Question 1

Recent years have seen a marked increase in the number of countries that adhere to a radical ideology regarding FDI.

Accepted Answer

A) True 
 B)False

Question 2

What is licensing? How does it work?

Accepted Answer

Licensing occurs when a domestic firm,th

Question 3

Licensing would be a good option for firms in which of the following industries?

Accepted Answer

A)  High-technology industries in which protecting firm-specific expertise is of paramount importance. 
B)  Global oligopolies, in which competitive interdependence requires that multinational firms maintain tight control over foreign operations. 
C)  Industries in which intense cost pressures require that multinational firms maintain tight control over foreign operations. 
D)  In fragmented, low-technology industries in which globally dispersed manufacturing is not an option. 
A)  High-technology industries in which protecting firm-specific expertise is of paramount importance. 
B)  Global oligopolies, in which competitive interdependence requires that multinational firms maintain tight control over foreign operations. 
C)  Industries in which intense cost pressures require that multinational firms maintain tight control over foreign operations. 
D)  In fragmented, low-technology industries in which globally dispersed manufacturing is not an option.

Question 4

What is multipoint competition? How do firms respond to multipoint competition?

Accepted Answer

Multipoint competition arises when two o

Question 5

Which of the following observations was made by Raymond Vernon?

Accepted Answer

A)  Firms undertake FDI at particular stages in the life cycle of a product they have pioneered. 
B)  Firms will favor exporting over FDI as an entry strategy when trade barriers are high. 
C)  FDI is prompted by imitative behavior in oligopolistic industries. 
D)  Impediments to the sale of know-how increase the profitability of FDI relative to licensing. 
A)  Firms undertake FDI at particular stages in the life cycle of a product they have pioneered. 
B)  Firms will favor exporting over FDI as an entry strategy when trade barriers are high. 
C)  FDI is prompted by imitative behavior in oligopolistic industries. 
D)  Impediments to the sale of know-how increase the profitability of FDI relative to licensing.

Question 6

John Dunning pioneered the eclectic paradigm.

Accepted Answer

A) True 
 B)False

Question 7

FDI occurs when a firm:

Accepted Answer

A)  ships its products from one country to another. 
B)  invests directly in facilities to produce a product in a foreign country. 
C)  invests in the shares of another company operating in the same country. 
D)  grants permission to another company in a different country to use its brand name. 
A)  ships its products from one country to another. 
B)  invests directly in facilities to produce a product in a foreign country. 
C)  invests in the shares of another company operating in the same country. 
D)  grants permission to another company in a different country to use its brand name.

Question 8

FDI undertaken to serve the home market is known as:

Accepted Answer

A)  outsourcing. 
B)  FDI substitution. 
C)  offshore production. 
D)  home market FDI. 
A)  outsourcing. 
B)  FDI substitution. 
C)  offshore production. 
D)  home market FDI.

Question 9

_____ arises when two or more enterprises encounter each other in different regional markets,national markets,or industries.

Accepted Answer

A)  Horizontal integration 
B)  Multipoint competition 
C)  An oligopoly 
D)  Vertical integration 
A)  Horizontal integration 
B)  Multipoint competition 
C)  An oligopoly 
D)  Vertical integration

Question 10

Mergers and acquisitions are quicker to execute than greenfield investments.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Which political view allows FDI so long as the benefits outweigh the costs?

Accepted Answer

A)  The traditional view 
B)  The pragmatic nationalist view 
C)  The radical view 
D)  The free market view 
A)  The traditional view 
B)  The pragmatic nationalist view 
C)  The radical view 
D)  The free market view

Question 13

Licensing is usually a good option for firms in high-tech industries where protecting firm-specific expertise is of paramount importance.

Accepted Answer

A) True 
 B)False

Question 14

What are the ways in which host governments restrict inward FDI?

Accepted Answer

Host governments use a wide range of con

Question 15

Discuss the trends in FDI over the last 30 years.Be sure to differentiate between the stock of FDI and the flow if FDI.

Accepted Answer

The flow of FDI refers to the amount of

Question 16

How can FDI undertaken to serve the home market stimulate economic growth in the home country?

