* not completed

. In which of the following types of investment does the investor buy a share of a foreign company without a controlling interest in that company?

Private-sector correct incorrect

Portfolio correct incorrect

Public-sector correct incorrect

Foreign direct correct incorrect

* not completed

. Which of the following is not an advantage of vertical integration?

It improves control over proprietary information correct incorrect

It reduces supply and price uncertainty correct incorrect

It increases the rate of company internationalization correct incorrect

It facilitates quality control in complex supply chains. correct incorrect

* not completed

. Offshore outsourcing is generally understood to mean?

Reallocation of activities to both developed and emerging markets correct incorrect

Increased allocation of tasks to affiliates of a multinational enterprise correct incorrect

Increased decentralisation of decision-making to affiliate management correct incorrect

The reallocation of company headquarters role to a regional body. correct incorrect

* not completed

. Intellectual property can be protected using?

Patents correct incorrect

Copyrights correct incorrect

Trademarks correct incorrect

All of the above correct incorrect

* not completed

. Vernon's product cycle theory is no longer valid because…

it is overly ethnocentric. correct incorrect

production is now globally dispersed. correct incorrect

innovations are rapidly diffused to multiple markets. correct incorrect

all of the above. correct incorrect

* not completed

. Property rights can be violated by…

Theft. correct incorrect

Piracy. correct incorrect

excessive taxation. correct incorrect

all of the above. correct incorrect

* not completed

. Transaction costs are…

the costs incurred in undertaking an economic exchange. correct incorrect

the costs of participating in a market. correct incorrect

the result of market imperfections. correct incorrect

all of the above. correct incorrect

* not completed

. Outsourcing companies…

produce only standardized products. correct incorrect

are always based in an overseas economy. correct incorrect

add value by producing for others. correct incorrect

create only unskilled jobs. correct incorrect

* not completed

. Transaction costs include:

search and information costs correct incorrect

bargaining costs required to reach agreement with another party correct incorrect

policing and enforcement costs of ensuring that the terms of a contract are honored correct incorrect

all of the above correct incorrect

* not completed

. Country specific advantages (CSAs) include:

economic advantages reflected in the quantities and qualities of the factors of production correct incorrect

a country's transport and telecommunications costs correct incorrect

the ease of doing business correct incorrect

all of the above correct incorrect