Question 1

From the perspective of a firm negotiating the terms of an investment with a host government, the firm's bargaining power is high when the:

Accepted Answer

A)  firm has a short time in which to complete the negotiations. 
B)  host government places a high value on what the firm has to offer. 
C)  number of comparable alternatives open to the firm is low. 
D)  host government does not places a high value on the firm's offering. 
A)  firm has a short time in which to complete the negotiations. 
B)  host government places a high value on what the firm has to offer. 
C)  number of comparable alternatives open to the firm is low. 
D)  host government does not places a high value on the firm's offering.

Question 2

According to Knickerbocker's theory:

Accepted Answer

A)  when a firm has valuable know-how that cannot be adequately protected by a licensing contract it engages in FDI. 
B)  when a firm's skills and know-how are not amenable to licensing, it usually prefers the FDI route. 
C)  by placing tariffs on imported goods, governments indirectly increase the cost of exporting relative to foreign direct investment and licensing. 
D)  when a firm that is part of an oligopolistic industry expands into a foreign market, other firms in the industry will be compelled to make similar investments. 
A)  when a firm has valuable know-how that cannot be adequately protected by a licensing contract it engages in FDI. 
B)  when a firm's skills and know-how are not amenable to licensing, it usually prefers the FDI route. 
C)  by placing tariffs on imported goods, governments indirectly increase the cost of exporting relative to foreign direct investment and licensing. 
D)  when a firm that is part of an oligopolistic industry expands into a foreign market, other firms in the industry will be compelled to make similar investments.

Question 3

Why is it said that not all the new jobs created by FDI represent net additions in employment?

Accepted Answer

A)  Because of the uncertainty of the overall economic environment 
B)  Because most of the job creation is indirect in nature 
C)  Because jobs created by an investment may be offset by the jobs lost in domestic companies 
D)  Because the unemployment rate more or less remains constant over the short-term 
A)  Because of the uncertainty of the overall economic environment 
B)  Because most of the job creation is indirect in nature 
C)  Because jobs created by an investment may be offset by the jobs lost in domestic companies 
D)  Because the unemployment rate more or less remains constant over the short-term

Question 4

The largest source country for FDI has been _____.

Accepted Answer

A)  China 
B)  Japan 
C)  the United States 
D)  the Netherlands 
A)  China 
B)  Japan 
C)  the United States 
D)  the Netherlands

Question 5

_____ and its extensions can help to explain imitative FDI behavior by firms in oligopolistic industries.

Accepted Answer

A)  Internalization theory 
B)  The eclectic paradigm 
C)  The noninterventionist theory 
D)  Knickerbocker's theory 
A)  Internalization theory 
B)  The eclectic paradigm 
C)  The noninterventionist theory 
D)  Knickerbocker's theory

Question 6

A French wind power company gives an Indonesian company the right to produce and sell wind turbines in return for a royalty fee on every unit sold. Which business practice is this an example of?

Accepted Answer

A)  Acquisition 
B)  Licensing 
C)  Exporting 
D)  Greenfield investment 
A)  Acquisition 
B)  Licensing 
C)  Exporting 
D)  Greenfield investment

From the perspective of a firm negotiating the terms of an investment with a host government, the firm's bargaining power is high when the:

According to Knickerbocker's theory:

Why is it said that not all the new jobs created by FDI represent net additions in employment?

The largest source country for FDI has been _____.

_____ and its extensions can help to explain imitative FDI behavior by firms in oligopolistic industries.

A French wind power company gives an Indonesian company the right to produce and sell wind turbines in return for a royalty fee on every unit sold. Which business practice is this an example of?

Globalization

National Differences in Political Economy, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, Corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Regional Trade Pacts Give the Mexican Auto Industry an Edge

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Strategy of International Business

The Organization of International Business

Entry Strategy and Strategic Alliances

Exporting, Importing, and Countertrade

Global Production and Supply Chain Management

Global Marketing and RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters

Exam 8: Foreign Direct Investment

From the perspective of a firm negotiating the terms of an investment with a host government, the firm's bargaining power is high when the:

According to Knickerbocker's theory:

Why is it said that not all the new jobs created by FDI represent net additions in employment?

The largest source country for FDI has been _____.

_____ and its extensions can help to explain imitative FDI behavior by firms in oligopolistic industries.

A French wind power company gives an Indonesian company the right to produce and sell wind turbines in return for a royalty fee on every unit sold. Which business practice is this an example of?

Globalization

National Differences in Political Economy, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, Corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Regional Trade Pacts Give the Mexican Auto Industry an Edge

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Strategy of International Business

The Organization of International Business

Entry Strategy and Strategic Alliances

Exporting, Importing, and Countertrade

Global Production and Supply Chain Management

Global Marketing and RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters