Chapter 8

FDI occurs when a firm:

Which of the following is an example of a greenfield investment?

Which of the following statements is true about the growth of foreign direct investment in the world economy over the last few decades?

Which of the following factors has had a positive effect on the volume of foreign trade investments?

Which of the following factors has made the United States an attractive target for foreign direct investment?

The stock of FDI is:

The _____ of FDI refers to the amount of FDI undertaken over a year.

Which of the following is the prime reason why Africa has attracted FDI in recent years?

Which of the following summarizes the total amount of resources invested in factories, stores, office buildings, and the like?

Which of the following primarily explains why developing nations are characterized by lower percentage of cross-border mergers and acquisitions compared to developed nations?

When contemplating FDI, why do firms apparently prefer to acquire existing assets rather than undertake greenfield investments?

A French wind power company gives an Indonesian company the right to produce and sell wind turbines in return for a royalty fee on every unit sold. Which business practice is this an example of?

Which of the following specifically reduces the viability of an exporting strategy specifically for products with low value-to-weight ratios?

Which of the following is a way in which governments increase the attractiveness of FDI and licensing relative to exporting?

Identify the theory that seeks to explain why firms often prefer foreign direct investment over licensing as a strategy for entering foreign markets.

In which of the following situations does the internalization theory recommend FDI as opposed to licensing?