A) it has emerged as a manufacturing powerhouse.
B) of an efficient infrastructure and high labor costs.
C) it has an abundance of uneducated workers who are highly trainable.
D) of an abundance of well-educated, English-speaking young people.
F) B) and C)
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Exporting as a foreign entry mode requir...View Answer
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A) They cannot leverage their home-based core competencies in foreign markets.
B) They are highly affected by exchange rate fluctuations.
C) They have to be highly responsive to local needs and preferences.
D) They cannot reap the benefits of economies of scale due to their highly customized products.
F) B) and C)
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A) International strategy
B) Multidomestic strategy
C) Global-standardization strategy
D) Localization strategy
F) A) and B)
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A) The strategy allows for the lowest possible local responsiveness.
B) The strategy lowers the differentiation of a firm's product and service offerings.
C) The strategy exposes a firm to greater exchange rate fluctuation when compared to an international strategy.
D) The strategy is costly and inefficient because it requires the duplication of key business functions across several countries.
F) C) and D)
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Student answers will vary.A strength of ...View Answer
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A) Because of the political differences between India and U.S.
B) Because NAFTA prohibits Walmart from investing in countries outside North America
C) Because of the large economic distance between U.S. and India
D) Because Walmart's low-cost strategy has not been accepted by Indian consumers
F) A) and D)
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A) is pursued in response to low pressure for local responsiveness and low pressure for cost reduction.
B) attempts to reap significant economies of scale by pursuing a global division of labor based on wherever best-of-class capabilities reside at the lowest cost.
C) attempts to maximize local responsiveness, hoping that the host country consumers will perceive it to be a local company.
D) operates on the assumptions made in the globalization hypothesis in order to lower costs.
F) None of the above
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A) Inability to implement its trademark focused-differentiation strategy in the German market
B) Significant differences between its U.S. personnel policies and Germany's culture
C) Germany's unfamiliarity with retail discount powerhouses
D) Metro's hostile takeover of Walmart in Germany
F) A) and B)
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A) When a firm manufactures products related to national and religious identity
B) When a firm operates in an industry where the pressure to keep the costs low is extremely high
C) When a firm wants to be perceived as a domestic company by the host country consumers
D) When a firm enjoys a large domestic market, strong reputation, and brand name
F) All of the above
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Acquisitions and greenfield operations a...View Answer
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A) capital gain
B) trade surplus
C) national competitive advantage
D) liability of foreignness
F) A) and B)
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A) The purchasing power of its workforce has reduced.
B) The value added to production has reduced.
C) The standard of living within the economy has lowered.
D) The country's advantage in low-cost manufacturing has reduced.
F) C) and D)
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A) its research facility is situated in the headquarters and all other business activities are located around the world.
B) it draws from multiple, equally important research facilities located throughout the world.
C) it restricts its innovation to Western economies and production to developing markets.
D) its knowledge flow takes a one-way path-from its headquarters to the subsidiaries.
F) A) and B)
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The global-standardization strategy aris...View Answer
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A) The world's market economies will become self-sufficient and independent.
B) There will be gains in social welfare and living standards across the globe.
C) The cost of labor will further decline in emerging economies.
D) There will be a movement away from global-collaboration networks among multinational enterprises (MNEs) .
F) All of the above
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Continued economic development across th...View Answer
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A) political distance
B) geographic distance
C) administrative distance
D) cultural distance
F) A) and D)
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A) Huge investments in fiber-optic cable networks around the world enabled companies to operate as global-collaboration networks.
B) Only sales and distribution operations took place overseas, while all the important business functions were located in the home country.
C) Two-way knowledge flow between the local subsidiaries and their U.S. headquarters was strong.
D) Multinational enterprises (MNEs) began to create smaller, self-contained replicas of themselves in a few key countries.
F) C) and D)
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A) is highly efficient.
B) lacks local responsiveness.
C) faces a greater risk of intellectual property (IP) appropriation.
D) requires exposing explicit knowledge because products are manufactured locally.
F) A) and D)
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