Test yourself by working through the chapter quiz.
1. In order to achieve and maintain a low cost structure emerging market multinationals will:
Base their operations in second tier cities
Use second hand equipment imported from the West
Fashion their own version of equipment used by Western companies
All of the above
(a) and (b) only
Answer:
d. All of the above
2. Emerging market multinationals may be defined as companies originating from emerging markets and while they are engaged in outward foreign direct investments they do not engage directly in value-added activities in foreign countries. True/False?
True
False
Answer:
b. False
3. Emerging market multinationals possess many of the same firm specific advantages e.g. strong global brands, possessed by multinationals from the developed world. True/False?
True
False
Answer:
b. False
4. To be successful,l developed country multinationals should see emerging markets as:
A large and growing middle class
Centers of innovation
A source of talent to produce goods that may be sold globally
All of the above
(a) and (c) only
Answer:
d. All of the above
5. Emerging market multinationals which capitalize on their experience in building products that are able to stand up to the harsh physical conditions found in emerging markets similar to their home market are termed:
Knowledge leveragers
Cost leaders
Niche customizers
Global brand builders
Answer:
a. Knowledge leveragers
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