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Mgt 195 Hk1 Business Policy and Strategy Final Exam

  • Date Submitted: 08/31/2015 01:00 AM
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MGT 195 HK1 Business Policy And Strategy Final Exam

MGT 195 HK1 Business Policy And Strategy Final Exam

Question 1
The laws, and the enforcement of laws, associated with the protection of intellectual property rights, represent a significant currency and management risk to multinational firms.

Question 2
Software Tech, Inc., a company in the computer software industry, invests heavily in R&D and product design. Thus, most of its value is added:
In its infrastructure

Question 3
Offshoring takes place when a firm decides to shift an activity that they were previously performing in a domestic location to a foreign location.

Question 4
Elements of a multidomestic strategy may facilitate the competitive advantage of cost leadership by:
Flexibility in adjusting to local laws and customs
Decreased duplication of inventories which are often involved in having multiple plants producing similar products
Decreased shipping and transportation costs inherent in local production
Economies of scale gained through centralized production of standardized products

Question 5
Corporations with multiple foreign operations that act very independently of one another are following a multidomestic strategy.

Question 6
The sale of Boeing’s commercial aircraft and Microsoft’s operating systems in many countries enable these companies to benefit from:
Higher prices in their domestic markets
Economies of scale
Optimizing the location for many activities in their value chain
Reducing their exposure to currency risks

Question 7
Appreciation of the U.S dollar will have the following impact on McDonald’s:
Lower sales abroad because foreign customers cannot afford McDonalds’ products
More transfer of ingredients from the U.S to branches abroad to take advantage of the higher...


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