1. The opening case is an example of how global companies hire

Chapter 1

• The opening case is an example of how global companies hire

employees locally and then train employees to work in other countries.

• True

*b. False

• In the opening case, Samsung’s Global Strategy Group has

demonstrated that cultural i ntegration is difficult, with retention rates below two-thirds.

*a. True

• False

• Within Samsung’s Global Strategy Group, Korean colleagues have had

to change their work styles to accommodate Westernized practices.

*a. True

• False

• As demonstrated at Samsung, it is easier for Westerners to adapt to

Eastern work styles than for Easterners to adapt to Western work styles.

• True

*b. False

• A multinational enterprise rarely engages in foreign direct

investment.

• True

*b. False

• A typical “one-size-fits-all” strategy remains the most effective

for firms “going global.”

• True

*b. False

• The current brand of “global strategy” seems relevant only for

multinational enterprises from developed countries, primarily North America, Europe, and Japan.

*a. True

• False

(Global Strategy 4e Mike Peng ) (Test Bank, Correct Answer are marked with*) 1 / 4

• In the global economic pyramid, the top tier includes the 2 billion

people whose annual per capita income is greater than US$20,000.

• True

*b. False

• Global strategy has, in the past, been prima rily focused on markets

that consist of those people who are in the bottom tier of the global economic pyramid.

• True

*b. False

• A SWOT analysis resonates well with Sun Tzu’s teachings.

*a. True

• False

• If a strategy (theory) is truly s uccessful, it will work not just

for one firm but for all others as well.

• True

*b. False

• If done well, a SWOT analysis will turn unrealized strategies into

intended strategies.

• True

*b. False

• The two primary purposes of a theory a re to explain the past and

predict the future.

*a. True

• False

• The concept of strategy as integration means that strategy is a

combination of planned deliberate actions and unplanned emergent activities.

*a. True

• False

• The quality of management practices around the world does not seem

to correlate well with the level of economic development.

*a. True 2 / 4

• False

• The Japanese use a formal system of interlocking business groups

and relationships, known as guanxi, in determining business strategies.

*a. True

• False

• The three key perspectives of strategy as a discipline include

industry-based, resource-based, and labor-based views.

*a. True

• False

• Companies use balanced scorecards to summarize business info rmation

into a smaller number of critical factors.

*a. True

• False

• Determining the scope of the firm involves not only growth of the

firm but also contraction.

*a. True

• False

• The text stresses that realism indicates that all companie s should

“go global” and endeavor to do so as quickly as possible in view of the vast opportunities that exist.

• True

*b. False

• The industry-based view posits that the degree of competitiveness

in an industry largely determines firm performance.

• True

*b. False

• The resource-based view suggests that firm -specific capabilities do

not drive performance differences.

*a. True

• False

• / 4

• The institution-based view argues that institutional forces provide

an answer to similarities in f irm performance but not differences.

• True

*b. False

• The more traditional meaning of global strategy is any strategy

outside one’s home country.

*a. True

• False

• The textbook’s goal is to approach global strategy as the way that

both domestic firms and foreign entrants compete successfully.

*a. True

• False

• In discussions of globalization, a case can be made for both

extensive cultural integration as well as the promotion of inequality.

*a. True

• False

• Although global strategy is associated with business, the term

globalization means the close integration of countries and peoples of the world.

*a. True

• False

• The earliest MNEs existed in some form thousands of years ago in

the Assyrian, Phoenician, an d Roman empires.

*a. True

• False

• According to the text, today’s most successful MNEs far exceed the

historical clout of some MNEs such as Britain’s East India Company during colonial times.

• True

*b. False

• / 4