10 Questions
Explain the concept of a Multinational Enterprise (MNE) and its motives for international expansion.
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.
What are the prerequisites for the internationalization process of a company?
The prerequisites for the internationalization process of a company include financial stability, managerial commitment, product adaptation, and market research.
Discuss the CAGE framework and its relevance in understanding industry sensitivity to distance.
The CAGE framework considers cultural, administrative, geographic, and economic distances between countries, affecting industry sensitivity to distance in terms of trade, communication, and competition.
Explain the forces for global integration and coordination in the international context, citing examples.
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.
Define transnational strategies and distinguish them from international, multinational, and global strategies.
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.
What does the CAGE framework assess in understanding industry sensitivity to distance?
Cultural, Administrative, Geographic, and Economic differences
What are the forces for local differentiation and responsiveness in the international context primarily driven by?
Cultural preferences and regulatory requirements
What does the UAMR framework focus on in managing political risks for businesses?
Understanding, Assessment, Mitigation, and Response to political risks
In the context of transnational strategies, what distinguishes global strategies from transnational strategies?
Global strategies focus on achieving economies of scale, while transnational strategies focus on local responsiveness and global integration
What is the primary focus of the UAMR framework for managing political risks?
Understanding, Assessment, Mitigation, and Response to political risks
Test your knowledge of multinational enterprises, international expansion motives, and the prerequisites for internationalization with this quiz on the theory for technical test BU491, specifically covering Chapter 1: "Expanding Abroad" and Chapter 2: "Understanding the International Context." Topics include the evolving mentality from international to transnational, the CAGE framework, and industry sensitivity to distance.
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