* not completed

. Why are institutions important to a globally operating firm according to D.C. North?

Every country has formal institutions which create order and reduce uncertainty. correct incorrect

Every country has formal and informal institutions which create order and reduce uncertainty. correct incorrect

Every country has a given institutional setup that globally operating firms have to accept. correct incorrect

Every country has informal institutions which create order and reduce uncertainty. correct incorrect

* not completed

. Which pillars constitute the organizational perspective of institutional theory?

Regulative, normative, and cultural-cognitive correct incorrect

Regulative, coercive, and normative correct incorrect

Normative, cultural-cognitive, and mimetic correct incorrect

Regulative, coercive, and mimetic correct incorrect

* not completed

. What measures can countries undertake to support the internationalization of their domestic firms?

None at all. correct incorrect

Institutional support (e.g., organising roadshows) only. correct incorrect

Institutional, financial, and political measures. correct incorrect

Institutional and financial (e.g., export finance) only. correct incorrect

* not completed

. How can a global factory respond to investment barriers?

Consider an alternative market. correct incorrect

Devise a copy strategy which allows operations in the foreign market, e.g., collaborating with local partner. correct incorrect

Businesses have to expect and respect trade barriers and there is nothing they can do. correct incorrect

The global factory can internalize markets. correct incorrect

* not completed

. Why do countries decide to impose restrictions on imports and inward FDI?

The country is not satisfied with the quality of goods it receives. correct incorrect

The country's government decided they do not need particular goods. correct incorrect

The country is export oriented. correct incorrect

The country aims to support, nurture, and protect the domestic industry. correct incorrect

* not completed

. Why do we need supranational organization for the global economic governance?

Only supranational organizations manage to stand up against very large MNEs. Individual countries are too small. correct incorrect

Supranational organizations monopolize the creation of laws and supersede sovereign states. correct incorrect

Supranational organizations support the development and provision of common norms and regulations and can function as a mediator in cases of economic disputes. correct incorrect

Supranational organizations are lawmakers that fill institutional voids. correct incorrect

* not completed

. What are common host country measures to restrain inward FDI?

Restricting foreign ownership and requesting local sourcing and/or local IJVs. correct incorrect

Not becoming member of the WTO. correct incorrect

Restricting export finance. correct incorrect

Not signing any bilateral investment agreements correct incorrect

* not completed

. What are the implications of rule-of-origin policies on the global factory?

Promotes licensing. correct incorrect

Promotes outsourcing. correct incorrect

Promotes export-enhancing FDI. correct incorrect

Promotes FDI in component production. correct incorrect

* not completed

. Which incentives do countries typically offer to attract MNEs?

Subsidies, tax breaks, and infrastructure development. correct incorrect

The possibility to acquire a local firm. correct incorrect

Political stability correct incorrect

Abundance of cheap labour correct incorrect

* not completed

. Which supranational institution provides free trade and a single market?

World Trade Organization correct incorrect

Mercosur correct incorrect

Trans-Pacific Partnership correct incorrect

European Union correct incorrect