Question 1

_____ refers to the ability to extract favorable outcome from negotiations due to one party's strengths.

Accepted Answer

A)  Expropriation 
B)  Bargaining power 
C)  Compromising power 
D)  Accommodating power 
A)  Expropriation 
B)  Bargaining power 
C)  Compromising power 
D)  Accommodating power B

Question 2

Which of the following is a primary cost of FDI to home countries?

Accepted Answer

A)  Loss of sovereignty 
B)  Increase in local competition 
C)  Capital outflow and job loss 
D)  Increased exports of components and services to host countries 
A)  Loss of sovereignty 
B)  Increase in local competition 
C)  Capital outflow and job loss 
D)  Increased exports of components and services to host countries C

Question 3

Intrafirm trade refers to international transactions between two subsidiaries in a country controlled by two different MNEs.

Accepted Answer

A) True 
 B)False  False

Question 4

FDI stock refers to the accumulation of inbound FDI in a country or outbound FDI from a country.

Accepted Answer

A) True 
 B)False

Question 5

_____ refers to international transactions between two subsidiaries in two countries controlled by the same MNE.

Accepted Answer

A)  Intrafirm trade 
B)  Oligopoly 
C)  Agglomeration 
D)  Monopolization 
A)  Intrafirm trade 
B)  Oligopoly 
C)  Agglomeration 
D)  Monopolization

Question 6

Identify the benefits and costs of FDI to host countries.

Accepted Answer

The benefits of FDI to host countries:
1

Question 7

The resource-based view argues that internalization is a response to the imperfect rules governing international transactions.

Accepted Answer

A) True 
 B)False

Question 8

Differentiate between the radical,the free market and pragmatic nationalism view on FDI.

Accepted Answer

There are three primary political views

Question 9

Economic agglomeration is an example of a location advantage.

Accepted Answer

A) True 
 B)False

Question 10

Capital inflow can help improve a host country's balance of payments.

Accepted Answer

A) True 
 B)False

Question 11

_____ refers to the replacement of cross-border markets with one firm locating in two or more countries.

Accepted Answer

A)  Location advantage 
B)  Ownership advantage 
C)  Internalization 
D)  Agglomeration 
A)  Location advantage 
B)  Ownership advantage 
C)  Internalization 
D)  Agglomeration

Question 12

Investing in FDI will increase the home firm's exports of components and services.

Accepted Answer

A) True 
 B)False

Question 13

Why do firms prefer FDI to licensing?

Accepted Answer

(1) FDI reduces dissemination

Question 14

MNEs' possession and leveraging of certain valuable,rare,hard-to-imitate,and organizationally embedded (VRIO) assets overseas in the context of FDI refer to _____.

Accepted Answer

A)  location 
B)  ownership 
C)  internalization 
D)  market imperfections 
A)  location 
B)  ownership 
C)  internalization 
D)  market imperfections

Question 15

_____ suggests that FDI,unrestricted by government intervention,will enable countries to tap into their absolute or comparative advantages by specializing in the production of certain goods or services.

Accepted Answer

A)  The radical view 
B)  The free-market view 
C)  Pragmatic nationalism 
D)  The monopolistic view 
A)  The radical view 
B)  The free-market view 
C)  Pragmatic nationalism 
D)  The monopolistic view

Question 16

The benefit of ownership lies in the combination of equity ownership rights and management control rights.

Accepted Answer

A) True 
 B)False

Question 17

Harton,a car manufacturer based in UK,only assembles cars and does not manufacture components in the UK.But in France,Harton enters into components manufacturing through FDI.Harton's investment in France would be an example of a(n) _____.

Accepted Answer

A)  FPI 
B)  downstream vertical FDI 
C)  upstream vertical FDI 
D)  horizontal FDI 
A)  FPI 
B)  downstream vertical FDI 
C)  upstream vertical FDI 
D)  horizontal FDI

Question 18

_____ refers to the deal struck by MNEs and host governments,which change their requirements after the initial FDI entry.

Accepted Answer

A)  Obsolescing bargain 
B)  Integrative bargain 
C)  Automated bargain 
D)  Ongoing bargain 
A)  Obsolescing bargain 
B)  Integrative bargain 
C)  Automated bargain 
D)  Ongoing bargain

Question 19

Which of the following is a primary cost of FDI to host countries?

Accepted Answer

A)  Capital inflow 
B)  Increase in competition between local firms 
C)  Capital and job loss 
D)  Loss of sovereignty 
A)  Capital inflow 
B)  Increase in competition between local firms 
C)  Capital and job loss 
D)  Loss of sovereignty

Question 20

Identify the benefits and costs of FDI to home countries.

