Question 1

The stock of foreign direct investment refers to the total accumulated value of foreign-owned assets at a given time.

Accepted Answer

A) True 
 B)False

Question 2

The members of the Organization for Economic Cooperation and Development include

Accepted Answer

A) most South American countries, Japan, France, and Germany. 
B) most North American countries, Great Britain, France, and Germany. 
C) most Asian countries, the United States, Canada, and Mexico. 
D) most European countries, the United States, Canada, Japan, and South Korea. 
E) most European countries, the United States, Canada, Japan and China 
A) most South American countries, Japan, France, and Germany. 
B) most North American countries, Great Britain, France, and Germany. 
C) most Asian countries, the United States, Canada, and Mexico. 
D) most European countries, the United States, Canada, Japan, and South Korea. 
E) most European countries, the United States, Canada, Japan and China

Question 3

A(n) ______________ is a company that conducts business in more than one country.

Accepted Answer

A) cross-cultural enterprise 
B) synergistic enterprise 
C) multinational enterprise 
D) international conglomerate 
E) global enterprise 
A) cross-cultural enterprise 
B) synergistic enterprise 
C) multinational enterprise 
D) international conglomerate 
E) global enterprise

Question 4

The flow of foreign investment refers to the number of countries a firm is investing in at any given point in time.

Accepted Answer

A) True 
 B)False

Question 5

The flow of foreign direct investment into a country is referred to as the

Accepted Answer

A) inflow of FDI. 
B) FDI capture. 
C) FDI gain. 
D) accrual of FDI. 
E) FDI wealth accrual 
A) inflow of FDI. 
B) FDI capture. 
C) FDI gain. 
D) accrual of FDI. 
E) FDI wealth accrual

Question 6

Describe what is meant by the eclectic paradigm? Who is its principle champion? Does this paradigm make sense as a rationale for FDI?

Accepted Answer

The principle champion of the eclectic p

Question 7

The eclectic paradigm has been championed by the British economist ______________.

Accepted Answer

A) John Dunning 
B) Edward Luty 
C) William Spencer 
D) Andrew Ferguson 
E) Francis Knockerbocker 
A) John Dunning 
B) Edward Luty 
C) William Spencer 
D) Andrew Ferguson 
E) Francis Knockerbocker

Question 8

For the most part FDI flows have _____________ since the 1990s.

Accepted Answer

A) shrunk 
B) stayed the same 
C) varied 
D) grown 
E) averaged $1.2 billion 
A) shrunk 
B) stayed the same 
C) varied 
D) grown 
E) averaged $1.2 billion

Question 9

______________ are knowledge spillovers that occur when companies in the same industry locate in the same area.

Accepted Answer

A) Inward overflows 
B) Cognitive overflows 
C) Concentric overflows 
D) Externalities 
E) Synergy 
A) Inward overflows 
B) Cognitive overflows 
C) Concentric overflows 
D) Externalities 
E) Synergy

Question 10

Camelot Baby Carriages decided to enter the European market.Sam's Strollers followed to ensure that Camelot would not gain competitive advantage in Europe that could lead to the same thing occurring in Asia.Sam's then decides to enter the Australian market, and Camelot follows.This is an example of:

Accepted Answer

A) monopoint competition. 
B) multipoint competition. 
C) lead and follow competition. 
D) competition life cycle. 
E) oligolopic competition 
A) monopoint competition. 
B) multipoint competition. 
C) lead and follow competition. 
D) competition life cycle. 
E) oligolopic competition

Question 11

In general, foreign direct investment is less expensive and less risky than either licensing or exporting.

Accepted Answer

A) True 
 B)False

Question 12

Advantages that arise from using resource endowments or assets that are tied to a particular location and that a firm finds valuable to combine with its own unique assets are referred to as:

Accepted Answer

A) geographic specific preferences 
B) unique geographic advantages 
C) locale-specific preferences 
D) location-specific advantages 
E) factor endowment advantages 
A) geographic specific preferences 
B) unique geographic advantages 
C) locale-specific preferences 
D) location-specific advantages 
E) factor endowment advantages

Question 13

A firm will favor foreign direct investment over exporting as an entry strategy when transportation costs or trade barriers make exporting unattractive.

Accepted Answer

A) True 
 B)False

Question 14

The three main benefits of inward FDI for a host country are the resource-transfer effect, the government effect, and the balance-of-payment effect.

Accepted Answer

A) True 
 B)False

Question 15

Several studies of U.S.enterprises suggest that firms based in _____________ industries tend to imitate each other's foreign direct investment patterns.

Accepted Answer

A) oliogopolistic 
B) monopolistic 
C) syndicated 
D) munificent 
E) related 
A) oliogopolistic 
B) monopolistic 
C) syndicated 
D) munificent 
E) related

Question 16

According to the textbook, a firm will favor _____________ over _______________ when it wishes to maintain control over its technological know-how, or over its operations and business strategy.

Accepted Answer

A) foreign direct investment; exporting 
B) licensing; foreign direct investment 
C) foreign direct investment; licensing 
D) exporting; foreign direct investment 
E) exporting; licensing 
A) foreign direct investment; exporting 
B) licensing; foreign direct investment 
C) foreign direct investment; licensing 
D) exporting; foreign direct investment 
E) exporting; licensing

Question 17

Over time, cross-border M & As have shifted away from primary and manufacturing to ________________?

