ĐTQT MCQ

Linkage effects to domestic sector are moderate, except the case when:

• Domestic firms try to improve their competitiveness to engage in regional/global production network

• Domestic supporting industries are weak

• Domestic firms operate are at low productivity and obsolete technology

• Local firms’ products are at low quality

The rise in FDI in the services sector is a result of the following EXCEPT:

• the general move in many developed countries away from manufacturing and toward services

• restriction on services.

• many services cannot be traded internationally

• many countries have liberalized their regimes governing FDI in services

Trend in settling disputes by political dialogue between countries accelerates international investment because of the following reasons EXCEPT:

• separate the world into different economic and political systems

•  reduce barriers on goods and production factor flow

•  promote safe investment environment

• broarden economic cooperation between countries

Which of the following is a reason why firms prefer to acquire existing assets rather than undertake greenfield investments?

• Foreign firms are acquired because those firms have valuable strategic assets.

• Firms immediately create new jobs for the host country.

• Greenfield investments are comparatively less risky for a firm

• Mergers and acquisitions are more difficult for firms to acquire strategic assets than greenfield investments

FDI stock is:

• the amount of FDI undertaken over a given period of time

•  the total accumulated value of foreign-owned assets at a given time

• the flow of FDI out of a country

•  the flow of FDI into a country

Africa is unable to attract FDI because of the following reasons EXCEPT:

• political unrest in the region.

• armed conflict in the region.

•  liberalization of FDI regulations.

• frequent policy changes in the region.

Which of the following is NOT a reason why firms prefer to acquire existing assets rather than undertake greenfield investments?

• Foreign firms are acquired because those firms have valuable strategic assets

• Firms can increase the efficiency of the acquired unit by transferring capital, technology, or management skills.

• Even though greenfield investments are comparatively less risky for a firm, acquisitions always yield higher profits

• Mergers and acquisitions are quicker to execute than greenfield investments.

Policy on ownership and investment guarantee of the host country concerns the following EXCEPT:

•  ratio of holding voting shares of a firm in host country by foreign investors

• protect lawful rights and interests of foreign investors/ foreign invested enterprises

•  trade liberalization

•  portion of capital contribution in a project by foreign investors

Process of screening FDI project and issuing investment license is a

• troublesome administrative process

• significant process to accelerate FDI attraction

• process helps to speed up the project operation

•  significant process to select appropriate project.

 Identify the INCORRECT statement regarding the direction of FDI.

• historically, most FDI has been directed to the developing nations of the world

• during the 1980s and 1990s, the United States was often the favorite target for FDI inflows.

• the developed nations of the EU have received significant FDI inflows

• recent inflows into developing nations have been targeted at the emerging economies of South, East, and Southeast Asia.