Question 1

How has globalization of the world economy changed the political and economic stakes for MNCs and advanced industrial countries?

Accepted Answer

Globalization of the world economy has s

Question 2

The two largest foreign investors during the last 140 years,the United States and Great Britain,have also been

Accepted Answer

A)  the most closed to inward foreign investment. 
B)  reluctant to invite retaliation that would make to harder for their own firms to invest abroad. 
C)  the most open to invite retaliation that would make to easier for their own firms to invest abroad. 
D)  more narrowly based on host-country issues. 
E)  the most closed to outward foreign investment. 
A)  the most closed to inward foreign investment. 
B)  reluctant to invite retaliation that would make to harder for their own firms to invest abroad. 
C)  the most open to invite retaliation that would make to easier for their own firms to invest abroad. 
D)  more narrowly based on host-country issues. 
E)  the most closed to outward foreign investment.

Question 3

According to projections used by Oatley,SWFs could grow to $10 trillion by 2012.This would make them

Accepted Answer

A)  medium, but with five percent of total global assets, not yet significant players in global finance. 
B)  small, and but with only two percent of total global assets, almost insignificant players in global finance. 
C)  large, but with ten percent of total global assets, a major force to be reckoned with as players in global finance. 
D)  medium, but with seven percent of total global assets, somewhat more important as players in global finance. 
E)  large, but with two percent of total global assets, not dominant players in global finance. 
A)  medium, but with five percent of total global assets, not yet significant players in global finance. 
B)  small, and but with only two percent of total global assets, almost insignificant players in global finance. 
C)  large, but with ten percent of total global assets, a major force to be reckoned with as players in global finance. 
D)  medium, but with seven percent of total global assets, somewhat more important as players in global finance. 
E)  large, but with two percent of total global assets, not dominant players in global finance.

Question 4

Regulatory arbitrage is seen by critics as a "race to the bottom".This means that

Accepted Answer

A)  MNCs may shift activities out of stringent countries into less stringent countries. 
B)  MNCs may shift activities out of less stringent countries into more stringent countries. 
C)  MNCs will demand no regulations on their activities. 
D)  MNCs will refuse to follow regulations that are imposed on domestic firms. 
E)  countries will not compete with each other for the least regulations on MNCs. 
A)  MNCs may shift activities out of stringent countries into less stringent countries. 
B)  MNCs may shift activities out of less stringent countries into more stringent countries. 
C)  MNCs will demand no regulations on their activities. 
D)  MNCs will refuse to follow regulations that are imposed on domestic firms. 
E)  countries will not compete with each other for the least regulations on MNCs.

Question 5

Most developing countries entered the postwar period as primary-commodity exporters often controlled by MNCs who kept the profits the exports generated.

Accepted Answer

A) True 
 B)False

Question 6

The International Trade Organization's (ITO)experience with international legal protection for foreign investments is important because

Accepted Answer

A)  it firmly established the Calvo doctrine as a legal mandate. 
B)  its success established international rules governing FDI. 
C)  the GATT rules became the prevailing guide since they had a lot to say about foreign investment. 
D)  its failure reflects a basic conflict that has dominated international discussions about FDI rules to this day. 
E)  support for its investment articles from American business proved a major reason for the ITO's success in gaining US congressional approval. 
A)  it firmly established the Calvo doctrine as a legal mandate. 
B)  its success established international rules governing FDI. 
C)  the GATT rules became the prevailing guide since they had a lot to say about foreign investment. 
D)  its failure reflects a basic conflict that has dominated international discussions about FDI rules to this day. 
E)  support for its investment articles from American business proved a major reason for the ITO's success in gaining US congressional approval.

Question 7

The Multilateral Agreement on Investment (MAI)began to be negotiated in the OECD in May 1995 to further liberalize FDI and provide greater security to MNCs.It was based on two central principles:

Accepted Answer

A)  national treatment and most favored nation. 
B)  domestic favoritism and most favored nation. 
C)  national treatment and least favored nation. 
D)  fair compensation and remittance rights. 
E)  national treatment and fair compensation. 
A)  national treatment and most favored nation. 
B)  domestic favoritism and most favored nation. 
C)  national treatment and least favored nation. 
D)  fair compensation and remittance rights. 
E)  national treatment and fair compensation.

Question 8

Nationalization was common during the late 1960s and the first half of the 1970s.Nationalizations occurred most often in

Accepted Answer

A)  banking and transportation. 
B)  banking and public utilities. 
C)  transportation and extractive industries. 
D)  banking and extractive industries. 
E)  extractive industries and public utilities. 
A)  banking and transportation. 
B)  banking and public utilities. 
C)  transportation and extractive industries. 
D)  banking and extractive industries. 
E)  extractive industries and public utilities.

