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WorksheetsUnit 2: Foreign Direct Investment - Group 3
Total questions: 15
Worksheet time: 5mins
_______ influence how international companies operate in host nations.
Tax breaks
Financial incentives
Grant loans
Performance demands
The ____ states that firms undertake foreign direct investment when the features of a particular location combine with ownership and internalization advantage to make a location appealing for investment.
Eclectic theory
International product life cycle theory
Internalization
Market power theory
Which of these are the main reasons that account for the growth of FDI flows over the past decade?
Diversity and globalization
Diversity and telecommunications
Globalization and mergers and acquisitions
Telecommunications
The purchase of physical assets or a significant amount of ownership of a company in another country to gain a degree of management control is referred to as _____
Portfolio investment
Vertical integration
Foreign direct investment
Mergers
In the _______ product stage, the company directly invests in production facilities in those countries where demand is great enough to warrant its own production facilities
New
Declining
Maturing
Standardized
Financial incentives include all of these except
Cash grant
Lower tax rates
Infrastructure improvements
Low-interest loan
In which of these stages is a good produced in the home country because of uncertain domestic demand and to keep production close to the research department?
The new product stage
The standardized product stage
The maturing product stage
The declining product stage
Which of these methods can a home country use to promote FDI?
Outright sanctions
Grant loans
Infrastructure improvements
Ownership restrictions
Which of these is a market imperfection?
Portfolio investment
PI
Greenfield barrier
Trade barriers
Which of these activities is recorded as a reduction in the balance of payments account?
Undertake FDI
Exports of goods and services
Receive FDI
Transfers from abroad
Which of these is a reason for home country intervention in FDI flows?
Receive advanced technology from other countries
Protect their balance of payment
Improve management skills
Job creation
Which of these methods can a home country use to restrict outward FDI flows?
Tax breaks
Sanctions
Political pressure
Performance demands
In 2022, which countries is the largest foreign direct investor in Vietnam?
South Korean
Japan
Singapore
China
Which of these is a reason for host country intervention in FDI flows?
It sends resources out of the home country
Loss of jobs
Access to technology
Increase balance of payment deficit
Applying political pressure is the method of _____ country to ______ FDI.
host – restrict
home – promote
home – restrict
host - promote
