1) Turning over an organizational activity to an international firm is also called:
a. Captive sourcing c. Offshoring
b. Inshoring d. Outsourcing
2) 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?
a. Competitor firms are also interested in globalizing their business
b. Former expats bring instant expertise and experience
c. Competing firms will pay a higher premium for expertise
d. All of these answers
3) Which of the following is NOT an advantage of parent-country nationals?
a. PNCs gain international experience
b. PCNs may be the best people for the job because of special skills and experience
c. Language and cultural barriers are eliminated
d. Control and coordination by HQ are facilitated
4) Which of the following best describes the European Union?
a. United States of Europe
b. Cooperation between governments, like the UN
c. Is meant to replace existing nation states’ (local European) governments
d. Pooling of sovereignty into a single, integrated entity
5) ____ is at the heart of entrepreneurship.
a. Vision c. Innovation
b. Leadership d. Financing
6) All of the following are resources and capabilities of start-up ventures EXCEPT:
a. Strong vision c. Leadership
b. Entrepreneurial drive d. Longstanding presence
7) For non-equity modes, an advantage for direct exports is that economies of scale in
production are concentrated in the home country.
8) Product life cycle theory was developed by American economist Raymond Vernon in
1966.
9) Compare and contrast civil law, common law, and theocratic law.
10) Most SMEs are still slow at internationalizing.
11) Strategic hedging means spreading out activities in a number of countries in
different currency zones to offset the currency losses in certain regions through gains in
other regions.
12) Discuss the formation of GATT and the issues that precipitated the formation of the
WTO (Post GATT).
13) Commoditization is the point at which an industry specific activity becomes
common across industries, after which the need to keep it proprietary no longer exists.
14) The combination of resources and assets that enable a firm to gain a competitive
advantage is also called combination assets.
15) Capital outflow can help improve a host country’s balance of payments.
16) A localization strategy is best adopted when an MNE is willing to give full attention
to foreign market adaptation and there are minimal pressures to keep cost low.