WPC 480 - Chapter 10 questions with
complete solutions
The process of closer integration and exchange between different countries and peoples worldwide,
made possible by falling trade and investment barriers, advances in telecommunications, and reductions
in transportation costs. - correct answer ✔✔Globalization
A company that deploys resources and capabilities in the procurement, production, and distribution of
goods and services in at least two countries. - correct answer ✔✔Multinational enterprise (MNE)
A firm's investments in value chain activities abroad. - correct answer ✔✔Foreign direct investment (FDI)
Part of a firm's corporate strategy to gain and sustain a competitive advantage when competing against
other foreign and domestic companies around the world. - correct answer ✔✔Global strategy
1. Gain access to a larger market
2. Gain access to low-cost input factors
3. Develop new competencies - correct answer ✔✔Advantages of going global
Benefits from locating value chain activities in the world's optimal geographies for a specific activity
wherever that may be. - correct answer ✔✔Location economies
Additional costs of doing business in an unfamiliar cultural and economic environment, and coordinating
across geographic distances. - correct answer ✔✔Liability of foreignness
A decision framework based on the relative distance between home and a foreign target country along
four dimensions; cultural distance, administrative and political distance, geographic distance, and
economic distance. - correct answer ✔✔CAGE distance framework
complete solutions
The process of closer integration and exchange between different countries and peoples worldwide,
made possible by falling trade and investment barriers, advances in telecommunications, and reductions
in transportation costs. - correct answer ✔✔Globalization
A company that deploys resources and capabilities in the procurement, production, and distribution of
goods and services in at least two countries. - correct answer ✔✔Multinational enterprise (MNE)
A firm's investments in value chain activities abroad. - correct answer ✔✔Foreign direct investment (FDI)
Part of a firm's corporate strategy to gain and sustain a competitive advantage when competing against
other foreign and domestic companies around the world. - correct answer ✔✔Global strategy
1. Gain access to a larger market
2. Gain access to low-cost input factors
3. Develop new competencies - correct answer ✔✔Advantages of going global
Benefits from locating value chain activities in the world's optimal geographies for a specific activity
wherever that may be. - correct answer ✔✔Location economies
Additional costs of doing business in an unfamiliar cultural and economic environment, and coordinating
across geographic distances. - correct answer ✔✔Liability of foreignness
A decision framework based on the relative distance between home and a foreign target country along
four dimensions; cultural distance, administrative and political distance, geographic distance, and
economic distance. - correct answer ✔✔CAGE distance framework
