Question 1

Which of the following best explains the concentration of domestic and foreign technology companies in the Silicon Valley?

Accepted Answer

A)  To internalize and control their operations 
B)  To seek low-cost labor and efficient production 
C)  To exploit their firm-specific advantages 
D)  To gain access to local knowledge and talent tool 
A)  To internalize and control their operations 
B)  To seek low-cost labor and efficient production 
C)  To exploit their firm-specific advantages 
D)  To gain access to local knowledge and talent tool

Question 2

Which of the following is considered the main drawback of outward FDI for the home country?

Accepted Answer

A)  The repatriation of profits 
B)  Job loss to overseas locations 
C)  The acquisition of resources and strategic assets 
D)  Increased competition 
A)  The repatriation of profits 
B)  Job loss to overseas locations 
C)  The acquisition of resources and strategic assets 
D)  Increased competition

Question 3

What do you think of GM's increased commitment to Brazil? Was it a smart move?

Accepted Answer

The answer of What do you think of GM's increased...

Question 4

The linkage-leverage-learning framework suggests the following except ________.

Accepted Answer

A)  As a new product becomes mature, MNCs need to link up with location economies through FDI. 
B)  To attain successful FDI, MNCs need to leverage their firm-specific advantages. 
C)  Through FDI, latecomers can access and leverage existing knowledge networks and develop new capabilities. 
D)  Latecomers need to develop firm-specific advantages before undertaking FDI. 
A)  As a new product becomes mature, MNCs need to link up with location economies through FDI. 
B)  To attain successful FDI, MNCs need to leverage their firm-specific advantages. 
C)  Through FDI, latecomers can access and leverage existing knowledge networks and develop new capabilities. 
D)  Latecomers need to develop firm-specific advantages before undertaking FDI.

Question 5

The following investments are classified as FDI except _________.

Accepted Answer

A)  equity capital 
B)  reinvestment of earnings 
C)  intra-company loans 
D)  portfolio investment 
A)  equity capital 
B)  reinvestment of earnings 
C)  intra-company loans 
D)  portfolio investment

Question 6

In comparison to M&A, starting up new operations has the following advantage:

Accepted Answer

A)  It involves intense integration. 
B)  It provides access to a local firm's proprietary assets. 
C)  It allows the investor to set up the operations as desired. 
D)  It enable fast entry into a foreign market. 
A)  It involves intense integration. 
B)  It provides access to a local firm's proprietary assets. 
C)  It allows the investor to set up the operations as desired. 
D)  It enable fast entry into a foreign market.

Question 7

In recent years, Chinese FDI in the U.S., especially investment via acquisitions, has seen strong growth. What are the motivations of such FDI? What are the potential benefits and drawbacks of such FDI to the U.S.?

Accepted Answer

The answer of In recent years, Chinese FDI in the...

Question 8

What factors drove Microsoft to relocate phone production from China to Vietnam?

Accepted Answer

The answer of What factors drove Microsoft to relocate phone...

Question 9

BMW, a German automobile company, built a brand new manufacturing plant in Mexico. This is an example of ________.

Accepted Answer

A)  greenfield investment 
B)  brownfield investment 
C)  cross-border acquisition 
D)  vertical investment 
A)  greenfield investment 
B)  brownfield investment 
C)  cross-border acquisition 
D)  vertical investment

Question 10

To pursue its ________ objective, Geely, an automaker from China, acquired Volvo to access Volvo's technology base and developed new products through collaboration with Volvo.

Accepted Answer

A)  market-seeking 
B)  resource-seeking 
C)  efficiency-seeking 
D)  strategic asset-seeking 
A)  market-seeking 
B)  resource-seeking 
C)  efficiency-seeking 
D)  strategic asset-seeking

Question 11

What factors drove Huawei to invest in Silicon Valley? Was it a smart move?

Accepted Answer

The answer of What factors drove Huawei to invest in...

