A) import-export company that actively trades in foreign markets. B) company that passively manages its substantial foreign direct investment. C) import-export company that actively manages its foreign investment portfolio. D) company that actively manages substantial foreign direct investment. A) import-export company that actively trades in foreign markets. B) company that passively manages its substantial foreign direct investment. C) import-export company that actively manages its foreign investment portfolio. D) company that actively manages substantial foreign direct investment.

Exam 1: Expanding Abroad: Motivations, Means, and Mentalities

If you had been the founder of Dunkin Donuts, would you have chosen to heavily rely on franchising, the strategy used by Rosenberg, as your entry mode to foreign countries? Or would you have chosen to rely on wholly owned subsidiaries as your foreign entry mode? Why?

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(Essay)

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Question 1

Correct Answer:

Verified

Franchising. Franchising can help a company expand internationally faster than wholly owned subsidiaries. This mode does not require commitment of high amounts of resources to the foreign countries. Also this line of business would not require (1) substantial direct investment in foreign countries, (2) active management of these foreign assets, and (3) capability of the organization to leverage its strategic assets more effectively through its own subsidiaries than through contractual relations with outside parties.

Which of the following constitutes a list of foreign entry modes that involve the MNE to make a foreign investment

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(Multiple Choice)

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Question 2

Correct Answer:

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A franchise, such as McDonald's, is a _________ mode of foreign entry.

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(Multiple Choice)

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Question 3

Correct Answer:

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For an MNE to exist, first foreign countries must provide location-specific advantages to attract the company to invest there, second the company must have ownership-specific advantages that counteract its liability of foreignness, third the company must have the organizational capability to leverage its strategic advantages more effectively internally than externally.

(True/False)

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Question 4

Briefly compare and contrast the four mentalities toward internationalization.

(Essay)

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Question 5

The demand for the Italy-based Sparkly Fashion Manufacturing's unisex pants has been continually increasing. Sparkos, the CEO of the company, intends to take his company international by producing these unisex pants mainly in Italy and selling them in the same way all over the world. Sparkos is operating with a(n):

(Multiple Choice)

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Question 6

HomeAppliances Co. is a new manufacturer of home appliances. HomeAppliances wants to go international. Some of its traditional motivations for pursuing internationalization include:

(Multiple Choice)

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Question 7

Which of the following correctly describes the sequential evolution in management thinking with respect to the strategic role of foreign operations in emerging MNEs?

(Multiple Choice)

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Question 8

An MNE with a 'global mentality' will typically manage its operations centrally.

(True/False)

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Question 9

Rana manages an Italian fashion design company. What would motivate Rana's company to internationalize?

(Essay)

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Question 10

One motivation behind internationalization is to sustain the firm's competitive position. To pursue a sustainable competitive position relative to its rivals in the athletic clothing industry, Nike attempts to:

(Multiple Choice)

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Question 11

An MNE with a 'multinational mentality' will typically be managed as a coordinated federation.

(True/False)

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Question 12

The largest MNEs are equivalent in their economic importance to less developed economies such as Cameroon, Paraguay, or Barbados.

(True/False)

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Question 13

The CEO of Paragon Ltd. wants to take his company international. What are the three big questions he must answer before expanding abroad?

(Essay)

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Question 14

An MNE with a 'transnational mentality' will typically be managed as an integrated network.

(True/False)

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Question 15

Briefly compare and contrast the Uppsala Internationalization Model and the Born Global Model. Under what circumstances is each model most applicable? Give examples to support your arguments.

(Essay)

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Question 16

A joint venture is a _________ mode of foreign entry.

(Multiple Choice)

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Question 17

All companies internationalize in an incremental manner. First, they make an initial commitment of resources to the foreign market in order to secure local market knowledge. Building on this knowledge, they make subsequent resource commitments, eventually leading to higher levels of investment in the foreign market.

(True/False)

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Question 18

OfficeWare Corp. is an MNE that produces and sells office equipment. If the company's CEO employs a 'global mentality' toward the strategic role of the company's foreign operations, then we would expect that OfficeWare:

(Multiple Choice)

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Question 19

An MNE is a(n):

(Multiple Choice)

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Question 20

Showing 1 - 20 of 30

If you had been the founder of Dunkin Donuts, would you have chosen to heavily rely on franchising, the strategy used by Rosenberg, as your entry mode to foreign countries? Or would you have chosen to rely on wholly owned subsidiaries as your foreign entry mode? Why?

Which of the following constitutes a list of foreign entry modes that involve the MNE to make a foreign investment

A franchise, such as McDonald's, is a _________ mode of foreign entry.

Briefly compare and contrast the four mentalities toward internationalization.

HomeAppliances Co. is a new manufacturer of home appliances. HomeAppliances wants to go international. Some of its traditional motivations for pursuing internationalization include:

Which of the following correctly describes the sequential evolution in management thinking with respect to the strategic role of foreign operations in emerging MNEs?

An MNE with a 'global mentality' will typically manage its operations centrally.

Rana manages an Italian fashion design company. What would motivate Rana's company to internationalize?

One motivation behind internationalization is to sustain the firm's competitive position. To pursue a sustainable competitive position relative to its rivals in the athletic clothing industry, Nike attempts to:

An MNE with a 'multinational mentality' will typically be managed as a coordinated federation.

The largest MNEs are equivalent in their economic importance to less developed economies such as Cameroon, Paraguay, or Barbados.

The CEO of Paragon Ltd. wants to take his company international. What are the three big questions he must answer before expanding abroad?

An MNE with a 'transnational mentality' will typically be managed as an integrated network.

Briefly compare and contrast the Uppsala Internationalization Model and the Born Global Model. Under what circumstances is each model most applicable? Give examples to support your arguments.

A joint venture is a _________ mode of foreign entry.

OfficeWare Corp. is an MNE that produces and sells office equipment. If the company's CEO employs a 'global mentality' toward the strategic role of the company's foreign operations, then we would expect that OfficeWare:

An MNE is a(n):

Understanding the International Context: Responding to Conflicting Environmental Forces

Developing Transnational Strategies: Building Layers of Competitive Advantage

Developing a Transnational Organization: Managing Integration, Responsiveness, and Flexibility

Creating Worldwide Innovation and Learning: Exploiting Cross Border Knowledge Management

Engaging in Cross-Border Collaboration: Managing across Corporate Boundaries

Implementing the Strategy: Building Multidimensional Capabilities

The Future of the Transnational: An Evolving Global Role

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