The primary costs of FDI to host countries are:
| | Loss of sovereignty and patriotism |
| | Adverse effects on competition and exports |
| | Capital outflow |
| | Loss of sovereignty, adverse effects on competition, and capital outflow |
____ suggests that FDI, unrestricted by government intervention, will enable countries to tap into their absolute or comparative advantage by specializing in the production of certain goods or services.
| | The radical view |
| | The free market view |
| | Pragmatic nationalism |
| | Expropriation |
What are the benefits of FDI to home countries?
| | Repatriated earnings from profits from FDI. |
| | Increased exports of components and services to host countries. |
| | Learning via FDI from operations abroad. |
| | All of these answers |
When one firm enters a foreign country through FDI, its rivals are likely to follow by undertaking additional FDI in a host country to:
| | Create knowledge spillover |
| | Discover a new market for its goods |
| | Overcome and combat market failure through FDI |
| | Acquire location advantages or neutralize the first mover’s location advantages |
Most countries practice:
| | Pragmatic nationalism |
| | Free market based FDI |
| | Government embracing radical view |
| | French patriotism |
FDI may be viewed as a reflection of firm motivation to extend firm-specific capabilities abroad and their responses to overcome imperfections and failures.
Most countries practice a totally "free market" view.
8. Outsourcing is the process of turning over an organizational activity to an outside supplier, located in a foreign country, which will perform it on behalf of the local firm.
Financial, physical, and technological resources and capabilities are all tangible assets.
A firm's resources and capabilities are tangible assets a firm uses to choose and implement its strategies.
An example of low power distance would be when subordinates address their bosses on a first-name basis.
Benchmarking is an assessment as to whether a firm has resources and capabilities to perform a particular activity in a manner superior to competitors.
A country with low-masculinity has a more subtle differentiation between the gender roles.
Setting up subsidiaries abroad so the work can be performed in-house but in the foreign location is also called captive sourcing.
Managers in low uncertainty avoidance countries rely more on experience and training than managers in high uncertainty avoidance countries who rely more on rules.
Informal institutions include laws, regulations, and rules.
The United States is often classified as a collective society.
A pure market economy characterized by the "invisible hand" of market forces is noted by
| | John Stuart Mill |
| | Adam Smith |
| | Aristotle |
| | Amatya Zen |
Culture is defined in the text as:
| | The communication between members of similar location. |
| | The collective programming of the mind, which distinguishes the members of one group or category of people from another. |
| | The main component of formal institutions. |
| | The attitudes and behaviors characteristic of a particular social group or organization. |
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?
| | Competitor firms are also interested in globalizing their business. |
| | Former expats bring instant expertise and experience. |
| | Competing firms will pay a higher premium for expertise. |
| | All of these answers |
The government taking a "hands-off approach" is known as:
| | Laissez faire |
| | Command economy |
| | Mixed economy |
| | Liberal approach |
Expatriate managers make ideal candidates for top management positions.
____ are defined as rights associated with the ownership of intellectual property.
| | Patents |
| | Copyrights |
| | Trademarks |
| | Intellectual property rights |
In a collective society:
| | Family units are highly valued. |
| | Being an entrepreneur is a popular mindset |
| | Being different than your neighbor is important. |
| | Outsiders are easily trusted. |
Which of the following definitions best defines an expatriate manager?
| | A manager who works outside his or her native country |
| | A manager of great expertise |
| | An ex-manager rehired for advisory purposes |
| | None of these answers |
