Question 1

Which of the following is true of a "follow the leader" scenario in the context of foreign direct investment?

Accepted Answer

A) Companies that practice "follow the leader" supply each other with inputs. 
B) Companies that practice "follow the leader" pressurize each other to follow environmentally safe methods. 
C) It is a frequent practice in industries with a limited number of large firms. 
D) It is common in industries in which producers source component parts from suppliers. 
A) Companies that practice "follow the leader" supply each other with inputs. 
B) Companies that practice "follow the leader" pressurize each other to follow environmentally safe methods. 
C) It is a frequent practice in industries with a limited number of large firms. 
D) It is common in industries in which producers source component parts from suppliers.

Question 2

Happyland
Happyland is a country characterized by beautiful beaches,vast natural resources,and a highly skilled labor force.Happyland is now encouraging foreign direct investment flows.The country has been exporting textiles,computer hardware,and software programs.The net result of the trade is that Happyland exports far more goods and services and receives more income from abroad than it imports and pays abroad.
-Which of the following methods will Happyland use to encourage foreign direct investment inflows?

Accepted Answer

A) tax incentives 
B) sanctions 
C) ownership restrictions 
D) performance demands 
A) tax incentives 
B) sanctions 
C) ownership restrictions 
D) performance demands

Question 3

The possibility that a company will create a future competitor by charging another company for access to its knowledge is a(n)________ that can encourage FDI.

Accepted Answer

A) ownership advantage 
B) internalization advantage 
C) market imperfection 
D) trade barrier 
A) ownership advantage 
B) internalization advantage 
C) market imperfection 
D) trade barrier

Question 4

Developed countries have been the major participants behind cross-border mergers and acquisitions.

Accepted Answer

A) True 
 B)False

Which of the following is true of a "follow the leader" scenario in the context of foreign direct investment?

The possibility that a company will create a future competitor by charging another company for access to its knowledge is a(n)________ that can encourage FDI.

Developed countries have been the major participants behind cross-border mergers and acquisitions.

Globalization

Cross-Cultural Business

Political Economy and Ethics

Economic Development of Nations

International Trade Theory

Political Economy of Trade

Regional Economic Integration

International Financial Markets

International Monetary System

International Strategy and Organization

Analyzing International Opportunities

Selecting and Managing Entry Modes

Developing and Marketing Products

Managing International Operations

Hiring and Managing Employees

Filters

Exam 7: Foreign Direct Investment

Which of the following is true of a "follow the leader" scenario in the context of foreign direct investment?

The possibility that a company will create a future competitor by charging another company for access to its knowledge is a(n)________ that can encourage FDI.

Developed countries have been the major participants behind cross-border mergers and acquisitions.

Globalization

Cross-Cultural Business

Political Economy and Ethics

Economic Development of Nations

International Trade Theory

Political Economy of Trade

Regional Economic Integration

International Financial Markets

International Monetary System

International Strategy and Organization

Analyzing International Opportunities

Selecting and Managing Entry Modes

Developing and Marketing Products

Managing International Operations

Hiring and Managing Employees

Filters