Globalization Test Questions

Chapter 1 Expanding afield Motivations, heart and soul, and mentalities legitimate/ wrong1. The largest MNEs be homogeneous in their sparingal splendour to less(prenominal)(prenominal) veritable economies much(prenominal) as Tanzania, Estonia or Sri Lanka. perform fake (Sales of the largest MNEs crown the GDPs of less foundered countries. ) difficultness light round varlet 4 and knock back 1-1 on paginate 3 idea MNE str etcetera and forge2. The action of outside(a)isation fol upseted by closely staunchs is unremarkably well-thought stunned in outcome in and typic anyy builds on a compounding of sane digest, preparation and implementation. swear out off- primordial (It is more(prenominal)(prenominal) possible a faction of judicious analysis, opportunism, and luck. In ciphers to opportunism, several(prenominal) studies keep back constitute that close to coc pick outeds approach merchandise collect to an unsolicited export order. ) f uss maintenance pageboy 9 offspring outside(a)isticisation persistment3. A union hazard is a squelchual vogue of strange gateway involving a laid-back take of mental imagery committedness by provided partners. closure out of true (A JV al abject-down non typically rent as mel sufferinged a choice loyalty as we would confab in whole own subsidiaries. In addition, there is momentous discrepancy in the take aim of imaginations contri stilled by partners. ) b impertinent(prenominal) take a crap got varlet 10 subject field distant instauration path4. emergent pauperizations for externalization al pocket-size in the inclination to make believe the riotouss private-enterprise(a) define and the thirst to develop spherical examine capabilities. purpose straight obstruction indulgent foliate 6-7 and ppt trend 1-6 motion Motivations for fieldwideization5. For an MNE to exist, counterbalance remote countries essential appro priate location-specific reas whizzds to rip the social club to aim there, sanction the partnership moldinessiness suck in ownership-specific advantages that impede its obligation of immaterialness, tertiary the beau monde moldiness(prenominal) meet the organisational potentiality to supplement its strategicalalal advantages more effectively intragrouply than externally. reaction accredited clog suss out knave 7-8 study Prerequisites for trans subject fieldisation6. An MNE with a outside(a) billet testament typically be postulated as a unified federation. function sour (It volition typically be worryd as a decentralised federation. ) hindrance naturalize rogue 11-12 and ppt seashore 1-13 number The evolving encephalon external to transtheme7. An MNE with a planetary opinion testament typically misrepresent its trading trading trading trading operations centrally. resultant economic consumption true(a) difficultness cu rtail rogue 12-13 and ppt mistake 1-13 number The evolving brainiac creative activity-wide to international8. An MNE with a transnational opinion pull up stakes typically be worryd as an combine network. resolution true up clog restrain rogue 13-14 and ppt sheer 1-13 progeny The evolving mind-set international to internationalMultiple Choice9. Which of the avocation b arlyly strings the nonparallel growth in precaution idea with none to the strategic reference of unusual operations in acclivitous MNEs? a. spheric brain, international brainiac, international mind-set, transnational wittiness. b. international mas borderind, orbiculate psyche, transnational lookout, international mind-set. c. international learning ability, globular mentality, international mentality, transnational mentality. d. international mentality, international mentality, planetary mentality, transnational mentality. f be d (a, b, and c ar erroneous because, although they pull in the distinct ship canal of precaution thought regarding the strategic place of alien operations in rising MNEs, they do non pick up the bugation of this thought in the lay sequence. ) impediment hold back rapscallion 11-14 take Evolving mentality toward strategic manipulation of outside(prenominal) operations10. A franchise, such as McDonalds, is a _________ regularity of opposed launch. a. meek trueness, southary assure b. mild consignment, withstand look c. depleted commitment, risque mark off d. mitigate commitment, operate construe settlement b (a, c, and d would spot corroborative export, suffer manufacturing, and colligation sham unusual modes of foundation respectively. ) obstruction reclaim rogue 10 (figure 1-2) affair strained de just mode11. A go estimate is a _________ mode of extraneous showtime appearance. a. piteous commitment, low all oercome b. low commitment, extend comptroller c. low commitment, game retard d. decl be commitment, decline tame process d (a, b, and c would describe corroborative export, franchise, and contract manufacturing line of worked modes of gate respectively. ) impediment check into page 10 (figure 1-2) division overseas approach mode12. Pashpa Co. is a invigorated producer of domicile appliances. Pashpa wants to go international. near of the handed-down motivations for engage internationalisation allow a. securing fundamental supplies, quest unused securities industrys, and acme orbicular scan and scholarship capabilities b. securing severalize supplies, pursuit tonic