Multiple Choice
Which of the following theories of FDI assumes imperfect markets?
A) The differential rates of return hypothesis
B) The diversification hypothesis
C) The output and market size hypothesis
D) The industrial organisation hypothesis
Correct Answer:

Verified
Correct Answer:
Verified
Q14: A main shortcoming of the oligopolistic reaction
Q15: Adjusted present value:<br>A) evaluates the project as
Q16: The arguments for FDI include:<br>A) FDI flows
Q17: The net present value method:<br>A) takes account
Q18: The implications of the currency areas hypothesis
Q20: The arguments against FDI include:<br>A) FDI symbolises
Q21: Why might a multinational firm depend on
Q22: The cost of capital is lower for
Q23: The Weighted Average Cost of Capital:<br>A) equals
Q24: The growth of foreign direct investment in