Management chapt 1 Essay

2440 Words Feb 19th, 2014 10 Pages
Chapter 1
Expanding abroad:
Motivations, means, and mentalities

True/False

1. The largest MNEs are equivalent in their economic importance to less developed economies such as Tanzania, Estonia or Sri Lanka.

Answer: False (Sales of the largest MNEs exceed the GDPs of less developed countries.)
Difficulty: Easy
Page: 4 and Table 1-1 on page 3
Topic: MNE scope and influence

2. The process of internationalization followed by most firms is usually well-thought out in advance and typically builds on a combination of rational analysis, planning and implementation.

Answer: False (It is more likely a combination of rational analysis, opportunism, and luck. In regards to opportunism, several studies have found that most firms
…show more content…
a. global mentality, multinational mentality, international mentality, transnational mentality.
b. international mentality, global mentality, transnational mentality, multinational mentality.
c. multinational mentality, global mentality, international mentality, transnational mentality.
d. international mentality, multinational mentality, global mentality, transnational mentality.

Answer: d (a, b, and c are incorrect because, although they describe the different ways of management thinking regarding the strategic role of foreign operations in emerging MNEs, they do not describe the evolution of this thinking in the correct sequence.)
Difficulty: Moderate
Page: 11-14
Topic: Evolving mentality toward strategic role of foreign operations

14. A franchise, such as McDonald’s, is a _________ mode of foreign entry.
a. low commitment, low control
b. low commitment, moderate control
c. low commitment, high control
d. moderate commitment, moderate control

Answer: b (a, c, and d would describe indirect export, contract manufacturing, and joint venture foreign modes of entry respectively.)
Difficulty: Moderate
Page: 10 (figure 1-2)
Topic: Foreign entry mode

15. A joint venture is a _________ mode of foreign entry.
a. low commitment, low control
b. low commitment, moderate control
c. low commitment, high control
d. moderate commitment, moderate control

Answer: d (a, b, and c would describe indirect export,

Related Documents