Multiple choice questions (10 points, no guessing correction, 1 correct answer per question)

1. 'Captive offshoring' means that:

a. the activity is situated in the home economy and takes place internally. b. the activity is
situated in the home economy and takes place externally. c. the activity is located abroad
and takes place internally.
d. the activity is located abroad and takes place externally.

2. The VRIN framework suggests that resources should have the following characteristics to
serve as a source of sustainable competitive advantage:
a. Valuable, rare, imitable and organizationally embedded in the company.
b. Valuable, unique, imitable and organizationally embedded in the company.
c. Valuable, rare, inimitable and organizationally embedded in the company.
d. Worthless, rare, inimitable and organizationally embedded in the company.

3. The Repsol case, discussed in the council, does not demonstrate that:
A. the ICSID (International Center for Settlement of Investment Disputes) is a fair court.
B. Argentina's trade policy in the YPF case is protectionist.
C. the expropriation of 51% of Repsol's shares in YPF by the Argentine government was
unlawful.
D. the United States can exert greater weight than the European Union in investment
disputes.

4. Which of the following statements is incorrect?

a. After a statutory merger, two companies remain.

b. After a statutory merger, only one company remains.
c. Takeovers often fail because managers ignore value creation
overestimate takeover.
d. The AAA typology of strategies stands for adaptation, aggregation and arbitrage.

5. Which of the following has not changed as a result of globalization?

a. The diversity of capital flows across national borders.
b. The economic isolation of developing countries.
c. The speed at which products are distributed worldwide.
d. The volume of transactions across national borders.

6. Which of the following statements about Hofstedes dimensions of national culture is

correct?
a. In cultures with a high power distance, asking for feedback from subordinates is often
seen as a sign of weak leadership.
b. In cultures with high uncertainty avoidance, employees normally offer little resistance
to change.
c. Managers in masculine cultures generally have a stronger tendency to strive for
consensus than managers in feminine cultures.
d. Hofstede has identified five cultural dimensions: power distance, ethnocentrism,
masculinity, uncertainty avoidance and long-term orientation.

7. Consider the following two statements about horizontal and vertical foreign direct
investments:
I: If Toyota establishes a new car factory in Belgium, this means that it is making a horizontal
direct foreign investment.
II: If Toyota establishes a research and development center in Belgium, this means that it is
making a downward ('downstream') vertical direct foreign investment.
Which of the following answer options is correct?
a. Both statements are correct.
b. Statement I is correct; Statement II is incorrect.
c. Statement I is incorrect; Statement II is correct.
d. Both statements are incorrect.

8. Consider the following two statements about international licensing:

and international franchising:
I: In the case of international licensing, a licensor gives a foreign licensee (licensee) the right
to use the licensor's entire business concept for a fee in the form of royalties.
II: International franchising enables franchisors ('franchisors') to become internationally
active with relatively little capital of their own.
Which of the following answer options is correct?
a. Both statements are correct.
b. Statement I is correct; Statement II is incorrect.
c. Statement I is incorrect; Statement II is correct.
d. Both statements are incorrect.

9. Which of the following statements about internationalization process models is correct?

a. Internationalization process models focus on an individual foreign expansion
decision.
b. According to the Uppsala model, internationalization is a dynamic learning process in
which companies make decisions about their next internationalization step based on
their experiential knowledge.
c. According to the Uppsala model, companies must first gather knowledge about a
foreign market before entering it.
d. The phase models ('stages models') describe internationalization as a process in
which a company develops foreign networks.

10. Peng and Meyer distinguish four international strategies for companies. Which of these
strategies is characterized by the greatest amount of knowledge exchange between the
foreign subsidiaries of a multinational company?
a. The home replication strategy.
b. The global standards strategy.
c. The localization strategy.
d. The transnational strategy.