Chapter 12 Global Strategy and the Multinational Corporation

26. Internationalization has:

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a. Increased global efficiency but reduced consumer choice
b. Increased global efficiency and growth options for large and small firms
c. Increased global efficiency and growth options, and widened consumer choice
d. Increased global efficiency and growth options but reduced consumer choice - c
27. For most of the last sixty years internationalization has been:
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a. A source of increased tension between countries
b. A source of innovative ideas for firms and individuals
c. A source of higher earnings for firms and individuals
d. A source of opportunity for firms and individuals - d
28. Two mechanisms promote internationalization:
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a. Inter-governmental bond borrowing, and inter-bank capital flows
b. Inter-bank capital flows and trade
c. Inter-bank capital flows and direct investment
d. Direct investment and trade - d
29. Underlying both of these are the quests to:
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a. Exploit foreign resources, capabilities, and competitive advantage
b. Exploit foreign resources, capabilities and markets
c. Limit foreign competitive advantages
d. Limit foreign companies' ambitions - b
30. Internationalization opens:
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a. Borders for foreign workers
b. Doors for commercial spies
c. Domestic markets to foreign competitors
d. Answers a and c - c
31. In its first, largely European, phase of internationalization IKEA:
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a. Kept its markets and products unchanged
b. Made minimal changes to its products and processes
c. Consciously changed its culture but not its products
d. Changed its products but not its culture - b
32. On expanding into the USA, IKEA changed:
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a. Kept its markets and products unchanged
b. Made minimal changes to its products and processes
c. Consciously changed its culture but not its products
d. Changed its products but not its culture - b
33. Sheltered industries are protected from:
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a. Imports
b. Imports and Exports
c. Inward direct investment and imports
d. Direct and Indirect inward investment - c
34. Sheltered industries are protected by their:
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a. Perishability
b. Transport difficulties and high transport costs
c. Very small size of operation and lack of scale economies
d. Any of the above - d
35. Trading industries are distinguished by:
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a. The widespread practice of importing and exporting
b. The widespread practice of moving capital investments from one country to another
c. The tendency for employees to move from one country to another
d. All of the above - a
36. Multi-domestic industries:
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a. Are distinguished by their focus on products for the domestic sector
b. Have very high transport costs
c. Supply standard products around the world with instructions in the local language
d. Internationalize though direct investment - d
37. In global industries:
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a. Trade and direct investment are both important
b. Firms trade commodities globally
c. Capital is traded globally
d. Employees move globally - a
38. Consumer electronics (laptops, personal devices etc.) are an example of:
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a. A multi-domestic industry
b. A global industry
c. A trading industry
d. The phishing industry - b
39. "Psychic distance" is the least between:
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a. The USA and Canada
b. The USA and the UK
c. The USA and the UAE
d. Guinea-Bissau and Papua New Guinea - a
40. Hairdressing is traditionally an example of:
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a. A domestic industry
b. A multi-domestic industry
c. A declining industry
d. A sheltered industry - d
42. Competitive advantage is achieved when a firm:
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a. Achieves higher profit margins than its rivals
b. Matches its strongest resources & capabilities to the key success factors of the industry
c. Achieves the highest asset turnover ratio in the industry
d. Answers b and c - b
43. In international industries competitive advantage often means a firm will:
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a. Emerge from a strong national environment in this industry
b. Overcome natural disadvantages in this industry, so that only the very strongest firms emerge
internationally
c. Use Porter's diamond as a strategic roadmap
d. Pawn Porter's diamond and trade on the margin (but close out before margin call) - a
44. A country has a comparative advantage:
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