Multinational Enterprises and International Expansion Quiz

A multinational enterprise (MNE) is a company that operates in multiple countries, with motives for international expansion including market growth, resource acquisition, cost reduction, and strategic positioning.

The prerequisites for the internationalization process of a company include financial stability, managerial commitment, product adaptation, and market research.

The CAGE framework considers cultural, administrative, geographic, and economic distances between countries, affecting industry sensitivity to distance in terms of trade, communication, and competition.

<p>Forces for global integration and coordination include economies of scale, economies of scope, factor costs, free trade theory, and global competitors acting as change agents. For example, global companies may leverage economies of scale to reduce production costs.</p> Signup and view all the answers

<p>Transnational strategies involve integrating global coordination and local responsiveness, while international, multinational, and global strategies focus on specific markets, centralized operations, and standardized processes, respectively.</p> Signup and view all the answers

<p>Cultural, Administrative, Geographic, and Economic differences</p> Signup and view all the answers

<p>Cultural preferences and regulatory requirements</p> Signup and view all the answers

<p>Understanding, Assessment, Mitigation, and Response to political risks</p> Signup and view all the answers

<p>Global strategies focus on achieving economies of scale, while transnational strategies focus on local responsiveness and global integration</p> Signup and view all the answers

<p>Understanding, Assessment, Mitigation, and Response to political risks</p> Signup and view all the answers