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question 1 (mutiple choices) Implication for the cross-border analysis of differ

ID: 430092 • Letter: Q

Question

question 1 (mutiple choices)

Implication for the cross-border analysis of differentiation effects include which of the following?

a) Analyzing how cross country (CAGE) heterogeneity affects willingness to pay.

b) Relating the potential for differentiation to R & D/sales and advertising ratios.

c) Thinking through how globality affects willingness to pay.

d) Assuming additional business units can tap already heavily utilized resources with little or no additional investment.

question 2 (mutiple choices)

One can apply the best-alternative test by...

a)Envisioning the transactions two businesses should undertake to maximize the wedge between cost and willingness to pay.

b)Using it as justification when contractual complexity and incompleteness are prevalent.

c)Applying it when investments and and corporate resources tend to be heavily utilized within corporate boundaries rather than across them.

d)By comparing the various ways transactions can be governed- within a single corporation or across corporate boundaries.

question 3 (mutiple choices)

Strategies to Manage Guarded Globalization are...

a)Stay at home and become more strategic at home

b)Use state to fight state; add value to the state

c)Strike alliances; become to diversified to fail

d)Build it so you can stay; capitalize on state capitalism

question 4 (mutiple choices)

The term guarded globalization refers to…

a)The fact governments of developing nations have become wary of opening more industries to multinational companies and are zealously protecting local interests

b)Countries or regions pick the sectors in which they will allow capital investment and select the local, often state owned, companies they wish to do business to promote

c)A slow moving, selective, and with a dash of nationalism and regionalism business

d)Host states (nations) utilizing their power to help their country increase jobs, wages, and standard of living by guarding or protecting multinational companies’ investment and business in their country

question 5 (mutiple choices)

Until 2008 going global seemed to make sense for just about every company in the world especially Western market companies because of which of the following?

a)Population expansion had slowed, incomes had flatten, corporate operating costs were rising

b)Developing nations boasted population growth, rising salaries, relatively low wages, and a welcoming climate for foreign investment

c)Foreign governments slashing of taxes more than offset increased concerns for host country national security

d)Distances shrank due to modern transportation and communication technologies allowed trade and capital flows to surge

question 6 (mutiple choices)

The term arbitrage means

a)Cultural differences between consumers of different countries

b)geographic distance

c)exploiting differences between markets

d)generating alternative

question 7 (mutiple choices)

According to the author differentiation factors seem to be more prone to...

a)being assumed instead of analyzed

b)taken for granted

c)being ignored rather then studied

d)forgotten

question 8 (mutiple choices)

Using the better-off test to broaden geographic scope involves asking ...

a)Is the geographic distance involved to far?

b)Does the involvement of two or more countries create more value than staying with a single country?

c)Does administrative and cultural distance equally affect strategic plans?

d)Since all countries are sensitive to some kind of distance such expansion should be treated as an imperative and the better off test only applied to countries of significant distance.

question 9 (mutiple choices)

Bilateral attributes of administrative distance include which of the following?

a)Lack of colonial ties

b)Lack of common currency

c)different legal system

d)Political Hostility

question 10 (mutiple choices)

The AAA strategies are...

a)arbitrage, aggregation, and adaptation

b)administrative, attractiveness, and accountability

c)arbitrage, aggregation, and administrative

d)attractiveness, aggregation, and adaptation

Explanation / Answer

Answer 1. c) Thinking through how globality affects willingness to pay.

Answer 2. d)By comparing the various ways transactions can be governed- within a single corporation or across corporate boundaries.

Answer 3. d)Build it so you can stay; capitalize on state capitalism

Answer 4. a)The fact governments of developing nations have become wary of opening more industries to multinational companies and are zealously protecting local interests

Answer 5. d)Distances shrank due to modern transportation and communication technologies allowed trade and capital flows to surge

Answer 6. c)exploiting differences between markets

Answer 7. d)forgotten

Answer 8. b)Does the involvement of two or more countries create more value than staying with a single country?

Answer 9. c)different legal system

Answer 10. a)arbitrage, aggregation, and adaptation