Multinational Entity Identification Quiz
10 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

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?

    <p>Economies of scale and cost savings</p> Signup and view all the answers

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

    <p>Through government subsidies</p> 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?

    <p>Having substantial direct investment and active coordinated management in different countries</p> Signup and view all the answers

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

    <p>Access to low-cost factors of production</p> Signup and view all the answers

    What can give companies a competitive advantage in international markets?

    <p>Achieving economies of scale through cost-saving offshoring</p> Signup and view all the answers

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

    <p>Cost saving by achieving economies of scale</p> 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?

    <p>Lower cost of capital through government subsidies</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser