Chapter 01 Globalization and the Multinational

A.

take advantage of underpriced labor services available in certain developing countries.

B.

gain access to special R&D capabilities residing in advanced foreign counties.

C.

boost profit margins and create shareholder value.

D.

all of the above

A.

generally are more productive and pay their workers more than do comparable locally-owned businesses.

B.

generally are less productive and therefore pay their workers less than do comparable locally-owned businesses.

C.

tend to specialize in different articles of manufacture than they produce in their home countries.

D.

usually do not build their own production facilities but simply buy existing domestic manufacturing firms.

A.

can face stiff competition from a multinational corporation that can source its products in one country, sell them in several countries, and raise its funds in a third country.

B.

can be more competitive than a MNC on its home turf due to superior knowledge of the local market.

C.

can still face exchange rate risk, just like a MNC.

D.

all of the above are true

A.

Multinational Corporation.

B.

Multi-Nationalized Corporation.

C.

Military National Cooperation.

A.

FDI by MNCs

B.

International trade

C.

Since they are linked, they grow at the same rate.

D.

None of the above

A.

must effectively manage foreign exchange risk.

B.

can ignore foreign exchange risk since it is diversified.

C.

will pay taxes in only its home county.

D.

none of the above