Bonus test

Question 1

Porter predicts (in 2000) that cultures will increasingly move towards the productivity paradigm but that differences will remain. What are the reasons why complete convergence is unlikely, according to Porter?

Answer 1

1. Ideas about how the economy should be organized are deeply rooted in a country and it takes time to change
2. Culture is connected to the present microeconomic context and it is hard to change one without changing the other
3. Economic culture is learnt from the economic context and the economic context is learnt from economic culture. One reinforces the other and it is hard to break that cycle.

Question 2

Institutional distance meaning

Answer 2

The difference between the regulatory and cultural environment in the home country of a multinational enterprise and the host countries in which it is active

Question 3

Which performance indicator was positively associated with cultural distance in Beugelsdijk et al.’s (2018) meta-analysis of the effect of ultural distance on internationalization decisions?

Answer 3

Innovation

Question 4

Greenfield investment meaning

Answer 4

Starting a subunit in a host economy without a local partner

Question 5

Minimalist stakeholder engagement strategy

Answer 5

Firms do not engage with stakeholders beyond what is legally required

Question 6

Cardinal decision issue perspective model elements

Answer 6

Preliminaries:
1. Need
2. Mode
3. Investment

Core:
4. Options
5. Possibilities
6. Judgement
7. Value
8. Tradeoffs

Aftermath:
9. Accessibility
10. Implementation