How did the US Justice Department learn about Chiquita’s payments to illegal groups in Colombia? A private company cable was discovered by US investigators Colombian politicians filed a complaint A competitor spilled the beans The company came forward and admitted it
How did the US Justice Department learn about Chiquita’s payments to illegal groups in Colombia?
A private company cable was discovered by US investigators
Colombian politicians filed a complaint
A competitor spilled the beans
The company came forward and admitted it
In the film “The Curse of Inca Gold,” Newmont executive Larry Kurlander is caught on tape telling Peruvian intelligence chief Vladamiro Montesinos that he wants a ______
$1 million kickback deposited into his Swiss bank account
friend for life
guarantee that the government will suppress protests at the Yanacocha mine
guarantee that the government will award Newmont and its partners a $1 billion mining concession
Why would a manufacturing firm prefer to execute a green-field investment instead of acquiring an existing asset in a foreign country? Because green-field investments are typically less costly to execute
Because green-field investments are typically less risky
Because green-field investments are less likely to be targeted by host governments and/or protesters
Because the acquiring firm may want to have full control of facility design and layout
According to the video on Chiquita in Colombia, the US banana company admitted to paying protection money to: left-wing guerrillas
right-wing paramilitaries
drug lords
corrupt government officials
The task of the International Monetary Fund, as established by the Bretton Woods agreement, is to:
promote general economic development
maintain order in the international monetary system
provide letters of credit on behalf of first-time exporters
facilitate the establishment of regional trade agreements
According to the article “Strategies that Fit Emerging Markets,” McDonald’s experience in Russia suggests that: Institutional voids can be overcome
Some countries, particularly those with collectivist orientations, are just not open to Western fast-food restaurants
Business models developed for advanced, Western markets rarely succeed in the developing world
Even the most successful multinational firms can lose their way when they forsake the four elements of Porter’s diamond
Which of the following is true of a transnational strategy?
It is easy to implement because it does not place any conflicting demands on a company
It is used when the pressures for cost reductions are low
It is usually used when the pressure for local responsiveness is relatively low
It is used by firms that try to achieve low costs through location economies, economies of scale, and learning effects
According to the article “How Wal-Mart is Changing China,” the country’s burgeoning middle class has embraced Western branded fast-food and grocery chains primarily because:
They have new
They are captivated by Western advertising campaigns featuring characters like Colonel Sanders and Ronald McDonald
They are seen as more trustworthy food purveyors than their local counterparts
Their prices are on average 25 percent cheaper than at their Chinese counterparts
Chinese towel-maker Loftex is cited in the article “How Wal-Mart is Changing China,” as a success story How come?
Because it has achieved ambitious energy-reduction goals set by Wal-Mart
Because it has developed new synthetic micro-fibers that are cheaper than cotton
Because it has found a way to lower production costs while simultaneously improving working conditions within its factories
Because it has found a way to lower production costs while raising worker salaries by 25 percent
Which of the following is not a host country policy designed to encourage FDI? offering cash grants
offering low-interest loans
offering tax concessions
mandating performance requirements
When transportation costs are added to production costs, it becomes unprofitable to ship some products over a large distance This is particularly true of products that have a(n): high value-to-weight ratio
moderate value-to-weight ratio
low value-to-weight ratio
extremely high value-to-weight ratio
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