Which form of market entry should a firm use when it needs to coordinate the activities of its foreign subsidiaries to achieve strategic synergies?
What will be an ideal response?
Question 2Which of the following industries in Dubai contributes less than 10 percent towards the nation's GDP?
A) shipping
B) technology
C) financial
D) oil and gas
Question 3An emerging market's lack of transparency may suggest which of the following?
A) accountability
B) bureaucracy
C) corruption
D) expertise
Question 4Which of the following is a benefit to foreign firms that form alliances with local companies in emerging markets?
A) protection against bribery
B) more rapid customs clearance
C) information about the local market
D) strategies for exporting goods
Question 5Which of the following best describes the concept of purchasing power parity (PPP)?
A) In emerging markets, the ability to buy goods and services depends on the influx of FDI from international MNEs.
B) The fluctuation in exchange rates disrupts international trade because the value of goods and services is inconsistent.
C) In the future, a world currency will create equality in the global marketplace and eliminate disparity.
D) Eventually, the exchange rate of two currencies will be equalized and the same goods will have the same price in two countries.
Question 6Describe the value chain and how it is used to assess a firm's strengths and weaknesses.
What will be an ideal response?
Question 7If the GDP per capita of Country A is adjusted for purchasing power parity (PPP), the country's revised GDP is higher than that of the United States. Which of the following could be the GDP of Country A, adjusted for PPP?
A) 46,500
B) 39,700
C) 49,300
D) 47,000
Question 8The GDP per capita of Country A is less than that of the United States. Which of the following reflects the GDP per capita of Country A?
A) 49,700
B) 36,500
C) 48, 900
D) 50,300
Question 9All of the following are typical characteristics of family conglomerates except ________.
A) highly diversified
B) wholly owned or controlled by the government
C) known in South Korea as chaebols
D) easier access to capital than most firms