The International University – Vietnam National University – Hcmc

THE INTERNATIONAL UNIVERSITY  – VIETNAM NATIONAL UNIVERSITY – HCMC

FINAL  EXAMINATION

Date: 18 October, 2013

                                                Duration: 150 minutes

Student ID: ..................................                         Name:................................................

GENERAL INSTRUCTIONS

1. This is an open book examination

2. No talking during the exam

3. No mobile phone used during the exam

4. Use of dictionary is allowed

ENJOY and GOOD LUCK!

Multiple choice questions (30 points)

1. An MNE with headquarters in Amsterdam possessing excellent knowledge of buying behaviors of Parisians can be said to have

1. Location-bound advantage
2. Transferable advantage
3. Location advantage
4. Recombination capability

2. Recombination capability is said to be the most valuable FSA because

1. It is harder for competitor to understand and copy
2. It takes time to develop
3. It is costly to develop
4. It is very powerful

3. Which of the following can be said as a core competence of Apple?

1. Developing and patenting perfect designs that can be applied for phone, tablet, laptop
2. Developing a new and quick processor used in each generation of phone
3. Applying lively colors to a new line of products
4. The ability to customize languages used in its products

4. Which of the following is not location advantage specified in Porter’s diamond?

1. Availabity of foreign markets
2. Intensity of rivalry
3. Level of availability of companies in related industries
4. The supply of skilled labor

5. “Distance,” as Ghemawat suggested, may create

1. Bounded rationality problem
2. Competitive advantage
3. Good headquarters – subsidiary relationship
4. Market similarity

6. What did Bartlett and Ghoshal identify as inappropriate in MNEs’ strategies?

1. Decentralization
2. Ignoring the dissimilarities of subsidiaries
3. Participatory decision-making
4. Priorities in resource allocation to host countries

7. An R&D lab located close to the critical market of an MNE is more likely

1. Home-base-influencing
2. Home-base-exploiting
3. Home-base-augmenting
4. Home-base-supporting

8. In Ferdows’ classification, and outpost facility should try to become

1. Server
2. Leader
3. Contributor
4. Source

9. In a contract selling cars to a foreign customer, an MNE specified that they accept a lower price if the customer pay immediately.  The MNE did that to minimize

1. Translation exposure
2. Transaction exposure
3. Economic exposure
4. Forex exposure

10. To avoid economic exposure, an MNE can

1. Buy a lot of US dollars
2. Establish a number of factories in a number of countries
3. Focus on one product only
4. Sign contracts with those who accept US dollars

11. Standardized product can help companies to