Foundations of Global Dimensions of Business

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1. All of the following are true of The agendas and 10. First mover advantages do not Successful clashes
direct exports except: objectives of the include: with dominant firms
intermediaries and in domestic markets.
exporters are the same.
11. The following managerial motives for Organizational
2. As firms expand into more Foreign firms are still conglomerations do not benefit stability.
countries, they should often discriminated shareholders except:
recognize: against.
12. Four strategic choices for MNEs do domestic
Foreign firms primarily
not include
deploy overwhelming
resources and capabilities 13. Global strategies have reached new terrorist attacks,
that offset the liability of levels of significance because of anti-globalization
foreignness. three defining events: protests, and
Foreign firms are able to corporate crisis in
offset the liability of Asia and the U.S.
foreignness and still have 14. "Global Strategy" refers to a particular theory
some competitive on how to compete
advantage. offering
standardized
All of the above. products and
3. At its core, diversification is Less complicated services on a
essentially driven by all of the information systems. worldwide basis
following except: strategy of firms
around the globe --
4. At the dawn of the 21st century, anti-globalization
essentially various
____ had significant ramifications protests
firms' theories about
for companies and strategists terrorist attacks
how to compete
around the world. corporate governance
successfully
crisis
All of the above.
All of the above.
15. Greenfield operations refers to: Wholly owned
5. Corporate scope is shaped by: Industry conditions.
subsidiaries.
Firm capabilities.
Institutional constraints. 16. In combining product and geographic Classic replicators.
Opportunities in both diversification, which is not one of the
developed and emerging four possible combinations?
economies. 17. In developing a strategy regarding "Look back, reason
competition or cooperation, it would ahead"
All of the above. be useful to not
6. The differences in formal and Regulatory 18. In some industries where pressures extender
informal institutions that govern Language for globalization are relatively low,
the rules of the game in Cultural local firms may possess some skills
different countries include _______ and assets that are transferable
differences. All of the above. overseas, thus leading to a/an_____
7. Diversification premium is the Conglomerate advantage. strategy.
same thing as:
8. Dumping is defined as an exporter selling below
cost abroad and planning
to raise prices after
eliminating local rivals
9. Firms may choose not to enter There are dissemination
certain countries if: risks.
19. Knowing the concepts and improve job and career 30. Research regarding the relationship Performance may
components of global opportunities between product diversification increase as firms shift
strategy will build awareness of what is and firm performance indicates from single business
going on in the world that: strategies to product-
avoid the downside risks of related diversification.
globalization Performance may
decrease as firms
All of the above. change from product-
related to product-
20. Knowledge management global standardization
unrelated.
uses "centers of
The linkage between
excellence" in which type
diversification and
of MNE?
performance is
21. Large-scale entries do Benefit from a strategic inverted U shaped.
which of the following? commitment. "Putting your eggs in
Assure local customers and similar baskets," has
suppliers. emerged as a
Deter potential entrants. balanced way to both
reduce risk and
All of the above. leverage synergy.
22. Localization (multi- global standardization strategy
domestic) strategy is the same as a multi- All of the above.
involves all of the domestic strategy 31. Select the best choice: a company Vertical
following except that is engaged in oil production,
23. The main types of attacks thrust pipelines and tankers, refining, and
include feint gasoline stations has engaged in
gambit _____________ expansion.
32. Selling the rights to intellectual Licensing/franchising.
All of the above. property for a royalty fee is
24. Much of our knowledge Anglo-American capitalsim involved in:
about "the firm" is from 33. Small firms in a large domestic Occasional
research on firms in market are referred to as: internationalizers.
25. Non-equity modes of Exports and contractual 34. Sources of operational synergy Technologies.
entry typically involve: agreements. include: Marketing.
26. Organizing firm-specific Favors firms with strong Manufacturing.
resources and capabilities complementary assets.
as a bundle: All of the above.

27. Overall, strategy is none of the above 35. The strategic goal of __________ Market seeking
involves going after countries that
28. Pressures for cost the framework of how to
offer the highest price.
reductions and local simultaneously deal with these
responsiveness include two sets of pressures 36. A SWOT analysis entails a firm's strengths, weaknesses,
host country demands and assessment of ______ opportunities, and
expectations threats
being locally responsive 37. "The extent to which a given resources
makes local customers and competitor possesses strategic
governments happy but endowment comparable, in terms
increase costs of both type and amount, to those
of the focal firm" refers to similarity
All of the above. of
29. Product-related A single business strategy.
diversification involves all
of the following except:
38. This structure is often used to global account structure 49. Which is true of relatedness? Relatedness can be a
supply customers (often other common underlying
MNEs) in a coordinated and dominant logic that
consistent way across various connects various
countries. businesses in a
diversified firm.
39. The three drivers of vengeance
counterattacks do not include 50. Which is true of strategy? Business strategy has
similarities with military
40. To ensure the success of the Seek organizational
strategy
M&A, managers need to make contrast and variety
Military principles
sure of all the following except: rather than organizational
cannot be completely
fit.
applied in business
41. The type of knowledge that is explicit Militaries fight over
codifiable (that is, it can be territories, waters, and
written down and transferred air spaces while firms
without losing much of its compete in markets
richness) is called
42. Unique to international consumer preferences All of the above.
competition are the pressures distribution channels 51. Which is true regarding Corporate restructuring
for local responsiveness, which host country demands restructuring? is not widely embraced
are reflected in around the world.
All of the above.
52. Which of the following are not Recent trends among
43. What are the three "legs" of the Industry-based regulatory risks? host governments
strategy tripod that ensure a competition, firm-specific regarding their
strategy impacts performance? resources and relationships with
capabilities, and MNEs.
institutional conditions
53. Which of the following exemplify Tariffs.
and transitions
trade barriers? Local content
44. What is the best view of the A new force sweeping requirements.
concept of globalization? through the world in Restrictions on certain
recent times entry modes.
A long-run historical
evolution since the dawn All of the above.
of human history
54. Which of the following is not a Direct discussion of
A pendulum that swings
legal means of signaling? reduced rivalry with
from one extreme to
competitors
another from time to time
55. Which of the following is not an Permits greater speed,
All of the above. argument in favor of flexibility, and
centralization in knowledge innovation
45. Which geographic diversification Culturally adjacent
management but instead is an
is most likely to reduce the countries.
argument in favor of
liability of foreignness?
decentralization?
46. Which is not true concerning The legal standards for
56. Which of the following is not an sufficient power for
U.S. anti-trust policy today? inter-firm cooperation are
argument in favor of corporate-level
no longer ambiguous in
decentralization in knowledge managers to initiate
the U.S.
management but instead is an necessary actions
47. Which is one motive for M&A Hubris. argument in favor of
which does not necessarily centralization?
increase shareholder value?
57. Which of the following is true As many as 70 percent
48. Which is true of globalized For large firms, there are regarding M&As? of M&As reportedly fail.
R&D? actually diminishing
returns for R&D
58. Which of the following would not be considered an initial set of actions to gain competitive counterattacks
advantage:
59. Which would be more characteristic of conglomerates? "Putting one's eggs in
similar baskets."
"Putting one's eggs in
different baskets."

B and C above.
60. The word ____________ has now become the most famous Chinese business word to appear in English- guanxi
language media and means interpersonal networks.