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.
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
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 .
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 …
Executives of business firms see FDI as a way of circumventing future trade barriers.
C. the majority of FDI flows into developed nations are in the form of greenfield investments rather than mergers and acquisitions.
A. The flow of FDI refers to the total accumulated value of foreign-owned assets at a given time.
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. Anderson Corporations acquires at least 75 percent of a company.
A. greenfield investments are quicker to execute than mergers and acquisitions.
C. The United Kingdom and France have historically been the smallest recipients of inward FDI.
Since World War II, the United States has been the largest source country for FDI.
By the early 1990s, the radical position toward FDI was in retreat due to the rise of communism in eastern Europe.
Greenfield investment involves the establishment of a new operation in a foreign country.
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.
A. greenfield investments are quicker to execute than mergers and acquisitions.
A critical competitive feature of an oligopoly is independence of the major players.
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.
A. The flow of FDI refers to the total accumulated value of foreign-owned assets at a given time.
C. The United Kingdom and France have historically been the smallest recipients of inward FDI.
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
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.
D. There has been an increase in the importance of China as a recipient of FDI
FDI by the MNEs of advanced capitalist nations keeps the less developed countries of the world relatively backward.
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:
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:
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.
a rival does not dominate one market and use the profits from there to drive competitive attacks elsewhere.
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.
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.