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MNB3702 ASSESSMENT 1 SEMESTER 1 2024 (MCQ ANSWERS)
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26/03/2024, 13:33 Assessment 1MNB3702-24-S1 Welcome Message Assessment 1
QUIZ
Time left 1:41:48
Question 1
Not yet answered
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Which entry mode enables a foreign investor to create a local operation in its own image without the need to incorporate
existing structures or demands by local partners?
a. Greenfield
b. Joint venture
c. Full acquisition
d. Partial acquisition
Clear my choice
Question 2
Not yet answered
Marked out of 1.00
_____________ is a document certifying that an importer’s bank will pay a specific sum of money to the exporter upon delivery
of merchandise.
a. Credit invoice
b. Bill of lading
c. Letter of Credit
d. Airway Bill
Clear my choice
Question 3
Not yet answered
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From a resource-based perspective, the internet increases the resource needs of entering international markets because it
________.
a. Offers opportunities for cost-effective advertising
b. decreases capacity for coordination
c. disables the efficient delivery of services
d. enhances the ability for transportation
Clear my choice
https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=16430437&cmid=845002 1/16
,26/03/2024, 13:33 Assessment 1
Question 4
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_____________ is a strategy that centres on leveraging local assets in areas in which MNEs are weak.
a. Dodger strategy
b. Defender strategy
c. Attack strategy
d. Extender strategy
Clear my choice
Question 5
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________ is a subsidiary located in a foreign country that is entirely owned by the parent multinational.
a. Wholly Owned Subsidiary (WOS)
b. Strategic alliance
c. None of the above
d. Joint Venture (JVs)
Clear my choice
Question 6
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To single out the most competent locations featuring a combination of scale economies and low-cost factors is an objective
of ___________.
a. Capability-enhancing FDI
b. Efficiency-enhancing FDI
c. Market-seeking FDI
d. Natural-resource seeking FDI
Clear my choice
https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=16430437&cmid=845002 2/16
, 26/03/2024, 13:33 Assessment 1
Question 7
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McDonald’s changed from its standard worldwide franchise model in order to enter the massive Indian market. In emerging
economies, like India, a pure franchising arrangement was difficult because contract enforcement was difficult, while local
entrepreneurs were reluctant to invest in facilities that depended on the goodwill of a giant foreign player. Therefore, instead
of local entrepreneurs operating under the McDonald’s brand and being dictated to, local entrepreneurs were approached to
form a 50:50 JV with McDonald’s that would allow these entrepreneurs to inform the deep localisation of the McDonald’s
strategy. These JVs acted as franchisees, successfully entering and growing the number of restaurants throughout major
cities in India. Which constraints resulted in McDonald's using JVs to gain entry into India?
a. High transaction costs due to lack of financial intermediaries
b. High transaction costs due to contract enforcement
c. Certain operations not permitted
d. Higher tariffs or other trade barriers
Clear my choice
Question 8
Not yet answered
Marked out of 1.00
One of the following is the disadvantage of establishing a greenfield operation:
a. High up-front capital needs
b. Limited equity and operational control
c. Need to restructure and integrate, yet with limited control
d. Adding new capacity to industry
Clear my choice
Question 9
Not yet answered
Marked out of 1.00
Soko – a medium-sized fashion company from Kenya – has a “virtual factory” of over 2 300 artisanal workshops that
produce brass, horn and bone jewellery for a discerning global market. Soko designs its jewellery in-house, sends these
designs out via mobile app to the most suitable artisanal workshops for any given product, provides in-person training and
support for artisans making new products, and finally collects all completed items at its central office in Nairobi for finishing,
quality control, packaging, and distribution. Since all orders and payments are digitised, Soko has been able to continually
improve its selection of artisans for specific jobs based on machine learning algorithms. Soko also keeps up to date on
trends regarding particular skills that are in rising demand based on market shifts, so the company can train artisans in new
skills when necessary and thus keep all its suppliers employed for the long term. Which process model does Soko follow?
a. Uppsala model
b. Traditional model
c. Stages model
d. Network model
Clear my choice
https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=16430437&cmid=845002 3/16
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