Chapter 10

MNCs and Global Production 

Quizzes 

Test your knowledge with the Chapter 10 quiz! 

Question 1

The I in OLI stands for:

Internationalization

Internalization

Interfirm

investment

None

Question 2

The key dynamic factor in Vernon’s product cycle theory is:

standardization of the production process

FDI shifting production

Trade liberalizing markets

Intellectual property enforcement

None

Question 3

The Global Compact is a regime that is:

part of the WTO

run by member states

voluntary

the first major treaty on portfolio capital

None

Question 4

investment is the purchase of existing facilities.

Question 5

The most controversial aspect of NAFTA was Chapter , which built in investment protection from state actions.

Question 6

The Agreement on sought to develop global guidelines around FDI.

Question 7

An example of portfolio investment is purchase of an overseas factory by an MNC.

TRUE

FALSE

None

Question 8

An example of vertical integration is purchasing raw materials suppliers.

TRUE

FALSE

None

Question 9

In the obsolescing bargaining model, a host state accepting FDI tends to gain leverage over time.

TRUE

FALSE

None

Question 10

Studies of MNCs show that they generally create jobs overseas.

TRUE

FALSE

None

Time’s up

Watch, Listen, Read, and Explore 

This content includes videos, podcasts, articles, readings, and other resources to help you understand and explore the content covered in the chapter. Most readings are freely available, although anything marked with an asterisk may require institutional log-in (e.g., through your university). Freely available data sources are also included to explore and further research. 

Videos 

• See Lecture Videos
• Allen Sens, MNCs: https://www.youtube.com/watch?v=FCojpFwWuG0  
• Global Goliaths book launch, Brookings Institute: https://www.youtube.com/watch?v=vBpkwz7-sKo  
• Colin Mayer- the transformational power of multinational business (TEDxEastEnd): https://www.youtube.com/watch?v=XLdiBNYGd-Y  

Podcasts 

• “Musings about MNCs,” podcast: https://podcasts.apple.com/us/podcast/musings-about-multinational-corporations/id1741847147  
• UNCTAD podcast, “Multinational manoeuvres: How rule-shopping by big companies dilutes development”: https://unctad.org/podcast/multinational-manoeuvres-how-rule-shopping-big-companies-dilutes-development  
• BBC “Company vs. Country” podcast: https://www.bbc.co.uk/programmes/p02xlxtm  
• IFS “How should we tax MNCs? Podcast”: https://podcasts.apple.com/us/podcast/how-should-we-tax-multinational-corporations/id1511294104?i=1000556367302  

Readings 

• UNCTAD, TNCS: Investment and Development Journal: https://unctad.org/Topic/Investment/Transnational-Corporations-Journal  
• The Multilateral Agreement on Investment (MAI) text (University of Oslo, Faculty of Law): https://www.jus.uio.no/english/services/library/treaties/09/9-02/agreement-on-investment.html  
• UNCTAD, Lessons from the MAI report (1999): https://unctad.org/system/files/official-document/psiteiitm22.en.pdf  
• “The Alarming Agreement on Investment (MAI) Now Being Negotiated at the OECD” (Public Citizen): https://www.citizen.org/article/the-alarming-multilateral-agreement-on-investment-mai-now-being-negotiated-at-the-oecd/  
• “Joining multinationals’ supply chains can benefit domestic firms’ performance” (Alfaro-Urena et al. LSE, 2023): https://blogs.lse.ac.uk/businessreview/2023/11/21/joining-multinationals-supply-chains-can-benefit-domestic-firms-performance/  
• “How MNCS Break the Rules and Why It Matters” (Cuervo-Cazurra et al., Insights @ Center for Emerging Markets, 2023): https://damore-mckim.northeastern.edu/news/how-multinational-companies-break-the-rules-and-why-it-matters/  
• “The China imperative for multinational companies” (McKinsey Global Institute, 2023): https://www.mckinsey.com/mgi/our-research/the-china-imperative-for-multinational-companies  
• “For MNCs, Big Decisions About China Are on Ice” (Schütte, INSEAD brief, 2023): https://knowledge.insead.edu/strategy/mncs-big-decisions-about-china-are-ice  
• Osler (law firm) case brief on Koch Supply & Trading vs. Canada (NAFTA C. 11 case): https://www.osler.com/en/insights/blogs/arbitration/no-property-no-investment-koch-industries-carbon-allowances-not-an-asset-under-nafta/  
• “ESG investing has made little impact on the green energy transition so far. Why is that?” (Hira, ESG Investing, The Conversation, 2023): https://theconversation.com/esg-investing-has-made-little-impact-on-the-green-energy-transition-so-far-why-is-that-206661  

Selected Sources of Free Data 

• Columbia Center of Sustainable Development, https://ccsi.columbia.edu/  
• Forbes Global 2000, largest MNCs: https://www.forbes.com/lists/global2000/  
• International Centre for Settlement of Investment Disputes: https://icsid.worldbank.org/ 
• UN Global Compact: https://unglobalcompact.org/  
• UNCTAD, World Investment Report: https://unctad.org/publications-search?f%5B0%5D=product%3A397 
• UN Trade and Development, International Investment Agreements Navigator: https://investmentpolicy.unctad.org/international-investment-agreements