lOMoARcPSD|3050369

Sample/practice exam 2016,socrative - answers en questions

Introduction to International Business (Rijksuniversiteit Groningen)

StuDocu no está patrocinado ni avalado por ningún colegio o universidad.

Descargado por Andrea Bove Calzada (anbove@padredamiansscc.net)
 lOMoARcPSD|3050369

Q Answer Literature
1 C. Verbeke 15
2 A. Verbeke 16-18
3 D. Verbeke 104 / Lecture 2
4 D. Lecture 1 / Tutorial 1
5 B. Verbeke 19 / Lecture 2
6 A. Verbeke 80 / Lecture 2
7 A. Verbeke 52-58 / Lecture 1 / Tutorual 1
8 B. Verbeke 15
9 A. Verbeke 15-16 / Lecture 1
10 C. Verbeke 80 / Lecture 2 / Tutorial 2
11 D. Verbeke 21 / Lecture 2
12 C. Verbeke 13 / Lecture 1
13 D. Verbeke 80 / Lecture 2 / Tutorial 2
14 C. Verbeke 28
15 C. Lecture 1 / Tutorial 1
16 D. Verbeke 24-27
17 B. Verbeke 32-33 / Lecture 3
18 B. Verbeke 38 / Tutorial 2
19 B. Verbeke 22-23
20 A. Verbeke 16-17 / Lecture 2 / Tutorial 2

Descargado por Andrea Bove Calzada (anbove@padredamiansscc.net)

 lOMoARcPSD|3050369

1. When crossing its home country border to create value in a host country the MNE is:

A. at an advantage as compared to local firms because it possesses knowledge that is not

available to these local firms;
B. at an advantage as compared to local firms because the MNE hardly incurs any
additional cost when entering an additional market and can therefore compete effectively
with these local firms;
C. at a disadvantage as compared to local firms because these firms possess a knowledge
base that is more appropriately matched to local stakeholder requirements;
D. at a disadvantage compared to local firms because the MNE not only has to compete
with these local firms, but will be faced with competition from other MNEs that are already
established in that host country

2. Non-location bound FSAs:

A. do not stop creating value when the border is crossed between home and host
country, though their precise value may be somewhat different in both countries;
B. do not stop creating value when the border is crossed between home and host country,
unless the MNE in question is a centralized exporter;
C. can successfully be transferred from the home country to the host country in the form of
final products; however, they cannot be transferred in the form of intermediate products;
D. can only be successfully transferred between home country and host country in
the absence of government-imposed trade barriers.

3.
I) Factor conditions in Porter’s diamond model include not only factors of production in the
home country, but also, and more importantly, factors of production in the host country.
II) Demand conditions in Porter’s diamond model focus on both domestic market size and
domestic buyer sophistication.

A. Both statements are correct.

B. Both statements are incorrect.
C. Only statement I. is correct.
D. Only statement II. is correct

4. A firm needs recombination skills:

A. unless the MNE in question is a centralized exporter;

B. because they are key to an MNE’s exploitation of its unique resources;
C. because this is the only manner in which an MNE can resolve the paradox of
transferable FSAs;
D. because without these, it will lose its competitive advantage.

Descargado por Andrea Bove Calzada (anbove@padredamiansscc.net)

 lOMoARcPSD|3050369

5. One of the archetypes of administrative heritage is the international coordinator. This

………….. managed firm’s international success does.............primarily on the home country
FSA embodied in the products that are exported internationally. Which words should be on
the dotted lines?

A. centrally; build;
B. centrally; not build;
C. decentrally; not build;
D. decentrally; build.

6. According to Prahalad and Hamel, core competencies, meaning the firm’s........................,

produce components called cored products, which are out together to create end products.
Which words should go on the dotted line to make this a correct statement?

A. routines and recombination skills.

B. stand-alone FSA, routines and recombination skills.
C. technological know-how and strengths derived from vertical integration.
D. explicit and tacit knowledge.

7. Developing FSAs is difficult:

A. because of both bounded reliability issues and bounded rationality issues;

B. mainly because of bounded rationality issues, as bounded reliability issues can easily
be resolved;
C. mainly because of bounded reliability issues, as bounded rationality issues can easily be
resolved;
D. because of various factors that are, however, unrelated to both bounded reliability
issues and bounded rationality issues.

