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GB 370 Test 2 Ole Miss Gentry Questions and Answers
with Solutions UPDATED!!!
Global efficiencies - ANSWER location efficiencies
economies of scale
economies of scope
Location efficiencies - ANSWER seeking lower input cost
locations
Economies of scale - ANSWER larger facilities result in lower
costs
Economies of scope - ANSWER broadening product lines
Multimarket flexibility - ANSWER international businesses may
respond to a change in one country by implementing a change
in another country
Worldwide learning - ANSWER the diverse operating
environments of multinational corporations (MNCs) contribute
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to organizational learning that can be transferred to other
operating environments
Home Replication - ANSWER utilizing a core competency or a
firm-specific advantage developed at home as a main
competitive weapon in foreign markets
Multi-Domestic Strategy - ANSWER Managing a corporation as a
collection of independent operating subsidiaries frees a firm to
customize its products, its marketing campaigns, and operating
techniques to meet local customer needs.
Global Strategy - ANSWER Viewing the world as a single
marketplace and having as a primary goal the creation of
standardized goods and services that will address the needs of
customers worldwide.
Transnational Strategy - ANSWER Attempting to combine the
benefits of scale efficiencies pursued by a global corporation,
with the benefits and advantages of local responsiveness of a
multi-domestic corporation.
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Trade growth - ANSWER about a little less than 4% increase year
on year (whole world)
How to be an importer - ANSWER -alibaba.com
-you're a reseller
-you're a solution provider
-you're wal-mart
alibaba.com - ANSWER You can buy nearly anything on there
You pay with PayPal
You ship it to your house
You're a reseller - ANSWER You sell the stock on eBay or peddle
it around town
You're a solution provider - ANSWER You talk to the customer in
depth about what they want, then you buy it for them (charge a
markup)
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You're wal-mart - ANSWER You setup an office there and buy all
kinds of stuff
Letter of Credit - ANSWER is issued by a bank at the request of
an importer and states the bank will pay a specified sum of
money to a beneficiary, normally the exporter, on presentation
of, specified documents
How is Letter of Credit system attractive - ANSWER because
both parties are likely to trust a reputable bank even if they do
not trust each other
How is payment made in an export transaction? - ANSWER
Most export transactions involve a draft, also called a bill of
exchange
A draft - ANSWER is an order written by an exporter instructing
an importer, or an importer's agent, to pay a specified amount
of money at a specified time
sight draft - ANSWER a draft payable on presentation to the
drawee
GB 370 Test 2 Ole Miss Gentry Questions and Answers
with Solutions UPDATED!!!
Global efficiencies - ANSWER location efficiencies
economies of scale
economies of scope
Location efficiencies - ANSWER seeking lower input cost
locations
Economies of scale - ANSWER larger facilities result in lower
costs
Economies of scope - ANSWER broadening product lines
Multimarket flexibility - ANSWER international businesses may
respond to a change in one country by implementing a change
in another country
Worldwide learning - ANSWER the diverse operating
environments of multinational corporations (MNCs) contribute
,2|Page
to organizational learning that can be transferred to other
operating environments
Home Replication - ANSWER utilizing a core competency or a
firm-specific advantage developed at home as a main
competitive weapon in foreign markets
Multi-Domestic Strategy - ANSWER Managing a corporation as a
collection of independent operating subsidiaries frees a firm to
customize its products, its marketing campaigns, and operating
techniques to meet local customer needs.
Global Strategy - ANSWER Viewing the world as a single
marketplace and having as a primary goal the creation of
standardized goods and services that will address the needs of
customers worldwide.
Transnational Strategy - ANSWER Attempting to combine the
benefits of scale efficiencies pursued by a global corporation,
with the benefits and advantages of local responsiveness of a
multi-domestic corporation.
,3|Page
Trade growth - ANSWER about a little less than 4% increase year
on year (whole world)
How to be an importer - ANSWER -alibaba.com
-you're a reseller
-you're a solution provider
-you're wal-mart
alibaba.com - ANSWER You can buy nearly anything on there
You pay with PayPal
You ship it to your house
You're a reseller - ANSWER You sell the stock on eBay or peddle
it around town
You're a solution provider - ANSWER You talk to the customer in
depth about what they want, then you buy it for them (charge a
markup)
, 4|Page
You're wal-mart - ANSWER You setup an office there and buy all
kinds of stuff
Letter of Credit - ANSWER is issued by a bank at the request of
an importer and states the bank will pay a specified sum of
money to a beneficiary, normally the exporter, on presentation
of, specified documents
How is Letter of Credit system attractive - ANSWER because
both parties are likely to trust a reputable bank even if they do
not trust each other
How is payment made in an export transaction? - ANSWER
Most export transactions involve a draft, also called a bill of
exchange
A draft - ANSWER is an order written by an exporter instructing
an importer, or an importer's agent, to pay a specified amount
of money at a specified time
sight draft - ANSWER a draft payable on presentation to the
drawee