Accepted Answer

There are three benefits to home countri

_____ refers to the ability to extract favorable outcome from negotiations due to one party's strengths.

Which of the following is a primary cost of FDI to home countries?

Intrafirm trade refers to international transactions between two subsidiaries in a country controlled by two different MNEs.

FDI stock refers to the accumulation of inbound FDI in a country or outbound FDI from a country.

_____ refers to international transactions between two subsidiaries in two countries controlled by the same MNE.

Identify the benefits and costs of FDI to host countries.

The resource-based view argues that internalization is a response to the imperfect rules governing international transactions.

Differentiate between the radical,the free market and pragmatic nationalism view on FDI.

Economic agglomeration is an example of a location advantage.

Capital inflow can help improve a host country's balance of payments.

_____ refers to the replacement of cross-border markets with one firm locating in two or more countries.

Investing in FDI will increase the home firm's exports of components and services.

Why do firms prefer FDI to licensing?

MNEs' possession and leveraging of certain valuable,rare,hard-to-imitate,and organizationally embedded (VRIO) assets overseas in the context of FDI refer to _____.

_____ suggests that FDI,unrestricted by government intervention,will enable countries to tap into their absolute or comparative advantages by specializing in the production of certain goods or services.

The benefit of ownership lies in the combination of equity ownership rights and management control rights.

Harton,a car manufacturer based in UK,only assembles cars and does not manufacture components in the UK.But in France,Harton enters into components manufacturing through FDI.Harton's investment in France would be an example of a(n) _____.

_____ refers to the deal struck by MNEs and host governments,which change their requirements after the initial FDI entry.

Which of the following is a primary cost of FDI to host countries?

Identify the benefits and costs of FDI to home countries.

Globalizing Business

Understanding Formal Institutions: Politics, laws, and Economics

Emphasizing Informal Institutions: Cultures, ethics, and Norms

Leveraging Resources and Capabilities

Trading Internationally

Dealing With Foreign Exchange

Capitalizing on Global and Regional Integration

Growing and Internationalizing the Entrepreneurial Firm

Entering Foreign Markets

Managing Global Competitive Dynamics

Making Alliances and Acquisitions Work

Strategizing,structuring,and Learning Around the World

Competing on Marketing and Supply Chain Management

Managing Human Resources Globally

Financing and Governing the Corporation Globally

Managing Corporate Social Responsibility Globally

Filters

Exam 6: Investing Abroad Directly

_____ refers to the ability to extract favorable outcome from negotiations due to one party's strengths.

Which of the following is a primary cost of FDI to home countries?

Intrafirm trade refers to international transactions between two subsidiaries in a country controlled by two different MNEs.

FDI stock refers to the accumulation of inbound FDI in a country or outbound FDI from a country.

_____ refers to international transactions between two subsidiaries in two countries controlled by the same MNE.

Identify the benefits and costs of FDI to host countries.

The resource-based view argues that internalization is a response to the imperfect rules governing international transactions.

Differentiate between the radical,the free market and pragmatic nationalism view on FDI.

Economic agglomeration is an example of a location advantage.

Capital inflow can help improve a host country's balance of payments.

_____ refers to the replacement of cross-border markets with one firm locating in two or more countries.

Investing in FDI will increase the home firm's exports of components and services.

Why do firms prefer FDI to licensing?

MNEs' possession and leveraging of certain valuable,rare,hard-to-imitate,and organizationally embedded (VRIO) assets overseas in the context of FDI refer to _____.

_____ suggests that FDI,unrestricted by government intervention,will enable countries to tap into their absolute or comparative advantages by specializing in the production of certain goods or services.

The benefit of ownership lies in the combination of equity ownership rights and management control rights.

Harton,a car manufacturer based in UK,only assembles cars and does not manufacture components in the UK.But in France,Harton enters into components manufacturing through FDI.Harton's investment in France would be an example of a(n) _____.

_____ refers to the deal struck by MNEs and host governments,which change their requirements after the initial FDI entry.

Which of the following is a primary cost of FDI to host countries?

Identify the benefits and costs of FDI to home countries.

Globalizing Business

Understanding Formal Institutions: Politics, laws, and Economics

Emphasizing Informal Institutions: Cultures, ethics, and Norms

Leveraging Resources and Capabilities

Trading Internationally

Dealing With Foreign Exchange

Capitalizing on Global and Regional Integration

Growing and Internationalizing the Entrepreneurial Firm

Entering Foreign Markets

Managing Global Competitive Dynamics

Making Alliances and Acquisitions Work

Strategizing,structuring,and Learning Around the World

Competing on Marketing and Supply Chain Management

Managing Human Resources Globally

Financing and Governing the Corporation Globally

Managing Corporate Social Responsibility Globally

Filters