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

Institutional voids refer to the absence or underdevelopment of market-supporting institutions—reliable courts, credit rating agencies, regulatory bodies—that multinationals depend on in advanced economies.

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

Born globals are small or medium enterprises that pursue international markets almost immediately after founding, bypassing the incremental stages described by traditional internationalization models.

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

Value capture describes how much of the value created in a global production network a particular firm can retain as profit, which depends on its bargaining power, governance position, and uniqueness of capabilities.

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

Liability of foreignness (coined by Hymer and later Zaheer) encompasses the additional costs—informational, cultural, relational—that foreign firms bear when operating in a host country where local firms have inherent advantages.

Question 5

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

Accepted Answer

Worldwide geographic area structure

Answer

A worldwide geographic area structure decentralizes decision-making to regional or country managers, enabling high local responsiveness that is the hallmark of a multidomestic strategy.

DBA - Doctor of Business Administration Practice Test

DBA - Doctor of Business Administration Practice Test

DBA Global Business Strategy and International Management 2