Question 1

How is the production process of multinational corporations hierarchical?

Accepted Answer

Global values chains create a hierarchy by creating an international division of labour. Coordinated by MNCs, these production processes fragmented across borders, as labour intensive and low-skill production processes relocated to low-wage developing countries while high-skill high-wage activities remained at home. This is linked to the transferring of manufacturing by MNCs to developing countries in the 1970s. Global value chain theory, which emerged in the 1990s, identified this hierarchical relationship that brings a product to market, and MNCs as coordinating, or governing, the multitude of relationships between the various companies involved.

Question 2

What are two strategies that MNCs use when they go abroad to seek location-specific assets?

Accepted Answer

A)  Market and Efficiency 
B)  Bargaining and obsolescence 
C)  MNC and SME 
D)  Mining an Agriculture mixed methods 
E)  Assets and Bargaining 
A)  Market and Efficiency 
B)  Bargaining and obsolescence 
C)  MNC and SME 
D)  Mining an Agriculture mixed methods 
E)  Assets and Bargaining A

Question 3

Describe some of the motivations behind the expansion of MNCs.

Accepted Answer

Why firms internationalize by establishing branch plants or subsidiaries abroad, instead of by trade, is one of the most important questions in the study of multinational corporations. A second and related question is what effect this internationalization has on the politics, economy, and society of the host country. As in most areas of the social sciences, the answers to these questions vary according to the theoretical and ideological frameworks used to analyze them. At the risk of some simplification, we can point to three main approaches to understanding the internationalization of the multinational corporation: a critical approach inspired by Marxism; the mercantile or nationalist approach; and the liberal or international business approach. Each approach reveals different facets of the MNC and its activities.

Question 4

What is corporate social responsibility?

Accepted Answer

A)  Voluntary efforts on the part of firms to improve the quality of their relationships with stakeholders. 
B)  Voluntary efforts on the part of firms to improve the quality of their relationships with shareholders. 
C)  The legal commitment of firms to improve the quality of their relationships with stakeholders. 
D)  The legal commitment of firms to improve the quality of their relationships with shareholders. 
E)  Involuntary corporate actions that are the result of massive shareholder pressure. 
A)  Voluntary efforts on the part of firms to improve the quality of their relationships with stakeholders. 
B)  Voluntary efforts on the part of firms to improve the quality of their relationships with shareholders. 
C)  The legal commitment of firms to improve the quality of their relationships with stakeholders. 
D)  The legal commitment of firms to improve the quality of their relationships with shareholders. 
E)  Involuntary corporate actions that are the result of massive shareholder pressure.

Question 5

Who popularized the OLI paradigm to explain the characteristics of multinational corporations?

Accepted Answer

A)  Andre Gunder Frank 
B)  Robert Gilpin 
C)  Peter Evans 
D)  John H. Dunning 
E)  Raul Prebisch 
A)  Andre Gunder Frank 
B)  Robert Gilpin 
C)  Peter Evans 
D)  John H. Dunning 
E)  Raul Prebisch

Question 6

During the Cold War, the US administrations used their connections with certain multinational corporations to pursue specific foreign policy objectives in the developing world.

Accepted Answer

A) True 
 B)False

Question 7

In the Global South, where is most entrepreneurship located?

Accepted Answer

A)  Informal sector 
B)  Formal sector 
C)  Institutional sector 
D)  Declared sector 
E)  Non-profit sector 
A)  Informal sector 
B)  Formal sector 
C)  Institutional sector 
D)  Declared sector 
E)  Non-profit sector

Question 8

The OLI paradigm is part of the mercantile approach to MNCs in the field of development.

Accepted Answer

A) True 
 B)False

Question 9

Which is a key difference between MNCs and emerging MNCs?

Accepted Answer

A)  The importance of securing local approval before expansion. 
B)  The importance of a stable working environment. 
C)  The importance of local markets versus a focus on foreign markets. 
D)  The importance placed on acquiring First World technology and managerial practices. 
E)  The importance of attracting FDI. 
A)  The importance of securing local approval before expansion. 
B)  The importance of a stable working environment. 
C)  The importance of local markets versus a focus on foreign markets. 
D)  The importance placed on acquiring First World technology and managerial practices. 
E)  The importance of attracting FDI.

Question 10

How do bilateral investment treaties protect investors and compromise the relative power of governments?

Accepted Answer

BITs were also part of the counterstrate

Question 11

The promotion of corporate social responsibility is used to forestall government regulation of MNCs.

Accepted Answer

A) True 
 B)False

Question 12

Joseph Schumpeter argued that the function of the entrepreneur was to innovate as they had an ability to see new ways of putting economic factors together to cause economic growth.

