Chapter 12 Self-grading Quizzes

Private Enterprise and Development
. For Joseph Schumpeter, the function of the entrepreneur was to ________.

. ________ is NOT an example of a "private sector."

. ________ refer to individuals and enterprises that do business without being officially registered or regulated.

. The term "foreign direct investment" is preferred by ________.

. ________ was the first to theorize about entrepreneurship.

. One of the most widely used tools to promote entrepreneurship in developing countries is____________.

. The international business perspective views multinationals as ________.

. The OLI paradigm is also referred to as the ________ paradigm.

. Global value chain theory emerged in the early ________.

. ______________is a voluntary commitment of firms to improve the quality of their relationship with stakeholders.

. In the new international division of labour (NIDL), ________.

. Approximately ________ multinational corporations currently exist.

. The ability of a firm to upgrade depends on all of the following except for ________.

. A ________ strategy involves multinational corporations buying up assets of other corporations as part of a global strategy to improve their competitiveness.

. The partnership ideal is best expressed in the concept of ________ developed by Harvard Business School professors Michael E. Porter and Mark R. Kramer.

. Shared value means ______________.

. This practice is very similar to privatizations in which a company is contracted and partially subsidized to provide a public service.

. The OLI paradigm is also known as ____________.

. Ownership advantages are ____________.

. One key reason why multinational companies invest in production across borders is __________.

. To better understand this globally fragmented process in which different companies in different countries provided distinct inputs into the production of a single product ___________.

. When governments help their companies upgrade __________.

. China became a _____________ for MNC.

. MNCs buy up assets of other corporations as part of their ____________.

. International agreements limit __________________.

. The private sector is one of the most generous and benign actors in international development.

. In many developing economies, small firms are more likely to be foreign.

. Micro-finance is popular to due to it being immune from problems.

. Foreign direct investment is more stable than portfolio investment.

. Most developing countries have entered into bilateral investment treaties.

. Foreign direct investment is also known as "hot capital flow."

. According to the OLI paradigm, the multinational corporation is distinguished by ownership, location-specific, and internalization advantages.

. Regulatory chill refers to the period in which regulations become well-accepted or solidified.

. Authors in the Marxist-inspired or critical tradition have tended to view multinational corporations as representatives of the global capitalist system and therefore as having a negative impact on the developing countries in which they invest.

. The first bilateral investment treaty was signed between Germany and Pakistan in 1959.

. The strategies of multinationals alone do not determine their effect on development. A crucial part of the impact of MNCs on development is how governments mediate this relationship.

. Private foundations are no longer as important as they once were in international development.

. The Uruguay Round of trade negotiations further limited the rights of foreign investors.

. Most multinationals have developed their own codes of conduct but have not adhered to global codes promoted by international organizations.

. Investing in working with partners is not just a charitable act, but it is good for the competitiveness and profitability of all.

. Private actors are important development agents.

. Two of the most important vehicles for protecting self-interested corporations are corporate social responsibility (CSR) practices of the firm and partnerships with governments and civil society organizations.

. Corporations always partner with governments and civil society organizations.

. Through CSR, companies may engage directly in local economic development.

. Global codes of conduct are intended to provide guidelines to companies about how to avoid exploiting women in developed countries.

. Mining companies have been at the forefront of MNC adoption and practice.

. CSR standards promoted by the Canadian government are often more demanding than the law at home and abroad.

. The term "partnership" is multivalent.

. One of the reasons for not adopting partnerships is that the private sector could help to fill the gap by mobilizing resources.

. The partnership ideal is best expressed in the concept of shared value developed by Joseph Schumpeter.

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