Question 1

A global industry is one in which competition is on a regional or worldwide scale. Which of the following is a global industry?

Accepted Answer

A)  automobiles 
B)  beverages 
C)  publishing 
D)  retailing 
A)  automobiles 
B)  beverages 
C)  publishing 
D)  retailing

Question 2

Discuss the factors relevant to a firm's decision to centralize or decentralize foreign operations.

Accepted Answer

The choice between headquarters and subs

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 questions would be most important for Extra Clean managers to evaluate the integration-responsiveness framework?

Accepted Answer

A)  What types of global IT infrastructure and tools should be used in Dublin to maintain efficiency? 
B)  Should the Extra Clean headquarters relocate to Taiwan for six months? 
C)  Would the foreign managers benefit from a training session in Ireland? 
D)  What type of balance is appropriate between headquarters and country managers? 
A)  What types of global IT infrastructure and tools should be used in Dublin to maintain efficiency? 
B)  Should the Extra Clean headquarters relocate to Taiwan for six months? 
C)  Would the foreign managers benefit from a training session in Ireland? 
D)  What type of balance is appropriate between headquarters and country managers?

Question 4

Firms that want to become globally competitive must seek simultaneously three strategic objectives-efficiency, flexibility, and learning.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is the most critical asset of any organization?

Accepted Answer

A)  goodwill 
B)  computer programs 
C)  human capital 
D)  bonds 
A)  goodwill 
B)  computer programs 
C)  human capital 
D)  bonds

Question 6

When using a multidomestic strategy, products and services are carefully adapted to suit the unique needs of each country.

Accepted Answer

A) True 
 B)False

Question 7

Strategy is ________.

Accepted Answer

A)  a quality of executive management that provides inspirational guidance and motivation to personnel, leading the firm to a better future 
B)  the pattern of shared values, behavioral norms, systems, policies, and procedures that employees learn and adopt 
C)  a planned set of actions that managers employ to make the best use of the firm's resources and core competencies to gain competitive advantage and accomplish organizational objectives 
D)  the procurement of selected value-chain activities, including production of intermediate goods or finished products, from independent suppliers 
A)  a quality of executive management that provides inspirational guidance and motivation to personnel, leading the firm to a better future 
B)  the pattern of shared values, behavioral norms, systems, policies, and procedures that employees learn and adopt 
C)  a planned set of actions that managers employ to make the best use of the firm's resources and core competencies to gain competitive advantage and accomplish organizational objectives 
D)  the procurement of selected value-chain activities, including production of intermediate goods or finished products, from independent suppliers

Question 8

In a multidomestic strategy, there is maximum pressure on headquarters staff because there is little incentive for decision making by individual managers.

Accepted Answer

A) True 
 B)False

Question 9

Marketing the same product worldwide is most appropriate for the ________ industry.

Accepted Answer

A)  furniture 
B)  electronics 
C)  food and beverage 
D)  retailing 
A)  furniture 
B)  electronics 
C)  food and beverage 
D)  retailing

Question 10

Global strategy is an approach to internationalization in which headquarters delegates considerable autonomy to each country manager, allowing him or her to operate independently and pursue local responsiveness,

Accepted Answer

A) True 
 B)False

Question 11

Quik Meal Structure (Scenario)
Quik Meal is a fast-growing MNE that manufactures and sells energy gels for consumption by serious athletes, such as marathoners and triathletes. The energy gels produced by Quik Meal taste much better than the gels sold by other firms, which has led to an increase in sales. Managers and executives with Quik Meal need to determine the best organizational structure for the young firm. Quik Meal has subsidiaries in Japan and Brazil, while company headquarters are based in San Francisco.
-Which of the following strengthens the decision by Quik Meal executives to centralize operations?

Accepted Answer

A)  Quik Meal offers five different flavors of energy gels for athletes. 
B)  Quik Meal executives report a steady rate of sales in the U.S. market. 
C)  Quik Meal country managers report few requests to alter product ingredients. 
D)  Quik Meal products use the same trademark and packaging in every country. 
A)  Quik Meal offers five different flavors of energy gels for athletes. 
B)  Quik Meal executives report a steady rate of sales in the U.S. market. 
C)  Quik Meal country managers report few requests to alter product ingredients. 
D)  Quik Meal products use the same trademark and packaging in every country.

Question 12

Which of the following gives headquarters considerable authority and control over the firm's activities worldwide?

Accepted Answer

A)  nationalization 
B)  home replication strategy 
C)  centralized approach 
D)  decentralized approach 
A)  nationalization 
B)  home replication strategy 
C)  centralized approach 
D)  decentralized approach

Question 13

Global integration is the coordination of the firm's value-chain activities across multiple countries to achieve worldwide efficiency, synergy, and cross-fertilization to take advantage of similarities between countries.

Accepted Answer

A) True 
 B)False

Question 14

Global IT infrastructure and tools such as intranets, the Internet, and electronic data interchange ensure that distant parts of the global network share knowledge and learn from each other.

Accepted Answer

A) True 
 B)False

Question 15

An advantage to firms that use a product structure arrangement is that ________.

