Exam 8: Foreign Direct Investment

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The product life-cycle theory and Knickerbocker's theory of horizontal FDI tend to be very useful from a business perspective because the theories are more descriptive than analytical.

(True/False)

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Question 21

Mergers and acquisitions are quicker to execute than greenfield investments.

(True/False)

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Question 22

Discuss the reasons for the growth in FDI over the last 30 years.

(Essay)

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Question 23

Identify the theory that seeks to explain why firms often prefer foreign direct investment over licensing as a strategy for entering foreign markets.

(Multiple Choice)

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Question 24

Which of the following is an example of a greenfield investment?

(Multiple Choice)

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Question 25

Licensing involves the establishment of a new operation in a foreign country.

(True/False)

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Question 26

The radical view traces its roots to Marxist political and economic theory.

(True/False)

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Question 27

Offshore production refers to FDI undertaken to serve the host market.

(True/False)

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Question 28

Which of the following arises when a country is importing more goods and services than it is exporting?

(Multiple Choice)

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Question 29

An oligopoly is an industry composed of a limited number of large firms.

(True/False)

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Question 30

A Japanese car manufacturer acquires an Italian producer of car tires. This is an example of a greenfield investment.

(True/False)

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Question 31

Which of the following statements is true about the growth of foreign direct investment in the world economy over the last few decades?

(Multiple Choice)

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Question 32

FDI occurs when a firm:

(Multiple Choice)

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Question 33

The WTO supports the promotion of international trade in services.

(True/False)

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Question 34

Knickerbocker's theory explains why the first firm in an oligopoly decides to undertake FDI rather than to export or license.

(True/False)

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Question 35

Direct effects of FDI arise when jobs are created in local suppliers as a result of the FDI and when jobs are created because of increased local spending by employees of the MNE.

(True/False)

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Question 36

For the home country, the current account of the balance of payments improves if the purpose of the foreign investment is to serve the home market from a low-cost production location.

(True/False)

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Question 37

The pragmatic nationalist view highlights only the benefits of FDI.

(True/False)

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Question 38

Describe the situations when licensing is not a good option for a firm.

(Essay)

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Question 39

A country's balance of payments accounts keep track of both its payments to and its receipts from other countries.

(True/False)

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Question 40

Showing 21 - 40 of 105

The product life-cycle theory and Knickerbocker's theory of horizontal FDI tend to be very useful from a business perspective because the theories are more descriptive than analytical.

Mergers and acquisitions are quicker to execute than greenfield investments.

Discuss the reasons for the growth in FDI over the last 30 years.

Identify the theory that seeks to explain why firms often prefer foreign direct investment over licensing as a strategy for entering foreign markets.

Which of the following is an example of a greenfield investment?

Licensing involves the establishment of a new operation in a foreign country.

The radical view traces its roots to Marxist political and economic theory.

Offshore production refers to FDI undertaken to serve the host market.

Which of the following arises when a country is importing more goods and services than it is exporting?

An oligopoly is an industry composed of a limited number of large firms.

A Japanese car manufacturer acquires an Italian producer of car tires. This is an example of a greenfield investment.

Which of the following statements is true about the growth of foreign direct investment in the world economy over the last few decades?

FDI occurs when a firm:

The WTO supports the promotion of international trade in services.

Knickerbocker's theory explains why the first firm in an oligopoly decides to undertake FDI rather than to export or license.

Direct effects of FDI arise when jobs are created in local suppliers as a result of the FDI and when jobs are created because of increased local spending by employees of the MNE.

For the home country, the current account of the balance of payments improves if the purpose of the foreign investment is to serve the home market from a low-cost production location.

The pragmatic nationalist view highlights only the benefits of FDI.

Describe the situations when licensing is not a good option for a firm.

A country's balance of payments accounts keep track of both its payments to and its receipts from other countries.

Globalization

National Differences in Political Economy

Political Economy and Economic Development

Differences in Culture

Ethics in International Business

International Trade Theory

The Political Economy of International Trade

Regional Economic Integration

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Strategy of International Business

The Organization of International Business

Entry Strategy and Strategic Alliances

Exporting, Importing, and Countertrade

Global Production, Outsourcing, and Logistics

Global Marketing and RD

Global Human Resource Management

Accounting and Finance in the International Business

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