Which of the following constitutes a list of foreign entry modes that involve the MNE to make a foreign investment?
Question 1
T F For an MNE to exist, first foreign countries must
provide location-specific advantages to attract the company to invest there,
second the company must have ownership-specific advantages that counteract its
liability of foreignness, third the company must have the organizational
capability to leverage its strategic advantages more effectively internally
than externally.
True
False
Question 2
T F An MNE with an ‘international perspective’ will
typically be managed as a coordinated federation.
True
False
Question 3
T F An MNE with a ‘multinational perspective’ will typically
be managed as a coordinated federation.
True
False
Question 4
T F An MNE with a ‘global perspective’ will typically manage
its operations centrally.
True
False
Question 5
T F An MNE with a ‘transnational perspective’ will typically
be managed as an integrated network.
True
False
Question 6
T F Emerging motivations for internationalization include
the desire to enhance the firm’s competitive position and the desire to develop
global scanning capabilities.
True
False
Question 7
Which of the following correctly describes the sequential
evolution in management thinking with respect to the strategic role of foreign
operations in emerging MNEs?
a.
global mentality, multinational mentality, international
mentality, transnational mentality.
b.
international mentality, global mentality, transnational
mentality, multinational mentality.
c.
multinational mentality, global mentality, international
mentality, transnational mentality.
d.
international
mentality, multinational mentality, global mentality, transnational
mentality.
e.
all of the above
Question 8
An MNE is a(n):
a.
import-export company that actively trades in foreign
markets.
b.
company that passively manages its substantial foreign
direct investment.
c.
import-export company that actively manages its foreign
investment portfolio.
d.
company
that actively manages substantial foreign direct investment.
e.
All of the above
Question 9
Which of the following constitutes a list of foreign entry
modes that involve the MNE to make a foreign investment?
a.
Greenfield,
acquisition, joint venture and capital participation
b.
Greenfield, acquisition, joint venture and license
c.
Franchising, acquisition, joint venture and capital
participation
d.
Greenfield, acquisition, cooperation agreements and
capital participation
e.
none of the above
Question 10
One motivation behind internationalization is to sustain the
firm’s competitive position. To pursue a sustainable competitive position
relative to its rivals in the athletic clothing industry, Nike attempts to:
a.
preempt markets, capture global scale, and secure raw
materials
b.
capture global scale, access scarce knowledge, and match
competitors
c.
match
competitors, capture global scale, and preempt markets
d.
exploit factor cost differences, preempt markets, and
match competitors
e.
all of the above
Question 11
_________ suggests that in the first stage innovations are
produced in the home developed country; in the second stage they are exported
to other similarly developed countries; in the third stage, they start being
produced in these developed countries; in the fourth stage they start being
produced in low-wage developing countries.
a.
Vernon’s
product cycle theory
b.
Johanson and Vahlne’s stages theory
c.
Dunning’s eclectic theory
d.
Levitt’s globalization theory
e.
none of the above
Question 12
A franchise, such as McDonald’s, is a _________ mode of
foreign entry.
a.
low commitment, low control
b.
low
commitment, moderate control
c.
low commitment, high control
d.
moderate commitment, moderate control
e.
none of the above
Question 13
A joint venture is a _________ mode of foreign entry.
a.
low commitment, low control
b.
low commitment, moderate control
c.
low commitment, high control
d.
moderate
commitment, moderate control
e.
none of the above
Question 14
Three prerequisites that must be satisfied before a national
firm can transform itself into a multinational firm include:
a.
scale-based advantages, ownership-specific advantages and
contractual capabilities.
b.
location-specific
advantages, ownership-specific advantages and organizational capabilities.
c.
scale-based advantages, ownership-specific advantages and
organizational capabilities.
d.
location-specific advantages, knowledge advantages and
organizational capabilities.
e.
All of the above
Question 15
Pashpa Co. is a new manufacturer of home appliances. Pashpa
wants to go international. Some of the traditional motivations for pursuing
internationalization include:
a.
securing key supplies, seeking new markets, and raising
global scanning and learning capabilities
b.
securing key supplies, seeking new markets, and improving
competitive positioning
c.
securing
key supplies, seeking new markets and accessing low-cost factors of
production
d.
securing key supplies, improving competitive positioning,
and accessing low-cost factors of production
e.
All of the above
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