QUESTION 1
The primary costs of FDI to host countries are:
Loss of sovereignty and patriotism
Adverse effects on competition and exports
Capital outflow
Loss of sovereignty, adverse effects on competition, and capital outflow
QUESTION 2
____ suggests that FDI, unrestricted by government intervention, will enable countries to tap into their absolute or comparative advantage by specializing in the production of certain goods or services.
The radical view
The free market view
Pragmatic nationalism
Expropriation
QUESTION 3
What are the benefits of FDI to home countries?
Repatriated earnings from profits from FDI.
Increased exports of components and services to host countries.
Learning via FDI from operations abroad.
All of these answers
QUESTION 4
When one firm enters a foreign country through FDI, its rivals are likely to follow by undertaking additional FDI in a host country to:
Create knowledge spillover
Discover a new market for its goods
Overcome and combat market failure through FDI
Acquire location advantages or neutralize the first mover's location advantages
QUESTION 5
Most countries practice:
Pragmatic nationalism
Free market based FDI
Government embracing radical view
French patriotism
QUESTION 6
FDI may be viewed as a reflection of firm motivation to extend firm-specific capabilities abroad and their responses to overcome imperfections and failures.
True
False
QUESTION 7
Most countries practice a totally "free market" view.
True
False
QUESTION 8
Outsourcing is the process of turning over an organizational activity to an outside supplier, located in a foreign country, which will perform it on behalf of the local firm.
True
False
QUESTION 9
Financial, physical, and technological resources and capabilities are all tangible assets.
True
False
QUESTION 10
A firm's resources and capabilities are tangible assets a firm uses to choose and implement its strategies.
True
False
QUESTION 11
An example of low power distance would be when subordinates address their bosses on a first-name basis.
True
False
QUESTION 12
Benchmarking is an assessment as to whether a firm has resources and capabilities to perform a particular activity in a manner superior to competitors.
True
False
QUESTION 13
A country with low-masculinity has a more subtle differentiation between the gender roles.
True
False
QUESTION 14
Setting up subsidiaries abroad so the work can be performed in-house but in the foreign location is also called captive sourcing.
True
False
QUESTION 15
Managers in low uncertainty avoidance countries rely more on experience and training than managers in high uncertainty avoidance countries who rely more on rules.
True
False
QUESTION 16
Informal institutions include laws, regulations, and rules.
True
False
QUESTION 17
The United States is often classified as a collective society.
True
False
QUESTION 18
A pure market economy characterized by the "invisible hand" of market forces is noted by
John Stuart Mill
Adam Smith
Aristotle
Amatya Zen
QUESTION 19
Culture is defined in the text as:
The communication between members of similar location.
The collective programming of the mind, which distinguishes the members of one group or category of people from another.
The main component of formal institutions.
The attitudes and behaviors characteristic of a particular social group or organization.
QUESTION 20
When an expat employee returns to her or his current employer but the employer does not provide attractive opportunities, she/he often may be hired by a competitor firm. Why?
Competitor firms are also interested in globalizing their business.
Former expats bring instant expertise and experience.
Competing firms will pay a higher premium for expertise.
All of these answers
QUESTION 21
The government taking a "hands-off approach" is known as:
Laissez faire
Command economy
Mixed economy
Liberal approach
QUESTION 22
Expatriate managers make ideal candidates for top management positions.
True
False
QUESTION 23
____ are defined as rights associated with the ownership of intellectual property.
Patents
Copyrights
Trademarks
Intellectual property rights
QUESTION 24
In a collective society:
Family units are highly valued.
Being an entrepreneur is a popular mindset
Being different than your neighbor is important.
Outsiders are easily trusted.
QUESTION 25
Which of the following definitions best defines an expatriate manager?
A manager who works outside his or her native country
A manager of great expertise
An ex-manager rehired for advisory purposes
None of these answers