MNC Exam 2 With Correct Questions And
Answers 2024
Strategy .- .correct .answer.-A .stream .of .decisions .
-An .integrated .and .coordinated .set .of .decisions .and .actions .a .business .uses .to .gain .a
.competitive .advantage .
-A .means .to .compete
-A .long .term .plan
Business .Strategies .- .correct .answer.Considerations .to .gain .competitive .advantage .in
.product .markets.
Globalization .Strategies .- .correct .answer.Considerations .for .how .to .integrate
.international .markets.
Entry .Strategies .- .correct .answer.AKA .Entry .mode .
-Considerations .for .how .to .enter .a .market
Reactive/Defensive .Reasons .for .Going .International .- .correct .answer.-Globalization .of
.competitors
-Trade .barriers
-Regulations .on .restrictions
-Customer .demands
Proactive/Aggressive .Reasons .for .Going .International .- .correct .answer.-Economies .of
.scale
-Growth .opportunities
-Resource .access .and .cost .savings
-Incentives
If .organizations .allow .their .competitors .to .become .entrenched .in .foreign .markets.... .-
.correct .answer.It .becomes .increasingly .difficult .to .enter .those .markets .at .a .later .date.
.Additionally, .the .advantages .competitors .realize .overseas .may .also .translate .into
.advantages .at .home.
Tariffs, .quotas, .and .buy-local .policies.. .- .correct .answer.Make .exports .to .foreign .markets
.too .expensive .and .impractical .to .be .competitive.
, Restrictions .by .a .firm's .home .government.. .- .correct .answer.May .become .so .expensive
.that .companies .seek .out .less .foreign .operating .environments.
Foreign .Customers... .- .correct .answer.May .demand .that .their .supplying .company
.operate .in .their .local .region .so .that .they .have .better .control .over .their .supplies. .For
.example, .McDonald's .asks .it .domestic .suppliers .to .follow .it .to .foreign .ventures.
Foreign .Govs .Wishing .to .Attract .New .Capital.. .- .correct .answer.New .capital, .technology,
.and .know-how .often .provide .incentives .such .as .tax .exemptions, .tax .holidays, .subsidies,
.loans, .and .the .use .of .property. .These .incentives .decrease .risk .and .increase .profits .for
.foreign .firms
Global .Formulation .Process .(Implementation) .- .correct .answer.Parallels .the .domestic
.process, .but .it .is .more .complex .because .of .the .greater .difficulty .in .gaining .accurate .and
.timely .information, .the .diversity .of .geographic .locations, .and .the .differences .in .political,
.legal, .cultural, .market, .and .financial .processes
Strategic .Planning .Process .- .correct .answer.Process .identifies .potential .opportunities .for
.(1) .appropriate .market .expansion, .(2) .increased .profitability, .and .(3) .new .ventures .for
.exploiting .strategic .advantages.
Environmental .Scanning .- .correct .answer.The .process .of .gathering .information .and
.forecasting .trends, .competitive .actions, .and .circumstances .that .will .affect .operations
Environmental .Assessment .- .correct .answer.Environmental .assessment .includes
.environmental .scanning .and .continuous .monitoring .to .keep .abreast .of .variables .around
.the .world .that .may .pose .opportunities .or .threats. .Environmental .scanning .should .take
.place .at .three .levels: .global, .regional, .and .national.
Environmental .Scanning .Variables .- .correct .answer.Political .Instability--->Currency
.Instability----> .Nationalism--->International .Competition
Scanning .should.. .- .correct .answer.Cover .these .major .variables. .Perhaps .the .most
.important .of .these .is .conducting .an .international .competitor .analysis, .which .entails
.answering .questions .such .as: .Will .the .infrastructure .support .new .companies .in .that
.industry? .Is .there .room .for .additional .competition? .What .is .the .relative .supply .and
.demand .for .the .proposed .product .or .service? .What .are .your .competitors' .positions, .their
.goals .and .strategies, .and .their .strengths .and .weaknesses, .relative .to .those .of .our .firm?
Attractiveness .of .Oversees .Markets .(Institutional .Effect .on .International .Market) .- .correct
.answer.The .extent .to .which .countries .have .institutions .to .promote .the .rule .of .law .to
.outside .investors.
