1) Home Depot and Lowe’s both being able to monitor that their lumber suppliers in
Latin America are only working out of renewable forests is an example of valuable
capabilities but low ____.
a. Rarity c. Organization
b. Imitability d. Value
2) The most (in)famous loophole in merchandise trade created through GATT was:
a. TRIPS c. MFA
b. NTB d. MBA
3) The national competitive advantage of industries depends on:
a. Country factor endowments and firm strategy, structure, and rivalry
b. Domestic demand conditions
c. Related and supporting industries
d. All of these answers
4) Which of the following best describes the motive for appointing a host-country
national as head manager in a MNE subsidiary?
a. They are familiar with the intricate workings of the MNE
b. They are independent of the local traditions and MNE so act as a neutral leader
c. They are familiar with the local informal institutions and market
d. Host-country nationals are never appointed as head manager
5) MNEs’ possession and leveraging of certain valuable, rare, hard-to-imitate, and
organizationally embedded (VRIO) assets overseas in the context of FDI refer to:
a. Location advantage c. Internalization
b. Ownership advantage d. Market imperfections
6) Which of the following is NOT one of the three areas proactive firms regularly
engage in regarding CSR?
a. Actively participating in regional, national, and international policy discussions
b. Frequently updating their codes of conduct to match new legislation and maintaining
a number of managers that regard CSR as important to the firm’s success
c. Often building alliances with stakeholder groups
d. Often engaging in voluntary activities that go beyond what is required by regulation
7) One advantage of contractual agreements is:
a. Low development costs
b. Lack of long-term presence
c. Limited coordination
d. Creation of competitors
8) Which of the following strategic responses that a firm might have regarding CSR
often involves drafting a code of conduct?
a. Accommodative c. Proactive
b. Reactive d. Defensive
9) Which relationship involves two parties both investing in each other in an
equity-based alliance?
a. Strategic alliance c. Strategic investment
b. Contractual alliance d. Cross-shareholding
10) Since the 1980s, countries such as Brazil, China, Hungary, India, Ireland, and
Russia have adopted:
a. Economic patriotism c. A radical view
b. FDI-friendly policies d. A strictly free market view
11) ____ is leading the world in managerial compensation.
a. United States c. Japan
b. Britain d. Germany
12) Costs of FDI to home countries primarily center on:
a. Capital loss c. Capital and job loss
b. Job loss d. Firm’s bankruptcy
13) A(n) ____ is a voluntary agreement of cooperation between firms.
a. Equity-based alliance c. Merger
b. Strategic alliance d. Acquisition
14) Licensing/franchising agreements refer to:
a. Outsourcing agreements in R&D firms
b. A new corporate entity given birth to and jointly owned by two or more companies
c. Efforts among a number of firms to jointly market their products and services
d. The licensor/franchiser selling the rights to intellectual property
15) The World Trade Organization was created after World War II as a multilateral
trading system.
16) A country with low-masculinity has a more subtle differentiation between the
gender roles.
17) Compare and contrast going rate vs. balance sheet approach.
18) 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.
19) Identify the stages in the formations of alliances. Briefly explain the challenges in
each.
20) Two “pillars”the regulatory and the normative pillarsupport informal institutions.
21) All firms evolve in the same direction from relatively simple international division,
through either geographic area or global product division structures, and may finally
reach the more complex global matrix stage.
22) Explain the correlation between the success and failure of global firms and the
institution- and resource-based views.