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Chapter 13 Multiple choice questions
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Chapter 13 Multiple choice questions
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What is an indirect effect of R&D in an MNE?
Higher absorptive capacity
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Lower costs
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Increases sales
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Increases profits
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incorrect
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The MNE's commercial application of knowledge used to devise new applications is know as?
Innovation
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Invention
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Research and development
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Knowledge assimilation
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How does a firm capture the economic value of its innovations?
Intellectual property rights
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Internalizing business activities
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Building brand names
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Increasing market share
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The leakage of ideas, technologies, and scientific knowledge across firms is better known as?
Knowledge spillovers
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Innovation by rivals
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Imitation
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Knowledge transfer
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What is one of the biggest contributions of knowledge leakage?
Employee turnover
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Knowledge sharing
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Acquisition of external knowledge
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Licensing knowledge
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Which factor might not prevent firms with lower degrees of internationalisation from exploiting their technological discoveries to their full value?
Higher complexity
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High depreciation rate of innovation investments
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Short life cycles of products
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Substantial cost of innovation
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International knowledge transfer in the global factory may lead to?
Enhanced efficiency and competitiveness
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Exploiting new markets
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Generate economies of scale
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Increases organizational learning
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Companies often miss out on valuable innovation opportunities because they:
Focus too closely on their competitors
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Hire outsiders
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Innovation is the norm
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The staff are too patient
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Dynamic market is best described as:
Characterised by frequent change and high levels of research and development activity
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Characterised by high degree of firm internationalisation
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Characterised by high levels of competition
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Characterised by high number of customers
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The aim of process R&D is to:
Lower production and operational costs
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Improve existing products
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Developing new products
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Develop the innovation process
correct
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