Question 9

Advanced industrial countries have been less vulnerable to foreign domination than developing countries because

Accepted Answer

A)  developing countries have larger economies. 
B)  developing countries have more diversified economies. 
C)  foreign affiliates are more likely to face competition from domestic firms in a developing country. 
D)  developing countries have felt less compelled to regulate MNC activity. 
E)  foreign affiliates are more likely to face competition from domestic firms in a advanced industrial country. 
A)  developing countries have larger economies. 
B)  developing countries have more diversified economies. 
C)  foreign affiliates are more likely to face competition from domestic firms in a developing country. 
D)  developing countries have felt less compelled to regulate MNC activity. 
E)  foreign affiliates are more likely to face competition from domestic firms in a advanced industrial country.

Question 10

Which of the following regulations were not performance requirements on MNC affiliates?

Accepted Answer

A)  Required percentage of inputs from domestic suppliers. 
B)  Required percentage of exports. 
C)  Required percentage of research and development inside host country. 
D)  Limits on repatriation of profits. 
E)  Limits on access to local capital markets. 
A)  Required percentage of inputs from domestic suppliers. 
B)  Required percentage of exports. 
C)  Required percentage of research and development inside host country. 
D)  Limits on repatriation of profits. 
E)  Limits on access to local capital markets.

Question 11

The central political concern for developing countries regarding MNCs ownership of critical natural-resource industries was that

Accepted Answer

A)  it compromised the hard-won national autonomy achieved in the struggle for independence. 
B)  governments would be unable to use these resources to promote ISI strategies. 
C)  extractive industries did not usually transfer technology. 
D)  extractive industries used primarily foreign workers so that skills were obtained by domestic workers. 
E)  extractive industries accelerated the depletion of non-renewable resources. 
A)  it compromised the hard-won national autonomy achieved in the struggle for independence. 
B)  governments would be unable to use these resources to promote ISI strategies. 
C)  extractive industries did not usually transfer technology. 
D)  extractive industries used primarily foreign workers so that skills were obtained by domestic workers. 
E)  extractive industries accelerated the depletion of non-renewable resources.

Question 12

When a MNC can no longer easily remove its fixed investment from a host country and the investment becomes a hostage it is called an "obsolescing bargain".

Accepted Answer

A) True 
 B)False

Question 13

Which of the following rules are not trade-related investment measures (TRIMs)?

Accepted Answer

A)  Domestic-content rules 
B)  Trade balancing measures that require a firm's imports be offset by its exports 
C)  Restrictive foreign exchange practices 
D)  Constraints on the ability to link investment incentives to export-performance requirements 
E)  Full Compensation for expropriated properties 
A)  Domestic-content rules 
B)  Trade balancing measures that require a firm's imports be offset by its exports 
C)  Restrictive foreign exchange practices 
D)  Constraints on the ability to link investment incentives to export-performance requirements 
E)  Full Compensation for expropriated properties

Question 14

Obsolescing bargaining power happens when

Accepted Answer

A)  the MNC can easily remove its fixed investment from the country. 
B)  uncertainty about of the return on the investment stays high. 
C)  technology has been significantly transferred to the host country workers. 
D)  technology has not been significantly transferred to the host country workers. 
E)  the MNC has monopoly control over the necessary capital. 
A)  the MNC can easily remove its fixed investment from the country. 
B)  uncertainty about of the return on the investment stays high. 
C)  technology has been significantly transferred to the host country workers. 
D)  technology has not been significantly transferred to the host country workers. 
E)  the MNC has monopoly control over the necessary capital.

Question 15

Explain the pros and cons of no comprehensive rules governing the activities of MNCs.Which side gains more from no rules - home countries or host countries?

Accepted Answer

The lack of comprehensive rules governin

Question 16

The reason why there are no comprehensive international investment rules is that

Accepted Answer

A)  governments have never tried to create multilateral rules. 
B)  the OCED and WTO rules have already created effective comprehensive guidelines. 
C)  conflict between capital-exporting advanced industrial countries and the capital-importing developing countries has prevented agreement on such rules. 
D)  conflict between capital-exporting developing countries and the capital-importing advanced industrial countries has prevented agreement on such rules. 
E)  MNCs have already created rules on their own initiative. 
A)  governments have never tried to create multilateral rules. 
B)  the OCED and WTO rules have already created effective comprehensive guidelines. 
C)  conflict between capital-exporting advanced industrial countries and the capital-importing developing countries has prevented agreement on such rules. 
D)  conflict between capital-exporting developing countries and the capital-importing advanced industrial countries has prevented agreement on such rules. 
E)  MNCs have already created rules on their own initiative.

Question 17

The more the host country has exclusive control over the things the MNC values,the more bargaining power the MNCs has.

