Deck 11: A Framework of Global Strategic Planning

Question 1

Continuous re-designing and re-evaluating the operating processes in a firm, an industry, or a nation can facilitate competitiveness in the markets worldwide.

Answer 1

True

Question 2

Most societies in the MENA region are considered to be following the theory of managerial universalism.

Answer 2

False

Question 3

Total foreign investment fell worldwide in 2014, yet major macroeconomic variables such as GDP, trade, and employment were improved.

Answer 3

True

Question 4

According to the report released by the UN Conference on Trade and Development (UNCTAD) in 2014, the developing countries tend to receive low levels of FDI compared to the developed ones.

Question 5

Strategic planning is usually past-oriented.

Question 6

Rapid growth in demand for service facilities in addition to policy liberalization in many countries have played an important part in the growth of FDI targeted towards service sectors.

Question 7

Companies doing businesses domestically need not to waste their resources by trying to adapt to international changes.

Question 8

Belonging to a group is less important to Japanese culture.

Question 9

Monitoring change in the global environment and then adjusting internal operating processes to meet the challenges can lead to new products and markets.

Question 10

The extent and the speed of the FDI recovery in general will not vary by region and industry.

Question 11

Primary sector is expected to be the most attractive sector for FDI.

Question 12

The most attractive regions for FDI are China and the United States.

Question 13

Greenfield investments are expected to be preferred more in developed countries rather than developing countries.

Question 14

Import orientation is a key element in most developing countries' strategies for economic development.

Question 15

If TNCs target regions rather than individual countries as FDI sites, then national governments should form their FDI policies in regional context.

Question 16

The multicultural strategic planner of the 21st century will have to become familiar with the value systems across cultures.

Question 17

Arab culture is more concerned with individualism.

Question 18

Japanese and Arab cultures place more value on age and seniority compared to American culture.

Question 19

The phrase "time is money" is commonly accepted as a framework in the Arab culture.

Question 20

The American culture encourages individual achievement and results-orientation.

Question 21

Increased transactions by TNCs and further integration of world markets have spawned "forward" linkage only.

Question 22

The surge in offshoring worldwide indicates that high labor-cost countries will benefit most from FDI, in activities such as production, logistics and support, as well as sales and marketing.

Question 23

Social, cultural, and political characteristics are insensitive to foreign direct investment in the host country.

Question 24

Corporations crossing national borders with innovative production techniques and market linkages will influence trade in terms of foreign exchange earnings.

Question 25

In Asia, China was ranked right behind India in 2013, even though it is yet to become a major FDI recipient in the region.

Question 26

An investment made by a company or entity based in one country into a company or entity based in another country is called ________________.

A) Foreign direct investment
B) Foreign exchange rate
C) Global strategic planning
D) Re-engineering

Question 27

A process adopted by multinational organizations to formulate effective global strategies after evaluating both internal and external environments is called ________________.

A) Internal factor evaluation
B) Global strategic planning
C) External factor evaluation
D) SWOT analysis

Question 28

________________ is a broad review of an organization's business processes and operations and then evaluating and redesigning them with respect to the changing conditions and demands of the global environment.

A) Re-engineering
B) Global strategic planning
C) SWOT analysis
D) External factor evaluation

Question 29

The theory or practice of shielding a country's domestic industries from foreign competition by taxing imports ________________.

A) Liberalization
B) Globalization
C) Re-engineering
D) Protectionism

Question 30

The notion that there is one set of management principles applicable to firms of any national origin or in any national setting can be stated as ________________.

A) Managerial individualism
B) Managerial universalism
C) Monopoly
D) Managerial collectivist

Question 31

A company's external environmental considerations include ________________.

A) National trade balance
B) Labor-management relations in the firm
C) Internal operational processes
D) (a) and (b)

Question 32

A company's internal environmental considerations include ________________.

A) Labor-management relations in the firm
B) Foreign exchange rate
C) Internal operational processes
D) (b) and (c)

Question 33

NAFTA is defined as ________________.

A) North African Free Trade Agreement
B) North American Foreign Trade Agreement
C) North American Free Trade Agreement
D) North African Foreign Trade Agreement

Question 34

A worldwide fall in the total foreign investment in 2014 was primarily driven by ________________.

A) Instability of global economy
B) Geopolitical risk
C) Large divestments
D) All of the above

Question 35

Which was the world's biggest recipient of FDI according to the report released by the UN Conference on Trade and Development (UNCTAD) in 2014?

A) India
B) China
C) Brazil
D) United States

Question 36

Which of the following business lines did Lenovo acquire in October 2014?

