2e 8

Question 1

What are the key economic drivers influencing investment likelihood?

Answer 1

• Market size
• Physical infrastructure
• Wages
• Temporal shift

Question 2

What are institutional-cultural drivers for globalization:

Answer 2

• Political institutions
• Legal systems
• Cultural distance
• Trust
• Temporal shift

Question 3

The functional tradition points to three core attributes of global cities:

Answer 3

• Global interconnectedness
• Cosmopolitanism
• Abundance of advanced producer services

Question 4

The LOF primarily arises from three sources:

Answer 4

1. Complexity
2. Uncertainty
3. Discrimination

Question 5

Factors influencing MNE location decisions (hypotheses):

Answer 5

• Investment motives (competence-explointing, competence-creating, parent marketing capabilities)
• MNE integration strategy
• Alliance strategy

Question 6

Clusters enhance competitiveness in three ways:

Answer 6

1. Increasing productivity
2. Driving innovation
3. Stimulating new business formation

Question 7

Clusters add four key issues to the strategic agenda:

Answer 7

1. Choosing locations
2. Engaging locally
3. Upgrading the cluster
4. Working collectively