WGU Global Business Chp8 Exam 2022 Questions and Answers

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C. Global Technology - ANSWER The U.S. government has set up the _____ Network, which is a network of domestic and international partners. a. FDI b. Worldwide Knowledge c. Global Technology ... d. Export-import e. International Strategy e. Domesticating - ANSWER Of the following, which is NOT a way in which MNEs can enter foreign markets? a. Licensing b. Franchising c. Exporting d. Acquiring e. Domesticating e. monopoly - ANSWER When Motorola, Inc., a major U.S. company in the semiconductor and cell phone business, entered the China market in the 1980s, there were no significant competitors. Motorola nearly had China's market to itself. This is an example of a _____. a. monarchy b. dominion c. duopoly d. territory e. monopoly a. risk profile - ANSWER The potential financial loss that entrepreneurs are willing to take in a business is called a _____. a. risk profile b. SWOT analysis c. threat analysis d. money management analysis e. money profile e. Export-import business - ANSWER _____ is a relatively low-risk operation that involves penetrating foreign markets or importing merchandise at competitive prices for domestic consumption. a. Foreign acquisition b. Franchise c. Joint venture d. License e. Export-import business b. subsidiary - ANSWER When new facilities are built and operated overseas that require large investment of capital because these new establishments are tailored to the exact needs of the home country firm, it is called a(n) _____. a. exporting b. subsidiary c. strategic alliance d. multinational enterprise e. foreign acquisition d. low;low - ANSWER Export/import businesses have_____ risk and _____ return. a. high; high b. moderate; high c. low; high d. low; low e. high; low b. licensing - ANSWER The practice in which a company or individual provides the foreign partner with the technology to manufacture and sell products or services in a target country for an annual fee is called _____. a. a foreign acquisition b. licensing c. franchising d. an export-import business e. a joint venture c. multinational enterprise - ANSWER Firms that are headquartered in one country, but own and control manufacturing services, R&D facilities, or other business entities on foreign soil are called a(n) _____. a. acquisition b. foreign acquisition c. multinational enterprise d. strategic alliance e. subsidiary e. Locational, or country-specific - ANSWER ____ advantages relate to the economic, political, and social systems of a particular country. a. Environmental b. Internalization c. Ownership, or firm specific d. Externalized e. Locational, or country-specific d. cut costs - ANSWER Economies of scale in production, minimizing factor input cost, and reacting to exchange rate movements are all ways in which an MNE can _____. a. generate revenue b. explore joint ventures c. export products d. cut costs e. acquire other companies c. internalization - ANSWER _____ advantages refer to the mode of entry abroad. a. Locational, or country-specific b. Environmental c. Internalization d. Externalized e. Ownership, or firm specific Export-import, Licensing, Franchising, Strategic Alliance, International Joint Venture, Merger & Acquisition, Wholly Owned Subsidiary - ANSWER What are specific strategies for entering emerging market economies in given scenarios? access to a country's resources to generate revenue -access to a country's markets(few players/monopolistic) -sometimes as a way to bypass protectionist barriers -take advantage of lower production costs e.g. lower labor costs and exchange rates MNC investments abroad can generate controversy. (you are sending jobs overseas, no care for environment or human rights, etc) - ANSWER What are reasons why multinational enterprises (MNEs) invest abroad? Along with significant financial inflows, FDI creates new jobs, allows access to new technologies, and facilitates transfer of important management (and employee) skills; it also increases domestic competition and choice. In addition, FDI generates tax revenues (corporate, income, and sales taxes) needed for government services, reduces poverty, and accelerates economic development. - ANSWER What are the benefits of foreign direct investment from a host country perspective? natural resources may be exploited, environmental quality, health may be sacrificed labor forces exploited preventing human capital development lack of corporate social responsibility by MNE's concerns over political interference by foreign company - ANSWER What are the costs of foreign direct investment from a host country perspective? Improve investment climate by having proper economic reforms transparent governance structure and rule of law A good investment climate is one in which government policies enable firms (domestic and MNEs) and entrepreneurs to invest profitably, create jobs, contribute to economic growth, and reduce poverty. The goal is to create a sustainable investment climate that benefits the whole society for the long term. - ANSWER How can countries successfully attract foeign investment? c. it lead to a lapse in job creation and economic flow in the U.S. - ANSWER Which of the following is not a cost of foreign direct investment (FDI)? a. developing countries may be exploited by MNEs b. local govts in host countries may lack corporate social responsibilities c. it lead to a lapse in job creation and economic flow in the U.S. d. host countries may be concerned about political interference by MNEs in their country's affairs when things do not go the way they want. e. human rights firms may [Show More]

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