Question 1

_____ refers to the total accumulation of inbound FDI in a country or outbound FDI from a country.

Accepted Answer

A)  FDI flow 
B)  FDI stock 
C)  Horizontal FDI 
D)  Vertical FDI 
A)  FDI flow 
B)  FDI stock 
C)  Horizontal FDI 
D)  Vertical FDI

Question 2

Which of the following political views treats FDI as an instrument of imperialism and as a vehicle for exploitation of domestic resources by foreign capitalists and firms?

Accepted Answer

A)  Pragmatic nationalism 
B)  The free-market view 
C)  The radical view 
D)  The monopolistic view 
A)  Pragmatic nationalism 
B)  The free-market view 
C)  The radical view 
D)  The monopolistic view

Question 3

A(n) _____ refers to an industry dominated by a small number of players.

Accepted Answer

A)  oligopoly 
B)  monopoly 
C)  perfect competition 
D)  free market 
A)  oligopoly 
B)  monopoly 
C)  perfect competition 
D)  free market

Question 4

FDI is more suitable if the activity is marginal and common across multiple end-user industries.

Accepted Answer

A) True 
 B)False

Question 5

_____ refers to the clustering of economic activities in certain locations.

Accepted Answer

A)  Internalization 
B)  Expropriation 
C)  Agglomeration 
D)  Intrafirm trade 
A)  Internalization 
B)  Expropriation 
C)  Agglomeration 
D)  Intrafirm trade

Question 6

A vertical FDI refers to a type of FDI in which _____.

Accepted Answer

A)  a firm duplicates its home country-based activities at the same value chain stage in a host country 
B)  a firm invests in a portfolio of foreign securities but without active management of those foreign assets 
C)  a firm moves upstream or downstream at different value chain stages in a host country 
D)  a firm produces the same products or services in a host nation as it does at home 
A)  a firm duplicates its home country-based activities at the same value chain stage in a host country 
B)  a firm invests in a portfolio of foreign securities but without active management of those foreign assets 
C)  a firm moves upstream or downstream at different value chain stages in a host country 
D)  a firm produces the same products or services in a host nation as it does at home

Question 7

Horizontal FDI refers to the amount of FDI moving out of a country in a year.

Accepted Answer

A) True 
 B)False

Question 8

Internalization refers to the replacement of cross-border markets with one firm locating in two or more countries.

Accepted Answer

A) True 
 B)False

Question 9

Knowledge spillover refers to _____.

Accepted Answer

A)  the risk associated with unauthorized diffusion of firm-specific know-how 
B)  a violation of the knowledge and IP rights secured by a copyright 
C)  knowledge diffused from one firm to others among closely located firms 
D)  the imperfect rules governing international transactions 
A)  the risk associated with unauthorized diffusion of firm-specific know-how 
B)  a violation of the knowledge and IP rights secured by a copyright 
C)  knowledge diffused from one firm to others among closely located firms 
D)  the imperfect rules governing international transactions

Question 10

OLI advantages refers to a firm's quest for outsourcing (O) advantages,licensing (L)?advantages,and importing (I) advantages.

Accepted Answer

A) True 
 B)False

Question 11

What determines the success and failure of FDI around the globe?

Accepted Answer

First,from a resource-based view,some fi

Question 12

Which of the following is a benefit of FDI to home countries?

Accepted Answer

A)  Decrease in competition between local firms 
B)  Capital outflow 
C)  Learning from operations 
D)  Creation of new jobs 
A)  Decrease in competition between local firms 
B)  Capital outflow 
C)  Learning from operations 
D)  Creation of new jobs

Question 13

If Apple invests in iPhone dealerships in Asia but does not engage in distribution in the United States (Apple's host country),then Apple's Asian investment would be considered a(n) _____.

Accepted Answer

A)  downstream vertical FDI 
B)  upstream vertical FDI 
C)  horizontal FDI 
D)  FPI 
A)  downstream vertical FDI 
B)  upstream vertical FDI 
C)  horizontal FDI 
D)  FPI

Question 14

Which of the following economic perspectives on FDI has its principles rooted in Marxism?

Accepted Answer

A)  Pragmatic nationalism 
B)  Laissez-faire 
C)  The free market view 
D)  The radical view 
A)  Pragmatic nationalism 
B)  Laissez-faire 
C)  The free market view 
D)  The radical view

Question 15

Firms become MNEs because FDI provides OLI advantages that they otherwise would not obtain.

Accepted Answer

A) True 
 B)False

Question 16

Technology spillovers are harmful to host firms and industries.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following statements best describes an FDI?