8. The exploitation of FSAs transferred abroad:

A. can only be done by the MNE itself (including its foreign affiliates
B. can be done by the MNE itself (including its foreign affiliates) and network partners (such
as joint venture partners);
C. can be done by the MNE itself (including its foreign affiliates) and network partners (such
as joint venture partners); however, it cannot be done by external actors (such as
licensees);
D. is impossible without the help of local partners, since they are required to add their own
complementary resources to the foreign operations and thereby strengthen the MNE’s
position in a foreign market

9. Which of the following has a central role in the explanation so-called paradox of
internationally transferable FAs?

Descargado por Andrea Bove Calzada (anbove@padredamiansscc.net)

 lOMoARcPSD|3050369

A. The characteristics of both tacit knowledge and codifiable knowledge.

B. The inability to transfer tacit knowledge across borders.
C. The inability to transfer codifiable knowledge across borders;
D. Both codifiable knowledge and tacit knowledge can no longer serve as a key source of
competitive advantage when doing business abroad.

10. Which of the following cannot be labeled as a "higher-order FSA" contributing to the firm's
competitiveness?

A. the ability to integrate multiple technologies;

B. the firm's routines / recombination skills;
C. technological know-how;
D. the firm's shared knowledge.

11. The multi-centred MNE:

A. consists of a set of subsidiaries abroad which are primarily focused on the sales
of products that were manufactured in the home market;
B. is held together by a substantial amount of non-location bound FSAs;
C. is largely a portfolio of mutually interdependent businesses;
D. is characterized by a high degree of national responsiveness.

12. According to Verbeke (2013) “international transferability:"

A. is limited to the technical transfer across borders of knowledge and other company
strengths;
B. is the effective deployment of internationally transferred FSAs in foreign locations;
C. is the effective and profitable deployment and profitable exploitation of
internationally transferred FSAs in foreign locations;
D. is limited to the technical transfers across borders of company strengths.

13. What critique does Verbeke give on the concept of core competencies?

A. None; he completely agrees with the various aspects of the concept of core competencies.
B. According to Verbeke the concept is too static and its does not capture and incorporate the
dynamics of international business activities.
C. According to Verbeke the concept overestimates the role of external factors, such as
demand conditions and related and supporting industries.
D. According to Verbeke it relies too much on the idea that managers can change and
develop anything and everything.

14. Which of the following statements with regard to location advantages is correct?

Descargado por Andrea Bove Calzada (anbove@padredamiansscc.net)

 lOMoARcPSD|3050369

A. Location advantages as such are not one of the main elements of Verbeke’s unifying
framework since they can always be linked to either LB FSAs or NLB FSAs.
B. Locations and therefore location advantages matter because an MNEs economic activities
occur in a spatially homogeneous environment.
C. The set of usable strengths of a specific location should always be assessed relative to the
useable strengths of other locations.
D. Location advantages normally do not have an effect on the type of FSAs that can
be developed by locally operating firms in comparison to firms operating elsewhere.

15. Resource recombination:

A. refers to an MNE’s capability of growing by innovating, diversifying and collaboration;

B. does involve combining existing resources in novel ways; however it does not involve
using newly acquired resources;
C. is both a key driver and a key constraint of MNE growth;
D. will be difficult to implement in case of existing slack in an MNE.

16. According to Verbeke there are four types of location-bound FSAs. These LB FSAs:

A. have in common that they are always linked to some form of location advantage in
the home market;
B. have in common that they are not valued to the same extent by foreign stakeholders as
they are by home-country-stakeholders;
C. have in common that they are always linked to some form of location advantage in the
home market or that they are not valued to the same extent by foreign stakeholders as they
are by home-country-stakeholders;
D. may result from the fact that the firm’s recombination capability is not capable of dealing
with the additional complexities of foreign markets.

17. IKEA’s expansion from its base in Scandinavia into markets in Western Europe and North
America is an example of which motive for an MNE to move abroad?

A. Efficiency seeking.
B. Market seeking.
C. Strategic resource seeking.
D. Natural resource seeking.

18. The centralized exporter is essentially:

A. an efficiency seeker;
B. a market seeker;
C. strategic resource seeker;
D. none of the above.

Descargado por Andrea Bove Calzada (anbove@padredamiansscc.net)

 lOMoARcPSD|3050369

19. Verbeke’s set of four archetypes of administrative heritage:

A. describes the bulk of most large MNEs, with the exception of the Fortune 500 ones;
B. does not include the so-called free standing companies and many MNEs from emerging
markets;
C. is a complete set;
D. perfectly describes the MNEs on the Fortune 500; however, that does not hold for
those MNEs that are not on this list.

20. Consider a company that started its international expansion in the 1950s. This
international expansion is characterized by the export of products that had already been
successful in the domestic market. Extensive international expansion started some 10
years later. The company opened a limited number of facilitating sales subsidiaries in some
markets. The company has centralized R&D facilities in its home market. This company can
best be labeled as:

A. a centralized exporter;
B. an international projector;
C. an international coordinator;
D. a multi-centered MNE.

Descargado por Andrea Bove Calzada (anbove@padredamiansscc.net)