Question 1

When foreign direct investments are made part of a global production network such integration

Accepted Answer

A)  insures that import opportunities will not be available to indigenous producers. 
B)  insures that MNCs will reduce the amount of funds available for investments in the host country. 
C)  insures that revenues generated by the local affiliate will not be used to enhance the welfare of the host country. 
D)  creates export opportunities that would be otherwise unavailable to indigenous producers. 
E)  guarantees that technology will not eventually be transferred to the host country. 
A)  insures that import opportunities will not be available to indigenous producers. 
B)  insures that MNCs will reduce the amount of funds available for investments in the host country. 
C)  insures that revenues generated by the local affiliate will not be used to enhance the welfare of the host country. 
D)  creates export opportunities that would be otherwise unavailable to indigenous producers. 
E)  guarantees that technology will not eventually be transferred to the host country.

Question 2

Horizontal integration occurs when a

Accepted Answer

A)  firm creates singular country production facilities, each of which produces different good or goods. 
B)  firm creates multiple production facilities, each of which produces the same good or goods. 
C)  firm creates multiple production facilities, each of which produces different good or goods. 
D)  firm creates singular country facilities, each of which produces the same good or goods. 
E)  firm creates multiple production facilities, in multiple countries but with different technologies. 
A)  firm creates singular country production facilities, each of which produces different good or goods. 
B)  firm creates multiple production facilities, each of which produces the same good or goods. 
C)  firm creates multiple production facilities, each of which produces different good or goods. 
D)  firm creates singular country facilities, each of which produces the same good or goods. 
E)  firm creates multiple production facilities, in multiple countries but with different technologies.

Question 3

Explain and give examples of the differences between positive and negative externalities as a result of MNC activity in a host country.

Accepted Answer

Positive externalities refer to the bene

Question 4

Describe,explain and give examples of the differences between market imperfections and locational advantages of MNCs.

Accepted Answer

Market imperfections and locational adva

Question 5

Describe,explain and give examples of the differences between horizontal and vertical integration of the activities of MNCs.

Accepted Answer

Horizontal integration refers to the exp

Question 6

According to Table 8.1 in the Oatley book,the region of the world with the highest foreign direct investment outflowsin 2007-2008 was

Accepted Answer

A)  The European Union. 
B)  North America. 
C)  Southeast Asia. 
D)  Latin America. 
E)  Africa. 
A)  The European Union. 
B)  North America. 
C)  Southeast Asia. 
D)  Latin America. 
E)  Africa.

Question 7

Since 1969,the number of firms engaged in international production as increased by

Accepted Answer

A)  three fold. 
B)  five fold. 
C)  seven fold. 
D)  nine fold. 
E)  eleven fold. 
A)  three fold. 
B)  five fold. 
C)  seven fold. 
D)  nine fold. 
E)  eleven fold.

Question 8

Locational advantages for market-oriented investments arise from the presence of large deposits of a particular natural resource in a foreign country.

Accepted Answer

A) True 
 B)False

Question 9

Although MNCs have a global reach,their activities are overwhelmingly concentrated in the advanced industrial countries.

Accepted Answer

A) True 
 B)False

Question 10

Explain the concept of locational advantages and historically their three specific country characteristics.

Accepted Answer

Locational advantages refer to the benef

Question 11

Locational advantages for market-oriented investments are based on the ideal combination of

Accepted Answer

A)  small fast growing markets, large number of indigenous firms in that industry and tariff/nontariff barriers. 
B)  large fast growing markets, small number of indigenous firms in that industry and no tariff/nontariff barriers. 
C)  large fast growing markets, small number of indigenous firms in that industry and tariff/nontariff barriers. 
D)  large fast growing markets, large number of indigenous firms in that industry and no tariff/nontariff barriers. 
E)  large slow growing markets, small number of indigenous firms in that industry and tariff/nontariff barriers. 
A)  small fast growing markets, large number of indigenous firms in that industry and tariff/nontariff barriers. 
B)  large fast growing markets, small number of indigenous firms in that industry and no tariff/nontariff barriers. 
C)  large fast growing markets, small number of indigenous firms in that industry and tariff/nontariff barriers. 
D)  large fast growing markets, large number of indigenous firms in that industry and no tariff/nontariff barriers. 
E)  large slow growing markets, small number of indigenous firms in that industry and tariff/nontariff barriers.

Question 12

According to Table 8.1 in the Oatley book,the region of the world with the highest foreign direct investment inflows in 2007-2008 was

Accepted Answer

A)  The European Union. 
B)  North America. 
C)  Southeast Asia. 
D)  Latin America. 
E)  Africa. 
A)  The European Union. 
B)  North America. 
C)  Southeast Asia. 
D)  Latin America. 
E)  Africa.

