Question 1

Mulcahy believes that in the skincare industry, local responsiveness is important because significant country-to-country differences exist. She is suggesting a ________ approach.

Accepted Answer

Mulcahy's belief in the importance of local responsiveness due to significant country-to-country differences aligns with a multicountry approach, which emphasizes adapting products and strategies to meet the specific needs and preferences of each country.

Question 2

Explain the key differences between a multidomestic corporation and a global company.

Accepted Answer

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Question 3

________ treat the world market as an integrated whole.

Accepted Answer

Global companies treat the world market as an integrated whole, meaning they operate in multiple countries with a standardized product or service offering. This allows them to leverage economies of scale, minimize costs, and maximize profits across the globe. The other answer choices (A, B, and D) do not necessarily have a global outlook and may focus more on specific regions or countries.

Question 4

What are the important potential advantages of being international?

Accepted Answer

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Question 5

When Frito-Lay (a division of PepsiCo)markets a Dorito chip in the British market that differs in both taste and texture from the U.S. and Canadian version, Frito-Lay is most likely operated as a

Accepted Answer

Frito-Lay's decision to produce a different version of their product for the British market suggests that they are adapting their strategy to meet local preferences, which is a characteristic of a multidomestic corporation. A global company would have a standardized product across all markets, a glocal company would have a hybrid product that combines global and local elements, while a transnational organization and borderless organization both operate with a high degree of integration and coordination across multiple countries, which does not seem to be the case here.

Question 6

As a manufacturing company, CCP should probably use ________ in going international.

Accepted Answer

As a manufacturing company, CCP can use licensing to expand globally. Licensing will allow CCP to grant permission to other companies in different countries to use its technology, intellectual property, or production processes. This can provide CCP with a passive revenue stream and increase its global presence without the need for significant investment or infrastructure.

Question 7

Megan Mulcahy and CCP believe that because the company has been extremely successful in the U.S., its home country work approaches and practices are the best and that these should be used globally. What is CCP's global perspective?

Accepted Answer

CCP's belief in its home country practices as the best for global use reflects an ethnocentric attitude, which places emphasis on the superiority of one's own culture and practices.

Question 8

What is the difference between a free market and a planned economy?

Accepted Answer

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Question 9

A transnational organization is also called a

Accepted Answer

A transnational organization is a borderless organization that operates across national boundaries, without being aligned to any one particular country or region. It is known for its ability to manage its operations and employees in different countries, cultures, and legal systems. The other options do not fully capture the essence of a transnational organization, as they either focus on specific regions (B and C) or on a particular strategic approach (D).

Question 10

How does the multicountry approach differ from the global approach?

Accepted Answer

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Question 11

A ________ centralizes its management and other decisions in the home country.

Accepted Answer

A global company centralizes its management and decision-making processes in the home country, focusing on efficiency and global standardization.

Question 12

When Walmart Stores "thinks locally to act globally," it is most likely approaching the global market as a

Accepted Answer

When Walmart "thinks locally to act globally," it is adopting a strategy typical of a multidomestic corporation. This approach involves tailoring products, services, and marketing strategies to local markets while maintaining a global presence.

Question 13

What is parochialism?

Accepted Answer

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Question 14

When IBM dropped its organizational structure based on country and reorganized into industry groups worldwide, it became a

Accepted Answer

By dropping its organizational structure based on country and adopting industry groups worldwide, IBM transformed itself into a transnational organization that operates in different countries but coordinates its activities on a global scale.

Question 15

One of the countries that Megan Mulcahy wants to enter is North Korea. You explain to her that North Korea is a ________ economy because economic decisions are planned by a central government.

Accepted Answer

North Korea is known for its strict communist regime, where the central government controls all economic decisions, including production and distribution of goods and services. This type of economy is commonly referred to as a planned economy.

Question 16

When a company says, "We don't want people to think we're based anyplace," the company is organized as a

Accepted Answer

A transnational organization is one that is stateless and operates in multiple countries without being formally based in any one country. This description matches the statement given in the question. Global companies do have a single base, albeit with operations in many countries. Multidomestic corporations have decentralized operations in multiple countries, but they are still clearly based in a home country. A focused corporation is one that has a narrow focus on a certain product or market.

Question 17

Many consumer product companies that compete in the global market organize themselves as a ________ because they must adapt their products to meet the needs of local markets.

Accepted Answer

A multidomestic corporation organizes itself to be sensitive to local market conditions and adapts products to meet those needs. This is in contrast to a global company, which operates as if the entire world were a single entity with universal needs and wants. A transnational organization combines elements of both, with a global view of business but also the ability to adapt to local markets. A borderless organization refers to a company that operates without boundaries or borders, which is not specifically related to adapting products to meet local market needs.

Question 18

________ focus on the need for global efficiency and cost savings.

Accepted Answer

Global companies focus on the need for global efficiency and cost savings by standardizing products and operations across different markets.

Question 19

A ________ eliminates artificial geographic barriers.

Accepted Answer

A transnational organization eliminates artificial geographic barriers by operating across multiple countries and integrating operations globally.

Question 20

Ms. Mulcahy wants to understand the advantages of being international. Which of the following would you suggest?

Accepted Answer

Being international allows for the exploitation of interdependencies among multiple countries, such as accessing new markets, resources, or cheaper labor. This can lead to increased efficiency and profitability for a business. The other options listed are all potential disadvantages or challenges of being international.

Quiz 7: International Strategies