Localization strategy should be applied by multinational companies for their products, when there are significant differences across nations with regards to consumer tastes and preferences and where cost pressures are not intense. * 1 point True False According to Dunnings theory of eclectic paradigm, similar patterns of growth of foreign direct investment in a certain sector of a certain country/region occurs due to: * 1 point First mover advantages Location specific advantages Low ad valorem tariffs Existence of trade blocs When a company overestimates the potential and financial value of a company which they want to acquire, it is known as: * 1 point localization strategic alliance hubris hypothesis franchising Which of the following is NOT an example of a value chain's primary activity? * 1 point Production Marketing and sales Customer service activity Logistics When a company works as a foreign contractor to finish a project and then might run it for a specific period of time while training the local employees and ultimately leaves the project after completion of all these are know as: * 1 point Licensing Contract franchise Greenfield investment Turnkey project When a firm tries to simultaneously achieve low costs and differentiate its product offering across geographic markets, the firm is uses which kind of strategy? * 1 point International Strategy Global standardization Strategy Localization Strategy Transnational Strategy When a company uses licensing to enter new foreign markets, it takes all the risks associated with the foreign expansion. * 1 point True False When Toyota, Nissan responded to the investment by Honda in USA by establishing their own factories in USA, this falls under which theory? * 1 point Market imperfection Multipoint competition The radical view Comparative advantage ___________arise from national differences in consumer tastes and preferences, infrastructure, traditional business practices, distribution channels, and host-government demands * 1 point Trade wars Culture Pressures for local responsiveness Value creation Human resource management is a primary activity in the value chain. * 1 point True False __________ arises when two or more enterprises encounter each other in different national or regional markets. * 1 point Multidomestic competition Multipoint competition Eclectic paradigm competition Location specific competition Trade barriers and high transportation cost are the main disadvantages of this mode of entry: * 1 point Exporting Licensing Franchising Joint Venture The growth of FDI is the result of: * 1 point A fear of protectionism in other entry modes Democratic political institutions and free market economies Globalization forcing firms to maintain a presence around the world All of the above What type of investment is purchasing fixed assets such as land, factories and machineries by foreign multinationals? * 1 point Human Development Index Gross Fixed Capital Formation Gross Domestic Product Capital Asset Pricing Model _________ refers to skills within a specific company which other competitors cannot easily match or imitate. * 1 point experience curve core competence knowledge development learning effects