Question 13

A national company becomes an MNC when it

Accepted Answer

A)  makes a foreign investment. 
B)  takes out a foreign loan. 
C)  imports a foreign product. 
D)  exports a foreign product. 
E)  hires foreign workers. 
A)  makes a foreign investment. 
B)  takes out a foreign loan. 
C)  imports a foreign product. 
D)  exports a foreign product. 
E)  hires foreign workers.

Question 14

According to UNCTD figures in the Oatley book,foreign direct investment (FDI)inflows have grown from $180.5 billion in 1986-91 to about

Accepted Answer

A)  $500 billion in 2007-2008. 
B)  $900 billion in 2007-2008. 
C)  $2 trillion in 2007-2008. 
D)  $3 trillion in 2007-2008. 
E)  $4 trillion in 2007-2008. 
A)  $500 billion in 2007-2008. 
B)  $900 billion in 2007-2008. 
C)  $2 trillion in 2007-2008. 
D)  $3 trillion in 2007-2008. 
E)  $4 trillion in 2007-2008.

Question 15

According to the Oatley book, the United Nations (UN)estimates that MNCs currently

Accepted Answer

A)  account for 1/4 of global exports and employ some 57 million people worldwide. 
B)  account for 1/3 of global exports and employ some 77 million people worldwide. 
C)  account for 1/3 of global exports and employ some 107 million people worldwide. 
D)  account for ½ of global exports and employ some 107 million people worldwide. 
E)  account for ½ of global exports and employ some 117 million people worldwide. 
A)  account for 1/4 of global exports and employ some 57 million people worldwide. 
B)  account for 1/3 of global exports and employ some 77 million people worldwide. 
C)  account for 1/3 of global exports and employ some 107 million people worldwide. 
D)  account for ½ of global exports and employ some 107 million people worldwide. 
E)  account for ½ of global exports and employ some 117 million people worldwide.

Question 16

According to Table 8.4,in 2007 the top two industrial sectors of the 100 largest MNCs were

Accepted Answer

A)  electronics/computers and food/beverages/tobacco. 
B)  motor vehicles/parts and petroleum/mining. 
C)  pharmaceuticals and telecommunications. 
D)  petroleum/mining and utilities. 
E)  electronics/computers and telecommunications. 
A)  electronics/computers and food/beverages/tobacco. 
B)  motor vehicles/parts and petroleum/mining. 
C)  pharmaceuticals and telecommunications. 
D)  petroleum/mining and utilities. 
E)  electronics/computers and telecommunications.

Question 17

Describe the dilemmas for host countries of inviting MNC foreign investments into their economies.

Accepted Answer

There are several dilemmas for host coun

Question 18

Positive externalities arise when

Accepted Answer

A)  economic actors in the host country that are directly involved in the transfer of technology from a MNC to a local affiliate do not benefit from this transaction. 
B)  economic actors in the host country that are not directly involved in the transfer of technology from a MNC to a local affiliate do not benefit from this transaction. 
C)  economic actors in the home country that are directly involved in the transfer of technology from a local affiliate to a MNC also benefit from this transaction. 
D)  economic actors in the home country that are not directly involved in the transfer of technology from a local affiliate to a MNC do not benefit from this transaction. 
E)  economic actors in the host country that are not directly involved in the transfer of technology from a MNC to a local affiliate also benefit from this transaction. 
A)  economic actors in the host country that are directly involved in the transfer of technology from a MNC to a local affiliate do not benefit from this transaction. 
B)  economic actors in the host country that are not directly involved in the transfer of technology from a MNC to a local affiliate do not benefit from this transaction. 
C)  economic actors in the home country that are directly involved in the transfer of technology from a local affiliate to a MNC also benefit from this transaction. 
D)  economic actors in the home country that are not directly involved in the transfer of technology from a local affiliate to a MNC do not benefit from this transaction. 
E)  economic actors in the host country that are not directly involved in the transfer of technology from a MNC to a local affiliate also benefit from this transaction.

Question 19

Transfer pricing takes place when MNCs require the local affiliate

Accepted Answer

A)  to purchase inputs from other subsidiaries at prices the parent sets to maximize its global profits. 
B)  to purchase inputs from other domestic suppliers at competitive local prices. 
C)  to replace local managers to foreign managers. 
D)  to pay fees for any technology that is transferred. 
E)  to drive established host-country firms out of business. 
A)  to purchase inputs from other subsidiaries at prices the parent sets to maximize its global profits. 
B)  to purchase inputs from other domestic suppliers at competitive local prices. 
C)  to replace local managers to foreign managers. 
D)  to pay fees for any technology that is transferred. 
E)  to drive established host-country firms out of business.

Question 20

Multinational corporations (MNCs)are

Accepted Answer

A)  not the primary drivers of and beneficiaries from globalization. 
B)  the primary drivers of but not the beneficiaries from globalization. 
C)  the primary drivers of and beneficiaries from globalization. 
D)  the beneficiaries from globalization but not its primary drivers. 
E)  a recent invention. 
A)  not the primary drivers of and beneficiaries from globalization. 
B)  the primary drivers of but not the beneficiaries from globalization. 
C)  the primary drivers of and beneficiaries from globalization. 
D)  the beneficiaries from globalization but not its primary drivers. 
E)  a recent invention.

When foreign direct investments are made part of a global production network such integration

Horizontal integration occurs when a

Explain and give examples of the differences between positive and negative externalities as a result of MNC activity in a host country.

Describe,explain and give examples of the differences between market imperfections and locational advantages of MNCs.

Describe,explain and give examples of the differences between horizontal and vertical integration of the activities of MNCs.

According to Table 8.1 in the Oatley book,the region of the world with the highest foreign direct investment outflowsin 2007-2008 was

Since 1969,the number of firms engaged in international production as increased by

Locational advantages for market-oriented investments arise from the presence of large deposits of a particular natural resource in a foreign country.

Although MNCs have a global reach,their activities are overwhelmingly concentrated in the advanced industrial countries.

Explain the concept of locational advantages and historically their three specific country characteristics.

Locational advantages for market-oriented investments are based on the ideal combination of

According to Table 8.1 in the Oatley book,the region of the world with the highest foreign direct investment inflows in 2007-2008 was

A national company becomes an MNC when it

According to UNCTD figures in the Oatley book,foreign direct investment (FDI)inflows have grown from $180.5 billion in 1986-91 to about

According to the Oatley book, the United Nations (UN)estimates that MNCs currently

According to Table 8.4,in 2007 the top two industrial sectors of the 100 largest MNCs were

Describe the dilemmas for host countries of inviting MNC foreign investments into their economies.

Positive externalities arise when

Transfer pricing takes place when MNCs require the local affiliate

Multinational corporations (MNCs)are

International Political Economy

The World Trade Organization and the World Trade System

The Political Economy of International Trade Cooperation

A Society-Centered Approach to Trade Politics

A State-Centered Approach to Trade Politics

Trade and Development I: Import Substitution Industrialization

Trade and Development II: Economic Reform

The Politics of Multinational Corporations

The International Monetary System

Cooperation, conflict and Crisis in the Contemporary International Monetary System

A Society-Centered Approach to Monetary and Exchange-Rate Policies

A State-Centered Approach to Monetary and Exchange-Rate Policies

Developing Countries and International Finance I: the Latin American Debt Crisis

Developing Countries and International Finance II: a Decade of Crises

Globalization: Consequences and Controversies

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Exam 8: Multinational Corporations in the Global Economy

When foreign direct investments are made part of a global production network such integration

Horizontal integration occurs when a

Explain and give examples of the differences between positive and negative externalities as a result of MNC activity in a host country.

Describe,explain and give examples of the differences between market imperfections and locational advantages of MNCs.

Describe,explain and give examples of the differences between horizontal and vertical integration of the activities of MNCs.

According to Table 8.1 in the Oatley book,the region of the world with the highest foreign direct investment outflowsin 2007-2008 was

Since 1969,the number of firms engaged in international production as increased by

Locational advantages for market-oriented investments arise from the presence of large deposits of a particular natural resource in a foreign country.

Although MNCs have a global reach,their activities are overwhelmingly concentrated in the advanced industrial countries.

Explain the concept of locational advantages and historically their three specific country characteristics.

Locational advantages for market-oriented investments are based on the ideal combination of

According to Table 8.1 in the Oatley book,the region of the world with the highest foreign direct investment inflows in 2007-2008 was

A national company becomes an MNC when it

According to UNCTD figures in the Oatley book,foreign direct investment (FDI)inflows have grown from $180.5 billion in 1986-91 to about

According to the Oatley book, the United Nations (UN)estimates that MNCs currently

According to Table 8.4,in 2007 the top two industrial sectors of the 100 largest MNCs were

Describe the dilemmas for host countries of inviting MNC foreign investments into their economies.

Positive externalities arise when

Transfer pricing takes place when MNCs require the local affiliate

Multinational corporations (MNCs)are

International Political Economy

The World Trade Organization and the World Trade System

The Political Economy of International Trade Cooperation

A Society-Centered Approach to Trade Politics

A State-Centered Approach to Trade Politics

Trade and Development I: Import Substitution Industrialization

Trade and Development II: Economic Reform

The Politics of Multinational Corporations

The International Monetary System

Cooperation, conflict and Crisis in the Contemporary International Monetary System

A Society-Centered Approach to Monetary and Exchange-Rate Policies

A State-Centered Approach to Monetary and Exchange-Rate Policies

Developing Countries and International Finance I: the Latin American Debt Crisis

Developing Countries and International Finance II: a Decade of Crises

Globalization: Consequences and Controversies

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