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Student examples will vary. A sample ans...View Answer
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A) Danver, which has the same wealth and per capita income as New Zoya
B) Sulfura, which has a very profitable economy and where people speak Sulfuran
C) Valyria, where people speak English and have a low standard of living
D) Novalandia, which is located close to New Zoya and is easily accessible by road
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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
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Demand conditions are the specific chara...View Answer
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A) by adopting similar national cultures
B) by lowering the disparities between their per capita incomes
C) by establishing the North American Free Trade Agreement (NAFTA)
D) by reducing their linguistic differences
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Geographic distance between two countrie...View Answer
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A) is a world leader in the pharmaceutical industry.
B) has nationalized the pharmaceutical industry.
C) has low levels of competition, providing other multinational companies with an opportunity to take over the pharmaceutical industry.
D) is a potential foreign market for multinational pharmaceutical companies to sell their products.
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A) Asha Inc. had a large office in New York, which was one cog in a global network.
B) Asha Inc. had a large office in New York, which functioned with other large offices in Europe and Asia.
C) Asha Inc. had a base office in New York and a replica office in Amsterdam.
D) Asha Inc. had a base office in New York and distributed some of its products overseas.
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A) Coolco, because air conditioners cost more to ship than dog toys do
B) Coolco, because firms that face stiff competition at home tend to do better abroad
C) Barker, because firms that face little or no competition at home tend to do better abroad
D) Barker, because dog toys cost less to ship than air conditioners do
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A) diversification.
B) globalization.
C) standardization.
D) modification.
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A) Achieve economies of scale by using the global-standardization approach.
B) Pursue a multidomestic strategy that includes new "local" brands.
C) Keep costs low with undifferentiated product in the international strategy.
D) Appease pressures for cost reductions by following the transnational approach.
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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.
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A) benefits from lower labor costs in manufacturing and services
B) free use of formerly protected intellectual property
C) increasing trade barriers that protect businesses
D) exporting newly available raw materials, such as rubber and coal
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A) It will benefit from economic arbitrage.
B) Myriad will use its competitive advantage from economies of standardization.
C) Myriad will replicate its existing business model easily.
D) It will be able to easily sell products for which demand varies by income.
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A) Greater cultural distance between the home and host countries decreases the liability of foreignness to multinational companies.
B) Colony-colonizer relationships have a strong negative effect on bilateral trade between countries.
C) Wealthy countries engage in relatively more cross-border trade than poorer ones.
D) Political integrations decrease the expected trade intensity between two countries.
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A) one that considers payroll companies essential to national security
B) one that is outside of any trading blocs that Antono participates in
C) one that used to have a colonizer or colonized relationship with Antono
D) in a country that has extensive tariffs and trade quotas to protect businesses
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A) it overestimated its need to protect its intellectual property.
B) it underestimated its liability of foreignness when entering the Balalaika market.
C) it underestimated its dwindling reputation before it enters the Balalaika market.
D) it overestimates the geographic and cultural distance between Vandevar and Balalaika.
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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 flowed between the local subsidiaries and their U.S. headquarters.
D) Multinational enterprises (MNEs) began to create smaller, self-contained replicas of themselves in a few key countries.
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A) The purchasing power of its workforce has declined.
B) The government no longer cares about capturing more of the value added.
C) The standard of living within the economy has become lower.
D) The country's advantage in low-cost manufacturing is now reduced.
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Acquisitions and greenfield operations a...View Answer
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