1) What conditions in a host country might make it difficult for a home country firm to make a Greenfield investment there?
Restrictive host government regulations
High construction costs
Local opposition to project
All of the above
2)Which of the following is an example of a strategic asset-seeking foreign investment?
To seek economies of scale and scope.
To preempt a competitor from the local market.
To consolidate company structure.
None of the above.
1) What conditions in a host country might make it difficult for a home country firm to make a Greenfield investment there?
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2)Which of the following is an example of a strategic asset-seeking foreign investment?
| To seek economies of scale and scope. | ||
| To preempt a competitor from the local market. | ||
| To consolidate company structure. | ||
| None of the above. |
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Related questions
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 |
____ 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 |
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 |
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 moverâs location advantages |
Most countries practice:
| Pragmatic nationalism | ||
| Free market based FDI | ||
| Government embracing radical view | ||
| French patriotism |
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 |
Most countries practice a totally "free market" view.
| True | ||
| False |
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 |
Financial, physical, and technological resources and capabilities are all tangible assets.
| True | ||
| False |
A firm's resources and capabilities are tangible assets a firm uses to choose and implement its strategies.
| True | ||
| False |
An example of low power distance would be when subordinates address their bosses on a first-name basis.
| True | ||
| False |
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 |
A country with low-masculinity has a more subtle differentiation between the gender roles.
| True | ||
| False |
Setting up subsidiaries abroad so the work can be performed in-house but in the foreign location is also called captive sourcing.
| True | ||
| False |
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 |
Informal institutions include laws, regulations, and rules.
| True | ||
| False |
The United States is often classified as a collective society.
| True | ||
| False |
A pure market economy characterized by the "invisible hand" of market forces is noted by
| John Stuart Mill | ||
| Adam Smith | ||
| Aristotle | ||
| Amatya Zen |
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. |
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 |
The government taking a "hands-off approach" is known as:
| Laissez faire | ||
| Command economy | ||
| Mixed economy | ||
| Liberal approach |
Expatriate managers make ideal candidates for top management positions.
| True | ||
| False |
____ are defined as rights associated with the ownership of intellectual property.
| Patents | ||
| Copyrights | ||
| Trademarks | ||
| Intellectual property rights |
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. |
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 |
1. Terms of Payment found in international business contracts include:
a. CFR (cost and freight, foreign port)
b. Consignment
c. Documentary Drafts
d. all of the above
e. (b) and (c) above
2. Joint Ventures have the
a. advantage of utilizing the expertise of a local partner.
b. disadvantage of not being able to make all the decisions because control is shared.
c. advantage of being able to share the profits.
d. all of the above
e. (a) and (b) above
4. Businesses are using global or regional brands for the following reason(s):
a. private brands do not offer any meaningful competition.
b. economies of scale usually result in reduced costs.
c. satellite and cable TV are widely available.
d. all of the above
e. (b) and (c) above
6. E-Commerce Potential is
a) is higher for Jamaica than for Argentina.
b) is an index based on mobile phones, internet hosts, and number of PCs.
c) is a composite ranking of three indices.
d) (a) and (b) above
e) (a) and (c) above
7. Generally, industrial products require __________ adaptation than consumer products to meet the demands of the world market.
a) greater
b) less
c) the same amount of
d) only slightly less
e) only slightly more
13. Although global sourcing can be beneficial it may have some disadvantages such as
a. added costs
b. exchange rate fluctuations affecting prices
c. quality control
d. all of the above
e. (b) and (c) above
14. In staffing
a. an ethnocentric policy is always the most effective if qualified personnel are available.
b. a polycentric policy is always the least effective even when qualified personnel are available.
c. using third country personnel would be considered most frequently with regiocentric or geocentric policies.
d. all of the above
e. (a) and (c) above
16. In the most recent 40 years, union membership around the world has been in decline, in part because:
a) There are more women in the workforce.
b) The unions have been successful and priced themselves out of the market.
c) Employers have made efforts to keep business union-free.
d) (a) and (c) above only
e) All of the above.
17. When a firm has less than a majority interest in a subsidiary it can still have control by having
a) a management contract
b) the right to control the technology
c) the right to vote its shares
d) all of the above
e) (a) and (b) above only
18. The Female Wage Gap
a. is the percent of Male Wages earned by Female Employees.
b. younger females have less of a gap in all countries.
c. is the smallest for older females in Korea.
d. all of the above
e. (a) and (c) above
19. Income earned abroad by U.S. citizens:
a) incurs a tax liability in the US with some adjustments.
b) incurs tax liability only on the portions earned in the U.S.
c) incurs no tax liability.
d) incurs a tax liability in the US on all income earned with no adjustments for
taxes paid in other countries.
e) none of the above
20. The international structural stages model suggests that a typical evolutional path for an international company's structure would be:
a) from international division to geographical area division to worldwide product division.
b) from international division to worldwide product division to geographical area division.
c) from geographical area division to worldwide product division to global matrix.
d) from functional division to horizontal company to virtual corporation.
e) from international division to worldwide product division to global matrix.
21. Competitive advantage is acquired by developing competencies that
a. are common to all competitors so the firm can compete.
b. create value for customers even if the price is higher than customers want to pay.
c. are difficult to imitate.
d. all of the above
e. (a) and (c) above only
22. In their measurement and disclosure for accounting systems, less developed countries tend toward:
23. Export Marketing plans should be specific about: A. The markets to be developed B. The marketing strategy for servicing them. C. the tactics required to make the strategy operational
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24. Factors that are involved in the operation of a manufacturing system include:
A. Plant location
B. Plant layout
C. Material handling
D. Human asset
E. all of the above
| 26. A middle ground between an ad campaign that is standardized worldwide and an entirely local ad campaign is called a:
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27. In selecting a foreign market, a screening process is used by a firm. In regard to this process, answer the following:
a) The importance of the priority order of the steps in the screening process.
b) The reasons for participating in either a trade show or in a trade mission.(Select one)
c) The reasons for using cluster analysis in assessing global markets.
d) The importance of regional or ethnic subcultures in evaluating competitive forces.
28. Select any four of the following, explain each of them, and discuss the role each of them plays in international business activities:
a) Summarize any one of the videos from week six or eight (either one of them not both) and discuss the role the information in this video plays in international business activities.
b) Foreign (Free) Trade Zones
c) Countertrade
d) Explain why a manager with a global assignment needs a mentor in the host country and a mentor in the home country.
e) Quality and quantity of the labor force in a country
f) Labor Mobility and Guest Workers
