QUESTION Which of the following is most likely to involve establishment of a new operation in a foreign country? A. Consolidation B. Greenfield investment C. Acquisition D. Licensing agreement E. Mass customization ANSWER B
Date: September 3rd, 2020
QUESTION Which of the following indicates that a firm has a full outright stake in an acquisition? A. Anderson Corporations acquires at least 75 percent of a company. B. Sheffield Enterprises acquires at least 60 percent of a company. C. Arthur Enterprises acquires 98 percent of a company. D. Maximus Corporations acquires 100 percent of […]
Date: September 3rd, 2020
QUESTION Once it undertakes FDI, a firm becomes a(n): A. outsourcer. B. retail chain. C. offshore company. D. multinational enterprise. E. national corporation. ANSWER D
Date: September 3rd, 2020
QUESTION Services such as telecommunications, retailing, and many financial services, where the service has to be produced where it is delivered, lend themselves well to exporting. Indicate whether the statement is true or false. ANSWER FALSE FDI’s impact on competition in domestic markets may be particularly important in the case of services, such as […]
Date: September 3rd, 2020
QUESTION According to the U.S. Department of Commerce, which of the following, occurs whenever a U.S. citizen, organization, or affiliated group takes an interest of 10 percent or more in a foreign business entity? A. Multilateral investment B. Foreign direct investment C. Reciprocal foreign investment D. International divestment E. Asset divestment ANSWER B
Date: September 3rd, 2020
QUESTION An acquisition does not result in a net increase in the number of players in a market. Indicate whether the statement is true or false. ANSWER TRUE An acquisition does not result in a net increase in the number of players in a market; the effect on competition may be neutral. When a […]
Date: September 3rd, 2020
QUESTION Which of the following refers to the amount of FDI undertaken over a given period (normally a year)? A. Portfolio B. Flow C. Status D. Stock E. Fragment ANSWER B
Date: September 3rd, 2020
QUESTION The indirect employment effects of FDI are often as large as, if not larger than, the direct effects. Indicate whether the statement is true or false. ANSWER TRUE The effects of FDI on employment are both direct and indirect. Direct effects arise when a foreign MNE employs a number of host-country citizens. Indirect […]
Date: September 3rd, 2020
QUESTION The stock of foreign direct investment refers to: A. the total accumulated value of foreign-owned assets at a given time. B. the number of shares of a foreign firm held by the local investors. C. the amount of FDI undertaken over a given time period (normally a year). D. the dividend amount paid by […]
Date: September 3rd, 2020
QUESTION Offshore production refers to FDI undertaken to serve the host market. Indicate whether the statement is true or false. ANSWER FALSE International trade theory tells us that home-country concerns about the negative economic effects of offshore production may be misplaced. The term offshore production refers to FDI undertaken to serve the home market.
Date: September 3rd, 2020
