Question 1

Companies that proactively build a global organizational culture will ________.

Accepted Answer

A)  promote independent headquarters and subsidiaries to avoid miscommunication 
B)  subscribe to ethical standards developed in the home market to avert misunderstanding 
C)  maintain a global perspective in all major initiatives 
D)  adopt multiple corporate languages for business communications 
A)  promote independent headquarters and subsidiaries to avoid miscommunication 
B)  subscribe to ethical standards developed in the home market to avert misunderstanding 
C)  maintain a global perspective in all major initiatives 
D)  adopt multiple corporate languages for business communications

Question 2

Explain the benefits of a multidomestic strategy to firm internationalization. What are some of the disadvantages to this approach?

Accepted Answer

The multidomestic approach has several a

Question 3

Extra Clean Strategy (Scenario)
Extra Clean Soap Company has been manufacturing soap products, such as dishwashing liquid, bath soap, and shampoo, for over 20 years from its facility and headquarters in Dublin, Ireland. A recent opportunity allowed Extra Clean to purchase soap companies in Taiwan and India. Extra Clean is now servicing both foreign and domestic markets with its products and manufacturing in all three locations. Recent reports from managers in the foreign facilities indicate that Extra Clean sales in Taiwan and India are low due to a lack of local responsiveness. Extra Clean managers from Ireland, India, and Taiwan are having a teleconference in an attempt to devise a strategy to improve the profitability of Extra Clean.
-Which of the following most likely supports Extra Clean implementing a multidomestic strategy instead of a global strategy?

Accepted Answer

A)  The Taiwan manufacturing facility requires an update in equipment. 
B)  Extra Clean managers lack internationalization experience. 
C)  Recent studies have shown that consumer trends in Taiwan, India, and Ireland are converging. 
D)  Foreign rivals of Extra Clean compete at a global level. 
A)  The Taiwan manufacturing facility requires an update in equipment. 
B)  Extra Clean managers lack internationalization experience. 
C)  Recent studies have shown that consumer trends in Taiwan, India, and Ireland are converging. 
D)  Foreign rivals of Extra Clean compete at a global level.

Question 4

Which of the following is a characteristic of a global team?

Accepted Answer

A)  culturally diverse 
B)  similarly trained 
C)  domestically based 
D)  constant face-to-face interaction 
A)  culturally diverse 
B)  similarly trained 
C)  domestically based 
D)  constant face-to-face interaction

Question 5

Which of the following is a characteristic of a transnational strategy to internationalization?

Accepted Answer

A)  minimal pressure on headquarters staff 
B)  decision making is delegated to local managers 
C)  local responsiveness with central control 
D)  international business is viewed as separate from, and secondary to domestic business 
A)  minimal pressure on headquarters staff 
B)  decision making is delegated to local managers 
C)  local responsiveness with central control 
D)  international business is viewed as separate from, and secondary to domestic business

Question 6

Which of the following is TRUE about foreign units of a company using a multidomestic strategy?

Accepted Answer

A)  They are centralized to ensure efficiency and learning. 
B)  They are highly controlled by the company's headquarters. 
C)  They are autonomous and operate independently. 
D)  They pursue global integration. 
A)  They are centralized to ensure efficiency and learning. 
B)  They are highly controlled by the company's headquarters. 
C)  They are autonomous and operate independently. 
D)  They pursue global integration.

Question 7

CEO Hiring Interview (Scenario)
The Ace Children's Clothing Company is a mature MNE that has been manufacturing and selling children's clothing in Ace stores around the world for 30 years. Ace has seen a downturn in global sales recently due to trendy adult clothing companies branching out into children's clothing. The Ace board of directors is interviewing candidates to replace the outgoing CEO. The board wants a CEO who will take Ace into the future and pull customers back into Ace stores. Two candidates are being interviewed for the position: Dan Elizarde and Tanya Carson. Tanya and Dan have comparable executive experience with retail clothing companies. Therefore, the board will be basing its final decision on visionary leadership skills.
-Which of the following best supports the decision by the Ace board of directors to hire Tanya as the CEO?

Accepted Answer

A)  Tanya's recognition of the homogeneity across communities 
B)  Tanya's innovative ideas and ability to spot future retail trends 
C)  Tanya's subjective moral and ethical standards 
D)  Tanya's competitive personality and dogmatic determination 
A)  Tanya's recognition of the homogeneity across communities 
B)  Tanya's innovative ideas and ability to spot future retail trends 
C)  Tanya's subjective moral and ethical standards 
D)  Tanya's competitive personality and dogmatic determination

Question 8

A decentralized approach means substantial autonomy and decision-making authority are delegated to the firm's subsidiaries around the world.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following would exert pressure on a firm to become locally responsive?

