10 Questions
What is the primary requirement for a company to be considered a multinational entity (MNE) according to the text?
Substantial direct investment and active coordinated management
Which of the following is NOT mentioned as a traditional motivation for companies to internationalize?
Domestic market monopoly
What can give companies a competitive advantage in international markets?
Intrinsic advantage such as good technology or brand recognition
What did many companies realize they could achieve through offshoring, making them more competitive than domestic ones?
Economies of scale and cost savings
What is one of the ways companies can achieve lower cost of capital in international operations?
Through government subsidies
What is a key requirement for a company to be considered a multinational entity (MNE) according to the text?
Having substantial direct investment and active coordinated management in different countries
What is one of the traditional motivations for companies to internationalize, as mentioned in the text?
Access to low-cost factors of production
What can give companies a competitive advantage in international markets?
Achieving economies of scale through cost-saving offshoring
What did many companies realize they could achieve through offshoring, making them more competitive than domestic ones?
Cost saving by achieving economies of scale
What is one of the ways companies can achieve lower cost of capital in international operations, as mentioned in the text?
Lower cost of capital through government subsidies
Test your knowledge on the characteristics of multinational entities and their operations, including their access to new markets, resources, and strategic moves in the global business landscape.
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