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Institutional voids can be overcome

Some countries, particularly those with collectivist orientations, are just not open to Western fast-food restaurants

Business models developed for advanced, Western markets rarely succeed in the developing world

Even the most successful multinational firms can lose their way when they forsake the four elements of Porter’s diamond

Which of the following is true of a transnational strategy?

It is easy to implement because it does not place any conflicting demands on a company.

It is used when the pressures for cost reductions are low.

It is usually used when the pressure for local responsiveness is relatively low.

It is used by firms that try to achieve low costs through location economies, economies of scale, and learning effects

According to the article “How Wal-Mart is Changing China,” the country’s burgeoning middle class has embraced Western branded fast-food and grocery chains primarily because:

They have new purchasing power and like the novelty of Western brands

They are captivated by Western advertising campaigns featuring characters like Colonel Sanders and Ronald McDonald

They are seen as more trustworthy food purveyors than their local counterparts

Their prices are on average 25 percent cheaper than at their Chinese counterparts

Chinese towel-maker Loftex is cited in the article “How Wal-Mart is Changing China,” as a success story. How come?

Because it has achieved ambitious energy-reduction goals set by Wal-Mart

Because it has developed new synthetic micro-fibers that are cheaper than cotton

Because it has found a way to lower production costs while simultaneously improving working conditions within its factories

Because it has found a way to lower production costs while raising worker salaries by 25 percent

Which of the following is not a host country policy designed to encourage FDI? offering cash grants

offering low-interest loans

offering tax concessions

mandating performance requirements

When transportation costs are added to production costs, it becomes unprofitable to ship some products over a large distance. This is particularly true of products that have a(n): high value-to-weight ratio

moderate value-to-weight ratio

low value-to-weight ratio

extremely high value-to-weight ratio