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WorksheetsForeign Direct Investment
Total questions: 10
Worksheet time: 10mins
Which of following are examples of foreign direct investments?
Mergers
Acquisitions or partnership in retail
Vertical FDI
Service & Manufacturing
More expansion of foreign direct investment can boost:
Unemployment
Supply
Employment
Money circulation
Which of the following are benefits of Foreign direct investments?
Job creation
Non- improved new technology
Helping countries with limited resources
No difference in government policies
What is Foreign direct investment?
This is when a country makes an investment into a company.
This is when a company makes an investment into a foreign country and has the right to control.
When a domestic country invest into its own companies.
When a foreign individual invest in domestic stock markets
One reason direct investment may be prefered to portfolio is
it fills the savings investment gap.
it doesn't pose a threat to national sovereignty
it doesn't create an outflow on primary income.
it is more long term and stable.
One possible disadvantage of FDI is
transfer pricing and tax avoidance.
interest payments rising.
the DSR rising.
increased foreign ownership.
The developed markets are
USA
Germany.
Singapore
Japan
When firms invest in the same industry overseas as it operate back at home is called...
Vertical FDI
Horizontal FDI
How was the presentation?
Foreign Direct Investment or FDI occurs when a company from one country invests in another country as an effort to secure lasting interest in the other country's enterprises to produce and/market a product or service.
True
False
