Management contracts are attractive because they allow firms to earn additional revenues without ...

Management contracts are attractive because they allow firms to earn additional revenues without incurring any investment risks or obligations.
 
  Indicate whether the statement is true or false

Question 2

GE's Ecomagination program has enabled the firm to develop a competitive advantage over its competitors.
 
  Indicate whether the statement is true or false

Question 3

Why is economic freedom an important factor to consider when analyzing a country's economic development, performance, and potential?
 
  What will be an ideal response?

Question 4

Cost-of-living allowances given to an expatriate during his or her foreign assignment ________.
 
  A) usually involve a compensation reduction because of lower costs abroad
  B) are due to the difficulty of duplicating a particular way of living abroad
  C) are usually eliminated over time
  D) increase the longer the individual is overseas

Question 5

Which of the following statements is supported by the story of Nanocell?
 
  A) Born globals enjoy fleeting success before falling to their larger competitors.
  B) The stock value of born global firms fluctuates due to the high risk factors.
  C) Flexibility offsets poor strategic decisions and short-term market growth.
  D) Size and experience do not predetermine the success or failure of a firm in international markets.

Question 6

Nanocell's management team is considering entering into other foreign markets using a strategy of foreign direct investment (FDI). Which of the following, if true, would most support the claim that expansion through FDI would benefit Nanocell?
 
  A) Most small companies enter foreign markets by exporting, as Nanocell did two years ago.
  B) Competing solar cell companies typically start foreign expansion by licensing their technologies.
  C) Nanocell would be most likely to promote its growth by expanding exports to new markets.
  D) FDI is a common and successful foreign market entry strategy for multinational enterprises.

Question 7

Perception starts when we see, hear, touch, smell or taste something.
 
  Indicate whether the statement is true or false

Question 8

In a short essay, explain the two most common international entry strategies for MNEs and SMEs, and describe how franchising and licensing can contribute to those strategies.
 
  What will be an ideal response?