Exam 4: The Multinational Enterprise

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The image of MNEs suffered due to perceived threats to national sovereignty.

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Developing multinational enterprise firms (DMNEs) fall into this category if they have moderate foreign direct investment (FDI) and are continuing FDI growth.

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The US trade surplus in services is offset by a much larger merchandise trade deficit.

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The ___________ firm consists of closely integrated international subsidiaries controlled and coordinated from central headquarters.

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The___________________ firm is an enterprise with multiple international subsidiaries that are relatively independent from headquarters.

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Multinational Enterprises are a fairly new phenomenon, established after World War 2.

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DMNEs have the advantage of flexibility over MNEs.

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A __________firm is an enterprise with multiple international subsidiaries that are relatively independent from headquarters.

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Firms engaged in trade activities without substantial FDI are

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To compensate for resource shortages, DMNEs rely on other firms for

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When engaging in FDI, SMIE's are more likely to invest in developed markets due to

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Obstacles to SMIE's internationalization include

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The _________________ firm is one with foreign sales and possibly a representative office and/or a licensing agreement, but no ownership of foreign production sites.

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A firm with foreign sales and possibly a representative office, but has no ownership in a foreign production site is a

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Mary was required to prepare a report, collecting the following information: foreign assets to total assets, foreign sales to total sales, and foreign employment to total employment. This type of report is called

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Global firms control closely integrated international subsidiaries from a central headquarters.

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It is easier for a MNE to transfer material resources than to transfer strategic capabilities.

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Dynamic capabilities are critical to the success of the MNE.

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An enterprise that engages in FDI and owns or controls "value-adding activities" in more than one country is considered

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The transnational firm consists of subsidiaries that fulfill varying roles, with some subsidiaries playing a strategic role that in the global firm is reserved for headquarters.

(True/False)
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