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WorksheetsMCQ_1
Total questions: 21
Worksheet time: 11mins
Linkage effects to domestic sector are moderate, except the case when:
Domestic firms try to improve their competitiveness to engage in regional/global production network
Domestic supporting industries are weak
Domestic firms operate are at low productivity and obsolete technology
Local firms’ products are at low quality
The rise in FDI in the services sector is a result of the following EXCEPT:
the general move in many developed countries away from manufacturing and toward services
restriction on services
many services cannot be traded internationally
many countries have liberalized their regimes governing FDI in services
Trend in settling disputes by political dialogue between countries accelerates international investment because of the following reasons EXCEPT:
separate the world into different economic and political systems
reduce barriers on goods and production factor flow
promote safe investment environment
broarden economic cooperation between countries
FDI stock is:
the amount of FDI undertaken over a given period of time
the total accumulated value of foreign-owned assets at a given time.
the flow of FDI out of a country
the flow of FDI into a country
Africa is inable to attract FDI because of the following reasons EXCEPT:
a) political unrest in the region.
b) armed conflict in the region.
c) liberalization of FDI regulations.
d) frequent policy changes in the region.
political unrest in the region.
armed conflict in the region.
liberalization of FDI regulations.
frequent policy changes in the region.
Policy on ownership and investment guarantee of the host country concerns the following EXCEPT:
ratio of holding voting shares of a firm in host country by foreign investors
protect lawful rights and interests of foreign investors/ foreign invested enterprises
trade liberalization
portion of capital contribution in a project by foreign investors
Process of screening FDI project and issuing investment license is a
troublesome administrative process
significant process to accelerate FDI attraction
process helps to speed up the project operation
significant process to select appropriate project.
Identify the INCORRECT statement regarding the direction of FDI.
historically, most FDI has been directed to the developing nations of the world
during the 1980s and 1990s, the United States was often the favorite target for FDI inflows.
the developed nations of the EU have received significant FDI inflows
recent inflows into developing nations have been targeted at the emerging economies of South, East, and Southeast Asia.
The current global FDI trend is only one out of the what follows:
Among South-South and North-North countries
Among North-North, South-South, North-South and South-North countries.
Among South-North countries
Among North-South countries
Which of the following is NOT stressed in electic paradigm:
Location advantage
Internalization advantage
Internationalization advantage
Ownership advantage
A foreign firm crowding in foreign firms means direct effect, crowding in domestic firms means __________ to the host country. Pleaae fill in the blank with one of the following:
Vertical intergration
Horizontal intergration
Merger&Acquisition
Indirect impact
In a licensing arrangement, the ____________ bears the risk and cost of opening a foreign market. Fill in the blank with one of the following:
Licensor
acquiring firm
License
greenfield investor
_______________________ is also known as the market imperfections theory. Fill in the blank with one of the following:
Internationalization theory
Perfect markets theory
Closed economy theory
Internalization theory
Historically, most FDI has been directed at the ____________nations of the world as firms based in advanced countries invested in____________. Fill in the blank with one of the following:
underdeveloped; underdeveloped countries.
developed; underdeveloped countries.
developed; each other's markets.
underdeveloped; each other's markets.
The _______________________ suggests that a firm will establish production facilities where foreign assets or resource endowments that are important to the firm are locate
Fill in the blank with one of the following:
product life cycle
strategic behavior theory
multipoint competition theory
eclectic paradigm
The U.S. has been an attractive destination for FDI because of the following reasons EXCEPT:
a) its small and unwealthy domestic market.
b) its dynamic and stable economy.
c) its favorable political environment.
d) its openness to FDI.
its small and unwealthy domestic market.
its dynamic and stable economy.
its favorable political environment.
its openness to FDI.
Three FDI cost concerns of host countries arise from the following EXCEPT:
debit on the current account of the home country's balance of payments.
adverse effects on competition within the host nation.
adverse effects on the balance of payments.
the perceived loss of national sovereignty and autonomy.
If Viettel, a Vietnamese corporation, purchased a 60 percent interest in of a Laos’ company, that purchase would be an example of a (n):
a) minority acquisition.
b) full outright stake.
c) majority acquisition.
d) greenfield investment
minority acquisition.
full outright stake.
majority acquisition.
greenfield investment
FDI is undertaken to serve the home market is known as:
a) greenfield investment
b) FDI substitution
c) home market FDI
d) offshore production
greenfield investment
FDI substitution
home market FDI
offshore production
_____________is one of the measures of the host country to attract FDI inflow. Please fill in the blank with one of the following:
a) Construction of Economic Zones and Export Processing Zones.
b) Changing macroeconomic policies in the Home country
c) Signing international aggreements
d) Opening the economy.
Construction of Economic Zones and Export Processing Zones.
Changing macroeconomic policies in the Home country
Signing international aggreements
Opening the economy.
John Dunning, a champion of the eclectic paradigm, argues that:
the firms that pioneer a product in their home markets undertake FDI to produce a product for consumption in a foreign market.
combining location-specific assets or resource endowments and the firm's own unique assets often requires FDI.
a firm of an oligopolistic industry expanding into a foreign market causes other firms in the industry to make similar investments.
impediments to the sale of know-how increase the profitability of FDI relative to licensing.