Accepted Answer

A) True 
 B)False

Question 18

Some American and European policymakers fear that governments intend to use their SWFs to achieve

Accepted Answer

A)  prestige rather than political objectives. 
B)  political rather than economic objectives. 
C)  social rather than economic objectives. 
D)  economic rather than political objectives. 
E)  domestic rather than international objectives. 
A)  prestige rather than political objectives. 
B)  political rather than economic objectives. 
C)  social rather than economic objectives. 
D)  economic rather than political objectives. 
E)  domestic rather than international objectives.

Question 19

South Korea and Taiwan imposed more restrictions on MNCs than Singapore and Hong Kong.

Accepted Answer

A) True 
 B)False

Question 20

Governments that have refrained from promoting active industrial policies have generally

Accepted Answer

A)  not restricted foreign ownership of sensitive industries. 
B)  not restricted foreign ownership of cutting edge high technology industries. 
C)  attempted to protect national firms from competition by restricting foreign investment. 
D)  restricted foreign ownership of national security related industries. 
E)  less open to FDI than most developing countries. 
A)  not restricted foreign ownership of sensitive industries. 
B)  not restricted foreign ownership of cutting edge high technology industries. 
C)  attempted to protect national firms from competition by restricting foreign investment. 
D)  restricted foreign ownership of national security related industries. 
E)  less open to FDI than most developing countries.

How has globalization of the world economy changed the political and economic stakes for MNCs and advanced industrial countries?

The two largest foreign investors during the last 140 years,the United States and Great Britain,have also been

According to projections used by Oatley,SWFs could grow to $10 trillion by 2012.This would make them

Regulatory arbitrage is seen by critics as a "race to the bottom".This means that

Most developing countries entered the postwar period as primary-commodity exporters often controlled by MNCs who kept the profits the exports generated.

The International Trade Organization's (ITO)experience with international legal protection for foreign investments is important because

The Multilateral Agreement on Investment (MAI)began to be negotiated in the OECD in May 1995 to further liberalize FDI and provide greater security to MNCs.It was based on two central principles:

Nationalization was common during the late 1960s and the first half of the 1970s.Nationalizations occurred most often in

Advanced industrial countries have been less vulnerable to foreign domination than developing countries because

Which of the following regulations were not performance requirements on MNC affiliates?

The central political concern for developing countries regarding MNCs ownership of critical natural-resource industries was that

When a MNC can no longer easily remove its fixed investment from a host country and the investment becomes a hostage it is called an "obsolescing bargain".

Which of the following rules are not trade-related investment measures (TRIMs)?

Obsolescing bargaining power happens when

Explain the pros and cons of no comprehensive rules governing the activities of MNCs.Which side gains more from no rules - home countries or host countries?

The reason why there are no comprehensive international investment rules is that

The more the host country has exclusive control over the things the MNC values,the more bargaining power the MNCs has.

Some American and European policymakers fear that governments intend to use their SWFs to achieve

South Korea and Taiwan imposed more restrictions on MNCs than Singapore and Hong Kong.

Governments that have refrained from promoting active industrial policies have generally

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

How has globalization of the world economy changed the political and economic stakes for MNCs and advanced industrial countries?

The two largest foreign investors during the last 140 years,the United States and Great Britain,have also been

According to projections used by Oatley,SWFs could grow to $10 trillion by 2012.This would make them

Regulatory arbitrage is seen by critics as a "race to the bottom".This means that

Most developing countries entered the postwar period as primary-commodity exporters often controlled by MNCs who kept the profits the exports generated.

The International Trade Organization's (ITO)experience with international legal protection for foreign investments is important because

The Multilateral Agreement on Investment (MAI)began to be negotiated in the OECD in May 1995 to further liberalize FDI and provide greater security to MNCs.It was based on two central principles:

Nationalization was common during the late 1960s and the first half of the 1970s.Nationalizations occurred most often in

Advanced industrial countries have been less vulnerable to foreign domination than developing countries because

Which of the following regulations were not performance requirements on MNC affiliates?

The central political concern for developing countries regarding MNCs ownership of critical natural-resource industries was that

When a MNC can no longer easily remove its fixed investment from a host country and the investment becomes a hostage it is called an "obsolescing bargain".

Which of the following rules are not trade-related investment measures (TRIMs)?

Obsolescing bargaining power happens when

Explain the pros and cons of no comprehensive rules governing the activities of MNCs.Which side gains more from no rules - home countries or host countries?

The reason why there are no comprehensive international investment rules is that

The more the host country has exclusive control over the things the MNC values,the more bargaining power the MNCs has.

Some American and European policymakers fear that governments intend to use their SWFs to achieve

South Korea and Taiwan imposed more restrictions on MNCs than Singapore and Hong Kong.

Governments that have refrained from promoting active industrial policies have generally

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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