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Emerging Markets and Institutional Strategies Quiz

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Emerging Markets and Institutional Strategies Quiz

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Questions and Answers

What impact does corruption have on DMNC's philanthropy and engagement with governments?

Has no impact

Reduces philanthropy and engagement (correct)

Enhances philanthropy but reduces engagement

Increases philanthropy and engagement

How do DMNEs focus on CSR and ethical issues according to the text?

More focus on CSR and ethical issues (correct)

Focus solely on financial profits

Less focus on CSR and ethical issues

No focus on CSR and ethical issues

What is a characteristic of Emerging Markets (EM) according to the text?

Inefficient institutions that reduce information asymmetry (correct)

High government transparency

Advanced market infrastructure

Low transaction costs

How do institutional voids in EM affect markets according to Khanna & Palepu (1997)?

Increase transaction costs and opportunism Signup and view all the answers

What are the three types of institutional strategies mentioned by Marquis & Raynard (2015)?

Relational, infrastructure-building, socio-cultural bridging Signup and view all the answers

How can DMNEs 're-invent' their strategy according to the text?

Co-invent custom solutions, view products in terms of functionality Signup and view all the answers

What problem does corporate governance face in Emerging Markets (EM) according to the text?

Problem of corporate governance, especially among family firms and SOEs Signup and view all the answers

What is the potential consequence of absent or inefficient institutions in EM markets?

Increase in transaction costs and opportunism Signup and view all the answers

What value do non-corporate partners bring to DMNEs?

Expertise on social infrastructure and legitimacy. Signup and view all the answers

How can DMNEs build local capacity according to the text?

Recognize value of existing institutions, train local partners and entrepreneurs. Signup and view all the answers