Business Government And Society A Managerial Perspective 13th Edition By Steiner – Test Bank

ch11
Student: ___________________________________________________________________________
1. MNCs are all similar in their organizational structures and operations. True False

2. In global production, a value chain can span two or more countries. True False

3. As MNCs moved into the fifth tier of internationalization, their strategic thinking was more influenced by national boundaries. True False

4. Sometimes those using the name multinational mean to imply that these companies have erased national allegiances, becoming itinerant firms that move investment and activity from nation to nation in search of profits. True False

5. Though TNCs differ greatly in international dimensions, a single measure has been created that can capture the definitive meaning of “transnational.” True False

6. The typical MNC is international rather than national. True False

7. Corporations are formed under national incorporation laws. True False

8. In many fifth-tier companies, there is a strong trend toward more centralized authority rather than more “statelessness.” True False

9. When an MNC invests funds to acquire a foreign company, this is called a foreign direct investment.
True False

10. The single measure that best captures the activity and power of MNCs is portfolio investment.
True False

11. Foreign direct investment is the limited, speculative purchase of stocks and bonds in a foreign company by individuals. True False

12. Almost all FDI comes from multinational corporations. True False

13. The primary motive of companies investing in LDCs is getting an adequate return on capital invested.
True False

ch11 Key
1. (p. 354) FALSE

2. (p. 355) TRUE

3. (p. 356) FALSE

4. (p. 356) TRUE

5. (p. 358) FALSE

6. (p. 359) FALSE

7. (p. 359) TRUE

8. (p. 359) TRUE

9. (p. 362) TRUE

10. (p. 362) FALSE

11. (p. 362) FALSE

12. (p. 362) TRUE

13. (p. 364) TRUE