emerging market

TAKE-HOME MIDTERM EXAM

Name:

Instructions: This Midterm is worth 40 pts total. Each question is worth 10 points each. Please answer only 4 out of the 5 questions below. Answers should be in short answer, essay format. Midterms should be typed and printed or emailed. This midterm is due by the beginning of class, March 9th.

1) What are six different ways Multinationals can exploit or benefit from Emerging Markets? In your opinion, why is this important information for you to know? (10 points)

2) What are institutional voids? What is an example of an institutional void? How do institutional voids play a role in the definition of an Emerging Market? (10 points)

3) What is an intermediary? What are the six different types of intermediaries and give examples of each for either product, capital or labor markets. How do intermediaries help the transaction of business in emerging markets? (10 points)

4) What are transaction costs? Are transactions costs higher or lower in emerging markets? Why? What can be done to reduce transaction costs? (10 points)

5) What are the four strategic choices companies can make when doing business in emerging markets. If multinationals choose to replicate their product, processes or business model, which segments of the market are they constrained to? What is key to adaptation? If a multinational is attempting to change the market, what are they doing? (10 points)