100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
MNE Management Review Questions with Complete Solutions Rated 100% CA$11.48   Add to cart
Quickly navigate to
Preview
  2.  
  3. MNE Management
  4.  
  5. MNE Management

Exam (elaborations)

MNE Management Review Questions with Complete Solutions Rated 100%

 7 views  0 purchase
  • Course
  • MNE Management
  • Institution
  • MNE Management

MNE Management Review Questions with Complete Solutions Rated 100% Global Multinational Enterprises (MNE) - Answers a.Must have "substantial direct investment" in foreign countries. b.Must have "active management" of overseas operations. MNE Influence, Some statistics according to the UN: - Ans...

[Show more]

Preview 2 out of 7  pages

Document information

  • October 24, 2024
  • 7
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • mne management review questions with complete sol

Written for

  • MNE Management
  • MNE Management

Seller

avatar-seller
TutorJosh

Reviews received

Content preview

MNE Management Review Questions with Complete Solutions Rated 100%

Global Multinational Enterprises (MNE) - Answers a.Must have "substantial direct investment" in foreign
countries.

b.Must have "active management" of overseas operations.

MNE Influence, Some statistics according to the UN: - Answers Over 65,000 MNEs, Approx. $16 trillion in
revenues

why companies are motivated to expand overseas? - Answers Secure key supplies - e.g. Aluminum
companies seeking bauxite

Traditional Motivations - Answers 1. Secure key supplies

2. Market-seeking behavior

3. Access low-cost factors of production.

Prior to the 1980s, the product life cycle (PLC) theory could explain much of a company's motivation to
internationalize. - Answers True

Factors influencing a company's motivation to internationalize (i.e. why overseas operations became
more important): - Answers 1. Increasing scale economies, R&D investments, and a shortened PLC.



2. The MNE's global scanning and learning capabilities - alternatives regarding labor, technology, etc.



3. Increased competitive positioning allowing cross-subsidization of markets

Cross-subsidization of markets - Answers using profits of a subsidiary in one market to subsidize an
unprofitable subsidiary in another.

Prerequisites for Becoming an MNE - Answers a. Must have motivation to invest overseas

b. Must have strategic competencies/ownership-specific advantages

c. Must have internal organizational capabilities

Process of Internationalization, The Learning Process of foreign market entry (1977) - Answers 1. Firm
makes initial commitment of resources.

2. Gains knowledge of local mkt, customers, etc

3. Improved ability to evaluate current operations and opportunities

, 4. Able to make add'l investments thus increasing effectiveness

Four evolutionary stages (mentalities) of internationalization: IMGT - Answers 1. International Mentality

2. Multinational Mentality

3. Global Mentality

4. Transnational Mentality

International Mentality - Answers 1. Overseas operations seen as "outposts."

2. Heavily influenced by the PLC

Multinational Mentality - Answers 1. Overseas operations increase in importance as sales/profits
increase.

2. Products/technology modified to suit specific foreign mkt.

Global Mentality - Answers 1. Reduce inefficiency in multinational mentality by producing for a "world
market"

2. Assumes national tastes are somewhat similar

3. Requires increase levels of coordination

Transnational Mentality - Answers Emerged due to the need to be locally responsive while developing
global products

Globalization is the continuation of a trend that began over 100 years ago. - Answers True

Forces Leading to Change - Answers 1. Economies of Scale

2. Economies of Scope

3. Factor Costs

4. Liberalization of World Trade Agreements

Economies of Scale - Answers Use of large-batch or continuous-process technologies

2. Achieved through high volume production

3. Production levels exceed domestic sales.

Economies of Scope - Answers 1. Possible due to improved communications and transportation
networks

2. Rise in use of large trading companies (e.g. Panasonic)

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller TutorJosh. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for CA$11.48. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

67474 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
CA$11.48
  • (0)
  Add to cart