Host governments use a range of controls to restrict inward FDI. The two most common are: A. monetary restraints and prohibition on investing in certain countries. B. voluntary export restrictions and employment restraints. C. ownership restraints and performance requirements.
D. FDI by the MNEs of advanced capitalist nations keeps the less developed countries of the world relatively backward. E. MNEs exploit their home countries for the exclusive benefit of their host countries. FDI by the MNEs of advanced capitalists nations keeps the less developed countries of the world relatively backward.
When FDI takes the form of an acquisition of an established enterprise in the host economy as opposed to a greenfield investment, the immediate effect is always an increase in the employment. E. A beneficial employment effect claimed for FDI is that it brings jobs to a host country that would otherwise not be created there.
The United Kingdom and France have historically been the smallest recipients of inward FDI. D. There has been an increase in the importance of China as a recipient of FDI. E. Latin America is the least important region in the developing world for FDI inflows. There has been an increase in the importance of China as a recipient of FDI.
A. The flow of FDI refers to the total accumulated value of foreign-owned assets at a given time.
C. the majority of FDI flows into developed nations are in the form of greenfield investments rather than mergers and acquisitions.
Executives of business firms see FDI as a way of circumventing future trade barriers.
When a foreign subsidiary imports a substantial number of its inputs from abroad, it results in a debit on the current account of the host country's balance of payments.
A. Decline in trade barriers has made the fear of protectionist pressures redundant.
A. Anderson Corporations acquires at least 75 percent of a company.
A. greenfield investments are quicker to execute than mergers and acquisitions.