Exam Questions PDF

Establishing a multinational enterprise subsidiary to access Congolese mines is an expression of: A: Natural resource seeking B: Market seeking C: Strategic resource seeking D: Efficiency seeking Which archetype of administrative heritage uses the firm’s foreign subsidiaries as clones of the home o...

Establishing a multinational enterprise subsidiary to access Congolese mines is an expression of: A: Natural resource seeking B: Market seeking C: Strategic resource seeking D: Efficiency seeking Which archetype of administrative heritage uses the firm’s foreign subsidiaries as clones of the home operations? A: Centralized exporter B: International Projector C: International Coordinator D: Multi-centered MNE Political hostility between countries is an expression of: Question 2 Answer a. Administrative distance b. Economic distance c. Geographic distance d. Cultural distance According to Iansiti and Lakhani in their HBR article, which of the following is an example for how ‘brick-and-mortar’ firms can respond to the rise of digital hub firms? Question 3 Answer *************************************** a. by increasing their economies of scale b. by increasing their spending on marketing and advertising to attract more customers c. by taking on the role of a hub firm themselves d. by pursuing a sustainability strategy diligence process is addressing hidden security issues related to compromised data. Which of the following is not such an action? Question 1 Answer *************************************** a. Evaluate the acquisition target’s compliance with prevailing cyber security standards b. Strongly discount the economic value/price of the acquisition target to reflect the potential problem of data security issues c. Conduct a full review of the acquisition target’s information security processes and procedures d. Investigate the acquisition target’s past data breaches using prior data-related audits Which of the elements below is not a higher-order FSA? Question 4 Answer a. The MNE’s critical routines b. The MNE’s recombination capability c. The privileged location of the MNE’s retail outlets d. The MNE’s ability to integrate multiple technologies Which major feature of good environmental regulations can’t be found in Porter and Van der Linde’s article: Question 5 Answer a. Let industries themselves discover how to solve their own problems in terms of which new technologies to adopt b. Countries should develop regulations rather fast, in order to gain a first mover advantage on the international stage c. Allow national-government-opposed senior managers in business firms to discuss environmental issues across industry borders d. Regulations should encourage environmental improvements as close as possible to the source of pollution According to Barney (1991), a firm is said to have a sustained competitive ad­vantage when: Question 6 Answer a. it is implementing a value creating strategy not simultaneously being implemented by any current or potential competitors even though these other firms are still able to duplicate the benefits of this strategy. b. it is imple­menting a value creating strategy not simultaneously being implemented by any current or potential competitors. c. 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. d. it is implementing a value creating strategy that is also simultaneously being implemented by current or potential competitors and these other firms are also able to duplicate the benefits of this strategy. According to Meyer in her HBR article, ‘cultural disintegration’ refers to …(look in the book pdf i provided for the answer) Question 7 Answer a. the development of formal routines to make transparent implicit values and behaviors b. the friction between an MNE’s organizational culture and the culture of host country operations that occurs when an MNE expands its geographic scope c. the higher-order, non-location-bound FSA that is an MNE’s organizational culture d. the values and behavioral norms dominant at the corporate head office In the wake of a globally disruptive event, Bartlett and Ghoshal’s two conventional dimensions that determine an MNE’s foreign subsidiary role (i.e., the subsidiary’s resource base and the strategic importance of its local market) are best complemented with … Question 8 Answer a. the elimination of specific subsidiaries abroad b. an assessment of the degree to which the subsidiary’s activities are ‘modularized’ and the extent to which it can function independently c. the introduction of one business model for all subsidiaries along the value chain d. the classification of subsidiaries based on their size and return on investment Levitt concedes that the administrative heritage plays a large role in determining MNE success or failure. An example of such administrative heritage could be: Question 9 Answer a. Being an International Projector b. Holding administrative distance c. Having location bound advantages d. Having a market seeking approach to FDI Which of the following elements is not a correct statement on the purpose of the MNE’s strategic architecture? Question 10 Answer a. It is necessary to overcome the challenge of decentralized SBUs acting in their own self-interest b. It guides the corporation in building and acquiring core competencies c. It makes it easier to grade the different subsidiaries of the MNE d. It is the road map of the future that identifies which core competences to build Home-base-augmenting innovation labs primarily: Question 11 Answer a. Access and recombine local knowledge and send information back to the central lab b. Receive information from the central lab in the home country and adapt products to local demand c. Receive information from the central lab in the home country that is non-location bound and does not require further adaptation d. Support manufacturing facilities in host countries by adapting products from the home country to satisfy local needs According to Hamel, Doz and Prahalad, the main criterion for evaluating international alliance success should be: Question 12 Answer a. How long the alliance lasts between the partners involved b. How much one partner can learn from the other c. How many subsidiaries can be developed into the strategic leader segment d. How much direct profits are gained by the two partners Which of the archetypes below is not associated with the rapid international expansion of developed economy MNEs in emerging economies in the post-World War II era, when trade and investment barriers declined rapidly? Question 13 Answer a. International Projector b. Multi-centered MNE c. International Coordinator d. Centralized exporter An MNE setting up innovation labs abroad is an example of … Question 14 Answer a. transferring location-bound FSAs to the host country b. creating new FSAs in the host country c. relying on home-country location advantages in the foreign location d. creating non-actionable FSAs in the foreign location Arnold offers seven guidelines for MNEs when dealing with local distributors: Which of the guidelines below is false (i.e., not consistent with Arnold’s guidelines) ? Question 15 Answer a. Secure shared access to the distributors’ critical market and financial intelligence b. Proactively select locations and only then suitable distributors c. Delegate marketing strategy to distributors d. Link national distributors with each other, especially at the regional level Please fill in the blank space in the following sentence with the correct response: A geographically diversified MNE that responds to a severe global crisis such as COVID-19 by focusing on xxx, is likely to achieve optimal performance outcomes. Question 16 Answer a. increasing its outsourcing b. the multiple diamonds where it is active c. its main host country diamond d. its home country diamond HP applied 7 business practices in its CSR initiatives in order to: Question 17 Answer a. Gain media coverage for the MNE when doing well and doing good are pursued at the same time b. Make senior managers aware of the fact that leading a business is about following milestones c. Make sure profit would be guaranteed in the long run d. Establish clear strategic objectives for each social issue The operating exposure at the subsidiary level can be assessed by investigating the: Question 18 Answer a. Exposure absorption capability on the output market side and exchange rate pass-through on the input market side b. Exposure absorption capability on the output market side and exchange rate pass-through on the output market side c. Exposure absorption capability on the input market side and exchange rate pass-through on the input market side d. Exposure absorption capability on the input market side and exchange rate pass-through on the output market side Geo-redundancy… Question 19 Answer a. favours domestic production and MNEs over foreign products, , so as to avoid the effects of disruptions in any single, foreign location b. promotes a focus on home-grown MNEs to avoid the effects of disruptions in any single, foreign location c. assesses an MNE’s potential for outsourcing to avoid the effects of disruptions in any single location d. refers to conducting economic activities in a larger number of locations to avoid the effects of disruptions in any single location Which of the following is an expression of a regional strategy: Question 20 Answer a. expanding rapidly on an international, global scale b. entering nearby foreign countries within a firm’s home region c. retreating from unsuccessful foreign markets d. maximizing the impact of the CAGE distance dimensions