Exam 7: Foreign Direct Investment

Discuss in detail the role entrepreneurs and small businesses play in the expansion of FDI.What are some of the surprises that may face managers as they invest in new markets abroad?

A home country may encourage outflows of foreign direct investment because it ________.

The requirement that a sufficient portion of a product's content must originate within a certain market to escape tariff charges is an example of a ________.

________ is the advantage that arises when a company exhibits superior technical knowledge.

The Mexican maquiladora project was built upon the success of the border project between Germany and Poland.

One method used by host countries to restrict incoming foreign direct investment is ownership restrictions.

Which of the following refers to investments that do NOT involve obtaining a measure of control in a company?

Which of the following created renewed determination to further reduce barriers to trade?

If a Japanese citizen invests in the Australian stock market,the transaction would show up on the capital account of ________.

Canada's share of global inward FDI has _______________ .

If a Canadian company receives payment for consulting services provided to a company in another country,the receipt is recorded in the _____________.

The theory that a company will begin by exporting its products and later undertake foreign direct investment is referred to as the _______________ theory.

Reasons for home nations to discourage foreign direct investment outflows include all of the following EXCEPT that it may ________.

Portfolio investment is the purchase of physical assets or a significant amount of ownership of a company in another country to gain a degree of management control.

Which of the following is LEAST likely to motivate foreign direct investment?

Describe in detail any three management issues involved in foreign direct investment decisions.

Explain the market power theory of FDI,and discuss why the decision whether or not to follow rivals into a new international market is important.

The current account includes income earned on Canadian assets held abroad

At the core of foreign direct investment are international flows of capital.

The ________ represents a country's national accounting system that records all payments to entities in other countries and all receipts coming into the nation.