Question 1

The following activities are FDI except _________.

Accepted Answer

A)  Wal-Mart set up a sourcing and distribution center in China. 
B)  Whirlpool built a refrigerator plant in Mexico. 
C)  Google acquired the majority shares of an Indian search website. 
D)  Fidelity Insurance purchased bonds issued by Airbus, a European company. 
A)  Wal-Mart set up a sourcing and distribution center in China. 
B)  Whirlpool built a refrigerator plant in Mexico. 
C)  Google acquired the majority shares of an Indian search website. 
D)  Fidelity Insurance purchased bonds issued by Airbus, a European company.

Question 2

What can be learned from the success of M-Pesa in Africa?

Accepted Answer

The answer of What can be learned from the success...

Question 3

Which of the following statement is not true regarding the trends of global FDI?

Accepted Answer

A)  Outward FDI from developing countries has seen significant growth in recent years. 
B)  Historically, the majority of global FDI has flowed into developing countries. 
C)  As for FDI sector distribution, there has been a shift from manufacturing to services. 
D)  In global FDI, equity capital and reinvested earnings are more common than intra-company loans. 
A)  Outward FDI from developing countries has seen significant growth in recent years. 
B)  Historically, the majority of global FDI has flowed into developing countries. 
C)  As for FDI sector distribution, there has been a shift from manufacturing to services. 
D)  In global FDI, equity capital and reinvested earnings are more common than intra-company loans.

Question 4

What are the main arguments of the monopolistic advantage theory, the product life cycle theory, and the internalization theory?

Accepted Answer

The answer of What are the main arguments of the...

Question 5

What are the impacts of Chinese companies' investments in the U.S.?

Accepted Answer

The answer of What are the impacts of Chinese companies'...

Question 6

Why would GM set up production in Brazil rather than export vehicles from the United States?

Accepted Answer

The answer of Why would GM set up production in...

Question 7

What impacts do FDI outflows have on the home country economy?

Accepted Answer

The answer of What impacts do FDI outflows have on...

Question 8

Between the two forms of FDI, usually ______ is more popular in developed countries, and _____ is more popular in developing countries.

Accepted Answer

A)  outflow; inflow 
B)  merger and acquisition; greenfield investment 
C)  portfolio investment; equity investment 
D)  greenfield investment; merger and acquisition 
A)  outflow; inflow 
B)  merger and acquisition; greenfield investment 
C)  portfolio investment; equity investment 
D)  greenfield investment; merger and acquisition

Question 9

Which of the following home-country policies limits outward FDI?

Accepted Answer

A)  Reduce tax burden on foreign income 
B)  Remove foreign exchange restriction 
C)  Change tax rules to encourage domestic investment 
D)  Remove country restriction on overseas investment 
A)  Reduce tax burden on foreign income 
B)  Remove foreign exchange restriction 
C)  Change tax rules to encourage domestic investment 
D)  Remove country restriction on overseas investment

Question 10

The host country of FDI may be concerned about the following problems of inward FDI except______.

Accepted Answer

A)  foreign firms' monopoly of local markets 
B)  the negative impact on local employment 
C)  the adverse effects of increased competition 
D)  the loss of national economic independence 
A)  foreign firms' monopoly of local markets 
B)  the negative impact on local employment 
C)  the adverse effects of increased competition 
D)  the loss of national economic independence

Question 11

What internal and external factors drove Vodafone's international expansion?

Accepted Answer

Internal factors:
@#LAT-DLM&Firm-specific advantag

Question 12

Which of the following theories aimed to explain the rise of FDI outflows from emerging markets?

Accepted Answer

A)  Monopolistic advantage theory 
B)  Internalization theory 
C)  International product life cycle theory 
D)  The linkage-leverage-learning framework 
A)  Monopolistic advantage theory 
B)  Internalization theory 
C)  International product life cycle theory 
D)  The linkage-leverage-learning framework

Question 13

The monopolistic advantage theory suggests the following except _______.

Accepted Answer

A)  owning firm-specific advantages enables MNCs to profit from FDI 
B)  FDI allows MNCs to exploit monopolistic advantages through direct control 
C)  FDI allows MNCs to develop new competitive advantages in overseas markets 
D)  monopolistic advantages can be attained via FDI but not portfolio investment 
A)  owning firm-specific advantages enables MNCs to profit from FDI 
B)  FDI allows MNCs to exploit monopolistic advantages through direct control 
C)  FDI allows MNCs to develop new competitive advantages in overseas markets 
D)  monopolistic advantages can be attained via FDI but not portfolio investment

Question 14

What are the main trends of global FDI? How do these trends affect the global economy?

Accepted Answer

The answer of What are the main trends of global...

Question 15

The __________ of FDI records the amount of FDI undertaken during a given period of time; and the __________ of FDI refers to the total accumulated value of FDI in a country or region.

