Question 1

What would be the preferred mode of market penetration for the firm seeking to expand globally when the company wants to market its patent?

Accepted Answer

A)  Licensing
B)  Exporting
C)  Setting up local facilities
D)  Setting up a foreign sales officeE) C) and D)
F) B) and D)

Question 2

Which of the following is NOT a failing of the theory of comparative advantage?

Accepted Answer

A)  it ignores the role of uncertainty and economies of scale
B)  it assumes that factors of production are immobile
C)  it assumes that there are no differentiated products
D)  it assumes a scarcity of resourcesE) All of the above
F) A) and B)

Question 3

___________ are a recent category of multinationals that seek out and invest in lower cost production sites overseas.

Accepted Answer

A)  Cost minimizers
B)  Market seekers
C)  Raw-material seekers
D)  High tech firmsE) B) and C)
F) A) and B)

Question 4

International ________ can reduce the volatility of an investment portfolio because national financial markets tend to move independently of each other.

Accepted Answer

A)  arbitrage
B)  centralization of the MNC's cash
C)  diversification
D)  investmentE) A) and B)
F) All of the above

Question 5

Which one of the following provides strong evidence that internationalization continues to grow in the world economy?

Accepted Answer

A)  import restrictions by the Bush Administration on foreign steel
B)  efforts suggested by politicians to restrict the sourcing of foreign products by locally headquartered multinationals
C)  the growing volume of foreign direct investment by U.S.as well as other multinational companies
D)  pressure on governments to embargo unfriendly nationsE) A) and B)
F) A) and D)

Question 6

Which one of the following is an alternate and/or a precursor to setting up a production facility abroad?

Accepted Answer

A)  exporting
B)  setting up a sales subsidiary
C)  setting up a distribution system
D)  licensingE) All of the above
F) None of the above

Question 7

The defenders of multinationals believe that __________ are the appropriate reward for efficiently providing the global economy with products and services.

Accepted Answer

A)  profits
B)  subsidies
C)  tax holidays
D)  low-interest,government-subsidized loansE) All of the above
F) B) and D)

Question 8

The internationalization process tends to

Accepted Answer

A)  proceed in a preprogrammed series of steps
B)  begin by licensing foreign producers
C)  inevitably involve foreign production
D)  often begin by accidentE) B) and C)
F) A) and B)

Question 9

When a firm operates globally it offers advantages such as

Accepted Answer

A)  greater political power at home
B)  bless taxes on its profits
C)  greater negotiating power with foreign minority groups
D)  greater negotiating power with labor unionsE) A) and D)
F) None of the above

Question 10

The ___________ are the archetype of the modern multinational firm that goes overseas to produce and sell in foreign markets.

Accepted Answer

A)  cost minimizers
B)  market seekers
C)  raw-material seekers
D)  whaling companiesE) All of the above
F) C) and D)

Question 11

According to Shapiro,if you were the CEO of a multinational corporation,which of the following would be MOST important to you in hiring a manager? One that

Accepted Answer

A)  Avoids risk at any price
B)  Manages effectively the political environment of the subsidiary country
C)  Anticipates every future disturbance related to the supply chain
D)  Makes decisions that anticipates problems and provides solutions that enhances the firm's prospects for growthE) C) and D)
F) B) and C)

Question 12

Historically,the primary motive for U.S.multinationals to produce abroad has been to

Accepted Answer

A)  lower costs
B)  respond more quickly to the marketplace
C)  avoid trade barriers
D)  gain tax benefitsE) A) and C)
F) C) and D)

Exam 1: Introduction

Which one of the following is an alternate and/or a precursor to setting up a production facility abroad?

Correct Answer
verified

___________ are a recent category of multinationals that seek out and invest in lower cost production sites overseas.

Correct Answer
verified

When a firm operates globally it offers advantages such as

Correct Answer
verified

What would be the preferred mode of market penetration for the firm seeking to expand globally when the company wants to market its patent?

Correct Answer
verified

Historically,the primary motive for U.S.multinationals to produce abroad has been to

Correct Answer
verified

The internationalization process tends to

Correct Answer
verified

The ___________ are the archetype of the modern multinational firm that goes overseas to produce and sell in foreign markets.

Correct Answer
verified

International ________ can reduce the volatility of an investment portfolio because national financial markets tend to move independently of each other.

Correct Answer
verified

According to Shapiro,if you were the CEO of a multinational corporation,which of the following would be MOST important to you in hiring a manager? One that

Correct Answer
verified

The defenders of multinationals believe that __________ are the appropriate reward for efficiently providing the global economy with products and services.

Correct Answer
verified

Which one of the following provides strong evidence that internationalization continues to grow in the world economy?

Correct Answer
verified

Which of the following is NOT a failing of the theory of comparative advantage?

Correct Answer
verified

Exam 1: Introduction

Which one of the following is an alternate and/or a precursor to setting up a production facility abroad?

Correct AnswerverifiedShow Answer

___________ are a recent category of multinationals that seek out and invest in lower cost production sites overseas.

Correct AnswerverifiedShow Answer

When a firm operates globally it offers advantages such as

Correct AnswerverifiedShow Answer

What would be the preferred mode of market penetration for the firm seeking to expand globally when the company wants to market its patent?

Correct AnswerverifiedShow Answer

Historically,the primary motive for U.S.multinationals to produce abroad has been to

Correct AnswerverifiedShow Answer

The internationalization process tends to

Correct AnswerverifiedShow Answer

The ___________ are the archetype of the modern multinational firm that goes overseas to produce and sell in foreign markets.

Correct AnswerverifiedShow Answer

International ________ can reduce the volatility of an investment portfolio because national financial markets tend to move independently of each other.

Correct AnswerverifiedShow Answer

According to Shapiro,if you were the CEO of a multinational corporation,which of the following would be MOST important to you in hiring a manager? One that

Correct AnswerverifiedShow Answer

The defenders of multinationals believe that __________ are the appropriate reward for efficiently providing the global economy with products and services.

Correct AnswerverifiedShow Answer

Which one of the following provides strong evidence that internationalization continues to grow in the world economy?

Correct AnswerverifiedShow Answer

Which of the following is NOT a failing of the theory of comparative advantage?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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