MGT 6670 Final Exam Questions AND Correct Answers
-Developing good relations with the host government and other local political
groups
-Producing as much of the product locally as possible with the use of in-country
suppliers and subcontractors, thus making it a "domestic" product
-Creating joint ventures and hiring local people to manage and run the
operation
-Doing as much local research and development as possible
-Developing effective labor-management relations - ✔✔Some of the most
integrative techniques include the following:
1. relative bargaining power analysis
2. integrative, protective, and defensive techniques
3. proactive political strategies - ✔✔Three strategies for responding to political
risks:
administrative coordination - ✔✔MNC makes strategic decisions based on the
merits of the individual situation rather than a predetermined economic or
political strategy
alliance - ✔✔any type of cooperative relationship among two or more different
firm
base of the pyramid - ✔✔Strategies to identify, target, adapt, and respond to
needs among the lowest income consumer segments.
, Base salary, benefits, allowances, incentives, and taxes - ✔✔5 elements of a
typical expatriate compensation package:
Born Global - ✔✔Organizations that are formed as global firms from the outset.
direct controls - ✔✔The use of face-to-face or personal meetings for the
purpose of monitoring operations
Economic imperative - ✔✔A worldwide strategy based on cost leadership,
differentiation, and segmentation
Ethnocentrism - ✔✔The belief that one's own way of doing things is superior to
that of others
Exporting and importing - ✔✔often are the only available choices for small and
new firms wanting to go international
Expropriation - ✔✔The seizure of businesses by a host country with little, if any,
compensation to the owners.
external control - ✔✔find out what customers want and to be prepared to
respond appropriately
first-mover advantage - ✔✔Occurs when an organization can significantly
impact its market share by being first to market with a competitive advantage
-Developing good relations with the host government and other local political
groups
-Producing as much of the product locally as possible with the use of in-country
suppliers and subcontractors, thus making it a "domestic" product
-Creating joint ventures and hiring local people to manage and run the
operation
-Doing as much local research and development as possible
-Developing effective labor-management relations - ✔✔Some of the most
integrative techniques include the following:
1. relative bargaining power analysis
2. integrative, protective, and defensive techniques
3. proactive political strategies - ✔✔Three strategies for responding to political
risks:
administrative coordination - ✔✔MNC makes strategic decisions based on the
merits of the individual situation rather than a predetermined economic or
political strategy
alliance - ✔✔any type of cooperative relationship among two or more different
firm
base of the pyramid - ✔✔Strategies to identify, target, adapt, and respond to
needs among the lowest income consumer segments.
, Base salary, benefits, allowances, incentives, and taxes - ✔✔5 elements of a
typical expatriate compensation package:
Born Global - ✔✔Organizations that are formed as global firms from the outset.
direct controls - ✔✔The use of face-to-face or personal meetings for the
purpose of monitoring operations
Economic imperative - ✔✔A worldwide strategy based on cost leadership,
differentiation, and segmentation
Ethnocentrism - ✔✔The belief that one's own way of doing things is superior to
that of others
Exporting and importing - ✔✔often are the only available choices for small and
new firms wanting to go international
Expropriation - ✔✔The seizure of businesses by a host country with little, if any,
compensation to the owners.
external control - ✔✔find out what customers want and to be prepared to
respond appropriately
first-mover advantage - ✔✔Occurs when an organization can significantly
impact its market share by being first to market with a competitive advantage
