Exam 5: Foreign Investment

The largest free zones are called free cities.

A(n) ________ is a special-purpose free zone associated with, but physically apart from, a free trade zone, in which limited-purpose trading activities are carried on.

________ are geographical areas wherein goods may be imported and exported free from customs tariffs and in which a variety of trade-related activities may be carried on.

The ________ is a law enacted by the United States in 1968 that authorizes the Securities and Exchange Commission to issue rules regulating takeover bids.

What are the criteria for evaluating a foreign investment proposal?

If a company issues depository receipts, then the corresponding shares need to be sent abroad.

Which of the following terms refers to the assurance of a host state government that foreign investors will be able to take out of the state both the investment capital they brought in and the profits they earned?

Which of the following terms refers to the assurance of a host government that foreign investors will be treated the same way as local investors?

What is a bonded warehouse?

Which of the following is true of closed sectors?

The parts of a state's economy in which foreigners are encouraged to invest are called ________.

What are the different types of free zones?

Once a foreign-owned enterprise is in full operation, it is usually subject to periodic monitoring.

According to U.S. law, information is material when something is of significance to a reasonable person.

Which of the following is true regarding an uncertificated security?

Bearer securities are registered on the books of the issuer.

Differentiate between nationalization and expropriation.

Differentiate between a registered security and a bearer security.

In the United States, offerings of less than $1 million in a 12-month period are exempt from registration.

An insider is a person, such as a corporate officer, director, or majority shareholder, who has access to material nonpublic information about a company or the securities market.