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)?

<p>Increase transaction costs and opportunism (D)</p> Signup and view all the answers

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

<p>Relational, infrastructure-building, socio-cultural bridging (B)</p> Signup and view all the answers

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

<p>Co-invent custom solutions, view products in terms of functionality (B)</p> Signup and view all the answers

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

<p>Problem of corporate governance, especially among family firms and SOEs (D)</p> Signup and view all the answers

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

<p>Increase in transaction costs and opportunism (D)</p> Signup and view all the answers

What value do non-corporate partners bring to DMNEs?

<p>Expertise on social infrastructure and legitimacy. (B)</p> Signup and view all the answers

How can DMNEs build local capacity according to the text?

<p>Recognize value of existing institutions, train local partners and entrepreneurs. (D)</p> Signup and view all the answers

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