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Multinational Entity Identification Quiz

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Multinational Entity Identification Quiz

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Questions and Answers

What is the primary requirement for a company to be considered a multinational entity (MNE) according to the text?

Having a passive investment portfolio in multiple countries

Trading relationships with various international partners

Substantial direct investment and active coordinated management (correct)

Active management involvement in at least one foreign country

Which of the following is NOT mentioned as a traditional motivation for companies to internationalize?

Domestic market monopoly (correct)

Access to low-cost factors of production

Market seeking behavior

Need to secure key supplies

What can give companies a competitive advantage in international markets?

Passive investment portfolio in various countries

Exclusive focus on offshoring labor

Intrinsic advantage such as good technology or brand recognition (correct)

Heavy reliance on government subsidies

What did many companies realize they could achieve through offshoring, making them more competitive than domestic ones?

Economies of scale and cost savings Signup and view all the answers

What is one of the ways companies can achieve lower cost of capital in international operations?

Through government subsidies Signup and view all the answers

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 Signup and view all the answers

What is one of the traditional motivations for companies to internationalize, as mentioned in the text?

Access to low-cost factors of production Signup and view all the answers

What can give companies a competitive advantage in international markets?

Achieving economies of scale through cost-saving offshoring Signup and view all the answers

What did many companies realize they could achieve through offshoring, making them more competitive than domestic ones?

Cost saving by achieving economies of scale Signup and view all the answers

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 Signup and view all the answers

Multinational Entity Identification Quiz

Choose a study mode

Podcast

Questions and Answers

What is the primary requirement for a company to be considered a multinational entity (MNE) according to the text?

Which of the following is NOT mentioned as a traditional motivation for companies to internationalize?

What can give companies a competitive advantage in international markets?

What did many companies realize they could achieve through offshoring, making them more competitive than domestic ones?

What is one of the ways companies can achieve lower cost of capital in international operations?

What is a key requirement for a company to be considered a multinational entity (MNE) according to the text?

What is one of the traditional motivations for companies to internationalize, as mentioned in the text?

What can give companies a competitive advantage in international markets?

What did many companies realize they could achieve through offshoring, making them more competitive than domestic ones?

What is one of the ways companies can achieve lower cost of capital in international operations, as mentioned in the text?

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