Table of Contents
Which of the following strongly affects the cultural distance?
Which of the following strongly affects the cultural distance between two countries? that are related to national and/or religious identity.
What is the process of closer integration and exchange between different countries and peoples worldwide best described as?
Globalization. _____ is best described as a 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.
Which of the following are the most important determinants of economic distance?
Economic distance: Two of the biggest determinants of economic distance are the Cost of Labor and level of Consumer wealth between countries. It is more difficult for a company from a wealthy country to enter a poorer country and be successful there, but not impossible.
Which of the following is a feature of a multinational company pursuing a global standardization strategy?
Which of the following is a feature of a multinational company pursuing a global-standardization strategy? … Its business-level strategy tends to be cost leadership. Its competitive advantage lies in its high local responsiveness.
What are cultural distances?
Cultural distance refers to differences in language (e.g., are the two languages members of the same language family or belong to very different families), differences in social structure (e.g., monogamy vs. polygyny), differences in religion, politics, economic conditions, level of literacy, and the like.
What is cultural distance in international marketing?
Cultural distance is defined as the degree to which shared norms and values differ from one country to another (Hofstede, 2001). Some researchers have opted to use the term ‘cultural proximity’ in their studies, which in opposition, reflects the similarity in culture of two or more countries.
Which of the following factors best helps capture administrative and political distance?
Which of the following factors best helps capture administrative and political distances? replicate their existing business model more easily.
Which of the following is part of Geert Hofstede’s cultural dimensions?
Geert Hofstede, in his pioneer study looking at differences in culture across modern nations, identified four dimensions of cultural values: individualism-collectivism, power distance, uncertainty avoidance, and masculinity-femininity.
Why does strategy implementation often require changes within an organization?
Why does strategy implementation often require changes within an organization? Strategy implementation transforms strategy into actions and business models. … Organizational structure must follow strategy in order for firms to achieve superior performance.
What is cultural distance in the cage framework?
The CAGE Distance Framework identifies Cultural, Administrative, Geographic and Economic differences or distances between countries that companies should address when crafting international strategies. It may also be used to understand patterns of trade, capital, information, and people flows.
What is economic distance?
The distance between two countries is the. largest percentage difference in unit costs among all sectors. If all goods are traded, this distance. is the uniform ad valorem tariff that shuts down bilateral trade. The median economic distance.
What are the factors affecting global economy?
Economists generally agree that economic development and growth are influenced by four factors: human resources, physical capital, natural resources and technology. Highly developed countries have governments that focus on these areas.
Which of the following countries has a high geographic distance but low cultural distance?
Australia has a high geographic distance from the United States. These countries are more than 9,000 miles apart. However, they have a low cultural distance because they both share a common language.
How will an increase in coordinated economic and political integration between countries affect the world economy?
exporting goods. How will an increase in coordinated economic and political integration between countries affect the world economy? There will be gains in social welfare and living standards across the globe.
Which of the following is a feature of the globalization 2.0 stage?
Which of the following is a feature of the Globalization 2.0 stage? Multinational enterprises (MNEs) began to create smaller, self-contained replicas of themselves in a few key countries. … The country’s advantage in low-cost manufacturing has reduced.
Which of the following is an example of cultural distance?
For example, if you thought of a country that you believe is very different than the U.S. because of the geographic distance between the two countries, that is an example of cultural distance.
How is cultural distance measured?
Cultural distance measures are constructed based on cultural distance dimensions. The measures often aggregate all the cultural dimensions of a specific study into a single equation, which is labelled cultural distance. The most commonly applied cultural distance measure is the KS-index.
Is expansion speed influenced by cultural distance?
Added cultural distance might also have a higher impact on future international expansion (i.e. after the time period considered), if it occurs later in the period rather than earlier.
What are some examples of cultural differences around the world that can affect business practices?
- Customs, Mannerisms and Gestures. When doing business with an affiliate from another country, consider the cultural differences that may be presented. …
- Language Barriers and the Importance of Tone. …
- Research the Target Audience. …
- Technology and Time Differences. …
- Politics and National Pride.
What are the sources of cultural differences?
Differences between people within any given nation or culture are much greater than differences between groups. Education, social standing, religion, personality, belief structure, past experience, affection shown in the home, and a myriad of other factors will affect human behavior and culture.
What is psychic distance international business?
In international business (IB) and marketing settings, psychic distance is based on perceived differences between a home country and a foreign country regardless of physical time and space factors which differ across diverse cultures.
Which of the following is one of the implications of information asymmetry?
Which of the following is one of the implications of information asymmetry between principals and agents? Agents can pass on the information to select principals who can trade stocks based on this information. According to agency theory, corporations are viewed as a set of legal contracts between different parties.
Why is strategy implementation referred to as the Graveyard of strategy?
Why is strategy implementation referred to as the graveyard of strategy? It is a process that is independent of strategy formulation and is not necessary to ensure continued success. Managers often fail to implement a chosen strategy successfully despite extensive analysis of business environments.
Which of the following modes of entering a foreign market?
The five main modes of entry into foreign markets are joint venture, licensing agreement, exporting directly, online sales and purchasing foreign assets.
What is Geert Hofstede’s six cultural dimensions concept?
These are: Power Distance Index (high versus low). Individualism Versus Collectivism. Masculinity Versus Femininity. Uncertainty Avoidance Index (high versus low).
What were the last two cultural dimensions identified Hofstede?
The last two dimensions In our 2010 book they are re-scaled to a 0-100 format. The scale is also reversed for Flexhumility (long-term orientation, blue on the map) versus monumentalism (short-term orientation, orange on the map).
What is the focus of Hofstede’s Power Distance dimension?
Hofstede’s power distance dimension focused on how a society deals with the fact that people are unequal in physical and intellectual capabilities.
What is most likely to happen if a firm relies too long on a competency without honing?
What is most likely to happen if a firm relies too long on a competency without honing, refining, and upgrading as the firm and the environment change? changes. … Once the firm starts growing and attracting more customers she is likely to feel overloaded.
Which of the following types of groups is most susceptible to groupthink group of answer choices?
a diverse groupa cohesive groupa heterogeneous groupa decentralized groupCohesive, non-diverse groups are highly susceptible to groupthink, which in turn can lead to aweddecision making with potentially disastrous consequences.
What are three core concepts of the change management process?
Successful change management relies on four core principles: Understand Change. Plan Change.Implement Change.