Deck 7: Internationalization and Globalization Processes

Question 1

Globalization is the process by which firms leverage their resources and capabilities across borders and coordinate their marketing and manufacturing strategies

Answer 1

True

Question 2

The UN's transnationality index favors firms with small domestic markets

Answer 2

True

Question 3

As firms build foreign presences, they acquire economies of scope in reducing sourcing, manufacturing and market costs worldwide

Answer 3

False

Question 4

Global firms have generally found that harmonizing human resources to be among the easiest of policies to standardize on a worldwide basis

Question 5

Truly global companies manage their corporate missions, visions and strategies on a market-by-market basis

Question 6

As firms build foreign presences, they acquire economies of scale in reducing sourcing, manufacturing and market costs worldwide

Question 7

Internationalization occurs when companies extend products and services into overseas markets

Question 8

The transnationality index is measures corporate globalization through a composite of foreign assets to total assets, foreign sales to total sales, and foreign employment to total employment

Question 9

Globalization occurs when companies extend products and services into overseas markets

Question 10

Many firms under-estimate the time and resources necessary to internationalize

Question 11

Internationalization and globalization are measures of commitments to international markets

Question 12

The manufacturing operations measure of corporate globalization looks at how far companies standardize production technologies, processes and corporate cultures across world markets

Question 13

Experienced global firms have little learning to do as they extend their worldwide operations

Question 14

When firms do not need to integrate their worldwide operations and there are few needs to adapt to local market circumstances, a global-local strategy should be followed

Question 15

The marketing orientation measure of corporate globalization measures the extent to which firms globalize or localize their marketing strategies

Question 16

As firms build foreign presences, they acquire economies of scope in building foreign market expertise and extending it across national boundaries

Question 17

The UN's transnationality index favors firms with large domestic markets

Question 18

Globalization is measured just by the proportion of international sales to total sales

Question 19

The governance and responsibility corporate measure of globalization looks at the composition of the corporate management board and whether firms have global policies regulating their activities

Question 20

Internationalization is the process by which firms leverage their resources and capabilities across borders and coordinate their marketing and manufacturing strategies

Question 21

International retailers such as Carrefour, Wal-Mart and Benetton are examples of common customer needs driving the corporate internationalization process

Question 22

Competitive drivers of globalization occur when costs of new product development force firms to go into world markets to offset increased costs

Question 23

Foreign rivals or imports entering the domestic market are examples of competitive drivers forcing firms to globalize

Question 24

The internationalization and globalization moves prompt firms to identify those activities they do well and those with foreign market potential

Question 25

Scale economies, experience curves and favorable logistics are examples of cost drivers of corporate globalization

Question 26

Information and internet technologies have greatly enhanced the cross-border flows of information among companies and institutions

Question 27

Information and internet technologies have enhanced corporate communications internally but have done little to link companies to outside parties and institutions

Question 28

Cross cultural segments such as teenagers, businesspeople and senior citizens are based on common customer needs

Question 29

IMF or WTO mandates to open up industries or national markets are examples of market drivers encouraging corporate globalization

Question 30

The IMF forcing Asian countries to open up their markets to foreign companies is an example of government drivers encouraging corporate globalization

Question 31

Firms in knowledge and technology-intensive industries often globalize to leverage their expertise into international markets-these are scale economy drivers

Question 32

When firms do not need to integrate their worldwide operations and there are few needs to adapt to local market circumstances, an internationalization strategy should be followed

Question 33

Information and internet technologies have fully affected communications and decision processes in developing nations

Question 34

Governments rarely or never discourage corporate globalization or protect local industries from international competition

Question 35

International retailers such as Carrefour, Wal-Mart and Benetton are examples of global channels driving the corporate internationalization process

Question 36

The lead country globalization driver occurs when countries build up national expertise in a particular product or technology sector

Question 37

Firms in knowledge and technology-intensive industries often globalize to leverage their expertise into international markets-these are experience curve drivers

Question 38

Where firms experience definite needs to integrate their operations globally and also be responsive to local needs, a multinational strategy should be followed

