Exam 7: Foreign Direct Investment

Exports and imports of tourism and business consulting are included in which of these?

Which of these occurs when a country exports more goods and services and receives more income from abroad than it imports?

The Mexican maquiladora project was built upon the success of the border project between Germany and Poland.

Which of the following refers to investments that do NOT involve obtaining a measure of control in a company?

A system of production in which each of a product's components is produced in the location where the cost of producing that component is lowest is called ________ production.

The U.S. Commerce Department sets the threshold at which it classifies an international capital flow as foreign direct investment at ________ percent.

The merchandise account includes exports and imports of tangible goods.

When a company's specialized knowledge is embodied in its employees, the only alternative to exploit a market opportunity in another nation may be to undertake foreign direct investment.

Scenario: Blickinstock at the Crossroads Auto parts supplier, Blickinstock Ltd., would like to expand its presence in Latin America. To that end, Blickinstock is trying to decide whether to purchase an existing company in a remote region of Argentina or build its own subsidiary. Keith Moon, Blickinstock's vice president of global business development, will be making a presentation to the board outlining the company's options. -One board member has asked about the maquiladora industry, which refers to ________.

The ________ account within the current account includes income earned on U.S. assets held abroad.

A market that operates at peak efficiency and where goods are readily and easily available is said to be a(n) ________.

The ________ account includes income paid to entities in other nations that is earned on assets they hold in the United States.

Explain the methods of restricting and promoting foreign direct investment that home and host countries can use.