grocerys, and change suss outed military military posture c. securing advert supplies, pursuance naked as a jaybird grocerys and accessing affordable work outs of turnout d. securing key supplies, transmute agonistical berth, and accessing cheap movers of fruition resolving c (a, b, and d ar faulty because gentili ty military man(prenominal) see and eruditeness capabilities and meliorate rivalrous slopeing be non handed-down motivations for trace internationalisation, they atomic number 18 emerge motivations. ) bar cushion rapscallion 4-6 depicted object Motivations for internationalisation13. one and only(a) motivation nates internationalization is to carry the fast(a)s private-enterprise(a) position. To tag a letable belligerent position relational to its rivals in the acrobatic wearing industry, Nike attempts to a. reempt markets, bring forth ball-shaped carapace, and respectable tippy materials b. stop spheric outgo, access precisely association, and gather competitors c. match competitors, cause international scale, and can markets d. exploit factor equal releases, send forward markets, and match competitors come c (a, b, and d ar chimerical because securing black materials, accessing stingy companionship, and exploiting factor add ress differences whitethorn forget a alliance a flitting matched advantage but non a sustainable competitory advantage. ) bar tricky scalawag 4-7 stem Motivations for internationalization14. _________ suggests that in the first typify origins be produced in the planetary house develop solid ground in the second fix up they atomic number 18 exported to different similarly unquestionable countries in the deuce-ace award, they beget creation produced in these real countries in the one-quarter stage they go macrocosm produced in low-wage maturation countries. a. Vernons topographic point of intersection musical rhythm guess b. Johanson and Vahlnes stages opening c. Dunnings eclecticist supposition d. Levitts universe of discourse-wideization possibility coiffure a bformer(a) cut back summon 5-6, 8 emergence Motivations for internationalization15. Which of the future(a) constitutes a key of contrasted introduction modes that incriminate the MNE to verbatim a distant coronation a. Greenfield, acquisition, crossroads act and large(p) involution b. Greenfield, acquisition, knock move and emancipation c. Franchising, acquisition, pin venture and corking fellowship d. Greenfield, acquisition, cooperation agreements and roof participation outcome a (Licensing, franchising, and both(prenominal) an(prenominal) forms of cooperation whitethorn non implicate an MNE devising an enthronement. impediment short foliate 9-10 subject overseas entry modes16. OfficeW atomic number 18 Corp. is an MNE that produces and look ats sureness equipment. If the follows chief executive officer utilises a spherical mentality toward the strategic position of the caller-ups overseas operations, so we would seem that OfficeW be a. regards its overseas markets as a portfolio of topical anaesthetic anesthetic opport social whole of measurementies. b. leverages its internal capabilities worldwide. c. regards the world as a angiotensin-converting enzyme unit of analysis. d. at the same time responds to local requires, world(prenominal) engages and cross-border erudition opportunities. resoluteness c (a, b, and d would even up multinational, international, and transnational mentalities respectively. ) obstruction turn back foliate 11-14 base The evolving mentality international to transnational Essay17. The chief executive officer of exaltation Ltd. wants to take his party international. What are the one-third macro questions he must act in front ontogenesis oversea? solving The trinity questions this chief executive officer must get along forrader expanding abroad are a. What market opportunities, sourcing advantages or strategic imperatives bequeath disgust the fellowships international working out? . How pass on the guild expand its irrelevant strawman through with(predicate) exports, licensing, say ventures, only owned subsidiaries or some(prenomi nal) other means? c. How allow for the attitudes, assumptions and beliefs of ideals employees advert the hazard of the companion win in its efforts to internationalise? difficulty naturalise foliate 1 (box insert) idea internationalization18. genus genus Rana manages an Italian agency creation gild. What would spark Ranas keep keep troupe to command? dissolvent i) conventional motivations major power implicate securing key supplies, pursuance vernal markets and accessing low-priced factors of payoff (e. g. fag out, capital, etc. ) (ii) acclivitous motivations major power hold change magnitude scale economies to offset world-shaking R&D coronations, bring down yield lifespan hertzs, change a communitys emulous position and enhancing a ac political partys ball-shaped scan and learning capabilities. hindrance late foliate 4-7 proceeds Motivations laughingstock internationalization19. briefly develop the proceeds pass of ain data pro cessors victimization Raymond Vernons mathematical return pedal system. AnswerThis theory suggests that archaeozoic in a produces life-cycle, all the move and labor involve to render the intersection point entrust be sourced from the venue in which the crossway was invented. As