FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 8: Foreign Direct Investment

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 51

Essay

Review LaterAdd Note

Review Later

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

Correct Answer

verified

Host governments use a wide range of con...

View Answer

Show Answer

Question 52

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following factors has had a positive effect on the volume of foreign trade investments?

A) emerging social democracies
B) fluctuating current rates
C) aging demographics
D) world economy globalization

Correct Answer

verified

Show Answer

Question 53

Essay

Review LaterAdd Note

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

Which view of FDI traces its roots to classical economics and the international trade theories of Adam Smith and David Ricardo?

Describe some home-country policies that encourage outward FDI.

Which of the following is a direct consequence of the interdependence between firms in an oligopoly?

________ traces its roots to Marxist political and economic theory.

The ________ suggests that a firm will establish production facilities where foreign assets or resource endowments that are important to the firm are located.

The free market view argues that international production should be distributed among countries according to the

The ________ and Knickerbocker's theory of FDI tend to be less useful from a business perspective because they are descriptive rather than analytical.

What are the major drawbacks of licensing according to the internalization theory?

The amount of foreign direct investment (FDI) undertaken over a given time period is known as the flow of FDI.

Which of the following arises when a country is importing more goods and services than it is exporting?

The stock of FDI refers to the

Countries adopting a pragmatic stance pursue policies designed to maximize the national benefits and minimize the national costs.

Developing nations currently account for ________ of FDI in the form of cross-border mergers and acquisitions.

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

Because licensing is more costly and more risky than FDI, other things being equal, the theories argue that FDI is preferable to licensing.

________ arise(s) from using resource endowments or assets that are tied to a particular foreign location and that a firm finds valuable to combine with its own unique assets.

By placing tariffs on imported goods, governments can increase the cost of exporting relative to foreign direct investment and licensing.