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The text makes the point that multinational strategy and structure have a reciprocal relationship. What are the three arguments the text makes in support of this statement?

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(1) Strategy usually drives structure. T...

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Duplicating home country-based competencies in foreign countries is known as localization.

A) True
B) False

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When it comes to multinational enterprises, host countries:​


A) ​May provide tax incentives to encourage MNE activity.
B) ​Favor MNE investment in higher value-added areas.
C) ​Often put formal institutional factors in place to protect domestic employment.
D) ​All of the above.

E) C) and D)
F) All of the above

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Strategy drives structure: a misfit, such as combining a global strategy with a geographic area structure, may have grave performance consequences.

A) True
B) False

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Customer-focused dimensions cut across all three existing mainstream dimensions.

A) True
B) False

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In knowledge management, when the role of foreign subsidiaries is make differentiated contributions that are integrated in worldwide operations, the MNE is following a:


A) ​Home replication strategy.
B) ​Localization strategy.
C) ​Global standardization strategy.
D) ​Transnational strategy.

E) B) and C)
F) None of the above

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Mega Global Corporation has centralized all of its global operations. The firm's manager in Lower Slobovia would like to see more decentralization. Her complaint: "We are the experts on what needs to be done in this country but we have to get approval from people who have no idea as to what is going on here. That makes neither sense nor dollars." Evaluate her statement.

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Many students will sympathize with the l...

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Knowledge management uses "centers of excellence" in which type of MNE?


A) Home replication.
B) Local (multidomestic) .
C) Global.
D) All of the above.

E) A) and D)
F) A) and C)

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In a transnational MNE, the role of subsidiaries is to adapt and leverage parent company competencies.

A) True
B) False

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Which of the following is a customer-focused dimension?


A) Knowledge leakage.
B) Out-of-the-box packaged solutions.
C) Solutions-based structure.
D) None of the above.

E) B) and C)
F) A) and B)

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Advocates of subsidiary initiatives argue that they may inject a much-needed spirit of entrepreneurship throughout a larger bureaucratic MNE.

A) True
B) False

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Subsidiary initiatives are inconsistent with corporate-wide goals.

A) True
B) False

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Four strategic choices for MNEs do NOT include:


A) Home replication.
B) Domestic.
C) Multidomestic.
D) Transnational.

E) None of the above
F) B) and C)

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The integration-responsiveness framework for dealing with pressures focuses on:


A) How to simultaneously deal with cost reduction and local responsiveness.
B) Host country demands and expectations.
C) Making local customers and governments happy.
D) Producing a global version of a product or service.

E) A) and C)
F) B) and D)

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Industrial-products firms tend to adopt geographic area divisions, and consumer-goods companies often rely on global product divisions.

A) True
B) False

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Unique to international competition are the pressures for local responsiveness, which are reflected in:


A) Consumer preferences.
B) Distribution channels.
C) Host country demands.
D) All of the above.

E) B) and D)
F) A) and B)

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Transnational strategy aims to capture "the best of both worlds" by endeavoring to be both cost efficient and locally responsive.

A) True
B) False

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What are the two sides of external formal institutions, and how do they affect the rules of the game?

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​Formal institutional frameworks erected...

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When it comes to the relationship between multinational strategy and structure, it is:


A) ​Best implemented through the superiority of the matrix structure.
B) ​Static.
C) ​One of reciprocity.
D) ​Mostly one way from structure to strategy.

E) B) and C)
F) C) and D)

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Institutional factors that affect MNEs include:


A) ​External, informal factors.
B) ​Internal factors.
C) ​External formal factors.
D) ​All of the above.

E) C) and D)
F) None of the above

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