Accepted Answer

A) True 
 B)False

Question 13

What did Grameen bank use to substitute for a lack of collateral or property rights?

Accepted Answer

A)  Compulsory spending 
B)  Intensive surveillance by male relatives 
C)  Collective responsibility 
D)  Indebtedness 
E)  Independence 
A)  Compulsory spending 
B)  Intensive surveillance by male relatives 
C)  Collective responsibility 
D)  Indebtedness 
E)  Independence

Question 14

What does resource-seeking strategies imply?

Accepted Answer

A)  MNCs establishment of a subsidiary 
B)  MNCs plan to make their global operations more efficient 
C)  Specific resources for MNCs in different countries 
D)  MNCs buying up assets 
E)  The location of light manufacturing and assembly plants in low-wage countries 
A)  MNCs establishment of a subsidiary 
B)  MNCs plan to make their global operations more efficient 
C)  Specific resources for MNCs in different countries 
D)  MNCs buying up assets 
E)  The location of light manufacturing and assembly plants in low-wage countries

Question 15

International investment agreements have been proven to contribute to increased investment.

Accepted Answer

A) True 
 B)False

Question 16

Obsolescing bargaining model sees bargaining between governments and MNCs as static.

Accepted Answer

A) True 
 B)False

Question 17

How do SMEs compare to MNCs?

Accepted Answer

Formally registered small and medium-siz

Question 18

Market-seeking MNCs depend on unskilled workers, pay lower wages, and contribute to an unhealthy domestic economy.

Accepted Answer

A) True 
 B)False

Question 19

What is the informal sector and why is it important?

Accepted Answer

The informal economy is constituted by t

Question 20

When and why did GVC theory emerge?

Accepted Answer

A)  In 2005, as a way to find pattern of learning for governments and firms. 
B)  In the 21st century because governments can help their companies upgrade into higher-value activities. 
C)  Early in the 1990s to measure the ability of MNC to upgrade. 
D)  Early in the 1990s to understand how different countries and companies participate in the creation of a single product. 
E)  In 2005, to find better and more flexible contexts for international cooperation. 
A)  In 2005, as a way to find pattern of learning for governments and firms. 
B)  In the 21st century because governments can help their companies upgrade into higher-value activities. 
C)  Early in the 1990s to measure the ability of MNC to upgrade. 
D)  Early in the 1990s to understand how different countries and companies participate in the creation of a single product. 
E)  In 2005, to find better and more flexible contexts for international cooperation.

Exam 12: Private Enterprise and Development

How is the production process of multinational corporations hierarchical?

What are two strategies that MNCs use when they go abroad to seek location-specific assets?

Describe some of the motivations behind the expansion of MNCs.

What is corporate social responsibility?

Who popularized the OLI paradigm to explain the characteristics of multinational corporations?

During the Cold War, the US administrations used their connections with certain multinational corporations to pursue specific foreign policy objectives in the developing world.

In the Global South, where is most entrepreneurship located?

The OLI paradigm is part of the mercantile approach to MNCs in the field of development.

Which is a key difference between MNCs and emerging MNCs?

How do bilateral investment treaties protect investors and compromise the relative power of governments?

The promotion of corporate social responsibility is used to forestall government regulation of MNCs.

Joseph Schumpeter argued that the function of the entrepreneur was to innovate as they had an ability to see new ways of putting economic factors together to cause economic growth.

What did Grameen bank use to substitute for a lack of collateral or property rights?

What does resource-seeking strategies imply?

International investment agreements have been proven to contribute to increased investment.

Obsolescing bargaining model sees bargaining between governments and MNCs as static.

How do SMEs compare to MNCs?

Market-seeking MNCs depend on unskilled workers, pay lower wages, and contribute to an unhealthy domestic economy.

What is the informal sector and why is it important?

When and why did GVC theory emerge?

What Is Development? From Economic Growth to the Sustainable Development Goals

Imperialism and the Colonial Experience

Theories of Development Economics

The Critical Political Economy of Development

Post-development and Alternatives to Development

Gender and Development: Theoretical Insights and International Commitments

Globalization and Development

State of the State: Does the State Have a Role in Development?

National Development Agencies and Bilateral Aid

The International Financial Institutions

The United Nations and Multilateral Actors in Development

Civil Society and Development

China and the Emerging Economies

Debt and Development

Free Trade, Fair Trade, and South-South Trade

Democracy

Climate Change, Environment, and Development

Rural Development

Urban Development: Cities in the Global South

Development and Health

Conflict and Development

Refugees and International Development Policy and Practice

Indigenous Community Economic Resilience

Culture and Development

Measuring and Evaluating Poverty

Inequality and Social Policy

Planning and Appraising Development Projects

Humanitarian Assistance and Intervention

Ethics of Development, by Des Gasper

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