1. 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

2. ______ 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

3. What are the benefits of FDI to home countries?
. rpatriated earnings from profits from FDI
. increased exports of components and services to host countries.
.learning via FDI from operations abroad
. all of these answers.

4. 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 throught FDI
. acquire location advantages or neutralize the first mover's location advantages

5. most countries practice:
. pragmatic nationalism
. free market based FDI
. government embracing radical view
. french patriotism

6. FDI may be viewed as a reflection of firm motivation to extend firm-specific capabilities abroad and their response to overcome imperfections and failures.
. true
. false

7. most countries practice a totally"free market" view.
. true
. false

8Q. 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

9. financial, physical, and technological resources and capabilities are all tangible assets.
. true
. false

10. a firm's resources and capabilities are tangile assests a firm use to choose and implement its strategies.
. true
. false

11. an example of low powe distance would be when subordinates address their bosses on a first-name basis
. true.
. false

12. 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

13. a country with low-masculinity has a more subtle differentiation between the gender roles.
. true
. false

14. setting up subsidiaries abroad so the work can be performed in-house but in the foreign location is also called captive sourcing.
. true
. false

15. managers in low uncertainty avoidance countries rely more on experience and training then managers in high uncertainty avoidance countries who rely more on rules.
. true
. false

16. informal institutions include laws, regulations, and rules.
. true
. false

17. the united states is often classified as a collective society
. true
. false

18. a pure market economy characterized by the "invisible hand" of market forces is noted by
. John Stuart Mill
. Adam Smith
. Aristotle
. Amatya Zen

19. Culture is defined in the text as:
. the communication between members of similar location
. the collective programming of the mins, which distinguisheds 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.

20. when an expert 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?
. comptetior firms are also interested in globalizing their busisness
. former expats bring instant expertise and experience
. competing firms will pay a higher premium for expertise
. all of these answers

21. the goverment taking a "hands-ogg approach" is known as
. laissez faire
. command economy
. mixed economy
. liberal approach

22. expatriate managers make ideal candidates for top management positions.
. true
. false

23._____are defined as rights associated with the ownership of intellectual property.
. patents
. copyrights
. trademarks
. intellectual property rights

24. 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

25. which of the following definitions best defines an expatriate manager?
. a manager whoworks outside his or her native country
. a manager of great experrtise
. an ex-manager rehired for advisory purposes
. none of these answers.