Exam 16: Foreign Direct Investment and Cross-Border Acquisitions

Under a 1981 Voluntary Trade Agreement Japanese automobile manufacturers were not allowed to increase their exports to the U.S.market.As a result

Shareholders of U.S.bidders (acquiring firms in M&A)experience significant positive abnormal returns when firms expand into new industries and geographic markets.

The key factors that are important in a firm's decision to invest overseas are

Shareholders of U.S.targets experience higher wealth gains when they are acquired by foreign firms than when acquired by U.S.firms.

Which of the following statements is true about product life cycle theory?

Which of the following is the most disingenuous argument in favor of FDI?

In a push to serve the North American market Samsung,a Korean firm,chose to locate production facilities in Mexico,mainly because

A "Greenfield" investment

North Korea,Iran,and Cuba are examples of

Whether or not cross-border acquisitions produce synergistic gains and how such gains are divided between acquiring and target firms

Following Honda's FDI in the U.S.,

The conflicts between the upstream and downstream firms can be resolved,

While there is no comprehensive theory of FDI,many existing theories emphasize

OPIC is the

When firms undertake FDI,

Country risk

What kind of integration is vertical integration?

Political risk refers to:

Such products as mineral ore and cement that are heavy or bulky relative to their economic values

Firms become multinational