Latest Questions & Answers

Q: In the context of unbundling cash flows from subsidiary to parent,

In the context of unbundling cash flows from subsidiary to parent, why might a host government be more lenient in its treatment of fees than its treatment of dividends? What difference does it make to...

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Q: The OLI Paradigm is an attempt to create an overall framework to

The OLI Paradigm is an attempt to create an overall framework to explain why MNEs choose FDI, rather than serve foreign markets through alternative modes. Explain what is meant by the O, the L, and th...

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Q: A strongly competitive home market can sharpen a firm’s competitive advantage relative

A strongly competitive home market can sharpen a firm’s competitive advantage relative to firms located in less competitive markets. Explain what is meant by the “competitive advantage of nations.”

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Q: Explain briefly how economies of scale and scope can be developed in

Explain briefly how economies of scale and scope can be developed in production, marketing, finance, research and development, transportation, and purchasing.

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Q: In deciding whether to invest abroad, management must first determine whether

In deciding whether to invest abroad, management must first determine whether the firm has a sustainable competitive advantage that enables it to compete effectively in the home market. What are the n...

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Q: MNEs strive to take advantage of market imperfections in national markets for

MNEs strive to take advantage of market imperfections in national markets for products, factors of production, and financial assets. Large international firms are better able to exploit such imperfect...

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Q: What is the essence of the theory of comparative advantage?

What is the essence of the theory of comparative advantage?

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Q: As a firm evolves from purely domestic into a true multinational enterprise

As a firm evolves from purely domestic into a true multinational enterprise, it must consider (1) its competitive advantages, (2) its production location, (3) the type of control it wants to have over...

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Q: The United States has a law prohibiting U.S. firms

The United States has a law prohibiting U.S. firms from bribing foreign officials and business persons, even in countries where bribery is a normal practice. Some U.S. firms claim this places the Unit...

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Q: a. What are the traditional methods for countries to implement protectionism

a. What are the traditional methods for countries to implement protectionism? b. What are some typical non-tariff barriers to trade? c. How can MNEs overcome host country protectionism?

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