Business

Performance requirements are controls over the behavior of the MNE’s l

QUESTION Performance requirements are controls over the behavior of the MNE’s local subsidiary. Indicate whether the statement is true or false.   ANSWER TRUE Performance requirements can also take several forms. Performance requirements are controls over the behavior of the MNE’s local subsidiary. The most common performance requirements are related to local content, exports, technology […]

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Date: September 3rd, 2020

Ownership restraints and performance requirements are the two most com

QUESTION Ownership restraints and performance requirements are the two most common ways in which host governments restrict FDI. Indicate whether the statement is true or false.   ANSWER TRUE Host governments use a wide range of controls to restrict FDI in one way or another. The two most common are ownership restraints and performance requirements.

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Date: September 3rd, 2020

Franchising is essentially the service-industry version of licensing,

QUESTION Franchising is essentially the service-industry version of licensing, although it normally involves much longer-term commitments than licensing. Indicate whether the statement is true or false.   ANSWER TRUE Franchising is essentially the service-industry version of licensing, although it normally involves much longer-term commitments than licensing. With franchising, the firm licenses its brand name to […]

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Date: September 3rd, 2020

A firm’s bargaining power is low when the host government places a low

QUESTION A firm’s bargaining power is low when the host government places a low value on what the firm has to offer. Indicate whether the statement is true or false.   ANSWER TRUE From the perspective of a firm negotiating the terms of an investment with a host government, the firm’s bargaining power is high […]

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Date: September 3rd, 2020

Despite the move toward a free market stance in recent years, many cou

QUESTION Despite the move toward a free market stance in recent years, many countries still have a rather pragmatic stance toward FDI. Indicate whether the statement is true or false.   ANSWER TRUE Despite the move toward a free market stance in recent years, many countries still have a rather pragmatic stance toward FDI. In […]

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Date: September 3rd, 2020

Which of the following indicates that a firm has a full outright stake

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 […]

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Date: September 3rd, 2020

Services such as telecommunications, retailing, and many financial ser

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 […]

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Date: September 3rd, 2020