A firm in the 1990s wishing to invest in Bulgaria after the collapse of the Soviet Union should have considered the possibility of _______________________, which

A firm in the 1990s wishing to invest in Bulgaria after the collapse of the Soviet Union should have considered the possibility of _______________________, which would impact the strength of institutions and ease of doing business. Select one: a. Depressed markets b. A socialist state c. Institutional transitions d. State ownership Institutions are important to international trade because they promote _________ between parties by establishing ____________ frameworks for governing trade practices. Institutions are defined as the “regulative, normative, and cognitive structures and activities that provide stability and meaning to social behaviour” (Scott, 1995:33). Having to search for appropriate trading partnerships is usually a costly exercise in local or domestic markets, but not in global markets. Select one: True False Match the following examples with the advantage it applies to according to the OLI framework. Company brand Greater managerial control Managerial skills Protection of a firm’s reputation Government FDI incentive schemes Natural resources

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