19 Questions
What is the main objective of the Integration strategy?
To achieve economies of scale by standardizing practices/products
What type of strategy focuses on a number of foreign countries/regions, each of which is regarded as a stand-alone ‘local’ market?
Localization strategy
What is the goal of the Global Standards strategy?
To develop and distribute standardized products globally
What is the term for the integration of different business units across countries?
Transnational Environment
What is the primary goal of a Multinational Corporation (MNC)?
To maximize profits through economies of scale
What is the term for the strategy of developing and distributing standardized products globally?
Global Standards strategy
What is the main advantage of the Integration strategy?
Achieving economies of scale
What is the term for the ability of a multinational corporation to respond to different customer preferences around the world?
Local Responsiveness
What is the term for the strategy of focusing on a number of foreign countries/regions, each of which is regarded as a stand-alone ‘local’ market?
Localization strategy
What is the primary function of formal institutions in a country?
To establish laws, regulations, and rules for economic transactions
What are norms in the context of institutions?
Values, beliefs, and actions that shape individual and firm behavior
What is the primary focus of the institution-based view?
The impact of institutions on the success and failure of firms
What is the primary characteristic of a totalitarian political system?
Strong emphasis on collectivism and a powerful central authority
What is the term for the costs associated with economic transactions or doing business?
Transaction costs
What is the term for fundamental and comprehensive changes to formal and informal rules of the game?
Institutional transitions
What is the primary focus of the institutional framework?
Formal and informal institutions governing individual and firm behavior
What are the three major types of political systems mentioned in the text?
Totalitarianism, Democracy, and Socialism
What is the term for the 'rules of the game' in a country?
Institutions
What is the impact of prohibitively high transaction costs on trade in a country?
People may choose not to undertake trade in that country at all
This quiz covers the basics of economic systems, institutions, and legal frameworks that guide business conduct. It explores the different types of economies, including socialist, capitalist, transition, and mixed economies.
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