Question 1

Greenfield investments are typically ________ and ________ than cross-border acquisition.

Accepted Answer

A)  slower; more uncertain 
B)  faster; of greater certainty 
C)  slower; of greater certainty 
D)  faster; more uncertain 
A)  slower; more uncertain 
B)  faster; of greater certainty 
C)  slower; of greater certainty 
D)  faster; more uncertain

Question 2

Which of the following combinations of cost and control reflect the choice of a greenfield foreign direct investment?

Accepted Answer

A)  high cost, high control 
B)  medium cost, high control 
C)  low cost, high control 
D)  high cost, low control 
A)  high cost, high control 
B)  medium cost, high control 
C)  low cost, high control 
D)  high cost, low control

Question 3

Which of the following is NOT a strategy employed by the firms included in the text list of emerging market MNEs?

Accepted Answer

A)  taking brands global 
B)  leveraging natural resources 
C)  acquiring offshore assets 
D)  All of the above are techniques used by emerging MNEs. 
A)  taking brands global 
B)  leveraging natural resources 
C)  acquiring offshore assets 
D)  All of the above are techniques used by emerging MNEs.

Question 4

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

Accepted Answer

On page 336 the authors provide 5 strate

Question 5

Which of the following is NOT a factor of Porter's "diamond of national advantage"?

Accepted Answer

A)  factor conditions 
B)  demand conditions 
C)  related and supporting industries 
D)  All of the above are factors of the diamond of national advantage. 
A)  factor conditions 
B)  demand conditions 
C)  related and supporting industries 
D)  All of the above are factors of the diamond of national advantage.

Question 6

Which of the following is NOT an advantage to a joint venture?

Accepted Answer

A)  Possible loss of opportunity to enter the foreign market with FDI later. 
B)  The local partner understands the customs and mores of the foreign market. 
C)  The local partner can provide competent management at many levels. 
D)  May be a realistic alternative when 100% foreign ownership is not allowed. 
A)  Possible loss of opportunity to enter the foreign market with FDI later. 
B)  The local partner understands the customs and mores of the foreign market. 
C)  The local partner can provide competent management at many levels. 
D)  May be a realistic alternative when 100% foreign ownership is not allowed.

Question 7

An example of economies of scale in financing include

Accepted Answer

A)  being able to access the Euroequity, Eurobond, and Eurocurrency markets. 
B)  being able to ship product in shiploads or carloads. 
C)  being able to use large-scale plant and equipment. 
D)  all of the above. 
A)  being able to access the Euroequity, Eurobond, and Eurocurrency markets. 
B)  being able to ship product in shiploads or carloads. 
C)  being able to use large-scale plant and equipment. 
D)  all of the above.

Greenfield investments are typically and than cross-border acquisition.

Which of the following combinations of cost and control reflect the choice of a greenfield foreign direct investment?

Which of the following is NOT a strategy employed by the firms included in the text list of emerging market MNEs?

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

Which of the following is NOT a factor of Porter's "diamond of national advantage"?

Which of the following is NOT an advantage to a joint venture?

An example of economies of scale in financing include

Globalization and the Multinational Enterprise

Financial Goals and Corporate Governance

The International Monetary System

The Balance of Payments

The Foreign Exchange Market

International Parity Conditions

Foreign Exchange Rate Determination and Forecasting

Foreign Currency Derivatives

Transaction Exposure

Operating Exposure

Translation Exposure

Global Cost and Availability of Capital

Sourcing Equity Capital Globally

Financial Structure and International Debt

Interest Rate and Currency Swaps

International Portfolio Theory and Diversification

Political Risk Assessment and Management

Multinational Capital Budgeting

International Trade Finance

Multinational Tax Management

Working Capital Management

Filters

Exam 17: Foreign Direct Investment Theory and Strategy

Greenfield investments are typically ________ and ________ than cross-border acquisition.

Which of the following combinations of cost and control reflect the choice of a greenfield foreign direct investment?

Which of the following is NOT a strategy employed by the firms included in the text list of emerging market MNEs?

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

Which of the following is NOT a factor of Porter's "diamond of national advantage"?

Which of the following is NOT an advantage to a joint venture?

An example of economies of scale in financing include

Globalization and the Multinational Enterprise

Financial Goals and Corporate Governance

The International Monetary System

The Balance of Payments

The Foreign Exchange Market

International Parity Conditions

Foreign Exchange Rate Determination and Forecasting

Foreign Currency Derivatives

Transaction Exposure

Operating Exposure

Translation Exposure

Global Cost and Availability of Capital

Sourcing Equity Capital Globally

Financial Structure and International Debt

Interest Rate and Currency Swaps

International Portfolio Theory and Diversification

Political Risk Assessment and Management

Multinational Capital Budgeting

International Trade Finance

Multinational Tax Management

Working Capital Management

Filters

Greenfield investments are typically and than cross-border acquisition.