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MNE Exam Bank Questions and Answers Already Passed Which of the following correctly describes the sequential evolution in management thinking with respect to the strategic role of foreign operations in emerging MNEs? - Answers international mentality, multinational mentality, global mentality, tr...

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  • October 24, 2024
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  • 2024/2025
  • Exam (elaborations)
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  • mne exam bank questions and answers

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MNE Exam Bank Questions and Answers Already Passed

Which of the following correctly describes the sequential evolution in management thinking with
respect to the strategic role of foreign operations in emerging MNEs? - Answers international mentality,
multinational mentality, global mentality, transnational mentality.

The largest MNEs are equivalent in their economic importance to less developed economies such as
Cameroon, Paraguay, or Barbados. - Answers False

The process of internationalization followed by most firms is usually well-thought out in advance and
typically builds on a combination of rational analysis, planning and implementation. - Answers False

All companies internationalize in an incremental manner. First, they make an initial commitment of
resources to the foreign market in order to secure local market knowledge. Building on this knowledge,
they make subsequent resource commitments, eventually leading to higher levels of investment in the
foreign



market. - Answers False

A joint venture is a contractual mode of foreign entry involving a high level of resource commitment by
all partners. - Answers False

Emerging motivations for internationalization include the desire to enhance the firm's competitive
position and the desire to develop global scanning capabilities. - Answers True

For an MNE to exist, first foreign countries must provide location-specific advantages to attract the



company to invest there, second the company must have ownership-specific advantages that counteract
its liability of foreignness, third the company must have the organizational capability to leverage its
strategic advantages more effectively internally than externally. - Answers True

An MNE with an 'international mentality' will typically be managed as a coordinated federation. -
Answers True

An MNE with a 'multinational mentality' will typically be managed as a coordinated federation. -
Answers False

An MNE with a 'global mentality' will typically manage its operations centrally. - Answers True

An MNE with a 'transnational mentality' will typically be managed as an integrated network. - Answers
True

, The main advantage multinational mentality has over global mentality is more efficient manufacturing. -
Answers False

An MNE is a(n): - Answers company that actively manages substantial foreign direct investment.

Three prerequisites that must be satisfied before a national firm can transform itself into a multinational
firm include: - Answers location-specific advantages, ownership-specific advantages, and organizational
capabilities.

Which of the following correctly describes the sequential evolution in management thinking with
respect to the strategic role of foreign operations in emerging MNEs? - Answers international mentality,
multinational mentality, global mentality, transnational mentality.

A franchise, such as McDonald's, is a _________ mode of foreign entry. - Answers low commitment,
moderate control

A joint venture is a _________ mode of foreign entry. - Answers moderate commitment, moderate
control

HomeAppliances Co. is a new manufacturer of home appliances. HomeAppliances wants to go

international. Some of its traditional motivations for pursuing internationalization include: - Answers
securing key supplies, seeking new markets and accessing low-cost factors of production

One motivation behind internationalization is to sustain the firm's competitive position. To pursue a -
Answers match competitors, capture global scale, and preempt markets

suggests that in the first stage innovations are produced in the home developed country; in the

second stage they are exported to other similarly developed countries; in the third stage, they start
being

produced in these developed countries; in the fourth stage they start being produced in low-wage
developing countries. - Answers Vernon's product cycle theory

Which of the following constitutes a list of foreign entry modes that involve the MNE to make a foreign

investment - Answers Wholly owned, joint venture

OfficeWare Corp. is an MNE that produces and sells office equipment. If the company's CEO employs a
'global mentality' toward the strategic role of the company's foreign operations, then we would expect
that OfficeWare: - Answers regards the world as a single unit of analysis.

The demand for the Italy-based Sparkly Fashion Manufacturing's unisex pants has been continually

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