LIVE QUIZ ABOUT DFI AND MCB

DFI refers to:

• Buying foreign stocks for short-term trading

• Lending money to international banks

• 
  Investing directly in business assets abroad

• Sending remittances from overseas workers

Which of the following is an example of a DFI activity?

• BPI buying U.S. treasury bonds

• Jollibee acquiring Coffee Bean & Tea Leaf

• OFWs sending money home

• A Filipino buying Apple shares online

The primary goal of DFI is to:

• Promote local employment only

• Support government spending

• Reduce foreign exchange transactions

• Increase company value through global expansion

A company that invests abroad to gain access to cheaper production is motivated by:

• Revenue-related motives

• Ethical motives

• Political motives

• Cost-related motives

When a firm invests abroad to reach new customers, its motive is:

• Avoiding competition

• Increasing global revenue

• Gaining political control

• Reducing import taxes

Which factor is usually evaluated before making a DFI decision?

• Economic stability of the host country

• Local weather conditions

• Number of tourist attractions

• Popularity of local sports

Which company best represents a Filipino multinational investor?

• A local hardware store

• A sari-sari store in Mindanao

• SM Supermalls operating in China

• A single branch convenience store

Why would a company diversify its operations internationally?

• To gain government subsidies

• To increase local employment only

• To compete directly with local businesses

• To reduce business risks by spreading investments

A host government encourages DFI when it:

• Raises import taxes

• Discourages foreign competition

• Brings in jobs and technology

• Increases local unemployment

One potential barrier to DFI is:

• Availability of skilled workers

• Excessive bureaucratic procedures

• Simplified tax rules

• Liberal trade policies