Exam questions

<p>By taking on the role of a hub firm themselves (D)</p> Signup and view all the answers

<p>Substantially discount the economic value/price of the acquisition target (D)</p> Signup and view all the answers

<p>The privileged location of the MNE’s retail outlets (D)</p> Signup and view all the answers

<p>Countries should develop regulations rather fast, in order to gain a first mover advantage on the international stage (C)</p> Signup and view all the answers

<p>To access and recombine local knowledge, then send information back to the central lab. (C)</p> Signup and view all the answers

<p>it is implementing a value-creating strategy not simultaneously being implemented by any current or potential competitors and when these other firms are unable to duplicate the benefits of this strategy (C)</p> Signup and view all the answers

<p>Collectivism vs. Individualism (B)</p> Signup and view all the answers

<p>How much one partner can learn from the other. (B)</p> Signup and view all the answers

<p>Regulations should encourage innovation making companies in the country of origin more competitive. (D)</p> Signup and view all the answers

<p>Multi-centered MNE (B)</p> Signup and view all the answers

<p>Creating new FSAs in the host country. (C)</p> Signup and view all the answers

<p>Delegate marketing strategy to distributors. (A)</p> Signup and view all the answers

<p>The multiple diamonds where it is active. (B)</p> Signup and view all the answers

<p>Clear identification of future core competence development. (D)</p> Signup and view all the answers

<p>Potential for long-term strategic misalignment with partners. (D)</p> Signup and view all the answers

<p>Decreased employee morale and higher turnover rates among local staff. (B)</p> Signup and view all the answers

<p>Lack of clear lines of authority and diffused responsibility. (A)</p> Signup and view all the answers

<p>To establish specific strategic objectives for each social issue addressed. (D)</p> Signup and view all the answers

<p>By examining the exposure absorption capability in the <strong>input</strong> market and exchange rate pass-through in the <strong>output</strong> market. (C)</p> Signup and view all the answers

<p>Conducting economic activities across a broader number of locations to mitigate disruptions in any single location. (C)</p> Signup and view all the answers

<p>Entering nearby foreign countries within a firm’s immediate home region. (C)</p> Signup and view all the answers

<p>By providing a competitive edge through favorable factor conditions, demand conditions, and related/supporting industries. (C)</p> Signup and view all the answers

<p>The subsidiary's costs are highly sensitive to changes in exchange rates. (B)</p> Signup and view all the answers

<p>By distributing production and sourcing across multiple, geographically diverse locations. (A)</p> Signup and view all the answers

<p>Missing opportunities for growth in more distant, but potentially more profitable, markets. (A)</p> Signup and view all the answers

<p>By fostering complacency and resistance to innovation due to an overreliance on existing advantages. (C)</p> Signup and view all the answers

<p>The ability to actively manage costs, adjust pricing strategies, and diversify markets in response to exchange rate movements. (C)</p> Signup and view all the answers

<p>Implementing a value-creating strategy that is not simultaneously implemented by competitors and cannot be duplicated by them. (D)</p> Signup and view all the answers

<p>Friction between an MNE's organizational culture and the culture of host country operations during geographic expansion. (D)</p> Signup and view all the answers

<p>An assessment of the degree to which the subsidiary's activities are 'modularized' and the extent to which it can function independently. (A)</p> Signup and view all the answers

<p>Primarily acting as an International Projector, focusing on transferring home country practices abroad. (C)</p> Signup and view all the answers

<p>It describes the formal reporting structure of the business only. (C)</p> Signup and view all the answers

<p>The potential for the market to contribute to the MNE's global competitive advantage, considering factors like market size, growth rate, and strategic fit. (B)</p> Signup and view all the answers

<p>A market with significantly different cultural norms, consumer behavior, and a less developed infrastructure compared to the MNE's home market. (C)</p> Signup and view all the answers

<p>By providing the MNE with exclusive access to resources, markets, or capabilities that are difficult for competitors to access or imitate in a specific location. (C)</p> Signup and view all the answers

<p>It can result in a lack of adaptability and responsiveness to local market conditions, potentially hindering performance and creating conflicts. (C)</p> Signup and view all the answers

<p>A deep understanding of the local market's unique characteristics, including cultural norms, consumer behavior, and competitive landscape, and tailoring the MNE's approach accordingly. (B)</p> Signup and view all the answers

Establishing subsidiaries to access natural resources.

Uses foreign subsidiaries as home operation clones.

Political hostility between countries affecting operations.

Brick-and-mortar firms adapting to digital competitors.

Process to uncover hidden security issues in acquisitions.

Capabilities that provide competitive advantages for MNEs.

Concepts of effective environmental regulations.

Long-term benefit a firm has over competitors.

Labs that access local knowledge and share it with the central lab.

The main measure is how much one partner learns from the other.

An archetype that doesn't fit post-WWII rapid expansion is the centralized exporter.

This action involves creating new firm-specific advantages (FSAs) in host countries.

One false guideline is to delegate marketing strategy entirely to distributors.

Focusing on the multiple diamonds where a geographically diversified MNE is active leads to better outcomes.

Accessing and combining local knowledge to enhance innovation and products.

Evaluating partnerships should focus on mutual learning rather than solely on profits.

Archetypes like Multi-centered MNE thrive in emerging markets post 1945.

Innovation labs adapt products from the home country to meet local needs.

A unique strategy providing benefits not being pursued by competitors.

The friction between an MNE’s culture and host country culture during expansion.

Determined by subsidiary's resource base and market strategic importance.

The extent to which a subsidiary can operate independently.

The historical administrative practices affecting an MNE’s performance.

Investments focused on accessing new markets rather than resources.

The framework guiding an MNE in building competencies and integration.

Strategic Business Units operating independently within a corporation.

Unique strengths that give an MNE competitive advantage.

Significant global events impacting business operations.

HP used 7 practices in CSR to align profit with social objectives.

Risk at subsidiary level due to market and exchange rate changes.

The ability to manage risk from market changes in operations.

Distributing operations to avoid vulnerability in a single location.

Focus on entering nearby foreign countries within the home region.

Framework assessing Cultural, Administrative, Geographic, and Economic distances.

The degree to which changes in exchange rates affect consumer pricing.

Impact of corporate social responsibility on multinational exposure in media.

Clear goals established by businesses for addressing social issues.

Prioritizing local production to minimize risks from foreign disruptions.