Answers 2024
Strategy .- .correct .answer.-A .stream .of .decisions .
-An .integrated .and .coordinated .set .of .decisions .and .actions .a .business .uses .to .gain .a
.competitive .advantage .
-A .means .to .compete
-A .long .term .plan
Business .Strategies .- .correct .answer.Considerations .to .gain .competitive .advantage .in
.product .markets.
Globalization .Strategies .- .correct .answer.Considerations .for .how .to .integrate
.international .markets.
Entry .Strategies .- .correct .answer.AKA .Entry .mode .
-Considerations .for .how .to .enter .a .market
Reactive/Defensive .Reasons .for .Going .International .- .correct .answer.-Globalization .of
.competitors
-Trade .barriers
-Regulations .on .restrictions
-Customer .demands
Proactive/Aggressive .Reasons .for .Going .International .- .correct .answer.-Economies .of
.scale
-Growth .opportunities
-Resource .access .and .cost .savings
-Incentives
If .organizations .allow .their .competitors .to .become .entrenched .in .foreign .markets.... .-
.correct .answer.It .becomes .increasingly .difficult .to .enter .those .markets .at .a .later .date.
.Additionally, .the .advantages .competitors .realize .overseas .may .also .translate .into
.advantages .at .home.
Tariffs, .quotas, .and .buy-local .policies.. .- .correct .answer.Make .exports .to .foreign .markets
.too .expensive .and .impractical .to .be .competitive.
, Restrictions .by .a .firm's .home .government.. .- .correct .answer.May .become .so .expensive
.that .companies .seek .out .less .foreign .operating .environments.
Foreign .Customers... .- .correct .answer.May .demand .that .their .supplying .company
.operate .in .their .local .region .so .that .they .have .better .control .over .their .supplies. .For
.example, .McDonald's .asks .it .domestic .suppliers .to .follow .it .to .foreign .ventures.
Foreign .Govs .Wishing .to .Attract .New .Capital.. .- .correct .answer.New .capital, .technology,
.and .know-how .often .provide .incentives .such .as .tax .exemptions, .tax .holidays, .subsidies,
.loans, .and .the .use .of .property. .These .incentives .decrease .risk .and .increase .profits .for
.foreign .firms
Global .Formulation .Process .(Implementation) .- .correct .answer.Parallels .the .domestic
.process, .but .it .is .more .complex .because .of .the .greater .difficulty .in .gaining .accurate .and
.timely .information, .the .diversity .of .geographic .locations, .and .the .differences .in .political,
.legal, .cultural, .market, .and .financial .processes
Strategic .Planning .Process .- .correct .answer.Process .identifies .potential .opportunities .for
.(1) .appropriate .market .expansion, .(2) .increased .profitability, .and .(3) .new .ventures .for
.exploiting .strategic .advantages.
Environmental .Scanning .- .correct .answer.The .process .of .gathering .information .and
.forecasting .trends, .competitive .actions, .and .circumstances .that .will .affect .operations
Environmental .Assessment .- .correct .answer.Environmental .assessment .includes
.environmental .scanning .and .continuous .monitoring .to .keep .abreast .of .variables .around
.the .world .that .may .pose .opportunities .or .threats. .Environmental .scanning .should .take
.place .at .three .levels: .global, .regional, .and .national.
Environmental .Scanning .Variables .- .correct .answer.Political .Instability--->Currency
.Instability----> .Nationalism--->International .Competition
Scanning .should.. .- .correct .answer.Cover .these .major .variables. .Perhaps .the .most
.important .of .these .is .conducting .an .international .competitor .analysis, .which .entails
.answering .questions .such .as: .Will .the .infrastructure .support .new .companies .in .that
.industry? .Is .there .room .for .additional .competition? .What .is .the .relative .supply .and
.demand .for .the .proposed .product .or .service? .What .are .your .competitors' .positions, .their
.goals .and .strategies, .and .their .strengths .and .weaknesses, .relative .to .those .of .our .firm?
Attractiveness .of .Oversees .Markets .(Institutional .Effect .on .International .Market) .- .correct
.answer.The .extent .to .which .countries .have .institutions .to .promote .the .rule .of .law .to
.outside .investors.
