Question

13) In deciding whether to invest abroad, management must first determine whether the firm has a sustainable competitive advantage that enables it to compete effectively in the home market. The competitive advantage must be:

A) firm specific.

B) not easily copied.

C) in a transferable form.

D) all of the above

14) Which of the following is an advantage to exporting goods to reach international markets rather than entering into some form of Foreign Direct Investment?

A) fewer agency costs

B) fewer direct advantages from research and development

C) a greater risk of losing markets to copycat goods producers

D) an inability to exploit R&D as effectively as if also invested abroad

15) ________ risks are those that affect the MNE at the local or project level, but originate at the country level.

A) Country-specific

B) Firm-specific

C) Global-specific

D) none of the above

Answer 1

13) In deciding whether to invest abroad, management must first determine whether the firm has a sustainable competitive advantage that enables it to compete effectively in the home market. The competitive advantage must be:

Answer : D) all of the above

14) Which of the following is an advantage to exporting goods to reach international markets rather than entering into some form of Foreign Direct Investment?

Answer : A) fewer agency costs

15) ________ risks are those that affect the MNE at the local or project level, but originate at the country level.

Answer : A) Country-specific