Which of the following is a benefit of large-scale entries?
a.There are no losses even if these large-scale “bets” turn out to be wrong.
b.They have unlimited strategic flexibility in all markets.
c.They experience no liability of foreignness.
d.They demonstrate strategic commitment to certain markets.
13.Which of the following is true of modes of entry?
a.Non-equity modes require the establishment of independent organizations overseas.
b.Non-equity modes are methods used to enter a market in the home country.
c.Equity modes are indicative of relatively larger, harder-to-reverse commitments.
d.Equity modes do not require the establishment of independent organizations overseas.
14.The distinction between _____ is what defines an MNE from a firm that merely exports or imports.
a.direct and indirect exports
b.licensing and franchising
c.small- and large-scale of entry
d.equity and non-equity modes of entry
15.Which of the following is an advantage shared by both greenfield operations and acquisitions?
a.Protection of know-how
b.Fast entry speed
c.Add new capacity to industry
d.Low development costs
16.Which of the following characterizes an MNE from a non-MNE?
a.It enters foreign markets via non-equity modes.
b.It exports or imports with or without FDI.
c.It enjoys OLI advantages.
d.It enters foreign markets through FPI.
17.Which of the following is a non-equity mode of entry?
18.Which of the following is an equity mode of entry?
b.Wholly owned subsidiaries
19._____ are the most basic non-equity mode of entry, capitalizing on economies of scale in production concentrated in the home country and providing better control over distribution.
20.Which of the following entry modes is a type of strategic alliance?
b.Wholly owned subsidiary
21.Which of the following is an advantage of direct exports?
a.No trade barriers
b.Low transportation costs for bulky products
c.Avoid export processes
d.Better control over distribution
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