1. According to the VRIO framework, valuable, but common resources and capabilities, will lead to a temporary competitive advantage.

True or False

2. Which of the following is a benefit of FDI to home countries?

a. Capital outflow

b. Learning from operations

c. Decrease in competition between local firms

d. Creation of new jobs

3. Which of the following is true of a command economy?

a. All factors of production are privately owned

b. The government only performs those functions that the private sector cannot perform.

c. It does not allow private entrepreneurship

d. It strictly follows the doctrine of laissez faire

4. An original design manufacturer (ODM) differs from an original brand manufacturer (OBM) in that an ODM _____.

a. does not include final assembly in its organizational boundary

b. does not include research and development in its organizational boundary

c. does not include marketing in its organizational boundary

d. only executes design blueprints provided by other firms