Compare and contrast the three forms of foreign direct investment.
What will be an ideal response?
Question 2The idea that each nation is efficient in the production of some goods and less efficient in the production of other goods underlies which of the following concepts?
A) absolute advantage principle
B) comparative advantage principle
C) factor proportions theory
D) international product cycle theory
Question 3Internet sales complement traditional distributors, thus enhancing companies' ability to secure and hold traditional distributors.
Indicate whether the statement is true or false
Question 4Which stakeholders must companies satisfy? What role should stakeholders play in a firm's internal code of conduct?
What will be an ideal response?
Question 5A key disadvantage of a polycentric staffing policy is that it limits the career mobility of subsidiary executives.
Indicate whether the statement is true or false
Question 6Currency risk can best be defined as the risk that occurs when ________.
A) two currencies remain at the same constant rate
B) one currency changes in relation to another currency
C) buyers and sellers disagree over which currency to use
D) fluctuations in the stock market affect exchange rates
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