Accepted Answer

A)  portfolio, current 
B)  flow, stock 
C)  stock, flow 
D)  stockpile, portfolio 
A)  portfolio, current 
B)  flow, stock 
C)  stock, flow 
D)  stockpile, portfolio

Question 16

In comparison to licensing/franchising, FDI has the following advantages except ______.

Accepted Answer

A)  FDI enables greater control over overseas operations. 
B)  FDI enables greater protection over key assets. 
C)  FDI facilitates the transfer of implicit knowledge. 
D)  FDI allows the utilization of location advantages. 
A)  FDI enables greater control over overseas operations. 
B)  FDI enables greater protection over key assets. 
C)  FDI facilitates the transfer of implicit knowledge. 
D)  FDI allows the utilization of location advantages.

Question 17

Once a firm undertakes FDI, it becomes a _________.

Accepted Answer

A)  portfolio investor 
B)  multinational corporation 
C)  foreign firm 
D)  investment enterprise 
A)  portfolio investor 
B)  multinational corporation 
C)  foreign firm 
D)  investment enterprise

Question 18

What are the key characteristics of FDI? How is it different from portfolio investment?

Accepted Answer

The answer of What are the key characteristics of FDI?...

Question 19

What are the key features of Chinese government policies for FDI?

Accepted Answer

The answer of What are the key features of Chinese...

Question 20

How would you rate Africa as an investment destination for Vodafone? Why?

Accepted Answer

The answer of How would you rate Africa as an...

The following activities are FDI except _________.

What can be learned from the success of M-Pesa in Africa?

Which of the following statement is not true regarding the trends of global FDI?

What are the main arguments of the monopolistic advantage theory, the product life cycle theory, and the internalization theory?

What are the impacts of Chinese companies' investments in the U.S.?

Why would GM set up production in Brazil rather than export vehicles from the United States?

What impacts do FDI outflows have on the home country economy?

Between the two forms of FDI, usually __ is more popular in developed countries, and _ is more popular in developing countries.

Which of the following home-country policies limits outward FDI?

The host country of FDI may be concerned about the following problems of inward FDI except______.

What internal and external factors drove Vodafone's international expansion?

Which of the following theories aimed to explain the rise of FDI outflows from emerging markets?

The monopolistic advantage theory suggests the following except _______.

What are the main trends of global FDI? How do these trends affect the global economy?

The of FDI records the amount of FDI undertaken during a given period of time; and the of FDI refers to the total accumulated value of FDI in a country or region.

In comparison to licensing/franchising, FDI has the following advantages except ______.

Once a firm undertakes FDI, it becomes a _________.

What are the key characteristics of FDI? How is it different from portfolio investment?

What are the key features of Chinese government policies for FDI?

How would you rate Africa as an investment destination for Vodafone? Why?

Globalization

Trade

Economic Environment

Political and Legal Environment

Social and Cultural Environment

The Foreign Exchange Market and the International Monetary System

Managing Entry and Exit Decisions

Managing People

Managing Money

Managing Operations

Managing Customers

Managing Sustainability

Filters

Exam 3: Foreign Direct Investment

The following activities are FDI except _________.

What can be learned from the success of M-Pesa in Africa?

Which of the following statement is not true regarding the trends of global FDI?

What are the main arguments of the monopolistic advantage theory, the product life cycle theory, and the internalization theory?

What are the impacts of Chinese companies' investments in the U.S.?

Why would GM set up production in Brazil rather than export vehicles from the United States?

What impacts do FDI outflows have on the home country economy?

Between the two forms of FDI, usually ______ is more popular in developed countries, and _____ is more popular in developing countries.

Which of the following home-country policies limits outward FDI?

The host country of FDI may be concerned about the following problems of inward FDI except______.

What internal and external factors drove Vodafone's international expansion?

Which of the following theories aimed to explain the rise of FDI outflows from emerging markets?

The monopolistic advantage theory suggests the following except _______.

What are the main trends of global FDI? How do these trends affect the global economy?

The __________ of FDI records the amount of FDI undertaken during a given period of time; and the __________ of FDI refers to the total accumulated value of FDI in a country or region.

In comparison to licensing/franchising, FDI has the following advantages except ______.

Once a firm undertakes FDI, it becomes a _________.

What are the key characteristics of FDI? How is it different from portfolio investment?

What are the key features of Chinese government policies for FDI?

How would you rate Africa as an investment destination for Vodafone? Why?

Globalization

Trade

Economic Environment

Political and Legal Environment

Social and Cultural Environment

The Foreign Exchange Market and the International Monetary System

Managing Entry and Exit Decisions

Managing People

Managing Money

Managing Operations

Managing Customers

Managing Sustainability

Filters

Between the two forms of FDI, usually __ is more popular in developed countries, and _ is more popular in developing countries.

The of FDI records the amount of FDI undertaken during a given period of time; and the of FDI refers to the total accumulated value of FDI in a country or region.