Accepted Answer

A)  the need to monitor and respond to global competitors 
B)  the need to cater to local customer needs 
C)  the desire to capitalize on converging consumer trends 
D)  the desire to provide uniform service to consumers 
A)  the need to monitor and respond to global competitors 
B)  the need to cater to local customer needs 
C)  the desire to capitalize on converging consumer trends 
D)  the desire to provide uniform service to consumers

Question 10

Extra Clean Strategy (Scenario)
Extra Clean Soap Company has been manufacturing soap products, such as dishwashing liquid, bath soap, and shampoo, for over 20 years from its facility and headquarters in Dublin, Ireland. A recent opportunity allowed Extra Clean to purchase soap companies in Taiwan and India. Extra Clean is now servicing both foreign and domestic markets with its products and manufacturing in all three locations. Recent reports from managers in the foreign facilities indicate that Extra Clean sales in Taiwan and India are low due to a lack of local responsiveness. Extra Clean managers from Ireland, India, and Taiwan are having a teleconference in an attempt to devise a strategy to improve the profitability of Extra Clean.
-Which of the following most likely supports Extra Clean implementing a transnational strategy?

Accepted Answer

A)  The country managers have been trained in the United States. 
B)  Extra Clean is a highly centralized organization. 
C)  Extra Clean could reduce the number of global suppliers. 
D)  There is high local competition in each of the markets. 
A)  The country managers have been trained in the United States. 
B)  Extra Clean is a highly centralized organization. 
C)  Extra Clean could reduce the number of global suppliers. 
D)  There is high local competition in each of the markets.

Question 11

Managing a firm's value-chain activities on a country-by-country basis to address diverse opportunities and risks is known as ________.

Accepted Answer

A)  global integration 
B)  global aggregation 
C)  regional coordination 
D)  local responsiveness 
A)  global integration 
B)  global aggregation 
C)  regional coordination 
D)  local responsiveness

Question 12

Brogj Inc. is a cosmetics manufacturer based in California, United States. The firm varies its products to suit the different conditions abroad. Brogj is an example of a ________.

Accepted Answer

A)  multidomestic industry 
B)  regional industry 
C)  global industry 
D)  globally integrated industry 
A)  multidomestic industry 
B)  regional industry 
C)  global industry 
D)  globally integrated industry

Question 13

Which of the following is characteristic of a global industry?

Accepted Answer

A)  A small number of major players compete head-on in multiple markets. 
B)  Competition is designed on a country-by-country basis. 
C)  Numerous firms compete within the industry worldwide. 
D)  Different marketing activities are designed to meet local needs across the globe. 
A)  A small number of major players compete head-on in multiple markets. 
B)  Competition is designed on a country-by-country basis. 
C)  Numerous firms compete within the industry worldwide. 
D)  Different marketing activities are designed to meet local needs across the globe.

Question 14

In the ________ strategy, a firm views international business as separate from, and secondary to, its domestic business.

Accepted Answer

A)  home replication 
B)  multilocal 
C)  global 
D)  transnational 
A)  home replication 
B)  multilocal 
C)  global 
D)  transnational

Question 15

Which of the following is an example of a multidomestic industry?

Accepted Answer

A)  chemicals 
B)  telecommunications 
C)  fashion 
D)  aerospace 
A)  chemicals 
B)  telecommunications 
C)  fashion 
D)  aerospace

Question 16

Which of the following organizational arrangements for foreign operations is most closely associated with home replication strategy?

Accepted Answer

A)  export department 
B)  international division 
C)  geographic area structure 
D)  product structure 
A)  export department 
B)  international division 
C)  geographic area structure 
D)  product structure

Question 17

CEO Hiring Interview (Scenario)
The Ace Children's Clothing Company is a mature MNE that has been manufacturing and selling children's clothing in Ace stores around the world for 30 years. Ace has seen a downturn in global sales recently due to trendy adult clothing companies branching out into children's clothing. The Ace board of directors is interviewing candidates to replace the outgoing CEO. The board wants a CEO who will take Ace into the future and pull customers back into Ace stores. Two candidates are being interviewed for the position: Dan Elizarde and Tanya Carson. Tanya and Dan have comparable executive experience with retail clothing companies. Therefore, the board will be basing its final decision on visionary leadership skills.
-During the interview, Tanya describes her idea of expanding the Ace line into maternity clothes to draw in expecting mothers. Which of the following traits of a visionary leader is Tanya most likely exhibiting?

