International Business Entry Modes and Strategies Quiz

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Questions and Answers

What does Comparative Management explore?

The impact of globalisation on management practices

The dynamics of cross-cultural communication

The landscape, contours, and national patterns of development (correct)

The convergence towards a global system

What does Cross-Cultural Management give analytical significance to?

Global market trends

Intra-firm trading between MNCs and subsidiaries

Technological advancements in management

National culture as the key variable in examining acceptable management practice (correct)

According to Friedman, how did he describe the world?

As a system dominated by hyper-globalisation

As one single globalised marketplace driven by the spread of free market capitalisation (correct)

As a landscape of diverse and disconnected markets

As a collection of independent national economies

What does Hyper-globalisation refer to?

The convergence towards a global system Signup and view all the answers

What does MNC stand for in the context of 'Intra-Firm MNC'?

Multinational Corporation Signup and view all the answers

What does Authoritarianism refer to?

Rule by one or more individuals who have absolute power and no substantive accountability for citizens Signup and view all the answers

Which legal system is characterized by laws based on religious beliefs and teachings?

Theocratic law Signup and view all the answers

What does PEST analysis evaluate for business?

Political, economic, social, and technological factors Signup and view all the answers

What is the degree of unfamiliarity with a foreign business location's culture known as?

Cultural distance Signup and view all the answers

What are the risks associated with government changes, tax system changes, and impediments to factor of production transfer collectively known as?

Political risks Signup and view all the answers

What is the right to patent known as in the first to file system?

Priority right Signup and view all the answers

What type of entry mode involves international licensing, franchising, and wholly owned subsidiary?

Transfer-related entry modes Signup and view all the answers

What is the Culture Psychic Distance Paradox?

Expatriates underestimating cultural differences and experiencing greater culture shock Signup and view all the answers

What do Horizontal Mergers involve?

Companies in the same industry Signup and view all the answers

What can result in De-internationalization?

Company failure or strategic decision making Signup and view all the answers

What do Diversification alliances involve?

Partnerships between companies in different lines of business Signup and view all the answers

What does Global Strategy refer to?

A single strategy for the entire global network for subsidiaries and partners Signup and view all the answers

What did Levitt (1983) predict?

A single global market with standardized products Signup and view all the answers

What are the different types of expatriate assignments mentioned in the text?

Management development, business development, and technical assignments Signup and view all the answers

How are expatriates classified in the text?

Bears, bumblebees, and spiders based on their roles and levels of authority Signup and view all the answers

What are the key factors contributing to culture shock in expatriates according to the text?

Cultural distance and cultural psychic distance paradox Signup and view all the answers

What are the stages included in the repatriation model issues mentioned in the text?

Honeymoon, crisis, recovery, and adjustment Signup and view all the answers

What is one of the challenges of repatriation mentioned in the text?

Unrealistic expectations Signup and view all the answers

What is the definition of globalization provided in the text?

Being tied together into a single globalized marketplace driven by free market capitalism Signup and view all the answers

What is a characteristic of Wholly Owned Subsidiary as an international business entry mode?

It offers 100% ownership in a new country and increased flexibility and control Signup and view all the answers

What are the determinants at the country level that impact international business, as mentioned in the text?

Science, education, innovation, economic soundness, finance, and internationalization Signup and view all the answers

What is a potential reason for the failure of Joint Ventures (JVs) as a form of Global Strategic Alliances (GSAs)?

Loss of autonomy and conflict between partners Signup and view all the answers

What do Hofstede's cultural dimensions impact in the context of international business?

International business decisions Signup and view all the answers

What is a key feature of Foreign Direct Investment (FDI) entry modes?

They include market-related, production-related, resource-related, and control of strategic assets Signup and view all the answers

What is a characteristic of Global Strategic Alliances (GSAs) in the context of international business?

They are cross-border partnerships between firms from different countries to improve competitive advantage Signup and view all the answers

Study Notes

International Business Entry Modes and Strategies

Multinational corporations (MNCs) need dynamic capabilities for sustained competitive advantage, not just existing resources
Wholly Owned Subsidiary offers 100% ownership in a new country and increased flexibility and control
Production under license involves contracting out production subject to intellectual property rights
Foreign Direct Investment (FDI) entry modes include market-related, production-related, resource-related, and control of strategic assets
Country competitiveness measures the effectiveness of countries in sustaining domestic and international competitiveness
Country level determinants include science, education, innovation, economic soundness, finance, and internationalization
Firm level determinants involve technology innovation and factor creation
Individual level determinants include entrepreneurs, managers, engineers, educators, and politicians
Global Strategic Alliances (GSAs) are cross-border partnerships between firms from different countries to improve competitive advantage
Joint Ventures (JVs) are a popular form of GSAs and offer advantages such as risk-sharing and local acceptance
Joint Ventures can fail due to loss of autonomy, conflict, technology leakage, strategic goal differences, and future competition
Hofstede's cultural dimensions include power distance, individualism, masculinity, long-term orientation, uncertainty avoidance, and indulgence, impacting international business decisions.

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Description

Test your knowledge of international business entry modes and strategies with this quiz. Explore topics such as multinational corporations, wholly owned subsidiaries, foreign direct investment, global strategic alliances, and Hofstede's cultural dimensions. Evaluate your understanding of country level and firm level determinants, as well as the potential advantages and challenges of joint ventures.