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

Bartlett & Ghoshal's transnational strategy seeks to balance global integration (efficiency), local responsiveness, and the transfer of knowledge across units.

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

Political risk encompasses expropriation, regulatory changes, corruption, civil unrest, and other government-related factors that can harm foreign investments.

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

The Uppsala model holds that firms accumulate market knowledge experientially, reducing perceived psychic distance and supporting deeper commitment at each stage.

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

Richard Scott identified three pillars of institutions—regulative (laws), normative (values/norms), and cognitive (shared beliefs)—widely applied in IB research.

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 = moving activities to another country (could remain in-house); outsourcing = contracting activities to an external party (could be domestic or abroad).

(RSM) Rotterdam School of Management Practice Test

(RSM) Rotterdam School of Management Practice Test

RSM Internationalization 3