Accepted Answer

A)  subjective morality 
B)  cultural imperialism 
C)  global strategic vision 
D)  dogmatic view 
A)  subjective morality 
B)  cultural imperialism 
C)  global strategic vision 
D)  dogmatic view

Question 18

Sourcing inputs from large-scale, centralized suppliers allows firms to obtain economies of scale, more consistent quality, lower costs, and generally more efficient operations.

Accepted Answer

A) True 
 B)False

Question 19

IKEA fared well during the recent global recession. Its value-oriented furniture and housewares appealed to customers during tough economic times.

Accepted Answer

A) True 
 B)False

Question 20

A firm's subsidiary is the primary contributor to ________.

Accepted Answer

A)  transfer pricing 
B)  capital planning 
C)  marketing 
D)  global profitability 
A)  transfer pricing 
B)  capital planning 
C)  marketing 
D)  global profitability

Companies that proactively build a global organizational culture will ________.

Explain the benefits of a multidomestic strategy to firm internationalization. What are some of the disadvantages to this approach?

Which of the following is a characteristic of a global team?

Which of the following is a characteristic of a transnational strategy to internationalization?

Which of the following is TRUE about foreign units of a company using a multidomestic strategy?

A decentralized approach means substantial autonomy and decision-making authority are delegated to the firm's subsidiaries around the world.

Which of the following would exert pressure on a firm to become locally responsive?

Managing a firm's value-chain activities on a country-by-country basis to address diverse opportunities and risks is known as ________.

Brogj Inc. is a cosmetics manufacturer based in California, United States. The firm varies its products to suit the different conditions abroad. Brogj is an example of a ________.

Which of the following is characteristic of a global industry?

In the ________ strategy, a firm views international business as separate from, and secondary to, its domestic business.

Which of the following is an example of a multidomestic industry?

Which of the following organizational arrangements for foreign operations is most closely associated with home replication strategy?

Sourcing inputs from large-scale, centralized suppliers allows firms to obtain economies of scale, more consistent quality, lower costs, and generally more efficient operations.

IKEA fared well during the recent global recession. Its value-oriented furniture and housewares appealed to customers during tough economic times.

A firm's subsidiary is the primary contributor to ________.

Introduction: What Is International Business

Globalization of Markets and the Internationalization of the Firm

The Cultural Environment of International Business

Ethics, Corporate Social Responsibility, Sustainability and Corporate Governance in International Business

Theories of International Trade and Investment

Political and Legal Systems in National Environments

Government Intervention and Regional Economic Integration

Understanding Emerging Markets

The International Monetary and Financial Environment

Financial Management and Accounting in the Global Firm

Global Market Opportunity Assessment

Exporting and Global Sourcing

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Marketing in the Global Firm

Human Resource Management in the Global Firm

Filters

Exam 11: Strategy and Organization in the International Firm

Companies that proactively build a global organizational culture will ________.

Explain the benefits of a multidomestic strategy to firm internationalization. What are some of the disadvantages to this approach?

Which of the following is a characteristic of a global team?

Which of the following is a characteristic of a transnational strategy to internationalization?

Which of the following is TRUE about foreign units of a company using a multidomestic strategy?

A decentralized approach means substantial autonomy and decision-making authority are delegated to the firm's subsidiaries around the world.

Which of the following would exert pressure on a firm to become locally responsive?

Managing a firm's value-chain activities on a country-by-country basis to address diverse opportunities and risks is known as ________.

Brogj Inc. is a cosmetics manufacturer based in California, United States. The firm varies its products to suit the different conditions abroad. Brogj is an example of a ________.

Which of the following is characteristic of a global industry?

In the ________ strategy, a firm views international business as separate from, and secondary to, its domestic business.

Which of the following is an example of a multidomestic industry?

Which of the following organizational arrangements for foreign operations is most closely associated with home replication strategy?

Sourcing inputs from large-scale, centralized suppliers allows firms to obtain economies of scale, more consistent quality, lower costs, and generally more efficient operations.

IKEA fared well during the recent global recession. Its value-oriented furniture and housewares appealed to customers during tough economic times.

A firm's subsidiary is the primary contributor to ________.

Introduction: What Is International Business

Globalization of Markets and the Internationalization of the Firm

The Cultural Environment of International Business

Ethics, Corporate Social Responsibility, Sustainability and Corporate Governance in International Business

Theories of International Trade and Investment

Political and Legal Systems in National Environments

Government Intervention and Regional Economic Integration

Understanding Emerging Markets

The International Monetary and Financial Environment

Financial Management and Accounting in the Global Firm

Global Market Opportunity Assessment

Exporting and Global Sourcing

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Marketing in the Global Firm

Human Resource Management in the Global Firm

Filters