MNE 3 Competitive strategies Exam Questions and Answers Latest update Rated 100%
What are the forces for a global industry? - Answers - High global integration forces
- Low national responsiveness forces
What are the forces for a multinational industry? - Answers - Low global integration forces...
What are the forces for a global industry? - Answers - High global integration forces
- Low national responsiveness forces
What are the forces for a multinational industry? - Answers - Low global integration forces
- High national responsiveness forces
What are the forces for a transnational industry? - Answers - High global integration forces
- High national responsiveness forces
What are some reasons that firms go international? - Answers - Strategic intent
- Global-scale efficiency
- Multinational flexibility/responsiveness
- Worldwide learning and innovation
What are the three strategic goals? - Answers 1. Global scale efficiency
2. Multinational flexibility/responsiveness
3. Worldwide learning and innovation
How can global scale efficiency be achieved? - Answers By exploiting economies of scale and scope
What are economies of scale? - Answers Cost advantages associated with large operations
What are economies of scope? - Answers cost savings from leveraging core competencies or sharing
related activities among businesses in a corporation
Best method for multinational flexibility/responsiveness - Answers Look at the different opportunities in
a specific environment and then understand which is the best environment and opportunities for the
company
What needs to be considered for multinational flexibility/responsivness? - Answers That the
opportunities in a specific market are constantly changing
What are some potential risks in a country? - Answers - Country's economic state
- Political state
- Availability of required resources
- Cultural barriers
, - Competition of the market
- Natural environment
What are the methods to achieve a competitive advantage, and the above goals? - Answers Economies
of scale, economies of scope and national diffferences
What are national differences? - Answers - Include cultures, tastes, behaviours, local competitors
- Differences in costs and currency stability
What do the different environments that MNEs are exposed to promote? - Answers The different stimuli
allows them to create different learning opportunities
Why is it difficult to manage internationally? - Answers - Differences in social/cultural environment
- Different legislations and regulations
What are the aspects of CAGE? - Answers - Cultural distance
- Administrative distance
- Geographic distance
- Economic distance
What does a high CAGE distance mean for a firm? - Answers There is going to be a higher management
time and cost for the investment in this country
What are two major factors that increases trade between countries? - Answers - Having a common
language
- Having a common currency
What are the four competitive strategies that a firm can follow? - Answers 1. Global
2. Transnational
3. International
4. Multi-national
Characteristics of an international strategy - Answers - Low need for local adaption
- Low need for global coordination
What is the focus on an international strategy? - Answers Creating and exploiting innovations on a
worldwide basis, using all different means to achieve this
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