Question 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 pr
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