1) An acquisition is an example of a wholly owned subsidiary.
2) The infant industry argument demands lesser government intervention in
international trade.
3) A firms financial resources and capabilities are an example of its intangible assets.
4) Disabling formal institutes does not affect transaction costs.
5) Managers in high power distance countries are more inclined toward centralized
authority.
6) Factor endowments is one of the four interacting aspects of the theory of national
competitive
advantage of industries.
7) The theory of mercantilism viewed international trade as a zero-sum game.
8) An FPI does not provide management control rights to the investing firm.
9) Deadweight costs occur in an economy as a result of VER.
10) Standardization of markets would lead to a state of semiglobalization.
11) Civil law uses comprehensive statutes and codes as a primary means to form legal
judgments.
12) The cultural school of thought in economic development suggests that rich
countries tend to be endowed with natural resources.
13) Captive sourcing is also known as foreign direct investment (FDI).
14) Expropriation refers to the knowledge diffused from one firm to others among
closely located firms.
15) A customs union imposes common external policies on nonparticipants in order to
combat trade diversion.
16) Purchasing power parity (PPP) is calculated as the sum of value added by resident
firms, households, and governments operating in an economy.
17) The term “base of the pyramid” represents economies where individuals make less
than $2,000 a year.
18) Informal institutions are based on the rules and legal systems of an economy.
19) The advantage of hiring employees who are parent-country nationals is that they
bridge the gap between headquarters and the subsidiary.
20) Discuss how institutions and resources affect marketing and supply chain
management.
21) Describe how partners in an alliance can combat opportunism.
22) Total cost of ownership is often explicitly evaluated prior to purchase decisions.
23) Prisoners’ dilemma is a type of game in which the outcome depends on two parties
deciding whether to cooperate or to defect.
24) Briefly explain which of the four organizational structures is appropriate for each of
the MNE strategic choices.
25) As a key element in achieving alignment, trust stems from perceived fairness and
justice from all supply chain members.
26) In the principal-agent relationship, agents are owners who delegate authority.