Question 1

For a long time, ___________ has been the first step of internationalization for most firms while they were still relatively small.

Accepted Answer

Exporting is often the first step of internationalization for most firms as it allows them to reach foreign markets with a relatively low level of investment and risk compared to other methods like franchising or licensing.

Question 2

McDonald's is an example of a firm that adopted a _______________ strategy to package the successful elements of their operations in their home market and offer this package to overseas investors, with perhaps training and marketing support.

Accepted Answer

McDonald's uses a franchising strategy to expand globally, allowing overseas investors to operate McDonald's restaurants while providing them with a successful business model, training, and marketing support.

Question 3

The reason why some new enterprises operate almost immediately across the globe ("born global") is

Accepted Answer

The reason some new enterprises operate globally from inception includes the global appeal or nature of their products, the international networks of their engineers and scientists, and the ability to market globally through the internet.

Question 4

Off-shoring involves the relocation of one or more aspects of an organization's business processes to a location in another country for the purpose, at least initially, of

Accepted Answer

Off-shoring is primarily undertaken to lower costs by taking advantage of lower labor costs, tax benefits, or less stringent regulations in other countries.

Question 5

Market entry choices for an internationalizing firm are dictated by

Accepted Answer

The choice of market entry strategies for an internationalizing firm is influenced by a combination of factors including the firm's overarching internationalization strategy, the specific options and conditions available in the target countries, and the timing of market entry. These elements collectively dictate the most suitable approach for entering new international markets.

Question 6

Methods of entry into international business include

Accepted Answer

All the options listed (licensing and subcontracting, outsourcing and off-shoring, mergers and acquisitions) are methods through which businesses can enter or expand into international markets.

Question 7

Organizations can also use a variety of auxiliary methods to internationalize their operations, such as:

Accepted Answer

The answer of Organizations can also use a variety of...

Question 8

Which of the following statement about Outsourcing is true

Accepted Answer

Outsourcing refers to the practice of hiring an external organization to perform services or create goods that were traditionally performed in-house by the company's own employees and staff. It is not a form of exporting, nor did it begin in 2010; outsourcing has been a business practice for decades. The term was indeed developed to describe the process of contracting out tasks that could be done internally to external firms.

Question 9

Reasons for entering into IJV agreements include

Accepted Answer

The answer of Reasons for entering into IJV agreements include
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Question 10

Outsourcing success depends on all of the following factors except

Accepted Answer

The efforts of competing firms to manage contracts and agreements are not directly related to an individual organization's outsourcing success. Success in outsourcing is more directly influenced by factors within the organization itself and its direct relationships with service providers, rather than the actions of external competitors.

Question 11

Issues that firms should consider when relocating services off-shore are

Accepted Answer

All of the above factors are crucial when considering off-shore relocation. Expertise in managing remote locations ensures operational efficiency, cost of labor is often a primary motivator for off-shoring, and language skills are essential for communication and service delivery in the new location.

Question 12

The extent to which the subsidiaries and the headquarters of a firm develop a unified whole and therefore achieve a range of competitive advantages (such as economies of scale) is defined as _______ .

Accepted Answer

Integration refers to the process by which subsidiaries and the headquarters of a firm work together as a unified entity, allowing the firm to achieve competitive advantages like economies of scale. This involves coordinating and standardizing operations, strategies, and practices across different locations to work more efficiently and effectively as a whole.

Question 13

A MNE business strategy that enables subsidiaries to respond to local differences and encourages modification of products or services to meet local needs and increase local competition is called ___________ .

Accepted Answer

Local responsiveness is a strategy that allows subsidiaries of multinational enterprises to adapt products and services to fit local preferences and conditions, thereby enhancing competitiveness in local markets.

Question 14

Adopting a global business strategy means that an MNE implements the same unified approach in all countries regardless of their differences so that there is a high degree of

Accepted Answer

A global business strategy emphasizes a high degree of integration across various operations and countries to ensure consistency and efficiency, unlike strategies that might focus on adapting to local conditions (decentralization) or specific regional strategies (regiocentric).

Question 15

A MNE strategy that attempts to maximize both responsiveness and integration so that each subsidiary is responsible for making adaptations to suit the local needs, while still being able to draw on the global expertise and resources

Accepted Answer

A transnational strategy aims to balance the need for efficiency and integration across global operations with the need to adapt to local markets. This approach allows subsidiaries to tailor products and services to local preferences while leveraging global resources and capabilities.

Question 16

Using a home country standard as a reference in managing international activities is indicative of a(n) _______ orientation

Accepted Answer

Using a home country standard as a reference in managing international activities is indicative of an ethnocentric orientation. This approach assumes that the home country's culture, practices, and methods are superior to those of other countries.

Question 17

A firm has reached the level of a global orientation, a(n) ___________ mindset will develop and be adopted

Accepted Answer

A global orientation leads to the development and adoption of a geocentric mindset, where the company views the entire world as a potential market and strives to develop integrated global strategies, without prioritizing any one country's interests over others.

Question 18

IHRM strategy is the creation and implementation of international HR practices that help the firm to achieve its international vision and business strategy as well as____________.

Accepted Answer

IHRM strategy involves strategically managing the HR function to align with the firm's international vision and business strategy, ensuring that HR practices support the overall goals of the organization on a global scale.

Question 19

Designing a IHRM strategy that concentrates authority and decision making at the top of the firm (the headquarters) is similar to the concept of integration, is considered as a decision to ____________.

Accepted Answer

Centralization refers to concentrating authority and decision-making at the top level of the organization, typically at the headquarters, which aligns with the description given.

Question 20

An IHRM strategy's effect on organizational effectiveness is _________ dependent on how well the IHRM strategy fits with and supports a MNE's business strategy

Accepted Answer

An IHRM (International Human Resource Management) strategy's effect on organizational effectiveness is always dependent on how well the IHRM strategy fits with and supports a MNE's (Multinational Enterprise) business strategy. This alignment ensures that the human resource practices are conducive to achieving the overall goals of the organization in the global context.

Quiz 2: Strategic International Human Resource Management