MANA 4322: Final Exam 2 Questions
with Complete Solutions 2025-2026
Updated.
globalization - Answer a term that has two meanings: (1) the increase in international
exchange, including trade in goods and services as well as money, ideas, and information; (2)
the growing similarity of laws, rules, norms, values, and ideas across countries
diamond of national advantage - Answer a framework for explaining why countries foster
successful multinational corporations; consists of four factors -- factor endowments, demand
conditions, related and supporting industries, and firm strategy, structure, and rivalry
factor endowments (national advantage) - Answer a nation's position in factors of
production
demand conditions (national advantage) - Answer the nature of home-market demand for
the industry's product or service
related and supporting industries (national advantage) - Answer the presence, absence, and
quality in the nation of supplier industries and other related industries that supply services,
support, or technology to firms in the industry value chain
firm strategy, structure, and rivalry (national advantage) - Answer the conditions in the
nation governing how companies are created, organized, and managed, as well as the nature of
domestic rivalry
multinational firms - Answer firms that manage operation in more than one country
arbitrage opportunities - Answer an opportunity to profit by buying and selling the same
good in different markets
reverse innovation - Answer new products developed by developed-country multinational
firms for emerging markets that have adequate functionality at a low cost
political risk - Answer potential threat to a firm's operations in a country due to
ineffectiveness of the domestic political system
rule of law - Answer a characteristic of legal systems where by behavior is governed by rules
that are uniformly enforced
, economic risk - Answer potential threat to a firm's operations in a country due to economic
policies and conditions, including property rights laws and enforcement of those laws
counterfeiting - Answer selling of trademarked goods without the consent of the trademark
holder
currency risk - Answer potential threat to a firm's operations due to fluctuations in the local
currency's exchange rate
management risk - Answer potential threat to a firm's operations in a country due to the
problems that managers have making decisions in the context of foreign markets
outsourcing - Answer using other firms to perform value-creating activities that were
previously performed in-house
offshoring - Answer shifting a value-creating activity from a domestic location to a foreign
location
international strategy - Answer a strategy based on firms' diffusion and adaptation of the
parent companies' knowledge and expertise to foreign markets; used in industries where the
pressures for both local adaptation and lowering costs are low
global strategy - Answer a strategy based on firms' centralization and control by the
corporate office, with the primary emphasis on controlling costs; used in industries where the
pressure for local adaptation is low and the pressure for lowering costs is high
multidomestic strategy - Answer a strategy based on firms' differentiating their products and
services to adapt to local markets; used in industries where the pressure for local adaptation is
high and the pressure for lowering costs is low
transnational strategy - Answer a strategy based on firms' optimizing the trade-offs
associated with efficiency, local adaptation, and learning; used in industries where the pressures
for both local adaptation and lowering costs are high
regionalization - Answer increasing international exchange of goods, services, money,
people, ideas, and information; and the increasing similarity of culture, laws, rules, and norms
within a region such as Europe, North America, or Asia
with Complete Solutions 2025-2026
Updated.
globalization - Answer a term that has two meanings: (1) the increase in international
exchange, including trade in goods and services as well as money, ideas, and information; (2)
the growing similarity of laws, rules, norms, values, and ideas across countries
diamond of national advantage - Answer a framework for explaining why countries foster
successful multinational corporations; consists of four factors -- factor endowments, demand
conditions, related and supporting industries, and firm strategy, structure, and rivalry
factor endowments (national advantage) - Answer a nation's position in factors of
production
demand conditions (national advantage) - Answer the nature of home-market demand for
the industry's product or service
related and supporting industries (national advantage) - Answer the presence, absence, and
quality in the nation of supplier industries and other related industries that supply services,
support, or technology to firms in the industry value chain
firm strategy, structure, and rivalry (national advantage) - Answer the conditions in the
nation governing how companies are created, organized, and managed, as well as the nature of
domestic rivalry
multinational firms - Answer firms that manage operation in more than one country
arbitrage opportunities - Answer an opportunity to profit by buying and selling the same
good in different markets
reverse innovation - Answer new products developed by developed-country multinational
firms for emerging markets that have adequate functionality at a low cost
political risk - Answer potential threat to a firm's operations in a country due to
ineffectiveness of the domestic political system
rule of law - Answer a characteristic of legal systems where by behavior is governed by rules
that are uniformly enforced
, economic risk - Answer potential threat to a firm's operations in a country due to economic
policies and conditions, including property rights laws and enforcement of those laws
counterfeiting - Answer selling of trademarked goods without the consent of the trademark
holder
currency risk - Answer potential threat to a firm's operations due to fluctuations in the local
currency's exchange rate
management risk - Answer potential threat to a firm's operations in a country due to the
problems that managers have making decisions in the context of foreign markets
outsourcing - Answer using other firms to perform value-creating activities that were
previously performed in-house
offshoring - Answer shifting a value-creating activity from a domestic location to a foreign
location
international strategy - Answer a strategy based on firms' diffusion and adaptation of the
parent companies' knowledge and expertise to foreign markets; used in industries where the
pressures for both local adaptation and lowering costs are low
global strategy - Answer a strategy based on firms' centralization and control by the
corporate office, with the primary emphasis on controlling costs; used in industries where the
pressure for local adaptation is low and the pressure for lowering costs is high
multidomestic strategy - Answer a strategy based on firms' differentiating their products and
services to adapt to local markets; used in industries where the pressure for local adaptation is
high and the pressure for lowering costs is low
transnational strategy - Answer a strategy based on firms' optimizing the trade-offs
associated with efficiency, local adaptation, and learning; used in industries where the pressures
for both local adaptation and lowering costs are high
regionalization - Answer increasing international exchange of goods, services, money,
people, ideas, and information; and the increasing similarity of culture, laws, rules, and norms
within a region such as Europe, North America, or Asia
