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Globalization and Multinational Corporations

05 Jun Globalization and Multinational Corporations

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Globalization and Multinational Corporations

<pclass=”msonormal” style=”box-sizing: border-box;”>1. Some global enterprises engage in joint research projects to broaden their contacts. What is another reason?

  1. A) to reduce risk
  2. B) to ease barriers to entry
  3. C) to increase costs
  4. D) to decrease certainty
  5. E) to increase competitive complexity
  6. Political factors in choosing a foreign manufacturing site include:
  7. A) attitude toward foreign investment
  8. B) cost of local borrowing
  9. C) degree of labor force in management
  10. D) currency rate
  11. E) interest rates
  12. Which one of the following is a key dimension of customer demand in foreign markets?
  13. A) customers’ acceptance of sub-standard products.
  14. B) the rate of product innovation desired.
  15. C) the company’s desire to propagate its brand name.
  16. D) the number of suppliers in that foreign market.
  17. Factors that increase the degree to which an industry is multi-domestic include:
  18. A) a need for standardized products
  19. B) fragmented industry with few competitors
  20. C) distribution channels unique to each country
  21. D) the existence of economies of scale
  22. E) high technological dependence of subsidiaries’ R&D
  23. Rapid technological development:
  24. A) requires less management control
  25. B) has no effect on product life cycles
  26. C) lengthens product life cycles
  27. D) shortens product life cycles
  28. E) requires no management control
  29. Franchising is a special form of:
  30. A) exporting
  31. B) joint venture
  32. C) foreign branch
  33. D) licensing
  34. A global firm competing in a global industry must:
  35. A) be responsive to global conditions only
  36. B) be responsive to both global and local conditions
  37. C) be responsive to local conditions only
  38. D) compete in a multi-domestic industry also
  39. E) not use intracorporate resources when also competing in a multi-domestic industry
  40. A multi-national corporation:
  41. A) has limited location options for functional activities
  42. B) should not have different locations for marketing and operations
  43. C) should spread R&D functions across facilities
  44. D) must determine how to coordinate activities
  45. E) must have highly coordinated functions among its different locations
  46. Coordination of functional activities across countries:
  47. A) is very necessary in a multi-domestic industry
  48. B) is not necessary in a global strategy
  49. C) will stifle global strategic growth
  50. D) is more necessary in global firms
  51. E) none of the above
  52. The choice of a pure global strategy results in:
  53. A) high coordination and geographic concentration of activities
  54. B) low coordination of activities
  55. C) geographic dispersion of functional activities
  56. D) loose coordination of geographic activities
  57. E) none of the above
  58. Research has shown that in different countries corporate financial goals:
  59. A) are basically consistent
  60. B) vary
  61. C) often change to match the U.S. perspective
  62. D) are usually to maximize stock price
  63. E) are always to maximize earnings before taxes
  64. Prior to global expansion remember to:
  65. A) maintain consistent stock maximization policies
  66. B) guard against changing the mission statement
  67. C) guard against changes in strategic decision making
  68. D) review and revise the mission statement
  69. E) none of the above
  70. The mission statement:
  71. A) does not accommodate changes in strategy
  72. B) should not be revised because of globalization
  73. C) is unlikely to remain in tact in a global context
  74. D) does not specify a basic market need it is to satisfy
  75. E) specifies the firm’s intention of securing its future through growth and profitability
  76. The global corporation’s mission statement:
  77. A) has a growth dimension closely tied to profitability
  78. B) reflects the firm’s commitment to survival through growth and profits only
  79. C) develops a directional flow of benefits from environments to the firm
  80. D) expresses separateness of revenues and social responsibility
  81. E) none of the above
  82. Globalization:
  83. A) necessitates strategic decision makers located exclusively at corporate headquarters
  84. B) disperses corporate resources
  85. C) contains operations centrally
  86. D) makes strategic decision makers most accessible for decision making
  87. E) reduces the need for a mission statement
  88. The complexity of a strategy refers to:
  89. A) the breadth of a firm’s business lines
  90. B) a continuum of possible strategic choices
  91. C) the diversity of the products
  92. D) the number of critical success factors required
  93. E) none of the above
  94. The primary niche market approach for exporting:
  95. A) begins with a mutually agreeable pooling of capital
  96. B) involves the transfer of some industrial property right
  97. C) is to modify select product performance or measurement characteristics to special foreign demands
  98. D) utilizes a foreign branch extension to distribute
  99. E) none of the above
  100. The transfer of an industrial property right is called:
  101. A) franchising
  102. B) licensing
  103. C) exporting
  104. D) transferring
  105. E) none of the above
  106. Globalization strategies include:
  107. A) joint contracts
  108. B) patents
  109. C) corporation expansion
  110. D) niche-market exporting
  111. E) none of the above
  112. Joint ventures:
  113. A) can not address complex markets
  114. B) speed efforts to integrate into the foreign environment with less financial commitment than acquiring a foreign subsidiary
  115. C) must be overseen by an outside board of directors
  116. D) requires no disclosure of proprietary information
  117. E) none of the above

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