FDI #1

The amount of foreign direct investment undertaken over a given time period?

• Stock of FDI

• Flow of FDI

• Outflows of FDI

• Inflows of FDI

The total accumulated value of foreign-owned assets at a given time.?

• Stock of FDI

• Flow of FDI

• Outflows of FDI

• Inflows of FDI

The flow of foreign direct investment out of a country?

• Stock of FDI

• Flow of FDI

• Outflows of FDI

• Inflows of FDI

The flow of foreign direct investment into a country.?

• Stock of FDI

• Flow of FDI

• Outflows of FDI

• Inflows of FDI

A company constructs new facilities from the ground up in a neighboring country is referred to as a ​​ (a)   Investment.

• Greenfield
• Brownfield
• Risk Based
• Green

A company investing in an existing facility to start its operations in a foreign country is referred to as a ​ (a)   investment

• Brownfield
• Risk Based
• Green
• Greenfield

What does FDI stand for?

• Financial Direct Investment

• Financial Domestic Income

• Foreign Direct Income

• Foreign Direct Investment

A brown field investment is a form of market entry commonly used when a company wants to achieve the highest degree of control over its foreign activities.

• True

• False

When firms undertake FDI

• they become MNCs
• a)  they reduce their tax rate since they can tell each country that they do business in that they paid their taxes in other countries.
• a)  the can exploit workers by paying them below-market wages in depreciating currencies.
• a)  all of the above

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

• Shipping costs
• Firms seek to extend corporate control overseas 
• Imperfect factor markets
• All of the above