Practice Questions Introduction to International Business - International Business - Year 1 - RUG
What is the most important reason for MNEs to go abroad?Export platformEfficiency seekingTechnology seekingMarket seekingLevitt’s (1983) view on the globalization of markets:implies that the FSAs of an MNE will all be location-boundincorporates the idea that cultures and national societal tastes are fixed; whereas the technology changes constantlyimplies the replacement of centralized exporters and international projectors by multi-centred MNEsimplies the replacement of multi-centred MNEs by centralized exporters and international projectorsWhat is one the main challenges of an international strategic alliance?Successful firms go from a beachhead strategy to developing a long term relationship with the local partner.Learn as much as possible from this partner while giving away as few of your own FSAs as possible.Proactively select locations and only then alliance partners.Reduce risk associated with high demand uncertainty in the host market.What is the difference between equity and non-equity entry modes?The amount of control imposed by the headquarter.Equity modes are based on the principle of equality, and non-equity entry modes are not.Equity modes involve an ownership dimension, and non-equity modes do not.The degree of centralization.Khanna et al. (2005) say that emerging economies are filled with institutional voids? What do they mean with this?Emerging economies have well developed regulations.Emerging economies offer a good market for MNEs to sell their product.Emerging economies lack intermediary firms and macro-level institutions.Emerging economies offer efficiency for MNEs.Consider the following two...
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