Exam 17: Foreign Direct Investment and Political Risk

OPIC stands for:

An example of economies of scale in financing include:

A/An ________ would be an example of a location-specific advantage for an MNE.

MNEs typically used licensing with independent firms rather than with their own foreign subsidiaries.

Which of the following is NOT a form of FDI?

Governance risk due to goal conflict between an MNE and its host government is the main political ________ risk.

A ________ loan, also known as ________ is a parent-to-affiliate loan channeled through a financial intermediary such as a large commercial bank.

List and explain three strategic motives why firms become multinationals and give an example of each.

The OLI paradigm is an attempt to create a framework to explain why MNEs choose ________ rather than some other form of international venture.

Which of the following is NOT a typical characteristic of a fronting loan made to an international subsidiary?

Which of the following could be considered an example of forced reinvestment if the blockage of funds was expected to be temporary?

________ is the risk that the host government will take specific steps that prevent the foreign affiliate from exercising control over the firm's assets.

Of the following, which would NOT be considered an issue for an investment agreement prior to investing in a foreign country?

The O in OLI refers to an advantage in a firm's home market that is:

Of the following, which was NOT identified by the authors as a type of cultural difference that MNEs must consider when expanding to foreign countries?

A/An ________ would be an example of an internalization advantage for an MNE.

According to your authors, MNEs can anticipate government regulations that are discriminatory or wealth depriving from a/an ________ or ________ level view.

A strongly competitive home market tends to dull the competitive advantage relative to firms located in less competitive home markets.

A country can react to the potential for blocked funds prior to making an investment, during operations, or by investing in the local country in assets than maintain their value.

Many problems such as poverty, environmental concerns, and cyber attacks are beyond the capabilities of MNEs alone to correct and require government participation as well.