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

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Three prerequisites that must be satisfied before a national firm can transform itself into a multinational firm include:

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What is an MNE? Give examples to explain the difference between companies that are considered MNEs and those that are not.

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Roy is the CEO of a multinational apparel company. How would he conceptualize the strategic role of his firm's foreign operations if he embraced a 'global mentality'? If he embraced a 'multinational mentality'?

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Briefly explain the product cycle of smart phones using Raymond Vernon's product cycle theory.

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Emerging motivations for internationalization include the desire to enhance the firm's competitive position and the desire to develop global scanning capabilities.

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The process of internationalization followed by most firms is usually well-thought out in advance and typically builds on a combination of rational analysis, planning and implementation.

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_________ suggests that in the first stage innovations are produced in the home developed country; in the second stage they are exported to other similarly developed countries; in the third stage, they start being produced in these developed countries; in the fourth stage they start being produced in low-wage developing countries.

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The main advantage multinational mentality has over global mentality is more efficient manufacturing.

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

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A joint venture is a contractual mode of foreign entry involving a high level of resource commitment by all partners.

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