12. All of the following are arguments used by proponents ofoffshoring except:
a. It creates enormous value for firms and economies.
b. Western firms are able to tap into low-cost and high-qualitylabor.
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 theirjobs.
14. Which are true regarding informal constraints?
a. When formal institutional constraints fail, informalconstraints tend to fail as well.
b. Following the collapse the former Soviet Union, informalconstraints were unable to facilitate growth of entrepreneurialfirms.
c. Even in developed economies, the best-connected firms canreap significant benefits.
d. All of the above.
e. None of the above.
15. Which is the instrumental view regarding motivation tobecome ethical?
a. Jump on the “bandwagon” to appear more legitimate withoutbecoming more ethical.
b. Be self-motivated to “do it right” regardless of socialpressures.
c. Good ethics are a way to achieve good profits.
d. Ethics is an instrument to impose the values of the elite onthe masses.
e. Ethics is a game that is played like a musicalinstrument.
17. Which of the following are NOT true in regards to small andmedium-sized enterprises (SMEs).
a. They create approximately 50% of total value added in theworld.
b. They generate 60-90% of employment, depending on where theyare located.
c. Each year 4-6% of adult working population in North America,Western Europe, Central and Eastern Europe attempt to start a newventure.
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 fiveentrepreneurial strategies?
a. Use speed and stealth to disrupt and pre-emptcompetitors.
b. Emphasize analysis over action.
c. Less novel, but substantially new ways of doing business canalso 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 aforeign country.
d. Irrigation projects in areas stricken by famine.
e. Joint ventures in agriculture between governments and privatefirms.
