MNGT 4800 TEST 3 (AUBURN),
STRATEGIC MANAGEMENT EXAM 3
QUESTIONS AND ANSWERS 100% PASS
2026/2027
Globalization - ANS 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.
Integration-responsiveness framework - ANS Strategy framework that juxtaposes the
pressure an MNE faces for cost reductions and local responsiveness to derive four different
strategies to gain and sustain competitive advantage when competing globally: international
strategy, localization strategy, global-standardization strategy, and transnational strategy.
Local responsiveness - ANS The need to tailor product and service offerings to fit local
consumer preferences and host-country requirements; generally entails higher cost.
International strategy - ANS Strategy that involves leveraging home-based core competencies
by selling the same products or services in both domestic and foreign markets; advantageous
when the MNE faces low pressures for both local responsiveness and cost reductions.(harley-
davidson, rolex, starbucks)
@2026 ALLRIGHTS RESERVED 1
, Localization strategy - ANS Strategy pursued by MNEs that attempts to maximize local
responsiveness, with the intent that local consumers will perceive them to be domestic
companies; strategy arises out of the combination of high pressure for local responsiveness and
low pressure for cost reductions; also called a multi-domestic strategy.(bridgestone)
Global-standardization strategy - ANS Strategy attempting to reap significant economies of
scale and location economies by pursuing a global division of labor based on wherever best-of-
class capabilities reside at the lowest cost.(infosys, lenovo, siemens)
Global strategy - ANS A firm's strategy to gain and sustain a competitive advantage when
competing agains other foreign and domestic companies around the world.
Transnational strategy - ANS Strategy that attempts to combine the benefits of a localization
strategy (high local-responsiveness) with those of a global-standardization strategy (lowest cost
position attainable); sometimes called glocalization.(ABB, Bertelsmann P&G)
Foreign direct investment (FDI) - ANS A firm's investments in value-chain activities abroad.
Globalization hypothesis - ANS Assumption that consumer needs and preferences throughout
the world are converging and thus becoming increasingly homogenous.
Liability of foreignness - ANS Additional costs of doing business in an unfamiliar cultural and
economic environment, and of coordinating across geographic distances.
Multinational enterprise (MNE) - ANS A company that deploys resources and capabilities in
the procurement, production, and distribution of goods and services in at least two countries
Strategy implementation - ANS 1. only way to realize the values of competitive strategies
2.key to gaining and sustaining competitive advantage.
@2026 ALLRIGHTS RESERVED 2
STRATEGIC MANAGEMENT EXAM 3
QUESTIONS AND ANSWERS 100% PASS
2026/2027
Globalization - ANS 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.
Integration-responsiveness framework - ANS Strategy framework that juxtaposes the
pressure an MNE faces for cost reductions and local responsiveness to derive four different
strategies to gain and sustain competitive advantage when competing globally: international
strategy, localization strategy, global-standardization strategy, and transnational strategy.
Local responsiveness - ANS The need to tailor product and service offerings to fit local
consumer preferences and host-country requirements; generally entails higher cost.
International strategy - ANS Strategy that involves leveraging home-based core competencies
by selling the same products or services in both domestic and foreign markets; advantageous
when the MNE faces low pressures for both local responsiveness and cost reductions.(harley-
davidson, rolex, starbucks)
@2026 ALLRIGHTS RESERVED 1
, Localization strategy - ANS Strategy pursued by MNEs that attempts to maximize local
responsiveness, with the intent that local consumers will perceive them to be domestic
companies; strategy arises out of the combination of high pressure for local responsiveness and
low pressure for cost reductions; also called a multi-domestic strategy.(bridgestone)
Global-standardization strategy - ANS Strategy attempting to reap significant economies of
scale and location economies by pursuing a global division of labor based on wherever best-of-
class capabilities reside at the lowest cost.(infosys, lenovo, siemens)
Global strategy - ANS A firm's strategy to gain and sustain a competitive advantage when
competing agains other foreign and domestic companies around the world.
Transnational strategy - ANS Strategy that attempts to combine the benefits of a localization
strategy (high local-responsiveness) with those of a global-standardization strategy (lowest cost
position attainable); sometimes called glocalization.(ABB, Bertelsmann P&G)
Foreign direct investment (FDI) - ANS A firm's investments in value-chain activities abroad.
Globalization hypothesis - ANS Assumption that consumer needs and preferences throughout
the world are converging and thus becoming increasingly homogenous.
Liability of foreignness - ANS Additional costs of doing business in an unfamiliar cultural and
economic environment, and of coordinating across geographic distances.
Multinational enterprise (MNE) - ANS A company that deploys resources and capabilities in
the procurement, production, and distribution of goods and services in at least two countries
Strategy implementation - ANS 1. only way to realize the values of competitive strategies
2.key to gaining and sustaining competitive advantage.
@2026 ALLRIGHTS RESERVED 2
