17.1-10 – Example of internalization advantage of MNE
Multinational Business Finance
Eiteman, Stonehill, and Moffett
15th Edition
A/An ____ is an example of an internalization advantage for a multinational enterprise, MNE.
17.1-7 The L in OLI
Multinational Business Finance
Eiteman, Stonehill, and Moffett
15th Edition
What does the L in OLI refer to when talking about the firm’s home market?
17.1.23 – Assume that % of People are Left Handed.
MyStatLab
Pearson
Asks to find mean and standard deviation of right-handed people, probability not right-handed, probability no more then X right-handed people, the probability that there is X right-handed and X left-handed, probability majority right-handed.
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Your numbers will vary.
17.1.25 – Nearsightedness Affects % of Children in a Region
MyStatLab
Pearson
Asks to find how many children are expected to be nearsighted and standard deviation.
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Your numbers will vary.
17.2-11 – Sequential search pattern
Multinational Business Finance
Eiteman, Stonehill, and Moffett
15th Edition
T/F: When firms expand into other countries, they have been observed to follow a sequential search pattern as described in the behavioral theory of the firm.
17.4-3 – What is the risk that the host government will take specific steps?
Multinational Business Finance
Eiteman, Stonehill, and Moffett
15th Edition
What is the risk that the host government will take specific steps that prevent the foreign affiliate from having control over the firm’s assets?
17.5-8 – T/F: A country can react to potential blocked funds
Multinational Business Finance
Eiteman, Stonehill, and Moffett
15th Edition
T/F: A country can react to the potential for blocked funds prior to making an investment by investing in the local country’s assets that maintain their value.
Concept – Committed Fixed Costs Included
Managerial Accounting
Garrison, Noreen, and Brewer
17th Edition
Which of the following are covered by committed fixed costs? Check all that apply.
Concept – Country-Specific Risks in International Business
Multinational Business Finance
Eiteman, Stonehill, and Moffett
16th Edition
Which of the following is NOT identified as a primary country-specific risk by the authors?
A. Thin equity base
B. Cultural differences
C. Protectionism
D. Transfer risk
Concept – Disadvantages of Licensing vs. FDI
Multinational Business Finance
Eiteman, Stonehill, and Moffett
16th Edition
Which option does NOT represent a potential drawback of licensing when compared to Foreign Direct Investment (FDI)?
A. possible loss of quality control
B. establishment of a potential competitor in third-country markets
C. possible improvement of the technology by the local licensee, which then enters the original firm’s home market
D. All of the above are potential disadvantages to licensing.