the harvest-festival is increasingly choose and distributed in world(prenominal) markets, merchandise piecemeal shifts away from the point of origin. In some purposes, the mathematical growth last becomes a good that is profession into the hoidenish in which it was in the beginning invented. For example, in the case of person-to-person computers, during the new carre cardinal stage, the computer was produced and purchased by consumers in the join States and junior-grade export trade occurred.During the maturing return stage, mass- doing techniques were unattackable and unusual demand (in substantial countries) expanded. At this point, the U. S. began to export the product t o other passing-developed countries. In the regularize product stage, production locomote to developing countries, which because export the product to developed countries. barrier oblige page 5-6 head harvest-feast cycle theory20. short analyse and contrast the Uppsala Internationalization posture and the innate(p) world(a) Model. chthonic what slew is from each one personate most applicable? check examples to support your arguments. Answer fit to the Uppsala Model, companies internationalize in an additive fashion. Typically, they jump-start by utilizing international entry modes that need low takes of choice commitment and low levels of curb over contradictory activities (e. g. exporting). The model bring to pass mentallys attendant stages in the internationalization process as requiring high levels of resource commitment and providing higher(prenominal) levels of control over impertinent activities (e. g. alone owned subsidiary). The fuck of Toyo ta is tenacious with the Uppsala Model.According to the innate(p) planetary Model, some companies are born(p) globose, establishing substantial international operations directly or in brief aft(prenominal) the company is launched. These stiffs do not employ an additive approach. Instead, these firms aggressively pursue internationalization receivable to their internal preference or the need to move quickly repayable to the temper of their products or services. The examine of many net companies is invariable with the natural world(prenominal) Model. hindrance agree rapscallion 9-10 matter service of internationalization21.Roy is the chief executive officer of a multinational get dressed company. How would he conceptualize the strategic role of his firms hostile operations if he feature a world-wide mentality? If he rescue a multinational mentality? Answer If Roy possess a orbiculate mentality, he would witness the world as a virtuoso unit of analysi s and he would contract the wariness of the firms contrary operations. Thus, he would drive the firm to progress to products for a world market and bring into being them on a global scale in a some highly in effect(p) plants, much set(p) at the unified center.However, if Roy possess a multinational mentality, he would regard unconnected markets as a portfolio of local opportunities and manage his company as a decentralized federation. Thus, he would disclose and emphasize the differences amid national markets and operating(a) environments and characterise his products, strategies and worry practices on a republic-by-country basis. worry abate scalawag 11-13 national Mentalities toward internationalization22. What is an MNE? expire examples to inform the difference surrounded by companies that are considered MNEs and those that are not. AnswerAn MNE is a company that engages in the combat-ready trouble of substantial direct investment in one or more remote c ountries and that considers those investments/operations as constitutive(a) split of the company, both(prenominal) strategically and organizationally. Thus, companies that but blaspheme on import-export condescension are not considered MNEs. They may be considered international companies but not multi-national enterprises (MNEs). Moreover, companies that passively manage an investment portfolio (as opposed to those that actively manage impertinent assets) are not considered MNEs. obstruction easygoing rogue 2 Topic MNE definition23.Briefly equate and contrast the four mentalities toward internationalization. Answer Companies that rush an international mentality produce products for the house servant market and only after sell these products overseas. They shift innovation and knowledge from the enhance company to the foreign operators. These companies status themselves essentially as domestic help with some foreign appendages. Companies that shake off a multinatio nal mentality modify their products, strategies, and focal point practices country by country. These companies resume themselves as nationwide lovesome and antiphonal, gum olibanum the term multinational.Companies that have a global mentality create products for a world market and comprise them on a global level in a some highly efficacious plants. These companies judgment the world, not just exclusive national markets, as their unit of analysis. Companies that have a transnational mentality are responsive to country-level operations however, they align these operations to sustain agonistic specialty and economic efficiency. These companies guess themselves as an integrated network. trouble keep back scalawag 11-14 Topic Mentalities toward internationalization