daniels_ib11_tif_05 - CHAPTER 5 Globalization and Society...

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CHAPTER 5 Globalization and Society Multiple Choice Questions STUDY QUESTION 1: Why does the size of many MNEs concern many countries? 1. Because of the relatively large size of MNEs in terms of revenues, _____. a. they have considerable power when negotiating business arrangements with governments (interpretation, page 164) b. they can influence foreign government actions as long as their operations in the foreign country are through FDI instead of exporting c. no single country is important for business purposes d. pressure groups in both home and host countries are not able to develop policies to restrict the power of the MNEs 2. Which of the following statements reflects the impact of MNEs on host countries? a. Because of the large size of MNEs in terms of revenues, host countries do not have the power to influence their policies. b. FDI seems to have the greatest impact on host countries, although other forms of doing business abroad can also have an influence. (interpretation, page 164) c. Although a few MNEs have large revenues, their revenues are not significant compared with the GNI of most countries. d. Local pressure groups have given up devising policies to restrict MNE movements and are more interested in how to let them do what is necessary to be profitable. 3. A major concern about FDI is that _____. 4. Which of the following statements is true regarding MNEs? 101
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Chapter 5 Globalization and Society STUDY QUESTION 2: Which stakeholders must companies satisfy? Why is this process more difficult for companies operating internationally?
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