Question 1

Which of the following is not a factor that drives complexity in internationalization?&#10;A) Differing resource stocks&#10;B) Differing competitive conditions between countries&#10;C) Differing political and economic conditions&#10;D) Differing demographics, social norms and behaviours, cultures, and religions

Accepted Answer

Differing resource stocks may impact the business strategy, but it is not a significant factor that drives complexity in internationalization. The other factors listed in options B, C, and D - differing competitive conditions, political and economic conditions, and demographics, social norms and behaviors, cultures, and religions, are some of the key drivers of complexity in internationalization. These factors create challenges for businesses in terms of adapting to different markets, complying with different regulations, managing diverse workforces, and navigating cultural differences.

Question 2

Which of the following is considered as an additional factor that can be added to the factors explaining Porter's theory of national advantage?&#10;A) The role of chance&#10;B) The role of capital investment&#10;C) The role of the market&#10;D) The role of innovation

Accepted Answer

While Porter's theory of national advantage primarily focuses on four factors (factor conditions, demand conditions, related and supporting industries, and firm strategy, structure, and rivalry), the role of chance (such as unexpected events or serendipitous discoveries) has been recognized as an additional factor that may influence a nation's competitive advantage. However, capital investment, market, and innovation are already considered within the four primary factors of Porter's theory.

Question 3

Which of the following is regarded as a characteristic of born global firms?&#10;A) Many born global firms are technology firms&#10;B) Many born global firms are manufacturing firms&#10;C) Many born global firms are service sector firms&#10;D) Many born global firms are based in the southern hemisphere

Accepted Answer

Born global firms often leverage technology to enter international markets quickly and efficiently, making them commonly associated with the technology sector.

Question 4

A multidomestic strategy is concerned with:&#10;A) Differentiating products&#10;B) Standardizing products&#10;C) Hybrid adaptation of products&#10;D) Innovation in products

Accepted Answer

A multidomestic strategy focuses on differentiating products to cater to the specific needs and preferences of different markets or countries.

Question 5

Glocalization is an approach associated with:&#10;A) A transnational strategy&#10;B) A multidomestic strategy&#10;C) A global strategy&#10;D) An international strategy

Accepted Answer

Glocalization is associated with a transnational strategy, which seeks to balance global efficiency and local responsiveness by adapting products and services to local markets while maintaining a global presence.

Question 6

Which of the following is not one of the dimensions of the CAGE framework?&#10;A) Environment&#10;B) Cultural&#10;C) Economic&#10;D) Administrative

Accepted Answer

The CAGE framework, used for assessing the distance between countries in international business strategies, consists of Cultural, Administrative, Geographic, and Economic dimensions. "Environment" is not one of the dimensions, making option A the correct answer.

Question 7

Which two of the following are cited as drivers of globalization by Yip (1995)?&#10;A) Cost drivers&#10;B) Government drivers&#10;C) Resource drivers&#10;D) Operational drivers

Accepted Answer

Yip (1995) identifies several drivers of globalization, among which Cost drivers and Government drivers are included. Cost drivers refer to the ways in which companies can achieve lower costs through global scale or scope, while Government drivers encompass the influence of trade policies, regulations, and government-led global market integration on globalization.

Question 8

Which two of the following are regarded as globalization drivers that are additional to Yip (1995) list?&#10;A) Lower transportation&#10;B) ICT development&#10;C) Road infrastructure&#10;D) Strategic acquisitions

Accepted Answer

The answer of Which two of the following are regarded...

Question 9

In 1950 two-thirds of the world population were living in extreme poverty.

Accepted Answer

According to the World Bank, in 1950 approximately two-thirds of the global population were living in extreme poverty (defined as living on less than $1.90 per day).

Question 10

Spreading business risk across a wider operating base is cited as a reason for internationalizing.

Accepted Answer

By expanding operations across multiple countries or regions, a business can reduce its reliance on a single market and lessen the impact of economic, political, or other risks in any one location.

Deck 12: Competing in a Globalized World