1) What is the definition of outsourcing? Provide an example.
2) There are numerous differences in formal and informal institutions governing the
rules of the game in different countries.
3) Managers considering working abroad should have a thorough understanding of the
formal institutions before entering a country.
4) Cultural distance is the difference between two cultures along some identifiable
dimensions.
5) An advantage for wholly owned subsidiaries is sharing costs, risk, and profits.
6) Even if a firm does not fully succeed in the first steps of foreign market entry, there
is still a good chance that it will be able to become a strong international player.
7) Describe the proactive strategy of approaching CSR. Give an example and tell how
this strategy is becoming more popular for internationalizing firms.
8) Owners, managers, and employees at entrepreneurial firms tend to be more
innovative and take more risks than those at large firms.