Exam 7: Foreign Direct Investment

______________ is not a common incentive that governments offer foreign firms to invest in their countries.

If TransCanada Pipelines, a Canadian based corporation, purchased a 50% interest in a company in Italy, that purchase would be an example of

To make sure the Japanese operations replicated the "Starbuck's experience" in North America, Starbucks insisted on all of the following except:

If 3M, an American firm, produces adhesive tape in St.Paul, Minnesota, and ships the tape to South Korea to be sold, that is an example of:

When transportation costs are added to production costs, it becomes unprofitable to ship some products over a large distance.This is particularly true of products that have a:

The flow of foreign direct investment out of a country is

It is increasingly common for governments to:

Which is not one of the factors that a party's bargaining power depends upon when negotiating?

How does a potential host government's attitude toward FDI affect a company's willingness to engage in FDI in that country? Should a host government's attitude toward FDI be a major consideration when making a FDI decision? Why?

Other things being equal, investing in countries that are permissive to FDI is preferable to investing in countries that restrict FDI.

Dunning argues that combining location specific assets or resource endowments and the firm's own unique capabilities often requires:

The _______________ is a theory of foreign direct investment that combines two other perspectives into a single holistic explanation of FDI.

Chinese state owned companies have recently been blocked from buying into large American corporations because of concerns over national security.State owned companies are not always free to act solely from the perspective of business interests.There may be times when their owners the government will tell them to act to support the national interests of the country.Should the attitude towards state owned companies particularly those from non-democratic countries?

Which of the following is not true about why firms prefer to acquire existing assets rather than undertake green-field investments?

Since 2000, the number of regulatory changes less favourable to FDI has ______________

An industry composed of a large number of large firms is referred to as an oligopoly.

The ________________ view is that FDI has both benefits and costs.

Name three reasons that licensing may not be an attractive option.

According to internalization theory, licensing has three major drawbacks as a strategy for exploiting foreign market opportunities.Each of the following is a drawback of licensing except:

_______________ has not contributed to the increase in FDI over the past several years.