Accepted Answer

A)  Setting up subsidiaries in foreign locations to do in-house work 
B)  Turning over an organizational activity to an outside supplier to perform on behalf of the firm 
C)  Outsourcing an in-house activity to another domestic firm 
D)  Assigning firm activities to foreign firms in neighboring countries 
A)  Setting up subsidiaries in foreign locations to do in-house work 
B)  Turning over an organizational activity to an outside supplier to perform on behalf of the firm 
C)  Outsourcing an in-house activity to another domestic firm 
D)  Assigning firm activities to foreign firms in neighboring countries

Question 18

_____ is a type of FDI in which a firm duplicates its home country-based activities at the same value chain stage in a host country.

Accepted Answer

A)  Horizontal FDI 
B)  Vertical FPI 
C)  Backward vertical FDI 
D)  Platform FDI 
A)  Horizontal FDI 
B)  Vertical FPI 
C)  Backward vertical FDI 
D)  Platform FDI

_____ refers to the total accumulation of inbound FDI in a country or outbound FDI from a country.

Which of the following political views treats FDI as an instrument of imperialism and as a vehicle for exploitation of domestic resources by foreign capitalists and firms?

A(n) _____ refers to an industry dominated by a small number of players.

FDI is more suitable if the activity is marginal and common across multiple end-user industries.

_____ refers to the clustering of economic activities in certain locations.

A vertical FDI refers to a type of FDI in which _____.

Horizontal FDI refers to the amount of FDI moving out of a country in a year.

Internalization refers to the replacement of cross-border markets with one firm locating in two or more countries.

Knowledge spillover refers to _____.

OLI advantages refers to a firm's quest for outsourcing (O) advantages,licensing (L)?advantages,and importing (I) advantages.

What determines the success and failure of FDI around the globe?

Which of the following is a benefit of FDI to home countries?

If Apple invests in iPhone dealerships in Asia but does not engage in distribution in the United States (Apple's host country),then Apple's Asian investment would be considered a(n) _____.

Which of the following economic perspectives on FDI has its principles rooted in Marxism?

Firms become MNEs because FDI provides OLI advantages that they otherwise would not obtain.

Technology spillovers are harmful to host firms and industries.

Which of the following statements best describes an FDI?

_____ is a type of FDI in which a firm duplicates its home country-based activities at the same value chain stage in a host country.

Globalizing Business

Understanding Formal Institutions: Politics, laws, and Economics

Emphasizing Informal Institutions: Cultures, ethics, and Norms

Leveraging Resources and Capabilities

Trading Internationally

Dealing With Foreign Exchange

Capitalizing on Global and Regional Integration

Growing and Internationalizing the Entrepreneurial Firm

Entering Foreign Markets

Managing Global Competitive Dynamics

Making Alliances and Acquisitions Work

Strategizing,structuring,and Learning Around the World

Competing on Marketing and Supply Chain Management

Managing Human Resources Globally

Financing and Governing the Corporation Globally

Managing Corporate Social Responsibility Globally

Filters

Exam 6: Investing Abroad Directly

_____ refers to the total accumulation of inbound FDI in a country or outbound FDI from a country.

Which of the following political views treats FDI as an instrument of imperialism and as a vehicle for exploitation of domestic resources by foreign capitalists and firms?

A(n) _____ refers to an industry dominated by a small number of players.

FDI is more suitable if the activity is marginal and common across multiple end-user industries.

_____ refers to the clustering of economic activities in certain locations.

A vertical FDI refers to a type of FDI in which _____.

Horizontal FDI refers to the amount of FDI moving out of a country in a year.

Internalization refers to the replacement of cross-border markets with one firm locating in two or more countries.

Knowledge spillover refers to _____.

OLI advantages refers to a firm's quest for outsourcing (O) advantages,licensing (L)?advantages,and importing (I) advantages.

What determines the success and failure of FDI around the globe?

Which of the following is a benefit of FDI to home countries?

If Apple invests in iPhone dealerships in Asia but does not engage in distribution in the United States (Apple's host country),then Apple's Asian investment would be considered a(n) _____.

Which of the following economic perspectives on FDI has its principles rooted in Marxism?

Firms become MNEs because FDI provides OLI advantages that they otherwise would not obtain.

Technology spillovers are harmful to host firms and industries.

Which of the following statements best describes an FDI?

_____ is a type of FDI in which a firm duplicates its home country-based activities at the same value chain stage in a host country.

Globalizing Business

Understanding Formal Institutions: Politics, laws, and Economics

Emphasizing Informal Institutions: Cultures, ethics, and Norms

Leveraging Resources and Capabilities

Trading Internationally

Dealing With Foreign Exchange

Capitalizing on Global and Regional Integration

Growing and Internationalizing the Entrepreneurial Firm

Entering Foreign Markets

Managing Global Competitive Dynamics

Making Alliances and Acquisitions Work

Strategizing,structuring,and Learning Around the World

Competing on Marketing and Supply Chain Management

Managing Human Resources Globally

Financing and Governing the Corporation Globally

Managing Corporate Social Responsibility Globally

Filters