Question

In: Operations Management

12. All of the following are arguments used by proponents of offshoring except: a. It creates...

12. All of the following are arguments used by proponents of offshoring except:

a. It creates enormous value for firms and economies.

b. Western firms are able to tap into low-cost and high-quality labor.

c. Firms can focus on their core capabilities.

d. For every dollar spent by US firms on India, the U.S. obtains $1.13.

e. It is not true that some US employees may lose their jobs.

14. Which are true regarding informal constraints?

a. When formal institutional constraints fail, informal constraints tend to fail as well.

b. Following the collapse the former Soviet Union, informal constraints were unable to facilitate growth of entrepreneurial firms.

c. Even in developed economies, the best-connected firms can reap significant benefits.

d. All of the above.

e. None of the above.

15. Which is the instrumental view regarding motivation to become ethical?

a. Jump on the “bandwagon” to appear more legitimate without becoming more ethical.

b. Be self-motivated to “do it right” regardless of social pressures.

c. Good ethics are a way to achieve good profits.

d. Ethics is an instrument to impose the values of the elite on the masses.

e. Ethics is a game that is played like a musical instrument.

17. Which of the following are NOT true in regards to small and medium-sized enterprises (SMEs).

a. They create approximately 50% of total value added in the world.

b. They generate 60-90% of employment, depending on where they are located.

c. Each year 4-6% of adult working population in North America, Western Europe, Central and Eastern Europe attempt to start a new venture.

d. Around the world, a majority of entrepreneurial firms (including 60% of start-ups in the US) succeed within 6 years.

18. To achieve success, entrepreneurial resources must be:

a. Of low value so as to reduce cost.

b. Common.

c. Non-core competencies that are hard to imitate.

d. Organizationally embedded.

e. All of the above.

19. Which of the following is NOT an example of one of the five entrepreneurial strategies?

a. Use speed and stealth to disrupt and pre-empt competitors.

b. Emphasize analysis over action.

c. Less novel, but substantially new ways of doing business can also be innovative.

d. Centrally located network positions are most helpful.

e. Selling an equity stake to outside investors.

20. “Greenfield ventures” are:

a. Examples of international grain corporations.

b. Environmentally friendly MNEs.

c. Wholly owned subsidiaries that are built from scratch in a foreign country.

d. Irrigation projects in areas stricken by famine.

e. Joint ventures in agriculture between governments and private firms.

Solutions

Expert Solution

12. e. It is not true that some US employees may lose their jobs is the argument which is not being used by proponents of offshoring.

14. c. Even in developed economies, the best-connected firms can reap significant benefits is true regarding informal constraints. Remaining statements are not correct in this regard.

15. c. Good ethics are a way to achieve good profits is the instrumental view regarding motivation to become ethical.

17. b. They generate 60-90% of employment, depending on where they are located is NOT true in regards to small and medium-sized enterprises (SMEs). As they generate 60-70% of employment.

18. c. Non-core competencies that are hard to imitate is something which entrepreneurial resources must be, to achieve success.

19. b. Emphasize analysis over action is NOT an example of one of the five entrepreneurial strategies. Five entrepreneurial strategies are Growth, Innovation, Network, Financing/governance, and Harvest/exit.

20. c. Wholly owned subsidiaries that are built from scratch in a foreign country is what we can say about “Greenfield ventures”.


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