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MGMT 498 EXAM QUESTIONS WITH 100% CORRECT ANSWERS

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MGMT 498 EXAM QUESTIONS WITH 100%
CORRECT ANSWERS
Since expanding internationally, IKEA has shifted focus, concentrating on effectively managing a global
supply chain in order to achieve economies of scale. This is reflective of a(n) ______ strategy.
global-standardization

Which of the following have helped make globalization possible? (Check all that apply.)
Reductions in transportation costs
Falling trade barriers
Advances in telecommunications

In order for a company to be considered a multinational enterprise, it must operate ______.
in more than one country

Before World War II, business strategy, implementation, and knowledge typically flowed ______.
from domestic headquarters to outposts abroad

Rising wages and other costs are likely to negate any benefits MNEs have of access to ______.
low-cost inputs

IKEA offers the same products in every market. This indicates that IKEA has followed a(n) ______
strategy.
international

Which of the following are reasons firms expand internationally? (Check all that apply.)
to gain access to low-cost input factors
to develop new competencies
to gain access to a larger market

Due to globalization, the world's market economies are becoming more ______.
integrated and interdependent

A company that deploys resources and capabilities in the procurement, production, and distribution
of goods and services in at least two countries is a ______.
multinational enterprise

During the first stage of globalization, business functions that took place abroad were limited to which
of the following? (Check all that apply.)
distribution
sales

As the standard of living rises in emerging economies, MNEs are hoping that ______.
increased purchasing power will enable workers to purchase the products previously made only for
export

, Companies seek to access international markets as a means of ______.
increasing their economic value creation

When multinationals draw on multiple innovation hubs that all have equal status, they pursue a
______.
polycentric innovation strategy

Which of the following risks do companies face when expanding internationally? (Check all that
apply.)
the liability of foreignness
loss of intellectual property
loss of reputation

The process of closer integration and exchange between different countries and peoples worldwide,
made possible by falling trade and investment barriers, advances in telecommunications, and
reductions in transportation costs, is known as ______.
globalization

Which of the following dimensions are considered in the CAGE distance framework? (Check all that
apply.)
geographic distance
economic distance
cultural distance

If the economic value creation of international expansion is negative, a firm should ______.
not expand internationally

National culture, according to Geert Hofstede, can be defined as different groups' distinctive ______.
"programming of the mind"

The cultural disparity between the internationally expanding firm's home country and its targeted
host country is known as ______.
cultural distance

Which of the following statements about the CAGE distance framework is true?
It is designed to aid MNEs in deciding where to compete in the world.

Spex is a leading manufacturer of eyeglasses. Spex is based in the United States but opens a facility in
a Japanese city known for cutting-edge eyeglass innovations. Spex is counting on which of the
following?
benefiting from location economies

The extent to which members of a society feel anxious when faced with an unknown situation is
known as ______.
uncertainty avoidance

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