Foreign Direct Management

The ______ combines the various perspectives of foreign direct investment into a holistic theory.

• tragedy of the commons

• flow of FDI

• eclectic paradigm

• difference principle

Dunning's eclectic paradigm is seen as a useful addition to explaining patterns of FDI because it explains how ______ factors affect the direction of FDI.

• financial

• marketing

• production

• location

Brand wants global consistency. Worst option:

• Exporting

• Licensing

• FDI

• All feasible

A company with a strong brand identity wants to ensure consistent product quality and customer experience across all global markets.  When considering international expansion strategies, which of the following would be the LEAST attractive option for this company?

• Exporting

• Licensing

• Foreign Direct Investment (FDI)

• All of the above could be attractive options depending on the specific circumstances.

What is a greenfield investment in the context of FDI?

• Acquisition of an existing firm in a foreign country

• Establishment of a new operation in a foreign country

• Investment in government bonds of a foreign country

• Purchase of shares in a foreign stock market

What was the main reason for the decrease in Chinese investment in the United States in 2018 and 2019?

• Strengthening economic ties between the two countries

• Political tensions and trade conflicts

• Increased regulatory barriers in the United States

• Lack of interest from Chinese investors

In oligopolistic industries, strategic behavior theory suggests that dominant firms' actions often lead to:

• Immediate responses from competitors

• Delayed reactions to market changes

• Independent decision-making without considering rivals

• Limited effect on Foreign Direct Investment (FDI)

What strategy does Knickerbocker's theory propose for firms in multipoint competition?

• Innovation focus

• Heavy marketing investment

• Price wars

• Copying tasks across markets

True or false: FDI is when a firm invests directly in a foreign market to produce or market a product?

• True

• False

Which country has $149 billion of FDI in 2020?

• China

• USA

• Mexico

• Brazil