Foreign Direct Investment Quiz

What does FDI stand for?

• Foreign Domestic Investment

• Foreign Direct Investment

• Federal Direct Investment

• Financial Direct Investment

What is one of the outcomes of foreign investment mentioned in the slide deck from our class?

• Decrease in productivity

• Increase in productivity for the foreign country

• Increase in local currency value

• Decrease in international trade

What is one of the key features of FDI?

• Investment in local government projects

• Investment in assets or ownership stakes of a foreign company

• Investment in local stock markets

• Investment in infrastructure projects such as transportation

What is one of the main reasons countries seek to attract FDI?

• To decrease employment

• To increase local taxes

• To boost economic growth

• To reduce international trade

What must non-Canadians submit when investing in Canada?

• A Notification or an Application for Review

• A Business Proposal

• A Tax Declaration

• A Financial Statement

Which international organization's membership an advantage when wanting to invest in Canada?

• World Trade Organization (WTO)

• International Monetary Fund (IMF)

• United Nations (UN)

• World Bank

What is the purpose of the Investment Canada Act and Regulations?

• To prescribe legal responsibilities for non-Canadians investing in Canada

• To regulate Canadian exports

• To manage Canadian immigration

• To oversee Canadian environmental policies

Which of the following is NOT a requirement for foreign investment in Canada?

• Submission of a business plan

• Notification or application for review

• Compliance with the Investment Canada Act

• Review of certain investments

What do trade standards often address besides environmental concerns?

• Fashion trends

• Human rights, health, and safety

• Economic policies

• Political alliances

What is the term used for coordination problems due to time differences?

• Time lag

• Synchronization effect

• Time shift

• Time barrier