A) Palm Inc. from HP
B) Motorola mobility from Google
C) Noranda
D) Haier Group

Question 37

According to the UNCTAD report of 2015, FDI inflows to West Africa declined by 10% in the past year. The following are the main reasons behind this decline except ________________.
(i) Ebola;
(ii) Regional conflicts;
(iii) Rising commodity prices.

A) (i) and (ii)
B) (iii)
C) All of the above
D) None of the above

Question 38

A company that owns businesses in several countries is called ________________.

A) Transnational corporation (TNC)
B) Limited liability company
C) Sole proprietorship
D) Corporation

Question 39

The transfer of new technology from the originator to a secondary user, especially from developed to less developed countries in an attempt to boost their economies is called ________________.

A) Managerial individualism
B) Managerial universalism
C) Technology transfer
D) Technology gap

Question 40

___________ is expected to be the most attractive sector for FDI investment.

A) Primary sector
B) Secondary sector
C) Tertiary sector
D) Manufacturing sector

Question 41

Which of the following business activities attract the most FDI investment within the service sector?

A) Tourism, telecommunications, and IT
B) Insurance and banking
C) Agricultural activities
D) All of the above

Question 42

A form of foreign direct investment where a parent company builds its operations in a foreign country from the ground up is called ________________.

A) A red field investment
B) A greenfield investment
C) Merger
D) Acquisition

Question 43

A treaty of World Trade Organization (WTO) that entered into force in January 1995 as result of Uruguay Round negotiations is called ________________.

A) The General Agreement on Trade in Services
B) Millennium Development Goals
C) Human Development Index
D) The agreement on Internal Trade

Question 44

Transnational corporations are considered as engines of growth due to all of the following reasons except ________________.

A) Their generous role in providing capital
B) Providing exceptional chances for training and stimulating trade
C) Discouraging globalization
D) Generating and transmitting technology and innovation
E) (a), (b), (d)

Question 45

___________ is an economy that is changing from a centrally planned economy to a market economy.

A) Transfer economy
B) Transitional economy
C) Developed economy
D) Low-developed economy

Question 46

Characteristics of multicultural managers include all of the following except _______________.

A) Think beyond local perceptions, and transform stereotypes into positive views of people
B) Adapt readily to new and unusual circumstances and lifestyles
C) Create cultural synergy whenever and wherever feasible
D) Create pessimistic and unrealistic scenarios for future
E) (a), (b), (c)

Question 47

Strategic planners must view the existing structure of trade and investment or core-periphery relations that includes _______________.

A) Potential in value systems of market targets in the context of mutual enrichment
B) Potential in human and material, resources, and value systems of market targets in the context of mutual enrichment
C) Potential in human and materials of market targets in the context of mutual enrichment
D) None of the above

Question 48

_______________ is a set of eight time-bound targets for reducing poverty and hunger and improving overall living standards.

A) Millennium Development Goals
B) Human Development Index
C) Foreign Direct Investment
D) Management Development Goals

Question 49

"Finishing a task in the shortest amount of time with the greatest possible profit" is primarily the cultural motto of _______________.

A) Japanese culture
B) American culture
C) Arab culture
D) (a) and (c)

Question 50

Which of the following culture usually chooses "high quality over immediate gain"?

A) Japanese culture
B) American culture
C) Arab culture
D) (a) and (c)

Question 51

In your opinion, does Peter Drucker's theory of global strategic management support "universal localism"? Justify your answer with examples.

Question 52

"Unlike the developing ones, the developed countries continued to receive low levels of FDI" in 2014. How does this affect the business environment internationally? Comment and Elaborate.

Question 53

What factors determine the shift of FDI to services? Explain further with examples.

Question 54

Jeffery Sachs states that FDI is very important for the poorer countries because it is one of the strongest engines for growth in the developing world. Can the FDI of a country be changed using Akio Morita's concept of universal localism? Explain.

Question 55

Describe the interrelation between FDI, trade, economy, and policies. How does this affect the developing and underdeveloped countries?

Question 56

The authors mentioned, "FDI can be seen as instrumental in human and material resource development, and trade development." Comment and elaborate.

Question 57

Compare the similarities and differences in the attributes of a global strategic planner in the manufacturing industry versus service industry.

Question 58

How can transnational companies maintain competitiveness and sustainability in a dynamic market and while working with diverse workforce? Is uniqueness the key? Localism? Explain.

Question 59

Is it justified to assume that regional integration alone will increase the inflow of FDI to developed nations? Why? Why not?

Question 60

"Re-engineering to take advantage of this global demand-supply relationship between developed and developing nations is a direct challenge for global strategic planners." What recommendations/advice would you offer to any global strategic planner to overcome this challenge?