Which (if any) is a potential effect of bribery and corruption?
a. Bribery and corruption may lead to other morality problems
b. Bribery and corruption can reduce foreign direct investment flows to those
countries viewed as corrupt
c. Bribery and corruption may force companies to alter how they enter foreign
markets e.g. making it necessary to have a local partner - ✔✔All of the above
(2)
The CEO of Rio Tinto, a global mining company, was interested in opening a mine
in Northern Bolivia. He knew that the country was politically unstable but he was
most worried about being able to repatriate profits earned back to the firm's
home country. Which sub-index of the Profit Opportunity Recommendation index
(POR) would be most helpful to this CEO's decision? - ✔✔The R Factor
Business in Muslim countries is conducted under______________ law -
✔✔Shari'ah
According to the Heckscher-Ohlin model what drives international trade? -
✔✔Differences in factor endowments and factor intensities
According to Vernon's Product Life Cycle Theory firms will adopt mass production
techniques and initiate foreign manufacturing in the __________ stage of the
cycle. - ✔✔Second
, When Taiwan mandates extensive purity tests for imported fruit juices but does
not subject domestically produced juices to the same tests it is using
_____________ as a protectionist measure: - ✔✔Product standards
The keiretsu system which involves tightly knit corporate and cultural
relationships between Japanese manufacturers, wholesalers and retailers is a
form of: - ✔✔Protectionism
What is the core mission of the WTO? - ✔✔To facilitate international trade and
investment
According to Dunning's OLI Framework a firm's foreign investment decisions are
driven by: - ✔✔Ownership, Location and Internalization factors
At what stage in the country selection process does the firm consider its own
resources, capabilities and sources of competitive advantage? - ✔✔Secondary
screening
Which of the following is considered a proactive motivation to go international? -
✔✔Aggressive management intent on building a global operation
The term ________________ describes institutional arrangements used by firms
to enter foreign markets. - ✔✔Mode of entry
According to the Uppsala model a firm's __________________ is the major driver
of its pattern of internationalization. - ✔✔Experiential knowledge
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