QUESTION According to which of the following, FDI has both benefits and costs and should be allowed only if the benefits outweigh the costs? A. Eclectic paradigm theory B. Free market view C. Pragmatic nationalist view D. Radical view E. Internalization theory ANSWER C
Date: September 3rd, 2020
QUESTION The tendency to aggressively court FDI believed to be in the national interest of a country is an aspect of: A. pragmatic nationalism. B. the radical view. C. nationalism. D. imitative theory. E. eclectic paradigm. ANSWER A
Date: September 3rd, 2020
QUESTION Which of the following is true regarding the pragmatic nationalist view of FDI? A. One aspect of pragmatic nationalism is the tendency to aggressively court FDI believed to be in the national interest by, for example, offering subsidies to foreign MNEs in the form of tax breaks or grants. B. The pragmatic nationalist view […]
Date: September 3rd, 2020
QUESTION Many host countries are concerned that a foreign-owned manufacturing plant may import many components from its home country, which has negative implications for the host country’s: A. free trade agreements. B. inward FDI. C. sovereignty. D. balance-of-payments position. E. gold reserves. ANSWER D
Date: September 3rd, 2020
QUESTION Direct effects of FDI on employment in the host country arise when a foreign MNE: A. brings in managers trained in the latest management techniques from the home country. B. creates jobs because of increased local spending by employees of the MNE. C. employs a number of host country citizens. D. causes local suppliers […]
Date: September 3rd, 2020
QUESTION Which of the following statements is most likely to be true regarding the adverse effects of FDI on the host country? A. It decreases the level of competition in the host country. B. It tends to increase the prices of the products. C. It leads to a high rate of unemployment in the long […]
Date: September 3rd, 2020
QUESTION Foreign managers trained in the latest management techniques can often help to improve the efficiency of operations in the host country, whether those operations are acquired or greenfield developments. This benefit of FDI falls into the category of: A. employment effects. B. balance-of-payments effects. C. effects on competition. D. resource transfer effects. E. autonomy […]
Date: September 3rd, 2020
QUESTION The main benefits of inward FDI for a host country arise from: A. the resource-transfer effect, the employment effect, and the balance-of-payments effect. B. the labor-transfer effect, the technology effect, and the currency-exchange effect. C. the cultural awareness effect, first-mover advantage effect, and economic development effect. D. the foreign exchange reserves effect, knowledge flow […]
Date: September 3rd, 2020
QUESTION Which of the following is true about Dunning’s arguments? A. Dunning rejects the argument of internalization theory that it is difficult for a firm to license its own unique capabilities and know-how. B. Dunning suggests that to exploit foreign resources, such as oil and other minerals, a firm must undertake licensing rather than FDI. […]
Date: September 3rd, 2020
QUESTION Which view of FDI traces its roots to Marxist political and economic theory? A. Radical B. Free market C. Pragmatic nationalism D. Comparative advantage E. Pluralist ANSWER A
Date: September 3rd, 2020
