. Germany
Q:
(p. 131) Which country leads in chemicals and pharmaceuticals, precision and heavy machinery, heavy electrical goods and surface transport equipment?
A. France
B. Germany
C. Japan
D. The U.S.
Q:
(p. 131) In the past 30 years, the U.S. has ______ in terms of technological advantage.
A. Substantially enhanced
B. Maintained a status quo
C. Declined dramatically
D. Reaches the number one spot in the world
Q:
(p. 131) The most involved strategy level in the evolution of a global corporation in characterized by
A. Technology transfer
B. Export-import operations
C. Foreign licensing
D. A substantial increase in foreign investment
Q:
(p. 130) At what level do firms begin to emerge as global enterprises with global approaches to production, sales, finance, and control?
A. Third
B. Fourth
C. Second
D. First
Q:
(p. 130) MNCs are involved mainly in which of the following strategies?
A. Direct overseas investment
B. Capital repatriation
C. Joint research
D. Host financial policies