Accepted Answer

A)  By freeing home-country resources to concentrate on activities where the home country has a comparative advantage 
B)  By importing more goods and services than it is exporting 
C)  By circumventing trade barriers that may have prevented direct exports in the past 
D)  By reducing demand for home-country exports of capital equipment, intermediate goods, and complementary products 
A)  By freeing home-country resources to concentrate on activities where the home country has a comparative advantage 
B)  By importing more goods and services than it is exporting 
C)  By circumventing trade barriers that may have prevented direct exports in the past 
D)  By reducing demand for home-country exports of capital equipment, intermediate goods, and complementary products

Question 17

Rivals rarely imitate what a firm does in an oligopoly.

Accepted Answer

A) True 
 B)False

Question 18

How is the adverse effect of the balance of payments for the home country due to an FDI usually offset?

Accepted Answer

A)  By increased imports to the home country as a result of the FDI 
B)  By the subsequent inflow of foreign earnings 
C)  By substituting direct exports made earlier from the home country 
D)  By further investments usually made to expand foreign operations 
A)  By increased imports to the home country as a result of the FDI 
B)  By the subsequent inflow of foreign earnings 
C)  By substituting direct exports made earlier from the home country 
D)  By further investments usually made to expand foreign operations

Question 19

Licensing gives a firm tight control over manufacturing,marketing,and strategy in a foreign country that may be required to maximize its profitability.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following best describes an industry composed of a limited number of large firms?

Accepted Answer

A)  An oligopoly 
B)  A monopoly 
C)  An oligarchy 
D)  A perfectly competitive market 
A)  An oligopoly 
B)  A monopoly 
C)  An oligarchy 
D)  A perfectly competitive market

Recent years have seen a marked increase in the number of countries that adhere to a radical ideology regarding FDI.

What is licensing? How does it work?

Licensing would be a good option for firms in which of the following industries?

What is multipoint competition? How do firms respond to multipoint competition?

Which of the following observations was made by Raymond Vernon?

John Dunning pioneered the eclectic paradigm.

FDI occurs when a firm:

FDI undertaken to serve the home market is known as:

_____ arises when two or more enterprises encounter each other in different regional markets,national markets,or industries.

Mergers and acquisitions are quicker to execute than greenfield investments.

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

Which political view allows FDI so long as the benefits outweigh the costs?

Licensing is usually a good option for firms in high-tech industries where protecting firm-specific expertise is of paramount importance.

What are the ways in which host governments restrict inward FDI?

Discuss the trends in FDI over the last 30 years.Be sure to differentiate between the stock of FDI and the flow if FDI.

How can FDI undertaken to serve the home market stimulate economic growth in the home country?

Rivals rarely imitate what a firm does in an oligopoly.

How is the adverse effect of the balance of payments for the home country due to an FDI usually offset?

Licensing gives a firm tight control over manufacturing,marketing,and strategy in a foreign country that may be required to maximize its profitability.

Which of the following best describes an industry composed of a limited number of large firms?

Globalization

National Differences in Political Economy, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Regional Trade Pacts Give the Mexican Auto Industry an Edge

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 and Supply Chain Management

Global Marketing and Rd

Global Human Resource Management

Accounting and Finance in the International Business

Filters

Exam 8: Foreign Direct Investment

Recent years have seen a marked increase in the number of countries that adhere to a radical ideology regarding FDI.

What is licensing? How does it work?

Licensing would be a good option for firms in which of the following industries?

What is multipoint competition? How do firms respond to multipoint competition?

Which of the following observations was made by Raymond Vernon?

John Dunning pioneered the eclectic paradigm.

FDI occurs when a firm:

FDI undertaken to serve the home market is known as:

_____ arises when two or more enterprises encounter each other in different regional markets,national markets,or industries.

Mergers and acquisitions are quicker to execute than greenfield investments.

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

Which political view allows FDI so long as the benefits outweigh the costs?

Licensing is usually a good option for firms in high-tech industries where protecting firm-specific expertise is of paramount importance.

What are the ways in which host governments restrict inward FDI?

Discuss the trends in FDI over the last 30 years.Be sure to differentiate between the stock of FDI and the flow if FDI.

How can FDI undertaken to serve the home market stimulate economic growth in the home country?

Rivals rarely imitate what a firm does in an oligopoly.

How is the adverse effect of the balance of payments for the home country due to an FDI usually offset?

Licensing gives a firm tight control over manufacturing,marketing,and strategy in a foreign country that may be required to maximize its profitability.

Which of the following best describes an industry composed of a limited number of large firms?

Globalization

National Differences in Political Economy, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Regional Trade Pacts Give the Mexican Auto Industry an Edge

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 and Supply Chain Management

Global Marketing and Rd

Global Human Resource Management

Accounting and Finance in the International Business

Filters