Exam 7: Foreign Direct Investment

When a Canadian company buys 40 percent of the publicly traded stock of a French company on France's stock market,Canada's balance of payments records the transaction as an ________.

Exports and imports of tangible goods are included in the ________ account within the current account.

Home governments may use which of the following to limit the effects of outbound foreign direct investment?

All of the following are benefits of acquisitions EXCEPT the ________.

A current account deficit occurs when a country exports more goods and services and receives more income from abroad than it imports and pays abroad.

Discuss the market power theory and explain how a company can achieve market power.

All of the following factors of production are internationally mobile EXCEPT ________.

________ is an investment that does not involve obtaining a degree of control in a company.

Which of the following would most likely be used by a host country to restrict incoming foreign direct investment?

Developed countries are the prime destination for foreign direct investment because cross-border mergers and acquisitions are concentrated in developed countries.

Which of the following are main drivers of foreign direct investment?

Exports and imports of computer software,electronic components,and apparel would be reflected in the ________ account within the current account.

Why are R&D costs important to assess when considering FDI? Even given its costs,how can FDI benefit the host country with access to technology,management skills,and employment?

The ________ theory states that a firm tries to establish a dominant market presence in an industry by undertaking foreign direct investment.

The ________ account within the current account includes exports and imports of tangible goods.

When companies realized they could produce in the most efficient and productive locations in the world and simply export to markets worldwide,a new surge of foreign direct investment flowed into ________.

Which of the following is a national account that records transactions involving the purchase or sale of assets?

A market that operates at peak efficiency and where goods are readily and easily available is said to be a(n)________.

A potential problem with a rationalized production model is that a work stoppage in one country can bring the entire production process to a standstill.

Explain the concept of balance of payments and describe its two major components.