Free IIA-CIA-PART4 Exam Braindumps

According to keegan's model of adaptation strategies, a firm that decides to operate globally by changing its product and its promotion methods has chosen

  1. A dual adaptation strategy.
  2. The backward variant of a product invention strategy.
  3. The forward variant of a product invention strategy.
  4. A straight extension strategy.

Answer(s): A

Explanation:

Communication adaptation is a strategy that does not change the products, but advertising and marketing campaigns are changed to reflect the local culture and beliefs. In contrast, a dual adaptation strategy changes both the product and the promotion to provide the best chance of acceptance in a foreign market.



Distribution channels ensure that goods in international trade are transferred successfully to end users. Where are intermediaries, such as trading companies, most likely selected?

  1. Channels within nations.
  2. Export department of the seller.
  3. International division of the seller.
  4. Channels between nations.

Answer(s): D

Explanation:

Channels between nations carry goods to foreign borders. They include air, land, sea, or rail transportation channels. At this stage, in addition to transportation methods, intermediaries are selected (e.g., agents or trading companies), and financing and risk management decisions are reached.



Managerial attitudes toward global operations are viewed by researcher HowardPerl mutteras a key to understanding multinational firms. An ethnocentric attitude is indicated
by:

  1. An identification with the nationality of the host country.
  2. Collaboration between the firm's subsidiaries and the firm's central administration.
  3. A high volume of information flow in the form of orders and advice to subsidiaries.
  4. A staffing emphasis on finding and developing the best people in the world for key positions anywhere in the firm.

Answer(s): C

Explanation:

An ethnocentric attitude assumes that the home country's people, practices, and ideas are superior to all others. Thus, the firm's identification is with the owner's nationality. Authority and decision making are centralized, so communication is likely to involve a high volume of information flow in the form of orders and advice to subsidiaries. Moreover, home-country standards are apt to be used for performance evaluation of entities and individuals. Also, this ethnocentric attitude is perpetuated by recruiting and developing home-country individuals for key posts throughout the firm. The advantages of an ethnocentric attitude are simplicity and close control. The disadvantages are social and political problems in foreign countries, poor feedback, ineffective planning, lack of flexibility and innovative thinking, and higher turnover of managers in foreign subsidiaries.



Managerial attitudes toward global operations are viewed by researcher HowardPerl mutteras a key to understanding multinational firms. A polycentric attitude is indicated by

  1. An identification with the nationality of the owner.
  2. Evaluation and control standards that are both local and global.
  3. High information flow in multiple directions.
  4. Relatively little decision making by the central administrative authority.

Answer(s): D

Explanation:

A polycentric attitude assumes that cultural differences require local managers to make most decisions because they are more knowledgeable about local conditions than are central administrators. Thus, development of local managerial talent is crucial. Another result is that foreign operating performance is primarily evaluated based on results. As a consequence, methods, training, and incentives vary significantly among subsidiaries. Furthermore, control is predominantly local, the firm is identified with the nationality of the host nation, and relatively little communication occurs with central administration or among subsidiaries. One disadvantage is that local operations may have inefficiencies because of duplication of activities. Another disadvantage is loss of goal congruence between local entities and the firm as a whole. Advantages are more capable and motivated local managers, better results in local markets, local development of new product ideas, and stronger support by host governments.






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K.Tho commented on October 05, 2023
Very helpful
UNITED STATES
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