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To keep track of the latest developments in computing, Lenovo's research centers are located in China, U.S.A., and Japan.Also, to benefit from low-cost labor and reduced shipping costs, the company's manufacturing facilities are in Mexico, India, and China.Which of the following strategies would require Lenovo to organize its operations worldwide in order to develop uniform products for its domestic and foreign markets?


A) A transnational strategy
B) A multidomestic strategy
C) A localization strategy
D) A global-standardization strategy

E) A) and D)
F) B) and C)

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Some multinational enterprises (MNEs) attempt to reap significant economies of scale and location economies by pursuing an international division of labor based on wherever best-of-class capabilities reside at the lowest cost.This is known as a(n) _____.


A) international strategy
B) multidomestic strategy
C) global-standardization strategy
D) localization strategy

E) C) and D)
F) A) and B)

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For a multinational enterprise (MNE) , applying the globalization hypothesis would mean:


A) being highly responsive to the heterogeneous needs and preferences of consumers globally, without focusing on cost reduction.
B) customizing each product sold by an enterprise to differentiate it from its competitors.
C) manufacturing products on international platforms and slightly modifying them to meet local tastes and standards.
D) pursuing a focused differentiation strategy instead of a cost-leadership strategy to gain a competitive advantage.

E) None of the above
F) B) and C)

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The _____ states that geographic location alone should not lead to firm-level competitive advantage because firms are now, more than ever, able to source inputs globally.


A) death-of-distance hypothesis
B) local responsiveness hypothesis
C) real option framework
D) dynamic capabilities framework

E) B) and D)
F) C) and D)

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Briefly discuss the application of Michael Porter's diamond framework.

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Michael Porter advanced a framework to e...

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What products and industries does geographic distance affect the most?

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Geographic distance most affects industr...

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Due to dense urban living conditions, hot and humid summers, and high energy costs, it is not surprising that Japanese customers want small, quiet, and energy-efficient air conditioners.Which feature of Porter's diamond framework does this scenario best exemplify?


A) Factor conditions
B) Complementor availability
C) Competitive intensity
D) Demand conditions

E) All of the above
F) A) and C)

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Discuss the drawbacks associated with using a transnational strategy.

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Although a transnational strategy is qui...

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China is infamous for its rampant business in illegal materials.Explain.

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As discussed in Chapter Case 10, in 2010...

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Explain how the distance between two countries increases with geographic distance and economic distance.

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Geographic distance between two countrie...

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Marc Works Inc., a reputed brand for fine writing instruments, is implementing an international strategy in its firms.Torque Inc., a laptop brand, is pursuing a global-standardization strategy in its firms.Which of the following statements most likely holds true in this scenario?


A) While Marc Works Inc.'s competitive advantage lies in its high local responsiveness, Torque Inc. will lack such capabilities.
B) Torque Inc. focuses more on cost reductions when compared to Marc Works Inc.
C) Torque Inc.'s business functions are highly centralized, whereas Marc Works Inc. organizes its activities worldwide.
D) Torque Inc. is exposed to greater risks of exchange rate fluctuations.

E) A) and D)
F) B) and C)

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Which of the following is not included within the types of strategic alliances?


A) Joint ventures
B) Franchising
C) Acquisitions
D) Licensing

E) B) and C)
F) A) and C)

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Which of the following globalization strategies requires managers working in multinational enterprises (MNEs) to remember to think globally, but act locally?


A) International strategy
B) Global-standardization strategy
C) Transnational strategy
D) Focused-differentiation strategy

E) B) and C)
F) All of the above

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Evara Cosmetics Inc.is a company that operates in 20 countries around the globe.The company clearly understands that the skin and hair type of customers varies from one country to another.Consequently, its products are customized to suit local needs and preferences of customers, even though the costs incurred while producing these products are exceptionally high.This strategy helps the company behave as a local firm in a foreign market.In this scenario, which of the following strategies does Evara Cosmetics Inc.most likely implement?


A) A multidomestic strategy
B) An international strategy
C) A global-standardization strategy
D) A one-product strategy

E) B) and C)
F) All of the above

Correct Answer

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A trend observed during the globalization 3.0 stage involves:


A) countries around the globe becoming more self-sufficient and independent.
B) multinational companies organizing as global-collaboration networks.
C) privately-owned firms getting nationalized.
D) world's market economies becoming less integrated.

E) All of the above
F) None of the above

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Toyota is selling its hybrid Prius vehicle, built on global platforms, successfully in 80 countries.This information best supports the assumptions made under the:


A) globalization hypothesis.
B) upper echelons theory.
C) real options perspective.
D) global scaling theory.

E) C) and D)
F) A) and B)

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During the period of globalization 1.0, the mode of entry into foreign markets primarily involved:


A) exporting goods.
B) making foreign direct investments.
C) making foreign institutional investments.
D) licensing production and distribution.

E) A) and B)
F) B) and D)

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For which of the following types of industries is a multidomestic strategy most common?


A) Machine-tool industries
B) Genetic industries
C) Food industries
D) Capital goods industries

E) B) and D)
F) A) and B)

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Which of the following is a benefit of the transnational strategy?


A) It facilitates global learning and harnesses economies of location.
B) It completely eliminates a firm's risk of intellectual property expropriation.
C) It helps to create a matrix global structure, which is cost effective and easy to implement.
D) It helps a firm pursue a cost-leadership strategy by minimizing the need for local responsiveness.

E) A) and B)
F) B) and C)

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Which of the following is a benefit of a multinational enterprise (MNE) pursuing a global-standardization strategy?


A) The firm customizes products and services to better suit local requirements.
B) The firm reaps significant economies of scale and location economies.
C) The firm follows a differentiation strategy at the business level.
D) The firm has all its key business functions located in the home country.

E) C) and D)
F) B) and C)

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Showing 101 - 120 of 125

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