Accepted Answer

A)  it requires a small resource commitment 
B)  duplication of corporate support functions for each product division is avoided 
C)  there is limited possibility for excessive focus on products 
D)  individual product lines are coordinated and managed globally 
A)  it requires a small resource commitment 
B)  duplication of corporate support functions for each product division is avoided 
C)  there is limited possibility for excessive focus on products 
D)  individual product lines are coordinated and managed globally

Question 16

Converging buyer characteristics, growing acceptance of global brands, and increased diffusion of uniform technology make it difficult to pursue a global strategy.

Accepted Answer

A) True 
 B)False

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.
-Which of the following characteristics should the winning candidate most likely possess if Ace executives desire a CEO with a global mind-set?

Accepted Answer

A)  open-minded about diversity 
B)  subjective ethical standards 
C)  fluency in two languages 
D)  proponent of cultural imperialism 
A)  open-minded about diversity 
B)  subjective ethical standards 
C)  fluency in two languages 
D)  proponent of cultural imperialism

Question 18

Global integration is the coordination of the firm's value-chain activities across multiple countries to achieve worldwide efficiency, synergy, and ________ in order to take advantage of similarities between countries.

Accepted Answer

A)  capability 
B)  expertise 
C)  cross-fertilization 
D)  redundancy 
A)  capability 
B)  expertise 
C)  cross-fertilization 
D)  redundancy

Question 19

A firm would be compelled to seek global integration when it has to ________.

Accepted Answer

A)  adjust to cultural differences 
B)  cater to local customer needs 
C)  capitalize on converging consumer trends and universal needs 
D)  accommodate differences in distribution channels 
A)  adjust to cultural differences 
B)  cater to local customer needs 
C)  capitalize on converging consumer trends and universal needs 
D)  accommodate differences in distribution channels

Question 20

Firms that emphasize global integration make and sell ________.

Accepted Answer

A)  unique products that follow a multilocal strategy 
B)  an excessive variety of complex products 
C)  products that require minimal adaptation 
D)  products designed specifically for local markets 
A)  unique products that follow a multilocal strategy 
B)  an excessive variety of complex products 
C)  products that require minimal adaptation 
D)  products designed specifically for local markets

A global industry is one in which competition is on a regional or worldwide scale. Which of the following is a global industry?

Discuss the factors relevant to a firm's decision to centralize or decentralize foreign operations.

Firms that want to become globally competitive must seek simultaneously three strategic objectives-efficiency, flexibility, and learning.

Which of the following is the most critical asset of any organization?

When using a multidomestic strategy, products and services are carefully adapted to suit the unique needs of each country.

Strategy is ________.

In a multidomestic strategy, there is maximum pressure on headquarters staff because there is little incentive for decision making by individual managers.

Marketing the same product worldwide is most appropriate for the ________ industry.

Global strategy is an approach to internationalization in which headquarters delegates considerable autonomy to each country manager, allowing him or her to operate independently and pursue local responsiveness,

Which of the following gives headquarters considerable authority and control over the firm's activities worldwide?

Global integration is the coordination of the firm's value-chain activities across multiple countries to achieve worldwide efficiency, synergy, and cross-fertilization to take advantage of similarities between countries.

Global IT infrastructure and tools such as intranets, the Internet, and electronic data interchange ensure that distant parts of the global network share knowledge and learn from each other.

An advantage to firms that use a product structure arrangement is that ________.

Converging buyer characteristics, growing acceptance of global brands, and increased diffusion of uniform technology make it difficult to pursue a global strategy.

Global integration is the coordination of the firm's value-chain activities across multiple countries to achieve worldwide efficiency, synergy, and ________ in order to take advantage of similarities between countries.

A firm would be compelled to seek global integration when it has to ________.

Firms that emphasize global integration make and sell ________.

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

A global industry is one in which competition is on a regional or worldwide scale. Which of the following is a global industry?

Discuss the factors relevant to a firm's decision to centralize or decentralize foreign operations.

Firms that want to become globally competitive must seek simultaneously three strategic objectives-efficiency, flexibility, and learning.

Which of the following is the most critical asset of any organization?

When using a multidomestic strategy, products and services are carefully adapted to suit the unique needs of each country.

Strategy is ________.

In a multidomestic strategy, there is maximum pressure on headquarters staff because there is little incentive for decision making by individual managers.

Marketing the same product worldwide is most appropriate for the ________ industry.

Global strategy is an approach to internationalization in which headquarters delegates considerable autonomy to each country manager, allowing him or her to operate independently and pursue local responsiveness,

Which of the following gives headquarters considerable authority and control over the firm's activities worldwide?

Global integration is the coordination of the firm's value-chain activities across multiple countries to achieve worldwide efficiency, synergy, and cross-fertilization to take advantage of similarities between countries.

Global IT infrastructure and tools such as intranets, the Internet, and electronic data interchange ensure that distant parts of the global network share knowledge and learn from each other.

An advantage to firms that use a product structure arrangement is that ________.

Converging buyer characteristics, growing acceptance of global brands, and increased diffusion of uniform technology make it difficult to pursue a global strategy.

Global integration is the coordination of the firm's value-chain activities across multiple countries to achieve worldwide efficiency, synergy, and ________ in order to take advantage of similarities between countries.

A firm would be compelled to seek global integration when it has to ________.

Firms that emphasize global integration make and sell ________.

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