Benito, G. R., Cuervo‐Cazurra, A., Mudambi, R., Pedersen, T., & Tallman, S. (2022).

Question 1

Global startegy

Answer 1

The study shows how firms develop and implement strategies in an international context, influenced by factors like geoplitics, innovation, governance, and coordination.

Question 2

5 key themes in global strategy that was identified by the authors

Answer 2

1. Coordination
2. Collaboration
3. Government
4. Politics
5. Innovation

Question 3

Coordination in Multinationals

Answer 3

The process by which multinational firms manage differentation, integration and knowledge transfer across multiple geographic locations to create value.

Question 4

The article discusses governance in multinational firms. Which theory is primarily used to explain internal governance issues?

Answer 4

Agency Theory-A governance theory that explains conflicts of interest between owners (principals) and managers (agents) in multinational firms, leading to control mechanisms.

Question 5

Collaboration in Global strategy

Answer 5

The ways in which firms form alliances, partnerships, and joint ventures to enhance capabilities, share risks, and compete in global markets.

Question 6

Governance in Multinationals

Answer 6

The structures and mechanisms firms use to align managerial actions with owners’ interests, often explained through Agency Theory.

Question 7

Politics & global stargey

Answer 7

How governments influence multinational firms through regulations, trade policies, and institutional frameworks, shaping firms’ strategic decisions.

Question 8

Innovation in Multinational Firms

Answer 8

The development and application of new technologies, business models, and processes across global value chains to maintain competitive advantages.

Question 9

Institutional Theory

Answer 9

Suggests that firms’ strategies are shaped by formal institutions (laws, regulations) and informal norms (culture, societal expectations).

Question 10

What are the 3 grand challenges mentioned in the article?

Answer 10

1. climate change
2. Ai (artificial intelligent)
3. geopolitics

Question 11

The article highlights that emerging market firms face different strategic challenges. Which of the following is NOT mentioned as a strategy these firms use?
a) Reverse innovation
b) Selective intervention by headquarters
c) Escaping weak institutional environments
d) Gaining government support for internationalization

Answer 11

b.

Question 12

How do global value chains (GVCs) contribute to multinational strategy, according to the article?
a) They allow firms to increase local market autonomy
b) They help in distributing innovation processes across multiple firms and locations
c) They focus only on minimizing costs through outsourcing
d) They eliminate the need for knowledge transfer within multinationals

Answer 12

b.

Question 13

What role does digital transformation play in shaping global strategies according to the authors?

a. It is a critical enabler that enhances efficiency and innovation.
b. It reduces the need for market research.
c. It primarily affects supply chain

Answer 13

a.