RSM Internationalization 3

Question 1

A company that pursues a 'transnational strategy' aims to achieve:

Accepted Answer

Global efficiency, local responsiveness, and worldwide learning simultaneously

Answer

Full local adaptation with no standardization

Answer

Cost leadership through complete global standardization

Answer

Decentralized autonomy for each subsidiary

Question 2

Political risk in international business is BEST described as:

Accepted Answer

Government actions or instability that negatively affect a firm's operations or value

Answer

The risk that interest rates will change abroad

Answer

The probability of losing a lawsuit in a foreign court

Answer

Exchange rate volatility driven by political events

Question 3

The 'internationalization process model' (Uppsala) posits that firms incrementally increase commitment in a foreign market through four stages. What drives this gradual process?

Accepted Answer

Reduction of psychic distance over time through experiential learning

Answer

Regulatory requirements in the home country

Answer

Competitive pressure from local firms

Answer

Declining transportation and tariff costs

Question 4

Which institutional framework distinguishes between regulative, normative, and cognitive pillars that shape organizational behavior across countries?

Accepted Answer

Scott's institutional pillars

Answer

Hofstede's dimensions

Answer

CAGE framework

Answer

Vernon's product life cycle

Question 5

In the context of global value chains, 'offshoring' differs from 'outsourcing' in that:

Accepted Answer

Offshoring refers to geographic relocation of activities; outsourcing refers to externalizing activities to another firm

Answer

Offshoring always involves a third-party vendor; outsourcing does not

Answer

Outsourcing requires FDI; offshoring does not

Answer

They are synonyms with no meaningful distinction

Question 6

Ghemawat's CAGE framework is used to assess distance between countries. What does the 'A' stand for?

Accepted Answer

Administrative and political

Answer

Asset specificity

Answer

Asymmetric information

Answer

Adaptive capacity

Question 7

A firm using an 'ethnocentric' staffing approach in its foreign subsidiaries will primarily:

Accepted Answer

Staff key positions with parent-country nationals (PCNs)

Answer

Hire exclusively local nationals for all positions

Answer

Recruit the best candidates globally regardless of nationality

Answer

Rotate staff from third countries to all subsidiaries