MCQ_1

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

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 inable to attract FDI because of the following reasons EXCEPT:
 a) political unrest in the region.
 b) armed conflict in the region.
 c) liberalization of FDI regulations.
 d) frequent policy changes in the region.

• political unrest in the region.

• armed conflict in the region.

• liberalization of FDI regulations.

• frequent policy changes in the region.

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.

The current global FDI trend is only one out of the what follows:

• Among South-South and North-North countries

• Among North-North, South-South, North-South and South-North countries.

• Among South-North countries

• Among North-South countries

Which of the following is NOT stressed in electic paradigm:

• Location advantage

• Internalization advantage

• Internationalization advantage

• Ownership advantage