1) According to the institution-based view, informal institutions must be sought when
formal institutions fail.
2) Informal institutions are closely related to ethnocentrism.
3) According to the VRIO framework, imitable but well organized resources and
capabilities will provide sustained competitive advantage to a firm.
4) The most extreme fixed rate policy is through a currency board.
5) The global economic pyramid does not represent countries that have a per capita
annual income of less than $2,000.
6) Industrial parks refer to the clustering of economic activities in certain locations.
7) An appreciation is an increase in the value of the currency whereas a depreciation is
a loss in the value of the currency.
8) Informal institutions are constructed on the regulatory pillars of a society.
9) The Heckscher-Ohlin theory proposed that nations will develop comparative
advantage based on their locally abundant factors.
10) OLI advantages refers to a firms quest for outsourcing (O) advantages, licensing (L)
advantages, and importing (I) advantages.
11) Social mobility refers to the degree to which people can move from one area to
another area in a country.
12) Balance of payments and exchange rate policies usually determine long-run
movements of a currency.
13) Scenario planning is a technique to prepare and plan exclusively for high risk
scenarios.
14) Strategic goals and cultural and institutional distances influence the location of
foreign entries.
15) Due to the slowdown of multilateralism and the acceleration of regionalism,
managers are advised to focus their attention more at global than regional levels.
16) Addressing bosses with honorary titles would be an instance of low power distance
in a firm.
17) The regulatory pillar supports both informal and formal institutions.
18) Local content requirements is an example of a nontariff barrier.
19) Elaborate on the environmental standards debate concerning CSR.
20) What are the two sets of considerations that drive the location of foreign entities?
21) Discuss the political arguments against free trade.
22) Sweden has the lowest venture capitalist investment in the world.
23) In the context of market orientation vs. relationship orientation, relationship
orientation capabilities contribute more toward performance.