A firm most likely enters the home market of a foreign competitor in order to ________.
A) enter a collaborative venture with the competitor
B) gain access to the competitor's government contracts
C) force the competitor to use significant resources
D) interfere with the competitor's marketing campaign
Question 2Publicizing an open job to current employees through a firm's intranet or bulletin board is known as job posting.
Indicate whether this statement is true or false.
Question 3Which of the following is NOT a tool used by firms to recruit outside candidates?
A) newspaper advertising
B) intranet job postings
C) employment agencies
D) online job boards
Question 4Which of the following is an asset-seeking motive to achieve better access to markets?
A) share suppliers
B) attain knowledge
C) access raw materials
D) follow key customers
Question 5Which of the following most likely explains why manufacturing firms often establish facilities in Mexico, China, and Eastern Europe?
A) skilled workforce
B) few trade barriers
C) natural resources
D) inexpensive labor
Question 6Which of the following is often a motive of firms in the mining industry to enter new foreign markets?
A) access natural resources
B) skilled pools of labor
C) increase refining capacity
D) low minimum wages
Question 7A firm that pursues a collaborative venture to take advantage of government incentives is demonstrating which type of motive?
A) efficiency-seeking
B) resource-seeking
C) asset-seeking
D) market-seeking
Question 8International portfolio investment is characterized by which of the following?
A) short-term foreign market speculation
B) long-term administration of MNE stocks
C) active control of a foreign business
D) passive ownership of foreign stocks and bonds
Question 9Small economies are sometimes less successful than large countries in attracting FDI by raising import restrictions. What is the most likely reason for this?
A) Large economies impose higher trade restrictions.
B) Transportation costs are generally higher in small economies.
C) People in small economies are more nationalistic in their purchases.
D) Small economies frequently lack sufficient markets for large-scale production.
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