Accepted Answer

A) developed economies 
B) developing economies 
C) mining 
D) services 
E) resource extraction 
A) developed economies 
B) developing economies 
C) mining 
D) services 
E) resource extraction

Question 18

Technology can be incorporated in a product or a production process.

Accepted Answer

A) True 
 B)False

Question 19

How do transportation costs affect the attractiveness of exporting?

Accepted Answer

When transportation costs are added to p

Question 20

If one firm in a(n) _______________ cuts prices, this can take market share away from its competitors, forcing them to respond with similar price cuts in order to retain their market share.

Accepted Answer

A) monopoly 
B) oligopoly 
C) multipoint competition 
D) cartel 
E) price fixing agreement 
A) monopoly 
B) oligopoly 
C) multipoint competition 
D) cartel 
E) price fixing agreement

The stock of foreign direct investment refers to the total accumulated value of foreign-owned assets at a given time.

The members of the Organization for Economic Cooperation and Development include

A(n) ______________ is a company that conducts business in more than one country.

The flow of foreign investment refers to the number of countries a firm is investing in at any given point in time.

The flow of foreign direct investment into a country is referred to as the

Describe what is meant by the eclectic paradigm? Who is its principle champion? Does this paradigm make sense as a rationale for FDI?

The eclectic paradigm has been championed by the British economist ______________.

For the most part FDI flows have _____________ since the 1990s.

______________ are knowledge spillovers that occur when companies in the same industry locate in the same area.

Camelot Baby Carriages decided to enter the European market.Sam's Strollers followed to ensure that Camelot would not gain competitive advantage in Europe that could lead to the same thing occurring in Asia.Sam's then decides to enter the Australian market, and Camelot follows.This is an example of:

In general, foreign direct investment is less expensive and less risky than either licensing or exporting.

Advantages that arise from using resource endowments or assets that are tied to a particular location and that a firm finds valuable to combine with its own unique assets are referred to as:

A firm will favor foreign direct investment over exporting as an entry strategy when transportation costs or trade barriers make exporting unattractive.

The three main benefits of inward FDI for a host country are the resource-transfer effect, the government effect, and the balance-of-payment effect.

Several studies of U.S.enterprises suggest that firms based in _____________ industries tend to imitate each other's foreign direct investment patterns.

According to the textbook, a firm will favor _ over ___ when it wishes to maintain control over its technological know-how, or over its operations and business strategy.

Over time, cross-border M & As have shifted away from primary and manufacturing to ________________?

Technology can be incorporated in a product or a production process.

How do transportation costs affect the attractiveness of exporting?

If one firm in a(n) _______________ cuts prices, this can take market share away from its competitors, forcing them to respond with similar price cuts in order to retain their market share.

Globalization

Country Differences in Political Economy

The Cultural Environment

Ethics in International Business

International Trade Theories

The Political Economy of International Trade

Regional Economic Integration

The Foreign Exchange Market

The Global Monetary System

Global Strategy

Entering Foreign Markets

Exporting, Importing, and Countertrade

Global Marketing and RD

Global Production, Outsourcing, and Logistics

Global Human Resource Management

Filters

Exam 7: Foreign Direct Investment

The stock of foreign direct investment refers to the total accumulated value of foreign-owned assets at a given time.

The members of the Organization for Economic Cooperation and Development include

A(n) ______________ is a company that conducts business in more than one country.

The flow of foreign investment refers to the number of countries a firm is investing in at any given point in time.

The flow of foreign direct investment into a country is referred to as the

Describe what is meant by the eclectic paradigm? Who is its principle champion? Does this paradigm make sense as a rationale for FDI?

The eclectic paradigm has been championed by the British economist ______________.

For the most part FDI flows have _____________ since the 1990s.

______________ are knowledge spillovers that occur when companies in the same industry locate in the same area.

In general, foreign direct investment is less expensive and less risky than either licensing or exporting.

Advantages that arise from using resource endowments or assets that are tied to a particular location and that a firm finds valuable to combine with its own unique assets are referred to as:

A firm will favor foreign direct investment over exporting as an entry strategy when transportation costs or trade barriers make exporting unattractive.

The three main benefits of inward FDI for a host country are the resource-transfer effect, the government effect, and the balance-of-payment effect.

Several studies of U.S.enterprises suggest that firms based in _____________ industries tend to imitate each other's foreign direct investment patterns.

According to the textbook, a firm will favor _____________ over _______________ when it wishes to maintain control over its technological know-how, or over its operations and business strategy.

Over time, cross-border M & As have shifted away from primary and manufacturing to ________________?

Technology can be incorporated in a product or a production process.

How do transportation costs affect the attractiveness of exporting?

If one firm in a(n) _______________ cuts prices, this can take market share away from its competitors, forcing them to respond with similar price cuts in order to retain their market share.

Globalization

Country Differences in Political Economy

The Cultural Environment

Ethics in International Business

International Trade Theories

The Political Economy of International Trade

Regional Economic Integration

The Foreign Exchange Market

The Global Monetary System

Global Strategy

Entering Foreign Markets

Exporting, Importing, and Countertrade

Global Marketing and RD

Global Production, Outsourcing, and Logistics

Global Human Resource Management

Filters

According to the textbook, a firm will favor _ over ___ when it wishes to maintain control over its technological know-how, or over its operations and business strategy.