Multinational enterprises (MNEs) are firms that:
a.Engage in foreign direct investment (FDI).
b.Directly control value-adding activities in other countries.
c.Manage value-adding activities in other countries.
d.All of the above.
e.None of the above.
2.Which of the following best describes foreign direct investment (FDI)?
a.A firm’s direct investment in production and/or service activities abroad.
b.The purchases of foreign securities by people within the U.S.
c.The purchases of U. S. securities by people from other countries.
d.Avoidance of brokers or other financial intermediaries when making foreign investments.
e.B and C above.
3.Which of the following best defines “Triad” as the term is used in the text?
a.The U.S., Japan, and Germany.
b.The U.S., Canada, and Mexico.
c.North America, Europe, and Japan.
d.North America, Europe, and Asia.
e.The U.S. dollar, the Euro, and the Yen.
4.According to the text, the current brand of “global strategy” seems relevant only for MNEs from:
e.The E. U.
5.Emerging economies (or emerging markets):
a.Now command a full one-third of the worldwide FDI flow.
b.Command half of the global gross domestic product (GDP) measured at purchasing power parity.
c.A and B above
d.Despite their growth, they still command less than 10% of global GDP.
e.Consist of countries which are in a state of decline but which are believed to have potential for growth.
6.BRIC refers to:
a.Bahrain, Russia, Iran, and China.
b.Bolivia, Romania, India, and Columbia.
c.Bulgaria, Romania, Iraq, and China.
d.Bermuda, Rwanda, Iraq, and the Czech Republic.
e.Brazil, Russia, India, and China.
7.Many BRIC local firms are:
a.Effectively competing at home.
b.Launching offensives abroad.
c.Creating serious ramifications for Triad-based MNEs.
d.All of the above.
e.BRIC local firms have yet to become significant globally.
a.Dates back to 500bc and the work of the strategist Sun Tzu of China.
b.Applies concepts developed by the strategist von Clausewitz.
c.Includes application of principles of military strategy to business competition.
d.All of the above.
e.In this century, civilian companies no longer apply military theories and principles in dealing with competition.
9.A hallmark of theory building and development is:
a.The outcome of a test.
e.Lack of controversy.
10.Overall, strategy is:
a. A rulebook.
c. A set of programmed instructions.
d. All of the above.
e. None of the above.
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