Exam 16: Foreign Direct Investment and Cross-Border Acquisitions

Severe imperfections in the labor market arise from immobility of workers due to immigration barriers.As a response,firms should consider

MNCs have invested in China

Firms become multinational

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

More than fifty percent of FDI in dollar terms

Why do firms locate production overseas rather than exporting finished goods?

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

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

Mergers and acquisitions are a popular mode of investment for firms wishing to protect,consolidate and advance their global competitive positions.Examples include

Once a MNC decides to undertake a foreign project,it can take various measures to minimize its exposure to political risk.These include

In 1992,the Enron Development Corporation,a subsidiary of the Houston-based energy company,signed a contract to build the largest-ever power plant in India,requiring a total investment of $2.8 billion.After Enron had spent nearly $300 million,the project was canceled by Hindu nationalist politicians in the Maharashtra state where the plant was to be built.Which of the following is(are)true?

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

In 1992,the Enron Development Corporation,a subsidiary of the Houston-based energy company,signed a contract to build the largest-ever power plant in India,requiring a total investment of $2.8 billion.After Enron had spent nearly $300 million,the project was canceled by Hindu nationalist politicians in the Maharashtra state where the plant was to be built.Which of the following is(are)true?

Examples of intangible assets include

According to the internalization theory of FDI,

Examples of control risk include

What kind of integration is vertical integration?

When a firm holds assets in many countries,

Country risk refers to

The rapid increase in cross-border M&A deals can be attributed to