Washburn University

BU 355

Chapter 8

1)According to the free market view, how does FDI increase the efficiency of the world economy through MNEs?

2. By placing tariffs on imported goods, governments can increase the cost of exporting relative to foreign direct investment and licensing.

3. Indirect effects of FDI on employment in a host country arise when:

4. Which of the following is true about Dunning's arguments?

5. Radical writers argue that:

6. The strategic behavior theory:

7. The cement market in Erbia is dominated by four firms. These firms control 85 percent of selling and buying of the domestic market. Which of the following terms explains the market structure of the cement industry in Erbia?

8. As an incentive to encourage domestic firms to undertake FDI, many countries have:

9. Which of the following is a reason for the decline in the popularity of the radical view of FDI?

10. QFresh, a brand for energy drinks, launched a healthy lime-based drink without preservatives. Immediately after this another brand, Fast Fizz, which manufactures energy drinks, also announced the launch of a new refreshing drink without preservatives. Then Ignite, a third brand of energy drinks, reduced the price of its apple-based drink. Which of the following is most likely to happen in this oligopolistic market setup?

11. Which of the following is true regarding the pragmatic nationalist view of FDI?

12. The viability of an exporting strategy is often constrained by transportation costs, particularly of products that can be produced in almost any location and have a:

13. The idea behind multipoint competition is to ensure that:

14. Which of the following statements is true regarding foreign direct investment?

15. Which of the following is true regarding the inflow of FDI?

16. To encourage inward FDI, it is increasingly common for governments to:

17. Countries such as the United States, the United Kingdom, France, Germany, the Netherlands, and Japan dominate in the share of total global stock of FDI and FDI outflows and in rankings of the world's largest multinationals because they:

18. Services such as telecommunications, retailing, and many financial services, where the service has to be produced where it is delivered, lend themselves well to exporting.

19. The pragmatic nationalist view is that:

20. FDI is risky because of the problems associated with:

21. Dunning's theory helps explain:

22. The attractiveness of exporting increases in comparison to FDI or licensing when products have a low value-to-weight ratio.

23. The difference between Internalization theory and imitative theory is that:

24. Which of the following is the only way to support a current account deficit in the long run?

25. Which of the following statements regarding the free market view is true?

26. Which of the following is most likely to be the effect of FDI in the form of a greenfield investment on the host country?

27. If one firm in an oligopoly cuts prices, then most likely, its competitors will:

28. By the early 1990s, the radical position toward FDI was in retreat due to the rise of communism in eastern Europe.

29. Governments impose quotas to limit:

30. Which of the following is a home-country policy for limiting outward FDI?

31. Which of the following statements is most likely to be true regarding the adverse effects of FDI on the host country?

32. Mergers and acquisitions differ from greenfield investments in that:

33. 3M, an American firm, manufactures adhesive tapes in St. Paul, Minnesota, and ships the tapes to South Korea for sale. According to this information, which of the following is being done by 3M?

34. A firm will favor FDI over exporting as an entry strategy when:

35. Which of the following statements is most likely to be true regarding the effects of FDI on employment?

36. Why has FDI grown more rapidly than world trade?

37. A computer manufacturing firm from the United States invests in a microprocessor manufacturing plant in Taiwan. This is an example of:

38. Which of the following indicates that a firm has a full outright stake in an acquisition?

39. Direct effects of FDI on employment in the host country arise when a foreign MNE: