Question 1

Historically,international rules governing FDI have been based on the following legal principles:

Accepted Answer

A)  Foreign investments are private property but are treated less favorably than domestic private property. 
B)  Governments have no right to expropriate foreign investments for a public purpose. 
C)  Governments must compensate the owner for the full value of the expropriated property. 
D)  The home country of the foreign investors must forcefully retaliate in the disputed host country's economy. 
E)  Expropriation, like foreign loan defaults, must be punished with no new investment for seven years. 
A)  Foreign investments are private property but are treated less favorably than domestic private property. 
B)  Governments have no right to expropriate foreign investments for a public purpose. 
C)  Governments must compensate the owner for the full value of the expropriated property. 
D)  The home country of the foreign investors must forcefully retaliate in the disputed host country's economy. 
E)  Expropriation, like foreign loan defaults, must be punished with no new investment for seven years. C

Question 2

The United Nations' Resolution on Permanent Sovereignty over Natural Resources was passed in 1962.This resolution

Accepted Answer

A)  recognized the right of host countries to exercise full control over foreign firms extracting those resources. 
B)  recognized the right of foreign firms to exercise full control over their operations extracting those resources. 
C)  recognized the right of foreign firms to determine the appropriate compensation in the event of expropriation. 
D)  was formally rejected by capital-exporting governments in 1982. 
E)  was successfully re-negotiated in 1992. 
A)  recognized the right of host countries to exercise full control over foreign firms extracting those resources. 
B)  recognized the right of foreign firms to exercise full control over their operations extracting those resources. 
C)  recognized the right of foreign firms to determine the appropriate compensation in the event of expropriation. 
D)  was formally rejected by capital-exporting governments in 1982. 
E)  was successfully re-negotiated in 1992. A

Question 3

What is meant by the phrase "the race to the bottom" in MNC regulation? Can governments realistically hold domestic firms to higher standards of working conditions and environmental protection than MNCs? How?

Accepted Answer

The phrase "the race to the bottom" in MNC regulation refers to the phenomenon where multinational corporations (MNCs) seek out locations with the lowest standards for working conditions and environmental protection in order to minimize costs and maximize profits. This can lead to a downward spiral of standards as countries compete to attract MNC investment by lowering regulations and standards.

In theory, governments can hold domestic firms to higher standards of working conditions and environmental protection than MNCs by implementing and enforcing strict regulations and standards. This can be achieved through legislation that sets minimum standards for working conditions, wages, and environmental protection, as well as through rigorous enforcement and monitoring mechanisms.

Additionally, governments can incentivize domestic firms to adhere to higher standards by offering tax breaks, subsidies, and other benefits for companies that meet or exceed these standards. They can also impose penalties and fines for non-compliance, creating a strong deterrent for domestic firms to prioritize ethical and sustainable practices.

Furthermore, governments can work with international organizations and other countries to establish global standards for MNCs, ensuring that they are held to the same high standards regardless of where they operate. This can help level the playing field and prevent the race to the bottom in MNC regulation.

Overall, while it may be challenging, governments can realistically hold domestic firms to higher standards than MNCs by implementing and enforcing strict regulations, providing incentives for compliance, and working towards global standards for MNCs. This can help promote ethical and sustainable practices in the global economy.

Question 4

Describe and explain the political and economic concerns expressed by the growing importance of sovereign wealth funds.

Accepted Answer

Sovereign wealth funds (SWFs) are state-

Question 5

Only France and Japan

Accepted Answer

A)  have been more open to FDI than other advanced industrial countries. 
B)  required explicit government approval for manufacturing investments by foreign firms. 
C)  excluded foreign firms from owning industries deemed "critical". 
D)  have been more restrictive of FDI than developing countries. 
E)  prohibit foreign firms from participating in defense-related industries. 
A)  have been more open to FDI than other advanced industrial countries. 
B)  required explicit government approval for manufacturing investments by foreign firms. 
C)  excluded foreign firms from owning industries deemed "critical". 
D)  have been more restrictive of FDI than developing countries. 
E)  prohibit foreign firms from participating in defense-related industries.

Question 6

According to Oatley,no American and European policymakers fear that governments intend to use their sovereign wealth funds to achieve political rather than economic objectives.

Accepted Answer

A) True 
 B)False

Question 7

The politics of MNCs emerge from the competing interests of

Accepted Answer

A)  host countries of MNCs. 
B)  home countries of MNCs. 
C)  the MNCs themselves. 
D)  host countries and home countries. 
E)  host countries and home countries and the MNCs themselves. 
A)  host countries of MNCs. 
B)  home countries of MNCs. 
C)  the MNCs themselves. 
D)  host countries and home countries. 
E)  host countries and home countries and the MNCs themselves.

Question 8

Describe and explain conditions of the shifting balances of bargaining power between host countries and MNCs.Which side seems to be gaining power recently?

Accepted Answer

The shifting balances of bargaining powe

Question 9

MNCs usually enjoy more bargaining power than host countries in low-skilled labor-intensive manufacturing industries because

Accepted Answer

A)  only a few developing countries have excess low skilled labor. 
B)  investments in low-skilled manufacturing entail a relatively low amount of fixed capital. 
C)  investments in low-skilled manufacturing cannot be readily moved out of a particular country. 
D)  technology in many manufacturing industries changes rapidly and, therefore, is easily transferred to host workers. 
E)  like natural-resource investments, manufacturing investments can become hostages. 
A)  only a few developing countries have excess low skilled labor. 
B)  investments in low-skilled manufacturing entail a relatively low amount of fixed capital. 
C)  investments in low-skilled manufacturing cannot be readily moved out of a particular country. 
D)  technology in many manufacturing industries changes rapidly and, therefore, is easily transferred to host workers. 
E)  like natural-resource investments, manufacturing investments can become hostages.

Question 10

Even though both developed and developing countries regulate MNC activities,developed countries have relied far more heavily on such practices.

Accepted Answer

A) True 
 B)False

Question 11

The tension inherent in overlapping decision-making frameworks shapes the domestic and international politics of MNCs.

Accepted Answer

A) True 
 B)False

Question 12

Explain and compare the unique and competing interests of host and home countries of MNCs as well as those of the MNCs themselves.

Accepted Answer

Multinational corporations (MNCs) operat

Question 13

According to Oatley,which of the following concerns about SWFs seems to be the least important among those held by increasing numbers of American and European policymakers?

Accepted Answer

A)  National security implications. 
B)  Lack of transparency in operations. 
C)  Absence of a common regulatory framework. 
D)  Lack of knowledge of what motivates their purchases. 
E)  Potentially destabilizing trading activity. 
A)  National security implications. 
B)  Lack of transparency in operations. 
C)  Absence of a common regulatory framework. 
D)  Lack of knowledge of what motivates their purchases. 
E)  Potentially destabilizing trading activity.

Question 14

Explain and analyze the costs and benefits of locational incentives to attract jobs and FDI in advanced industrial states.What role do local versus national governments play?

Accepted Answer

Locational incentives, such as tax break

Question 15

Explain the costs and benefits of Japan's unique experience with MNC regulation.How did it differ from other East Asian governments?

Accepted Answer

Japan's unique experience with MNC regul

Question 16

Most developing countries have placed fewer restrictions on MNCs since the 1980s.

Accepted Answer

A) True 
 B)False

Question 17

Locational incentives are packages host countries offer to MNCs that

Accepted Answer

A)  decrease the profits of a particular investment. 
B)  increase the costs of that investment. 
C)  increase the risk of that investment. 
D)  provide subsidized loans for that investment. 
E)  depreciate their investments at slower rates. 
A)  decrease the profits of a particular investment. 
B)  increase the costs of that investment. 
C)  increase the risk of that investment. 
D)  provide subsidized loans for that investment. 
E)  depreciate their investments at slower rates.

Question 18

Nationalizations in the late 1960s and first half of the 1970s occurred most often in the extractive industries and the banking sector.

Accepted Answer

A) True 
 B)False

Question 19

Explain the political dynamics in newly independent developing countries after WW II with MNCs that controlled most of their exports.

Accepted Answer

After World War II, many newly independe

Question 20

No matter how "globalized" the world economy becomes,economic production will always employ resources drawn from local communities.

Accepted Answer

A) True 
 B)False

Historically,international rules governing FDI have been based on the following legal principles:

The United Nations' Resolution on Permanent Sovereignty over Natural Resources was passed in 1962.This resolution

What is meant by the phrase "the race to the bottom" in MNC regulation? Can governments realistically hold domestic firms to higher standards of working conditions and environmental protection than MNCs? How?

Describe and explain the political and economic concerns expressed by the growing importance of sovereign wealth funds.

Only France and Japan

According to Oatley,no American and European policymakers fear that governments intend to use their sovereign wealth funds to achieve political rather than economic objectives.

The politics of MNCs emerge from the competing interests of

Describe and explain conditions of the shifting balances of bargaining power between host countries and MNCs.Which side seems to be gaining power recently?

MNCs usually enjoy more bargaining power than host countries in low-skilled labor-intensive manufacturing industries because

Even though both developed and developing countries regulate MNC activities,developed countries have relied far more heavily on such practices.

The tension inherent in overlapping decision-making frameworks shapes the domestic and international politics of MNCs.

Explain and compare the unique and competing interests of host and home countries of MNCs as well as those of the MNCs themselves.

According to Oatley,which of the following concerns about SWFs seems to be the least important among those held by increasing numbers of American and European policymakers?

Explain and analyze the costs and benefits of locational incentives to attract jobs and FDI in advanced industrial states.What role do local versus national governments play?

Explain the costs and benefits of Japan's unique experience with MNC regulation.How did it differ from other East Asian governments?

Most developing countries have placed fewer restrictions on MNCs since the 1980s.

Locational incentives are packages host countries offer to MNCs that

Nationalizations in the late 1960s and first half of the 1970s occurred most often in the extractive industries and the banking sector.

Explain the political dynamics in newly independent developing countries after WW II with MNCs that controlled most of their exports.

No matter how "globalized" the world economy becomes,economic production will always employ resources drawn from local communities.

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

Multinational Corporations in the Global Economy

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 9: The Politics of Multinational Corporations

Historically,international rules governing FDI have been based on the following legal principles:

The United Nations' Resolution on Permanent Sovereignty over Natural Resources was passed in 1962.This resolution

What is meant by the phrase "the race to the bottom" in MNC regulation? Can governments realistically hold domestic firms to higher standards of working conditions and environmental protection than MNCs? How?

Describe and explain the political and economic concerns expressed by the growing importance of sovereign wealth funds.

Only France and Japan

According to Oatley,no American and European policymakers fear that governments intend to use their sovereign wealth funds to achieve political rather than economic objectives.

The politics of MNCs emerge from the competing interests of

Describe and explain conditions of the shifting balances of bargaining power between host countries and MNCs.Which side seems to be gaining power recently?

MNCs usually enjoy more bargaining power than host countries in low-skilled labor-intensive manufacturing industries because

Even though both developed and developing countries regulate MNC activities,developed countries have relied far more heavily on such practices.

The tension inherent in overlapping decision-making frameworks shapes the domestic and international politics of MNCs.

Explain and compare the unique and competing interests of host and home countries of MNCs as well as those of the MNCs themselves.

According to Oatley,which of the following concerns about SWFs seems to be the least important among those held by increasing numbers of American and European policymakers?

Explain and analyze the costs and benefits of locational incentives to attract jobs and FDI in advanced industrial states.What role do local versus national governments play?

Explain the costs and benefits of Japan's unique experience with MNC regulation.How did it differ from other East Asian governments?

Most developing countries have placed fewer restrictions on MNCs since the 1980s.

Locational incentives are packages host countries offer to MNCs that

Nationalizations in the late 1960s and first half of the 1970s occurred most often in the extractive industries and the banking sector.

Explain the political dynamics in newly independent developing countries after WW II with MNCs that controlled most of their exports.

No matter how "globalized" the world economy becomes,economic production will always employ resources drawn from local communities.

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

Multinational Corporations in the Global Economy

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

Filters