DBA Global Business Strategy and International Management 2

Question 1

Which of the following BEST describes the concept of 'institutional voids' in emerging markets?

Accepted Answer

Gaps in market-supporting institutions such as contract enforcement and information intermediaries

Answer

The absence of skilled labor in developing economies

Answer

Tax loopholes exploited by multinational corporations

Answer

Regulatory excess that stifles entrepreneurship

Question 2

A firm pursuing a 'born global' strategy is best characterized as:

Accepted Answer

A firm that enters international markets from or near its inception

Answer

A firm that restricts sales to its home country for the first decade

Answer

A large multinational that acquires foreign companies early in its life cycle

Answer

A firm that outsources all manufacturing to low-cost countries immediately

Question 3

In global value chain analysis, 'value capture' refers to:

Accepted Answer

The share of value-added profit a firm retains from its position in the chain

Answer

The total revenue generated by all firms in the chain

Answer

The process of acquiring competitors along the value chain

Answer

The alignment of customer perceptions with brand value

Question 4

The 'liability of foreignness' in international business refers to:

Accepted Answer

Costs and disadvantages that foreign firms face relative to local incumbents

Answer

Higher import duties imposed on foreign companies

Answer

Legal restrictions on foreign direct investment

Answer

Currency conversion costs for cross-border transactions

Question 5

Which organizational structure is MOST appropriate for a multinational pursuing a multidomestic strategy?

Accepted Answer

Worldwide geographic area structure

Answer

Global functional structure

Answer

International division structure

Answer

Worldwide product division structure

Question 6

Cross-cultural management research by Hofstede identifies 'uncertainty avoidance' as:

Accepted Answer

The degree to which a society tolerates ambiguity and accepts that the future is uncertain

Answer

A firm's strategy to hedge against foreign exchange volatility

Answer

The tendency of managers to delay decisions under competitive pressure

Answer

The extent to which a culture favors risk-taking in entrepreneurship

Question 7

Which of the following describes 'reverse innovation,' a concept popularized by Immelt, Govindarajan, and Trimble?

Accepted Answer

Innovations developed in emerging markets that are later adopted in developed markets

Answer

Repatriating profits from foreign subsidiaries to the headquarters country

Answer

Adapting products designed for wealthy consumers for low-income segments

Answer

Transferring manufacturing processes from high-cost to low-cost countries