which of the following statements is true regarding the forms of fdi? course hero

by Jeanie Buckridge II 3 min read

What does the flow of FDI refer to?

1. Which of the following statements is true regarding the forms of FDI? A. In the case of developing nations, more than two-thirds of FDI is in the form of cross-border mergers and acquisitions. B. FDI flows into developed nations show patterns that are remarkably similar from those into developing nations.

What are the two types of controls on inward FDI?

Which of the following is true regarding the inflow of FDI? A. Even though developing nations still account for the largest share of FDI inflows, FDI into developed nations has increased markedly. B. Africa has historically been the largest recipient of inward FDI. C. The United Kingdom and France have historically been the smallest recipients of inward

How do governments encourage inward FDI?

44) Which of the following statements is true regarding the forms of FDI? Mergers and acquisitions are quicker to execute than greenfield investments. Mergers and acquisitions are quicker to execute than greenfield investments .

Does FDI by the MNEs of advanced capitalist nations keep countries relatively backward?

Dec 05, 2017 · Licensing involves granting a foreign entity (the licensee) the right to produce and sell the firm's product in return for a royalty fee on every unit sold. licensing. Question 10 0.5 / 0.5 pts The interdependence between firms in an oligopoly leads to …

What does FDI mean for business?

Executives of business firms see FDI as a way of circumventing future trade barriers.

What is the majority of FDI flows into developed nations?

C. the majority of FDI flows into developed nations are in the form of greenfield investments rather than mergers and acquisitions.

What is flow of FDI?

A. The flow of FDI refers to the total accumulated value of foreign-owned assets at a given time.

What happens when a foreign subsidiary imports a substantial number of its inputs from abroad?

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.

How much of a company does Anderson acquire?

A. Anderson Corporations acquires at least 75 percent of a company.

Which is quicker, greenfield or merger?

A. greenfield investments are quicker to execute than mergers and acquisitions.

Which countries have the smallest FDI?

C. The United Kingdom and France have historically been the smallest recipients of inward FDI.

Which country has the most FDI?

Since World War II, the United States has been the largest source country for FDI.

Why did the radical position toward FDI retreat?

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

What is greenfield investment?

Greenfield investment involves the establishment of a new operation in a foreign country.

What is the meaning of "spillovers" in economics?

Economists refer to knowledge "spillovers" as externalities , and there is a well-established theory suggesting that firms can benefit from such externalities by locating close to their source.

Which is quicker, greenfield or merger?

A. greenfield investments are quicker to execute than mergers and acquisitions.

What is the critical competitive feature of an oligopoly?

A critical competitive feature of an oligopoly is independence of the major players.

Which services lend themselves well to exporting?

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.

What is flow of FDI?

A. The flow of FDI refers to the total accumulated value of foreign-owned assets at a given time.

Which countries have the smallest FDI?

C. The United Kingdom and France have historically been the smallest recipients of inward FDI.

What is the Sphericals approach to international markets?

approach to international markets is to grant a foreign entity the right to produce and sell the firm's product in return for a royalty fee on every unit sold. Sphericals, Inc.'s approach is called

Is licensing more profitable than FDI?

E. Licensing is more profitable than FDI. B. Licensing may result in a firm's giving away valuable technological know-how to a potential foreign competitor. According to internalization theory, one of the drawbacks of licensing is that.

Is China a recipient of FDI?

D. There has been an increase in the importance of China as a recipient of FDI

What does FDI do to the less developed countries?

FDI by the MNEs of advanced capitalist nations keeps the less developed countries of the world relatively backward.

Which countries receive FDI?

There has been an increase in the importance of China as a recipient of FDI. 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:

Why is FDI risky?

FDI is risky because of the problems associated with: doing business in a different culture where the rules of the game may be very different. 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:

Why is it important for a firm to locate production facilities in those countries where the cost and skills of local labor is

Dunning argues that it makes sense for a firm to locate production facilities in those countries where the cost and skills of local labor is most suited to its particular production processes, since labor is not internationally mobile.

What does it mean when a rival does not dominate one market?

a rival does not dominate one market and use the profits from there to drive competitive attacks elsewhere.

What is the interdependence between firms in an oligopoly?

The interdependence between firms in an oligopoly leads to: imitative behavior. 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.

What is the critical competitive feature of an oligopoly?

A critical competitive feature of an oligopoly is the. interdependence of the major players. If one firm in an oligopoly cuts prices, then most likely, its competitors will: also respond with similar price cuts. The interdependence between firms in an oligopoly leads to: imitative behavior.