About the internationalization process is incorrect

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Reference no: EM132206243

1. Which of the following statements is INCORRECT?

A) Most of the foreign direct investment in the world is made by the world's largest multinational enterprises.

B) Foreign direct investment differs from portfolio investment as the former seeks for higher margins of profits.

C) The parent company of a multinational enterprise can exert its influence through both voting rights and informal/social pressures.

D) Foreign direct investment differs from portfolio investment in that it has stronger means of making an influence in the managerial decisions.

2. Which of the following examples is MOSTLY LIKELY driven by cost efficiency?

A) Sinopec -- a state-owned oil company, attempts to invest in Venezuela.

B) On Jan 23, 2012, Porsche Center Abu Dhabi opened a US$6 million, state-of-the-art Porsche Center that features the world’s largest Porsche service center.

C) The Taiwanese precision electronics maker is spending up to $10 billion on a new plant near Milwaukee in Wiscousin, looking to hire highly skilled worker on largely automatic manufacturing.

D) Nokia outsourced its cellphone manufacturing to India

3. Which of the following statements about the Internationalization Process is INCORRECT?

A) The depth of involvement in foreign markets is positively related to a firm's capabilities of absorbing risks

B) Export is riskier than license

C) The road from a domestic firm to an multinational enterprise with FDI abroad is a sequential process from license, export, low risk FDIs such as local packaging, to high-risk FDIs such as fully-owned subsidiaries on R&D and production.

D) FDI is often riskier than license and export.

4. Which of the following is NOT a mismatch between German market characteristics and Wal-Mart competitive advantages?

A) Everyday low price

B) It has the world’s largest private database, behind only the Sloan Digital Sky Survey

C) Cheap labor

D) Large zoning in surburban areas

Reference no: EM132206243

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