Quiz on Foreign Direct Investment (FDI)

Which type of FDI involves a business expanding into a foreign country without changing its core activities?

• Conglomerate FDI

• Horizontal FDI

• Platform FDI

• Vertical FDI

What is a significant advantage of foreign direct investment (FDI) for the workforce in host nations?

• Increased unemployment rates

• Enhanced skill development

• Greater economic instability

• Reduction in local businesses

Which of the following is least likely to attract foreign direct investment (FDI)?

• Strong infrastructure

• High taxation rates

• Skilled labor force

• Stable currency

FDI stands for?

• Fabulous Dollar Invasion

• Foreign Direct Investment

• Find Dollars Immediately

• Fearless Debt Injection

What is a potential negative effect of foreign direct investment (FDI) in host countries?

• Improved infrastructure

• Profit repatriation

• Skill development

• Increased foreign exchange

Practical Knowledge: What is one of the major risks of Vietnam’s heavy reliance on FDI?

• Over-diversification of industries leading to reduced competitiveness

• The crowding out of domestic firms that struggle to compete with FDI companies

• An oversupply of skilled labor, leading to increased unemployment

• A decline in exports due to increased foreign ownership of local businesses

Which country is cited as an example of successfully using FDI to develop its electronics industry?

• Vietnam

• South Korea

• China

• France

What is a key challenge for Vietnam in transitioning from low-value to high-value FDI?

• High corporate tax rates on foreign companies

• A lack of high-skilled labor and advanced technology adoption

• Declining interest from international investors

• Excessive government control over private enterprises

What was the average annual increase in the workforce in Vietnam's FDI enterprises from 2016 to 2022?

• Over 360,000 workers

• Over 300,000 workers

• Over 400,000 workers

• 476,600 workers

Which of the following is a benefit to the host country from Samsung's investment?

• Reduction in industrial zones

• Decreased exports

• Technology transfer and skills development

• Technology transfer and reputation