BADM 381 Exam #1 Questions with
Correct Answers
What different about MNC management? - ANSWER-1. Diverse patterns of
consumer preferences
2. Diverse culture
3. Political demands and risks
4. Currency fluctuation and exchange risk
5. Organizational complexity and diversity
3 major motivations to go abroad - ANSWER-1. Market motives
2. Cost-reduction motives
3. Strategic motives (ex. strategic assets or capability seekers)
Why do MNCs from specific home countries perform much better in specific
industries than MNCs from other countries - ANSWER-Porter's Competitive
Advantage of Nations (National Diamond Model) explains this
National competitive advantage measured by - ANSWER-Porters Diamond
Industry competitive advantage measured by - ANSWER-Porters Competitive
Advantages
Porters competitive 5 forces: - ANSWER-Customers, suppliers, substitute products,
competitors, new entrants
Firms competitive advantage measured by - ANSWER-Porters Value Chain, and
competitive advantage/strategy: cost leadership, differentiation, and focus.
Porters National Diamond Model - ANSWER-International competitive advantage in
middle
Factor conditions
Demand conditions
Related and supporting industries
Firm strategy, structure, rivalry
Government & chance
Factor conditions (endowments) - ANSWER-the nations position in factors of
production such as skilled labor or infastructure
Demand conditions - ANSWER-the nature of the home markets demand for the
industry product or service
Correct Answers
What different about MNC management? - ANSWER-1. Diverse patterns of
consumer preferences
2. Diverse culture
3. Political demands and risks
4. Currency fluctuation and exchange risk
5. Organizational complexity and diversity
3 major motivations to go abroad - ANSWER-1. Market motives
2. Cost-reduction motives
3. Strategic motives (ex. strategic assets or capability seekers)
Why do MNCs from specific home countries perform much better in specific
industries than MNCs from other countries - ANSWER-Porter's Competitive
Advantage of Nations (National Diamond Model) explains this
National competitive advantage measured by - ANSWER-Porters Diamond
Industry competitive advantage measured by - ANSWER-Porters Competitive
Advantages
Porters competitive 5 forces: - ANSWER-Customers, suppliers, substitute products,
competitors, new entrants
Firms competitive advantage measured by - ANSWER-Porters Value Chain, and
competitive advantage/strategy: cost leadership, differentiation, and focus.
Porters National Diamond Model - ANSWER-International competitive advantage in
middle
Factor conditions
Demand conditions
Related and supporting industries
Firm strategy, structure, rivalry
Government & chance
Factor conditions (endowments) - ANSWER-the nations position in factors of
production such as skilled labor or infastructure
Demand conditions - ANSWER-the nature of the home markets demand for the
industry product or service
