Podcast
Questions and Answers
What is the primary requirement for a company to be considered a multinational entity (MNE) according to the text?
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?
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?
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?
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 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 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 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 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 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?
What is one of the ways companies can achieve lower cost of capital in international operations, as mentioned in the text?
