1. Q. 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

2. Q. ______ 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

3. Q. What are the benefits of FDI to home countries?
. rpatriated earnings from profits from FDI
. increased exports of components and services to host countries.
.learning via FDI from operations abroad
. all of these answers.

4 Q. 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 throught FDI
. acquire location advantages or neutralize the first mover’s location advantages

5 Q. most countries practice:
.pragmatic nationalism
.free market based FDI
.government embracing radical view
.french patriotism

6Q. FDI may be viewed as a reflection of firm motivation to extend firm-specific capabilities abroad and their response to overcome imperfections and failures.
. true
.false

7Q. most countries practice a totally”free market” view.
. true
. false

8Q. 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.
.true
.false

9.Q. financial, physical, and technological resources and capabilities are all tangible assets.
.true
.false

10. Q a. firm’s resources and capabilities are tangile assests a firm use to choose and implement its strategies.
.true
.false

11Q. an example of low powe distance would be when subordinates address their bosses on a first-name basis
.true.
.false

12 Q. Benchmarking is an assessment as to whether a firm has resources and capabilities to perform a particular activity in a manner superior to competitors.
.true.
false

13Q. a country with low-masculinity has a more subtle differentiation between the gender roles.
.true
.false

14Q. setting up subsidiaries abroad so the work can be performed in-house but in the foreign location is also called captive sourcing.
.true
.false

15Q. managers in low uncertainty avoidance countries rely more on experience and training then managers in high uncertainty avoidance countries who rely more on rules.
.true
.false

16Q. informal institutions include laws, regulations, and rules.
.true
.false

17 Q. the united states is often classified as a collective society
.true
.false

18Q. a pure market economy characterized by the “invisible hand” of market forces is noted by
.John Stuart Mill
.Adam Smith
. Aristotle
. Amatya Zen

19 Q. Culture is defined in the text as:
.the communication between members of similar location
.the collective programming of the mins, which distinguisheds 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.

20Q.when an expert 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?
. comptetior firms are also interested in globalizing their busisness.
former expats bring instant expertise and experience
competing firms will pay a higher premium for expertise
.all of these answers

21Q. the goverment taking a “hands-ogg approach” is known as
. laissez faire
.command economy
. mixed economy
.liberal approach

22 Q. expatriate managers make ideal candidates for top management positions.
.true
.false

23Q._____are defined as rights associated with the ownership of intellectual property.
.patents
.copyrights
.trademarks
.intellectual property rights

24 Q. 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

25 Q. which of the following definitions best defines an expatriate manager?
. a manager whoworks outside his or her native country
.a manager of great experrtise
.an ex-manager rehired for advisory purposes
.none of these answers.