1) The firm that engages in foreign direct investment is a:
a. Global firm
b. Multinational enterprise
c. International enterprise
d. Foreign direct investor
2) The share of FDI-based value added of foreign affiliates of MNEs in world GDP:
a. Declined from 10% in 1990 to 7% in 2010
b. Rose from 7% in 1990 to 11% in 2010
c. Declined from 25% in 1980s to 19% in 2010
d. Remained the same
3) Which of the following is NOT a disadvantage of host-country nationals?
a. Control and coordination by HQ may be impeded
b. Adaptation may take a long time
c. HCNs may have limited opportunities
d. International experience for PCNs is limited
4) The majority of MNEs’ employees would be:
a. HCNs c. TCNs
b. PCNs d. Multinationals
5) Human resource management is indeed:
a. Strategic c. Simplistic
b. One-dimensional d. Cost prohibitive
6) The difficulty of identifying the causal determinants of successful firm performance
is also called:
a. Causal identification c. Performance indicator
b. Ambiguity d. Causal ambiguity
7) Small- and medium-sized enterprises (SMEs) account for ____ percent of the
number of firms worldwide.
a. 50 c. 12
b. 95 d. 80
8) Setting up subsidiaries abroad when the work is done in-house only at the foreign
location is also called:
a. Captive sourcing c. Offshoring
b. Inshoring d. Outsourcing
9) A global business perspective that deals with internal strengths and weaknesses is
also called:
a. Global-business external view
b. Resource-based view
c. Institution-based view
d. Global-business internal view
10) Which of the following is NOT an advantage of a strong US dollar?
a. US consumers benefit from low prices on imports
b. US tourists benefit from lower prices when traveling abroad
c. Lower prices on foreign goods help keep US prices level and inflation low
d. US firms in import-competing industries face more low-cost imports
11) The primary costs of FDI to host countries are:
a. Loss of sovereignty and patriotism
b. Adverse effects on competition and exports
c. Capital outflow
d. Loss of sovereignty, adverse effects on competition, and capital outflow
12) Non-native employees who work and reside in a foreign country are known as:
a. Host-country nationals c. Multinationals
b. Expatriates d. Repatriates
13) Managers should monitor and nurture current comparative advantages of certain
locations and take advantage of new locations.
14) Governments in developed countries impose fewer procedures and offer lower total
costs for start-up firms.
15) Identify three of the four strategic choices for MNEs and list their advantages and
disadvantages.
16) Scale of entry is a key dimension in foreign entry decisions.
17) Pick one of the managerial implications for action regarding CSR. Describe the
implication and discuss the benefits and challenges.
18) Mercantilism, absolute advantage, and comparative advantage are examples of
modern theories.
19) Due to informal rules such as culture and ethics, some developed economies have a
hard time fostering entrepreneurship.
20) Antidumping occurs when an exporter sells abroad below cost and raises prices
after eliminating local rivals.