Question 39

Where firms experience definite needs to integrate their operations globally and also be responsive to local needs, a global-local strategy should be followed

Question 40

Scale economies, experience curves and favorable logistics are examples of competitive drivers of corporate globalization

Question 41

In adapting corporate cultures to national culture influences, international firms must take account of two key influences: societal competitiveness and shareholder-stakeholder orientations

Question 42

Internationalization causes firms to rethink their supply chain activities and reevaluate their manufacturing, supplier and distribution systems

Question 43

The ability to learn and to adjust to new situations and experiences is perhaps the major characteristic of global corporate leaders

Question 44

Global leaders are born, not made

Question 45

Competitive corporate cultures are likely when societies have democracies, market-forces-based economies and fluid social class systems

Question 46

The ability to impose their personalities and authority on subordinates, and getting the job done despite all that stands in their way is a prominent characteristic of global leaders

Question 47

Corporate culture is a patterned way of thinking that defines relationships, facilitates communication and orients employee behaviors towards corporate goals

Question 48

Companies at early stages of internationalization tend to adapt all aspects of corporate culture to national cultural characteristics

Question 49

Global managers instinctively know how to manage global-local tradeoffs and recognize what their organizations are capable of doing

Question 50

International travel, global team experiences, cross-cultural training and overseas assignments are suitable ways to develop global leaders

Question 51

Corporate cultures in highly capitalist systems tend to be stakeholder-oriented

Question 52

Companies have but two options in taking corporate cultures abroad: extend the home market culture or 'go native' and localize to the fullest extent

Question 53

In going international, companies generally add to their corporate hierarchies to cope with the complexities of the global marketplace

Question 54

Firms going international will always focus on those activities that have made their home market reputations

Question 55

Competitive corporate cultures are likely when societies have static political systems, sheltered economies and hereditary-based social class systems

Question 56

Sound judgment, emotional maturity and the ability to see and act on emerging trends seem to be universal characteristics of CEOs

Question 57

Corporate culture includes authority structures, information flows, organizational structures but excludes organizational formality/informality, competitive/cooperative behaviors and gender-related attitudes

Question 58

Global managers are in plentiful supply

Question 59

Global leaders are part born, part made

Question 60

Companies at early stages of internationalization tend to export home market cultures into foreign markets

Question 61

At national, regional and global levels, industry structures have been affected by consolidations, mergers, acquisitions and movements towards increased size

Question 62

Countries with long histories of social class distinctions tend to favor more egalitarian corporate cultures

Question 63

Polycentric corporate cultures emphasize home-market orientations in strategic decision-making and corporate attitudes

Question 64

Societies characterized by low uncertainty avoidance tend to make decisions slowly

Question 65

Matrix organizational structures are appropriate when firms have many products and many markets

Question 66

Individualism-collectivist orientations have few effects on corporate decision-making and lines of communication

Question 67

As countries industrialize, more egalitarian corporate cultures tend to be favored

Question 68

International departments and worldwide functional structures tend to be used when firms have few markets and products

Question 69

Industry structures tend to be unaffected by globalization pressures

Question 70

Ethnocentric corporate cultures emphasize home-market orientations in strategic decision-making and corporate attitudes

Question 71

The homogenization of world markets and moves towards global branding have pushed firms towards geographic organizational structures

Question 72

As countries industrialize, more individualistic corporate cultures tend to be favored

Question 73

Feminine societies encourage aggressive power-based behaviors and internal competition

Question 74

Corporate cultures in highly capitalist systems tend to be shareholder-oriented

Question 75

Shareholder corporate cultures are more appropriate when making investments abroad

Question 76

International departments and worldwide functional structures tend to be used when firms have many markets and products

Question 77

Worldwide product structures facilitate product and technology flows among markets

Question 78

Ethnocentric corporate cultures emphasize foreign market orientations in strategic decision-making and corporate attitudes

Question 79

Stakeholder corporate cultures are more appropriate when making investments abroad

Question 80

Feminine societies encourage collegiality, participative decision-making and job satisfaction issues