Question 12

Can the eclectic paradigm completely explain FDI activities? Does the linkage-learning-leverage framework add new insights about FDI?

Accepted Answer

The answer of Can the eclectic paradigm completely explain FDI...

Question 13

How does the host-country government promote and restrict FDI? What kind of policies are more popular?

Accepted Answer

The answer of How does the host-country government promote and...

Question 14

What impact did FDI inflows have on China's economic development?

Accepted Answer

The answer of What impact did FDI inflows have on...

Question 15

As for government policies on FDI, it is more common for governments to _______.

Accepted Answer

A)  offer incentives to firms that invest in their countries 
B)  penalize firms that invest in their countries 
C)  change safety and environmental rules to accommodate foreign investors 
D)  offer special incentives to firms from developing countries only 
A)  offer incentives to firms that invest in their countries 
B)  penalize firms that invest in their countries 
C)  change safety and environmental rules to accommodate foreign investors 
D)  offer special incentives to firms from developing countries only

Question 16

What is foreign direct investment? How is it different from portfolio investment?

Accepted Answer

The answer of What is foreign direct investment? How is...

Question 17

What factors drove the changing patterns of FDI flows into China?

Accepted Answer

The answer of What factors drove the changing patterns of...

Which of the following best explains the concentration of domestic and foreign technology companies in the Silicon Valley?

Which of the following is considered the main drawback of outward FDI for the home country?

What do you think of GM's increased commitment to Brazil? Was it a smart move?

The linkage-leverage-learning framework suggests the following except ________.

The following investments are classified as FDI except _________.

In comparison to M&A, starting up new operations has the following advantage:

In recent years, Chinese FDI in the U.S., especially investment via acquisitions, has seen strong growth. What are the motivations of such FDI? What are the potential benefits and drawbacks of such FDI to the U.S.?

What factors drove Microsoft to relocate phone production from China to Vietnam?

BMW, a German automobile company, built a brand new manufacturing plant in Mexico. This is an example of ________.

To pursue its ________ objective, Geely, an automaker from China, acquired Volvo to access Volvo's technology base and developed new products through collaboration with Volvo.

What factors drove Huawei to invest in Silicon Valley? Was it a smart move?

Can the eclectic paradigm completely explain FDI activities? Does the linkage-learning-leverage framework add new insights about FDI?

How does the host-country government promote and restrict FDI? What kind of policies are more popular?

What impact did FDI inflows have on China's economic development?

As for government policies on FDI, it is more common for governments to _______.

What is foreign direct investment? How is it different from portfolio investment?

What factors drove the changing patterns of FDI flows into China?

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

Which of the following best explains the concentration of domestic and foreign technology companies in the Silicon Valley?

Which of the following is considered the main drawback of outward FDI for the home country?

What do you think of GM's increased commitment to Brazil? Was it a smart move?

The linkage-leverage-learning framework suggests the following except ________.

The following investments are classified as FDI except _________.

In comparison to M&A, starting up new operations has the following advantage:

In recent years, Chinese FDI in the U.S., especially investment via acquisitions, has seen strong growth. What are the motivations of such FDI? What are the potential benefits and drawbacks of such FDI to the U.S.?

What factors drove Microsoft to relocate phone production from China to Vietnam?

BMW, a German automobile company, built a brand new manufacturing plant in Mexico. This is an example of ________.

To pursue its ________ objective, Geely, an automaker from China, acquired Volvo to access Volvo's technology base and developed new products through collaboration with Volvo.

What factors drove Huawei to invest in Silicon Valley? Was it a smart move?

Can the eclectic paradigm completely explain FDI activities? Does the linkage-learning-leverage framework add new insights about FDI?

How does the host-country government promote and restrict FDI? What kind of policies are more popular?

What impact did FDI inflows have on China's economic development?

As for government policies on FDI, it is more common for governments to _______.

What is foreign direct investment? How is it different from portfolio investment?

What factors drove the changing patterns of FDI flows into China?

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