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1) Define informal institutions and explain how ethnocentrism affects cultural
intelligence.
2) Entrepreneurship flourishes more in environments with more formal institutional
procedures.
3) Setting up subsidiaries abroad so the work can be performed in-house but in the
foreign location is also called captive sourcing.
4) Explain the issues underlying the nationality of the head of management and the
directing board of a company.
5) Whether entrepreneurship is encouraged or discouraged depends on formal
institutions affecting entrepreneurs and start-up enterprises.
6) The terms international business (IB) and global business are synonymous.
7) Regional economic integration refers to efforts to reduce trade and investment
barriers throughout the globe.
8) One of the disadvantages of the geographic area structure is that country and regional
managers are not given sufficient voice relative to the heads of the domestic divisions.
9) The "limitability" of an alliance is based on the trust and understanding between the
partners.
10) What is a turnkey project? What are its advantages and disadvantages compared to
other modes of entry?
