QUESTION 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

QUESTION 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

QUESTION 3

What are the benefits of FDI to home countries?

Repatriated earnings from profits from FDI.

Increased exports of components and services to host countries.

Learning via FDI from operations abroad.

All of these answers

QUESTION 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 through FDI

Acquire location advantages or neutralize the first mover's location advantages

QUESTION 5

Most countries practice:

Pragmatic nationalism

Free market based FDI

Government embracing radical view

French patriotism

QUESTION 6

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

True

False

QUESTION 7

Most countries practice a totally "free market" view.

True

False

QUESTION 8

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

QUESTION 9

Financial, physical, and technological resources and capabilities are all tangible assets.

True

False

QUESTION 10

A firm's resources and capabilities are tangible assets a firm uses to choose and implement its strategies.

True

False

QUESTION 11

An example of low power distance would be when subordinates address their bosses on a first-name basis.

True

False

QUESTION 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

QUESTION 13

A country with low-masculinity has a more subtle differentiation between the gender roles.

True

False

QUESTION 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

QUESTION 15

Managers in low uncertainty avoidance countries rely more on experience and training than managers in high uncertainty avoidance countries who rely more on rules.

True

False

QUESTION 16

Informal institutions include laws, regulations, and rules.

True

False

QUESTION 17

The United States is often classified as a collective society.

True

False

QUESTION 18

A pure market economy characterized by the "invisible hand" of market forces is noted by

John Stuart Mill

Adam Smith

Aristotle

Amatya Zen

QUESTION 19

Culture is defined in the text as:

The communication between members of similar location.

The collective programming of the mind, which distinguishes 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.

QUESTION 20

When an expat 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?

Competitor firms are also interested in globalizing their business.

Former expats bring instant expertise and experience.

Competing firms will pay a higher premium for expertise.

All of these answers

QUESTION 21

The government taking a "hands-off approach" is known as:

Laissez faire

Command economy

Mixed economy

Liberal approach

QUESTION 22

Expatriate managers make ideal candidates for top management positions.

True

False

QUESTION 23

____ are defined as rights associated with the ownership of intellectual property.

Patents

Copyrights

Trademarks

Intellectual property rights

QUESTION 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.

QUESTION 25

Which of the following definitions best defines an expatriate manager?

A manager who works outside his or her native country

A manager of great expertise

An ex-manager rehired for advisory purposes

None of these answers